Agenda item

Following scrutiny, members supported the recommendation outlined in the draft Cabinet report

The Director of Education, Leisure & Lifelong Learning provided members with an overview of the report contained within the agenda pack.

 

Members asked for clarification regarding the statement made, that Trade Unions were of the opinion that insourcing was unaffordable.

 

The Director of Education, Leisure and Lifelong Learning confirmed that the statement was correct. The Trade Unions have indicated they would like to see the staff enhancements in option C but understand that insourcing is unaffordable.

 

Members asked for clarification that the decision to ask Celtic Leisure for an extension to the contract was made by Cabinet Members.

 

The Director of Education, Leisure and Lifelong Learning confirmed that the decision was made by Cabinet.

 

Members referred to page 18 of the report and the reference made to details of the working groups, members enquired if meeting minutes were available. Members enquired whether there has been any progress made in driving down costs and increasing income as previously discussed and agreed when the decision was made in 2022.

 

The Head of Leisure, Tourism, Heritage and Culture confirmed that notes were taken at the working group meetings. The working group have examined the insourcing costs by each individual budget line, during the review process some costs were changed. There is confidence that the figures are as accurate as possible.

 

Members referred to the penultimate paragraph on page 18 of the report, and asked for confirmation that in January 2024, cabinet members and officers met the trade union to officially inform them that leisure services would not be insourced in April 2025. It was noted that Council members were not informed of any changes at that time.

 

The Director of Education, Leisure and Lifelong Learning confirmed that information around the delay in insourcing Celtic Leisure was provided at the end of 2023; a meeting was held with Celtic Leisure staff and Trade Unions in January 2024.

 

Members referenced page 19 of the report and asked whether there had been any consideration to potential savings that could be realised by the co-location of services or sharing of resources in the insourcing model.

 

The Head of Leisure, Tourism, Heritage and Culture confirmed that savings are made when they are identified.  Longer term opportunities for savings will not be realised in the short term. It was noted that none of the proposed options would affect this, and the negligible savings identified will not make a material difference.

 

Members referred to option 2 on page 21 and asked how resilience has been improved within the Celtic Leisure senior leadership team.

 

The Head of Leisure, Tourism, Heritage and Culture confirmed that the company position had improved, particularly from a trading perspective.  There have been some changes at leadership and board level and members of the board possess the relevant skill set required for the efficient running of the business. The recruitment of a new Chief Executive Officer is planned.

Members asked for further detail of how an investment fund could drive growth. It was noted that poor staff morale could impact the capacity for growth.

 

The Head of Leisure, Tourism, Heritage and Culture advised members that it was expected that the new Chief Executive Officer would bring forward a report on how the investment fund could be utilised. The investment fund would be held by the council and released when there was a satisfactory business case going forward.

 

The Director of Education, Leisure and Lifelong Learning advised members that any business case for investment being brought forward, would need to satisfy members, and drive income streams or reduce costs. The aim is to make the business more sustainable, reduce the burden on taxpayers and ensure job security.

 

Members asked the Cabinet Member, if it was the intention for Celtic Leisure to present the business case to the scrutiny committee for transparency.

 

The Cabinet Member for Nature, Tourism, and Well-being stated that no decision has been made yet. It is expected that there will be a greater amount of performance monitoring, within proposal options 2 & 3. The Chief Executive Officer would be expected to attend scrutiny committee.

 

The Head of Leisure, Tourism, Heritage and Culture confirmed that the intention was for tighter performance monitoring between the council and Celtic Leisure going forward.

 

The Chair asked what the potential increase in council tax, to all residents, would be if Celtic Leisure was insourced in the current financial climate.

 

The Director of Finance confirmed the potential increase in Council Tax would equate to 2% for all residents.

 

Members wished to ask questions on the private part of the report.

 

Members proposed and seconded access to meetings.

 

Resolved: to exclude the public for the following item(s) pursuant to Section 100A(4) and (5) of the Local Government Act 1972 and the relevant exempt paragraphs of Part 4 of Schedule 12A to the above Act.

 

Resolved: to suspend access to meetings

 

Members made a request that the Leader be included in recommendation (b) in addition to the Cabinet Member for Nature, Tourism and Wellbeing & Director of Education, Leisure and Lifelong Learning.

 

The Director of Education, Leisure and Lifelong Learning confirmed that the Cabinet would be made aware of the request at an appropriate time.

 

Following scrutiny, members supported the recommendation outlined in the draft Cabinet report