Not-for-profit plan could save £500,000

LEISURE and cultural services in Warrington could be run by new, not-for-profit organisations in future – saving in the region of £500,000.
A report is to go to the borough council’s executive board detailing the potential changes – and how they could go hand-in-hand with the opening of the new Orford Park Neighbourhood Sports Hub next year.
Two not-for-profit organisations would take over the running of the council’s leisure centres, libraries and cultural services like Pyramid and Parr Hall and Warrington Museum, if the idea gets the go-ahead.
The main benefits would include:
* Securing the delivery of these services in the town while saving £500 000
* Attracting external funding not currently available to councils to improve facilities and the range of services on offer
* Giving residents more say in how services are delivered in their local area
* Delivering more services from a single site as already seen in Woolston Neighbourhood Hub and Orford Park
* Responding better locally to the specific needs of residents.
If these plans are approved the buildings and assets would remain with the council and a board of trustees, which will include borough councillors and Warrington residents, would be set up to give each organisation its strategic direction.
The day to day management of these services and all current staff who work in them would transfer out of the council’s employment and into that of the two new organisations.
It is anticipated this new way of working will enable the trusts to attract greater financial backing to invest in the modernisation of services and facilities for users in the future.
Cllr Kate Hannon, (pictured) the council’s executive member for leisure, community and culture, said: “The trusts will be not-for-profit organisations so there are significant financial savings to be had. The trusts would also be able to apply for grant funding to improve buildings and facilities, which the council currently cannot. We are under major financial pressure and that means we have got to look at how we can still improve while making efficiencies.”
She added: “Getting this off the ground will require a lot of work but I must stress that we are committed to protecting local jobs and ensuring we continue to deliver quality leisure and cultural services to our residents.”
The proposals have also been verified by external experts who have significant experience of working on similar projects with other local authorities and hold the same view that major benefits can be gained for residents in this move to trust status.

Sha on 16th October 2011 2:11 pm 2:11 pm

“The proposals have also been verified by external experts who have significant experience of working on similar projects with other local authorities and hold the same view that major benefits can be gained for residents in this move to trust status”.

I doubt that statement will be of any reassurance to the people of Warrington in the light of the continued employment by the council of other so-called ‘experts’ who can’t even fulfil statutory obligations!

Their viewpoint is certainly not one which is commonly held. Giving his opinion on the use of Private Finance Initiatives Robert Winnett, Deputy Political Editor, The telegraph warns “NHS hospitals ‘crippled’ by PFI scheme”

Patient care is under threat at more than 60 NHS hospitals which are “on the brink of financial collapse” because of costly private finance initiative schemes, the Health Secretary will warn.” he goes on to explain “Taxpayers are having to pay more than £200billion for schools, hospitals and other projects whose capital value is little more than £50 billion” and says “Companies who run PFI schemes boast profit margins of up to 71 per cent on the projects,……..” He also describes how “A temporary NHS chief executive was paid £387,000 for 141 days in the job at a hospital trust which had a deficit of millions of pounds.”

There are very many others who share Robert Winnet’s viewpoint. Craig Murray, a former Embassador is one who gets straight to the point. He says “The idea that by giving private companies and bankers huge extra financing profits from public sector capital investment, you can deliver more cost effective public services, was always self-evidently nuts.

PFI is, like the banking bailout, a further example of the way the political class use the power of the state to transfer money from ordinary people to the super rich.”

9 Comments

Silver Surfer on 15th October 2011 8:20 am 8:20 am

Look what a mess we are in after denationalising our services,( gas, water, electric etc)

These things are expensive enough and beyond the reach of some already. I dread to think how the charges would escalate. Whichever company runs these things, they still have to balance the books and won’t be subsidised by the ratepayer.

Can I assume that our council tax will reduce proportionately?

council tax payer on 15th October 2011 9:25 am 9:25 am

I thought that was what we had at the moment – a Not For Profit Organisation – running our facilities. This is yet another backward step in service delivery for the residents of Warrington. However, it couldn’t get any worse that it is now. Once upon a time Warrington used to be at the forefront of Leisure provision. It seems that “elected” Councillors have already made up their minds about this. When is there going to be any democratic consultation about this with the Public? As more and more services are given away we wont need either Councillors or Officers at WBC. Now that really will save us money!

Inky Pete on 15th October 2011 11:43 am 11:43 am

The key to the savings here seems to be the transferring of staff out of council employment, probably because a proper management would address the woeful productivity and absenteeism endemic in the public sector as a whole.

Lookingfromafar on 15th October 2011 12:11 pm 12:11 pm

Maybe they should be called “not for loss” organisations. With regards to democratic consultation, you have elections each year, the majority of people don’t vote.

Cleopatra on 15th October 2011 1:34 pm 1:34 pm

How’s about a not for profit council!? Think of the millions we would save then!

Sha on 16th October 2011 2:11 pm 2:11 pm

“The proposals have also been verified by external experts who have significant experience of working on similar projects with other local authorities and hold the same view that major benefits can be gained for residents in this move to trust status”.

I doubt that statement will be of any reassurance to the people of Warrington in the light of the continued employment by the council of other so-called ‘experts’ who can’t even fulfil statutory obligations!

Their viewpoint is certainly not one which is commonly held. Giving his opinion on the use of Private Finance Initiatives Robert Winnett, Deputy Political Editor, The telegraph warns “NHS hospitals ‘crippled’ by PFI scheme”

Patient care is under threat at more than 60 NHS hospitals which are “on the brink of financial collapse” because of costly private finance initiative schemes, the Health Secretary will warn.” he goes on to explain “Taxpayers are having to pay more than £200billion for schools, hospitals and other projects whose capital value is little more than £50 billion” and says “Companies who run PFI schemes boast profit margins of up to 71 per cent on the projects,……..” He also describes how “A temporary NHS chief executive was paid £387,000 for 141 days in the job at a hospital trust which had a deficit of millions of pounds.”

There are very many others who share Robert Winnet’s viewpoint. Craig Murray, a former Embassador is one who gets straight to the point. He says “The idea that by giving private companies and bankers huge extra financing profits from public sector capital investment, you can deliver more cost effective public services, was always self-evidently nuts.

PFI is, like the banking bailout, a further example of the way the political class use the power of the state to transfer money from ordinary people to the super rich.”

paralegal on 16th October 2011 8:42 pm 8:42 pm

Until we are told precisely how the £500,000 is to be saved, the idea should be treated with caution. If the N-4-P organizations are in the private sector, they will be looking to make a profit for their services, so how will they do so under this scheme? We need more details on this proposal.

widnesman on 16th October 2011 11:15 pm 11:15 pm

So, privatisation via the back door. All the hallmarks of Warrington Borough council`s latest method of working.

The local electorate will soon see through it and give them a kicking via the ballot box!!

Canadian abroad on 17th October 2011 10:23 am 10:23 am

If any of you above bother to read the actual report rather than just the press you would see that the £500,000 saving is a actually very simple as charities do not have to pay full business rates, and Councils do….. Perhaps we should transfer all Council services to charities and not for profit organisations and reduce the size of the government. This is exactly what happened in Canada in the 1990’s and has been a success.