Running of council-owned sporting facilities set to be taken over by not-for-profit social enterprise in April
FROM April 1 a new not-for profit social enterprise will take over the running of council-owned sporting facilities in North East Lincolnshire.
Lincs Inspire, whose board comprises seven elected councillors, will eventually be responsible for delivering £10 million worth of leisure, sport, tourism and cultural services on behalf of the local authority.
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INSIRED CHOICE: Craig Moran, left, has been unveiled as the man who will be running Lincs Inspire. He is pictured with leader of North East Lincolnshire Council Councillor Chris Shaw and right, Councillor Mick Burnett. Picture: Abby Ruston
The Grimsby Telegraph asked council deputy leader Mick Burnett, the portfolio holder for tourism and culture, why the new company has been established.
QWhat is the purpose of the new company Lincs Inspire?
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A The over-arching intention behind the development of Lincs Inspire is to create an organisation with a very clear focus on supporting the key priority of improving health and wellbeing. This is a holding position that enables the council to transfer existing leisure services from its current contractor into a new not for profit organisation.
The new company will drive forward the delivery of leisure, sport, tourism and culture in North East Lincolnshire. A not-for-profit social enterprise can be much more flexible in the way that services operate and will be able to work more closely with all sectors, including private businesses and community groups, to provide facilities our communities want and deserve.
QWhy has the council decided to form a new company to run leisure services instead of managing them itself?
A For the reasons above, we wanted a flexible model that enabled us to do things better, more effectively, and to be able to explore new ways of working. As a holding position this enables the council to continue to develop opportunities for a more mixed economy approach to sport, leisure, tourism and culture.
We want to create a vibrant sector that is not wholly reliant on public funding. Lincs Inspire will provide the flexibility needed to unlock new opportunities, including joint ventures, mixed public and private sector delivery and great opportunities for third sector and community involvement, too.
Lincs Inspire provides a vehicle for change, and as a not-for-profit organisation any profit generated will be reinvested in the services it delivers.
QWhat are the advantages of using a social enterprise as opposed to a private company such as current leisure provider SLM?
A The social enterprise model of management means that Lincs Inspire Ltd will be a not-for-profit company that embraces both social and environmental values.
Lincs Inspire will operate independently of the council for the delivery of all day-to-day services and activities. It will actively seek to work with local providers and, where possible, provide local opportunities for training and development, alongside encouraging residents to lead more active, healthy and fulfilling lifestyles. Any profit generated through Lincs Inspire will be reinvested into the company to help to achieve these aims.
QHow will this new company be held democratically accountable?
A As an independent company, Lincs Inspire will operate through a board of directors for all day-to-day operations and decision making.
The board has been appointed and includes seven councillors. The board has appointed a general manager, Craig Moran, to head up Lincs Inspire and together they will drive the company forward and develop services and facilities that are efficient, effective and above all, value for money.
As a wholly owned subsidiary of North East Lincolnshire Council, Lincs Inspire will be required to report through to Cabinet and scrutiny on its performance and achievements. As the company is funded by the council it is still required to follow all the relevant governance associated with public finance and procurement and, therefore, will be producing annual accounts and financial forecasts.
QHow will the new company be funded?
A As noted above, the council will continue to fund the services included within Lincs Inspire. Given the tough financial challenges we face, there will also be a requirement for Lincs Inspire to contribute to the overall pressure on council budgets. The benefit for Lincs Inspire is that as an independent company they can explore a wide range of options to achieve either savings or increased income generation. The newly appointed board of directors will be considering how savings can be achieved in the coming weeks.
QOne reader has contacted the Grimsby Telegraph to ask if the council will have shares in the new company. Can you clarify the situation?
A Lincs Inspire, being a wholly owned council company, is a company limited by guarantee.
The company will appoint at least one member as defined by and for the purposes of the Companies Act and (at least) one member will have a nominal £1 shareholding.
8 Comments
by stujaffray
Sunday, January 27 2013, 11:08PM
“Is anyone out there "inspired" by Cllr Shaw and his controlling ways , seems like Jack Horner he wants his finger in every pie !”
by davel60
Saturday, January 26 2013, 6:54PM
“I wonder if I paid £1, they would come up with a package and pay me to bring the Floral Hall back to life.”
by davel60
Saturday, January 26 2013, 6:46PM
“I wonder if I paid £1, they would come up with a package and pay me to bring the Floral Hall back to life.”
by ErnieBrown
Friday, January 25 2013, 8:07PM
“I'm sorry for being so vague Beagleyes......I should've said Ward Councillors (WC's)”
by ErnieBrown
Friday, January 25 2013, 2:50PM
“Will the £10 million budget to cover Leisure, Sport, Cultural Services and Tourism be enough when the expected cost of the brand new and shiny swimming pool is £8 million?”
by ErnieBrown
Friday, January 25 2013, 2:36PM
“Are the WC's, who've been given the opportunity to buy their way onto a board of directors for the princely sum of £1 and will be in control of NELC's Leisure, Cultural Services, Sport and Tourism budget of £10 Million, going to stand down in favour of other standing WC's if they get voted out at the next local elections? or are they going to be in control of these service budgets until they themselves choose to stand down?”
by Beagleyes
Friday, January 25 2013, 2:31PM
“But still one has not answered the blinding question .......
How meny staff will be made redundant and who will foot the bill - Inspire or Nelc
Perhaps a bit of transparency would help”
by ErnieBrown
Friday, January 25 2013, 1:30PM
“Who are the WC's on the board and are they all Labour WC's?”
by LiamGar
Friday, January 25 2013, 12:13PM
“couple of points "as a not-for-profit organisation any profit generated will be reinvested in the services it delivers."
How does this then go hand in hand with "a requirement for Lincs Inspire to contribute to the overall pressure on council budgets."
How can all the profits be reinvested if theres a requirement to contribute to council budgets?
NELC used to have the BEST Leisure Dept in the country, it used to offer fantastic facilities and great opportunities in sport to thousands of locals, NELC then decided to disband it???
Instead of starting a new company just start a new Leisure Department, call it what it is, forget fancy titles, boards, chairpersons etc.
My 2nd point is exaclty how much are the councillors on the board getting paid? I assume they are not doing it for the love of the job.
However Craig Moran is a very good choice for the guy in charge, he's very experienced and will do a good job. Now lets hope he can control the Board!”