A councillor has voiced concerns that West Lothian Council is in danger of becoming a “cash cow” for the crisis-hit Xcite leisure centres.
Opposition SNP councillor, Frank Anderson, called for West Lothian Leisure to be “taken back in-house” after council officers said that a further £500,000 would need to be pumped into the arms-length operator of the county’s leisure centres.
Councillor Anderson said: “If we give West Lothian Leisure half a million pounds, they are still going to be half a million short. Are we just a cash cow?”
In a report to the council’s executive, head of finance, Donald Forrest, said that the £500,000 announced as contingency funding in August would now need to be paid.
His report added: “As the financial year has progressed and further information has become available regarding the impact of these continuing restrictions on WLL’s financial position, it is now evident that the contingency of £500,000 will be required by WLL and council executive is asked to agree that this sum can now be paid to WLL to help manage their cash flow during these unprecedented times.”
Mr Forrest told the meeting that the WLL management team were looking at a range of options to balance their budget.
That range was going to be made more difficult with the renewed three-week closure order imposed.
He added that the WLL management would meet with council finance officers by the end of the month to present their proposals.
WLL has been struggling for almost two years.
A re-profiling of management fees last year gave the operator an £800,000 breathing space. Sports facilities have been closed for most of the year by the Covid pandemic, only adding to the financial woes.
Last month, the council’s executive agreed a “letter of comfort” to the WLL effectively promising financial support if it balanced its books.
That letter of comfort “clearly set out” what the council expected from the management team, added Mr Forrest.
Councillor Anderson raised an amendment to the proposed cash bailout and called for management of the leisure centres to be taken in house by the council. This was backed by fellow SNP member Councillor Willie Boyle, who asked whether WLL could be considered “fit for purpose”.
The amendment was defeated by nine votes to two.
