‘Key concerns' about Denbighshire Leisure sale in new report
Research commissioned by public service union UNISON, and carried out by the Association for Public Service Excellence (APSE), also criticises the lack of transparency in Denbighshire County Council's consultation and competitive tender processes.
Denbighshire Leisure Ltd (DLL) was in the process of being sold to Merseyside-based private equity firm River Capital for £1.5million, but it was confirmed on April 30 that the investor has now pulled out.
At a behind-closed-doors meeting on March 26, council members voted 25-18 in favour of selling DLL.
UNISON claims the 17-page report – which has been met with a critical response by DLL and branded 'one-sided' – shows the decision-making process behind the sale was 'fundamentally flawed'.
It has sent the report to every Denbighshire councillor and has urged them to ensure the council retains control of its leisure facilities.
UNISON Cymru regional organiser, Tony Jones, said: 'This report destroys the credibility of the decision-making process around the sale of Denbighshire's leisure facilities.
'It will be uncomfortable reading for some. But residents will question whether decisions were being made in their best interests and who was going to benefit most from the sale.
'The council spent huge sums of public money refurbishing these leisure facilities but then failed to explore all the options before deciding to privatise them.
'Now the original sale has collapsed, councillors should ensure they have a controlling interest in leisure facilities.
'Every penny spent on leisure in Denbighshire should be for the benefit of local people, not handed to company shareholders looking to make a quick buck.'
UNISON's 10 'key concerns' about the sale process were:
In response to the report, DLL hit back and labelled it 'one-sided' and 'misinformed'.
The company maintained it 'should not be relied on by any other party', and added that the report has 'not had any legal verification and does not offer any legal advice or validation'.
A spokesperson for DLL said: 'Also stated in the report is that it was created based solely on information provided from UNISON, without any access to the proposal in detail.
'To provide proper appraisal, they would need more information from the council and DLL themselves.
'UNISON themselves hold an ideology that public services should run all services. This is clearly not a sustainable position for Wales, when councils are struggling for money across the board on health, leisure and education.
'Maybe UNISON are aware of a 'magic money tree' that exists in Welsh Government that councils themselves are unaware of.
'Had such a report been accurate and a mandate for change, the leisure picture in Wales would surely look very different and not so bleak for every local authority.'
Denbighshire County Council said it was not approached by either the ASPE or UNISON for input into the report.
A council spokesperson said: 'If the council had been approached, we would have been able to address a number of the issues that are raised within the report, upon which the council has received its own independent, external professional advice.'
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