Opposition councillors in South Ayrshire are demanding evidence of that the amount of money being spent on next September’s revived airshow is appropriate.
The call in process, which lets members examine decisions made by the Conservative administration, was made by SNP councillor William Grant, backed by three party colleagues.
It suggests the agreement to spend £300,000 a year for five years lacks sufficient detail outwith the contractual arrangement with strategic partner SKYLAB.
Council leader Martin Dowey said he felt the responses to a previous query on the show had provided detail and was ‘disappointed’ that the councillors had not simply asked council officials for details directly.
The call in states: “The paper proposes the Council host an Airshow for five consecutive years at a total cost of £1.5m. However, the costs outlined appear only to be the payment to the partner organization and take no account of the costs of operating the event village.”
Officials stated that they hoped the event could break even from the outset and potentially make a profit.
Cllr Grant’s call in states: “Evidence is requested on the anticipated income streams that would realise the break-even position in year one suggested by portfolio carriers during the meeting.”
The administration response states that officers are working on proposals for an event village and the ‘use of various commercial opportunities to generate income from the event itself’.
Officers are also developing proposals for sponsorship packages along with charity partner the Royal Air Force Benevolent Fund.
The response adds: “Having reviewed previous financial statements from the company who previously delivered an air show, officers are confident that we will be able to reach a break even or income generation level over the first few years.
The call in then asks: “What assurances are factored into the initial funding that will ensure that over time the event will move towards being self-sustaining, and why would this still necessitate a flat rate £300k expenditure by the council for each of the five years?
The administration responded: “The contract we have entered into allows for a break in contract after year two. This will allow us to continually assess our income maximisation from the event and plan accordingly with the intention of reaching break even or income generation over the first few years.
“There is significant financial outlay required in advance of the event itself and having a base budget of £300,000 allows the required deposits and payments to be made.”
Cllr Grant’s notice then asks: “Should income projections prove to be unachievable, what risks have been assessed in SAC’s ability to fund this event for the full five years, given other increasing pressures?”
The response from the administration said: “The previous organisers of the airshow were given an annual grant of £250,000 to run the airshow. The increase of this budget to £300,000 reflects the potential increase in costs. This requirement will be reviewed annually as part of the budget process.”
Cllr Grant also queries the level of assessment in ensuring the event benefits the whole of the town centre and not just the immediate event at the Low Green.
The call in concludes with a questioning of the measures to maximise the benefit to local business and ensure significant footfall throughout the town centre.
The administration responded: “It is the council’s intention to engage with local businesses to ensure that they are able benefit from the event by either being involved in the village itself, providing accommodation, or promoting their businesses through our website.
“We anticipate that the event will be delivered over three days – a Friday evening VIP event, the main event on the Saturday, with the village event still running into the Sunday to maximise the time that people can spend and encourage overnight stay.”
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