Minutes:
Representatives from Alive Leisure presented the Panel with information on their fees and charges review. The presentation provided information on the budget deficit that Alive Leisure may face in the future and detail of proposals that Alive Leisure would be presenting to their Board to address the potential deficit
Three Options on how Alive Leisure could implement changes to their fees and charges were presented and the Panel, along with Alive Leisure’s preferred option of implementation. The Panel was requested to provide their feedback on the options presented and was informed that Alive Leisure would come back to the Panel at a future meeting once detailed proposals had been drawn up and the relevant consultation had taken place.
The Chairman thanked the representatives from Alive Leisure for attending the meeting, and invited questions and comments from the Panel as summarised below.
Councillor Fraser commented that she felt that the increase proposed for family swimming was high as she felt that swimming was an activity that appealed to all. Tommy Goode commented that it was hoped that the proposed changes to fees and charges were to make it a ‘level playing field’ in that all the pay to play sporting activities would be similar prices.
Councillor Smith felt that most of the prices proposed were reasonably affordable and by making all the pay to play activities a similar price it may encourage people to try different sports. Tommy Goode explained that a lot of research had been conducted whilst looking at the different options available to Alive Leisure. He reminded those present that Alive Leisure Card holders would still get a discount on activities.
The Vice Chairman, Councillor Bambridge asked what effect the changes to concession charges would have. Tommy Goode explained that Alive Leisure would lose some income on this, but felt that it was the right thing to do. It was explained that the proposal was for existing members to be protected and the changes in fees would apply to new members.
The Portfolio Holder for Culture, Heritage and Health, Councillor Mrs Nockolds commented that she felt that the Trust had worked well and provided a high quality service. She did not, however, feel that the Trust should focus on increasing fees, and instead should be working to encourage new members to join and addressing health issues. She felt that work should be carried out to ascertain why some people did not use the facilities and what could be done to encourage them to take up sport.
Councillor Mrs Nockolds referred to the importance of the health and wellbeing of residents of the Borough and how sport should remain affordable and accessible to all; it should not be considered a luxury. She also felt that low prices would be restricted to members and if you did not have an Alive Leisure card you would have to pay higher prices. Councillor Mrs Nockolds acknowledged the struggles that Alive Leisure faced, but felt that their top priority should be to improve the health and wellbeing of residents and to make sports accessible to all.
Tommy Goode explained that work would be carried out to look at why people did not engage in sports. He explained that Alive Leisure had applied for grant funding to support outreach programmes and by increasing income they could then look at additional activities and engaging with the community.
Councillor Mrs Nockolds referred to the other activities run by Alive Leisure, such as the Corn Exchange and asked if any proposals to increase income in those areas would be forthcoming. The Chief Executive of Alive Leisure, Simon McKenna explained that the cost of shows at the Corn Exchange were often predetermined by the promoters. He explained that Alive Leisure and Alive Management had established a Joint Board which would draw up proposals for reviews and efficiencies in other areas which would then be presented to the Alive Leisure and Alive Management Boards.
The Leader of the Council, Councillor Long commented on the proposals for the increases in pay to play activities, such as swimming. He explained that the increase could put families off coming swimming as it could work out cheaper to do an alternative activity, such as going to the cinema. Councillor Long explained that he appreciated what Alive Leisure were trying to achieve but he felt that they should not try and compete with the other gyms in King’s Lynn and instead should prioritise encouraging better health and involvement in the community. Tommy Goode provided an explanation on the proposed swimming prices including family tickets and concessions.
The Portfolio Holder for Environment, Councillor Devereux commented that it was difficult to comment on the proposals without being provided with information on the demand for the service, the capacity and the impact that an increase in fees was likely to have on usage of the facilities. Tommy Goode agreed to provide these statistics at the next meeting.
The Vice Chairman, Councillor Bambridge referred to outreach work in the community and Tommy Goode explained that holiday activities had been offered at South Lynn, but no one had turned up. Activities in North Lynn and funded programmes had also been provided, however local take up had not been high. Tommy Goode referred to the outreach work which Alive Leisure hoped to provide in the future and hoped that this would encourage better attendance.
Councillor Bambridge informed the Panel that she was on the Surestart Board and she promoted the activities available to the Board as they were often unaware. In response to a question from Councillor Bambridge, Tommy Goode explained that consideration would be given to the type of activities offered out in the community to try and encourage engagement.
The Chairman, Councillor Sampson expressed concern at the level of increase of fees and charges and reiterated the comments relating to the importance of health and wellbeing in the Borough. His concern was generally supported by the Panel. The Chairman asked what Alive Leisure would do if the Panel did not support the proposals as set out in the report. The Executive Director for Commercial Services, Chris Bamfield explained that it would be important for the Panel to have sight of the breakdown of charges, attendance details and the projected impact on income and usage if the increase was introduced. He felt that swimming was the most readily available activity in the Borough, but was subject to the highest increase in fees in these proposals, which could have a significant impact on usage.
The Executive Director explained that the Trust was an independent organisation, but were in contract with the Council on the level of service to be provided. He felt that if the increases proposed were in line with inflation then there was unlikely to be any concerns. However, some of the proposed increases were well over the levels of inflation and it was explained that the Borough Council’s Management Team would respond to the proposals in writing.
The Chairman of the Trust, Peter Lemon explained to the Panel that Alive Leisure were a Registered Charity and therefore had to be independent. If they were seen to be controlled by the Council then there was a risk that they could lose their charitable status which would result in the tax efficiencies being lost. He explained that even though the Borough Council was Alive Leisure’s biggest funder they could not dictate how the service was run. Peter Lemon also commented that Alive Leisure did not have control of many of their costs, for example wages, which had gone up nationally, and had resulted in an increase in their cost base. He explained that if Alive Leisure did not react and look at ways to generate additional income they would eventually be in a negative budget position.
The Chairman of the Trust acknowledged the concerns raised regarding the proposed increase in swimming fees, but he felt that fees were currently very cheap. He explained that at the moment there was a complex web of costs within Alive Leisure and the intention was to simplify the price structures. It would be important to do this before moving to an online booking system.
Michael Andrews from Alive Leisure explained that Charities could not run at a deficit. Alive Leisure was a ‘not for profit’ organisation and any surplus achieved would be used to increase the offer, improve facilities and look at outreach programmes.
The Chairman, Councillor Sampson explained that he understood the challenge that Alive Leisure faced, but he did not support the proposed increase in swimming fees. He felt that Alive Leisure needed to rethink some of their proposals and where their priorities should lay and he looked forward to seeing what they would come back with at the next meeting.
RESOLVED:
(i) Generally the Panel did not support the proposed increase in fees and charges above the rate of inflation.
(ii) The Panel’s comments would be considered by Alive Leisure and a further report on fees and charges would be presented to the next meeting of the Environment and Community Panel on 4th January 2018.
(iii) Any other comments or questions on the report could be directed to Alive Leisure in advance of the next meeting.
(iv) That the statistics as requested by the Panel on breakdown of charges, attendance details and the impact on income and usage should the fees be increased to be presented to the next meeting.