Link4Life MD explains cuts

Craig McAteer

Following the defeated Liberal Democrat amendment to Labour budget proposals regarding Link4Life, Managing Director Craig McAteer has written to colleagues to update them on Link4Life's intentions regarding budget cuts it is being forced to make...

Dear Colleagues,

I thought I would update you after last night’s Council meeting to set the Council budget for 2011/12 which required savings of approximately £64 million, which as I understand it is the second highest in Greater Manchester.

The Council budget had a number of amendments from the Liberal Democratic Group, in particular the one reflecting our company efficiency proposals was:

That the revenue estimates be agreed, subject to the addition of a further resolution

Such:-

That the Council puts pressure on the Link4Life board to ensure that an equitable spread of efficiencies is made between Arts and Heritage, Neighbourhood and Communities and Sports budgets. Currently the proposal is to save £430,000 from the Arts and Heritage budget but only £135,000 from the Neighbourhood and Communities Budget (Sports). If the current proposals go forward the Council’s arts and heritage service will virtually cease to exist. Rochdale will be the first AGMA Council to officially delete its arts service and lock away its proud heritage.


Proposed Councillor Wera Hobhouse

Seconded Councillor Irene Davidson

The above amendment was debated by all parties but was defeated and therefore we will be implementing our efficiency proposals and start formal consultation on Phase 3 from 1 March 2011.

I would like to confirm to colleagues, given the above motion, how we have arrived at the efficiency savings and the areas affected.

In 2007 RMBC Cabinet considered our detailed capital programme report which was designed to improve a number of facilities as detailed in the table below. The company agreed to deliver the capital programme over a 25 year period which provides the Council with over £19 million of efficiency savings from within the Sport and Leisure service of Link4Life.

The majority of the programme has now been completed and will culminate with the opening of the new Central Leisure Centre in Rochdale Summer 2012. As part of this programme the company has already returned efficiency savings back to RMBC in its sports and leisure budgets with £118,500 in 2009/10 and £212,100 in 2010/11. This has required a reduction in the sports and leisure budgets of over £330,000.

The company will continue to return efficiency savings back to the Council over the length of the contract to meet the borrowing requirements of the capital build. We have already signed up to deliver further efficiency savings of over £230,000 in 2012/2013 when the new Central Leisure Centre comes on stream.

The company, having already signed up for over £19 million of efficiency savings, was asked by RMBC for further efficiencies due to the Council requirement to reduce their budget by over £64 million. After the Council budget was set last night we have a further £402,000 to deliver and start formal consultation on phase 3 of £83,000.

I would also like to reassure colleagues that there is no suggestion that the Arts and Heritage Service will cease to exist although this proposal will mean the closure of Touchstones for 11.5 hours a week. The Trust will continue to ensure that the care and conservation of the collections is retained and that Touchstones will be maintained as a quality assured visitor attraction in line with company and Council priorities.

The reduction of £347,000 from Arts and Heritage (in 2011/12) is regrettable but given the significant financial challenges it is necessary. The table below clearly shows it is certainly not disproportionate which has been repeatedly reported.

This is a challenging time for all colleagues from within the Company, other partners and RMBC with unprecedented savings and austerity measures, the likes of which I have never witnessed in my entire career.

I would like to personally express my sincere thanks to all colleagues who have worked tirelessly to ensure we provide the best service to our customers throughout this difficult period and as always please contact me at any time if you need any clarification regarding the implementation of the efficiency programme.

Kind regards

Craig McAteer