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Shock over finances at Perthshire caravan site

Aberfeldy Caravan Park has made net losses of over £170,000 over the past five years.
Aberfeldy Caravan Park has made net losses of over £170,000 over the past five years.

The scale of losses incurred by a council-run caravan site in Highland Perthshire were described as “shocking”.

The true state of the finances of Aberfeldy Caravan Park was revealed at a meeting of the council’s environment committee, when it was announced that the site had made a net loss of £173,435 over the past five years approximately £34,700 per year.

In November the same committee had agreed to advertise the caravan park for lease on the open market after councillors were told it had lost £21,784 over the previous five years, or £4,500 per annum.

Committee convener Councillor Alan Grant said that the adjustment of figures was “regrettable” and that “staff were very sorry”.

The committee was told that the true figure had been arrived at once “central service support and directorate and admin charges” provided by the council were factored in.

These charges have to be attached to the running of the site to keep the auditors of the finances of the council happy.

Councillor Callum Gillies said he was bemused by this turn of events.

“I find these figures quite shocking,” he said.

“Why have we waited until now? Why has this not been flagged up before? Other councils have sites that pay their way why is this so different?”

Barbara Renton, deputy director of the environment service, pointed out that the costs to the council had been cut back, but said it was a “complex issue”.

The site was of value to the economy, with 50% of local bed nights in the summer attributed to the caravan park.

The site has been hit by flooding in the past and Councillor Dennis Melloy asked if the council could do something to alleviate the problem and make it more attractive to a prospective operator.

Mr Grant said he thought the council would be reluctant to undertake capital work to counter flooding and added that there had been expressions of interest in the site.

Mr Melloy wondered if the local authority should be trying to run a caravan park at all.

“This should be a bit of a gold mine, “ he said.

“We are not in the caravan business we need a professional in there to make a profit.”

Councillor Tom Gray said the losses were “not as drastic as some might say” if the impact on providing bed nights to the tourist economy was taken into account.

The committee agreed to take the new figures on board and proceed with the advertising of the caravan park for possible lease.