Creating a charity to take over leisure and cultural services in Dundee has saved £1.7 million, its managing director has announced.
Swimming pools, libraries, golf courses and sports centres have all been run by the arms-length organisation since it was set up two years ago by the city council.
It was also given responsibility for some of the city’s best-known buildings, such as Camperdown House and wildlife centre, the McManus, Caird Hall, the Mills observatory and Broughty Castle museum.
Much of its savings have come through cutting staff numbers, but Leisure & Culture Dundee has also benefited from rules on charities that have slashed its rates bill something that was not possible for the council.
Its managing director Stewart Murdoch believes it is in good shape, although he has admitted that being dependent upon visitor numbers means it could be difficult to ensure people on low incomes can still afford to attend events.
He said: “Despite reductions in staffing, the opening hours, service usage performance and key performance indicators have all been sustained at broadly the levels achieved when services were being directly delivered.
“In some areas there have been significant improvements in services. These reflect investment decisions taken previously by the city council, ie the decision to build a new entrance, incorporating a cafe and educational facilities, at the Camperdown wildlife centre.”
Another addition to Leisure & Culture Dundee’s portfolio will be the new Olympia Centre, which is due to replace the existing building in the summer.
Mr Murdoch said: “The flexibility shown by staff in embracing change has contributed to its impressive results over the first operating period. There appears to be strong understanding within the organisation of its social purpose and the benefits of operating at arms-length while retaining strategic links to the local authority.”
A report on its financial performance will be presented to councillors next week. This shows that a net saving of £1.3 million was made in 2011/12, half from job losses and half from the rates bill. In the current financial year there have been more reductions in headcount and budget efficiencies.
Although it has done well so far, Mr Murdoch remains cautious. He said: “As a charitable organisation with a high dependency on income generated from its customer base, Leisure & Culture Dundee’s business model remains vulnerable to change in market conditions.
“Going forward the organisation will require to balance its social and charitable objectives with its business objectives.”
Its annual report for 2011/12 shows its income was £9.4m.