Leisure call-in reveals true cost of insourcing

A Liberal Democrat ‘call-in’ of Haringey’s decision to bring control of leisure centres in-house has revealed that the cost is £700,000 per year higher than using a specialist provider to run the service.
 
When the original decision was taken no financial comparison was provided, and an external consultants report that looked into the options was not presented to the Cabinet as part of the decision making process.
 
The Lib Dem opposition welcomed Haringey’s previous decision to take control of the borough’s failing leisure centres away from Fusion, who have failed to keep the facilities up to the required standard, but wanted the council to consult residents on whether they would prefer the council to take over the running of leisure centres directly, or to appoint a new company to manage the service. Lib Dems were also asking for a proper comparison between the options to be produced before a final decision was taken, to ensure that best value for money is achieved.
 
The papers produced for the call-in finally revealed the difference in cost between the options, presenting a significant financial risk to the council at a time of already stretched budgets. 

The Overview and Scrutiny Panel also heard from the Park Road Lido User Group at the call-in meeting, who once again raised their serious concerns with the decision: suggesting that the Lido could be vulnerable to closure if the council had to make further cuts in a future budget.
 
However, Labour councillors on the Scrutiny Panel voted not to refer the decision back to Cabinet, meaning that insourcing will go ahead without consultation of residents.
 
Cllr Alessandra Rossetti (LD-Alexandra Park), Opposition Spokesperson for Council & Customer Services, said:
“It is crazy that Labour councillors took this vital decision on the future of our leisure centres without having all the facts, and I am proud that action from the Liberal Democrat opposition has revealed the cost of insourcing to our residents. The council should not be taking any decisions without properly considering whether they provide value for money to our local taxpayers, and while I am disappointed that Cabinet won’t have the chance to re-examine their decision in light of the full facts, at least these figures are now in the public domain.”