Agenda item

To undertake scrutiny of issues relating to the Leisure Management Contract Arrangements ahead of further consideration of the Contract by Cabinet in September 2020.  This matter was referred to overview and scrutiny committee by Cabinet at its meeting on 14 July 2020.  Attached is the report considered and agreed by Cabinet.  Further information will be circulated in advance of the overview and scrutiny committee meeting.

The committee heard from Councillor Rebecca Lury, deputy leader and cabinet member for culture, leisure, equalities and communities and Rebecca Towers, Director of Leisure.  The committee also heard from David Bibby and Mark Basker, representatives of Everyone Active, Sue Harding, service user of a number of leisure centres and Paul Stokes, Head of Programmes, Public Health.

Following the introduction of the report, members asked questions of the cabinet member, Director of Leisure and representatives of Everyone Active.  Questions were asked around the following:

·  Performance of contract pre-covid - Better understanding of why some of the council objectives were not being met.

·  Granting of money during period closed in the context of not meeting all council objectives and dividends being taken from company.

·  Conditions put around the funds allocated to SLM?

·  Assurances sought around ensuring that the council is getting what it is paying for and that money is being spent as it should be.  Also that not going to get drop off in performance if contract is going to come to an end.

·  Castleview Events Limited and their consideration and contributions to SLM in light of their significant turnover.  Why council contribution only option?

It was clarified at the meeting by David Bibby that Martin Bell received £2m dividends from Castleview (not £15.5m).  David also reported that Mr Bell would not draw any further dividends until such time as things were back on track.

·  Discussions being held with London Councils, other local authorities and government around keeping leisure centres open.

·  Provision for some form of clawback mechanism if it transpires that further dividends have been paid within the next financial year.

·  Questions around users of the service, including particular target groups, such as people from low income families and people with ill health.

·  Information requested in respect of year on year contract performance targets and outcomes for each specific area to enable comparison about how the contract has been delivered from 2016 up to March 2020 (start of lockdown).

·  Question around leisure service contract being delivered jointly with other local authorities via charitable trusts or other cooperative models.

It was agreed that consideration be given as to whether this issue come back to overview and scrutiny committee or whether answers to questions outside of the meeting would be sufficient.