At last night’s full council meeting, although sporting a thin agenda, the evening saw many questions being raised, both by members of the public and councillors.
Several questions regarding the current arrangements at the Riverside Centre were directed to Leader of the council, David Pugh, and Cabinet member for Resources, George Brown.
Dissatisfaction with answers given
It appeared to us during the meeting that those asking the questions were less than satisfied with the answers provided.
We thought it would be helpful to publish the written questions presented by Cllrs Welsford and Bacon on the subject, along with the replies, which had been prepared in advance by Cllr Pugh. He kindly send us an electronic copy this morning to share with readers.
Statement from the Board of Trustees
Cllr Pugh started by saying, “As the thrust of the questions I have received has implied criticism of the Council’s approach in dealing with the Riverside Centre, I feel it would be useful to open my response by quoting from a statement I have received today from Shirley Smart, the Chair of the Board of Trustees of Riverside Centre Ltd.”
“The Riverside Centre Ltd has no criticism of the Council in its current negotiations and is working with the Council to resolve any remaining difficulties. We are keen to support the Council in ensuring the centre continues to be used for its core purpose and have confidence that this is the best way forward for our clients.”
Cllr Welsford later responded, stating that his questions (below) were not intended as criticism, but genuine concern about the current situation.
Here follows the questions asked and their answers for all to see.
Cllr Welsford Q1
Can you please explain to me on what grounds, other than the terms of the lease, you justify stopping the Riverside Centre from making bookings that contribute to their ability to remain financially viable?
Cllr Pugh response
The trustees of the Riverside Centre have already recognised that their current business model is not financially viable. That is why the Council is in discussion with the trustees about the future of the Centre, with a particular focus on the building once again becoming a centre predominantly for the benefit of those with a disability and their carers.
As part of these discussions, it has been agreed between both parties that in the short term, the building should only be used in accordance with the current lease. At the request of the trustees, the Council is advising on which potential bookings are unlikely to be in line with the terms of the current lease and would be likely to inhibit the development of an alternative business model that may involve other voluntary / community sector organisations.
Cllr Welsford Q2
Have you abandoned your previously espoused policy of ensuring that facilities for the disabled not only serve their disabled clients but also “trade” commercially to ensure they remain financially viable, placing as little financial burden as possible on the hard pressed council tax payer; the alternative being closure?
Cllr Pugh response
We remain of the view that such facilities, where appropriate, should “trade” commercially to generate income to support their core activities. However such trading activities should not be to the detriment or exclusion of potential activities that would be more likely to meet the core aim – which in this case is as a multi-purpose centre for the disabled.
Indeed, the taxpayer funds other local organisations (currently hosted elsewhere) that provide services in support of the stated objective of the Riverside Centre building. There is the potential for better value-for-money being achieved in these organisations if they can deliver services from within the Riverside Centre building as opposed to having to pay commercial levels of rents for less suitable premises elsewhere.
To answer the second part of your question, the pluralistic approach I have outlined would be likely to minimise the risk of closure or unviability amongst a wide range of organisations providing services to such clients, thereby reducing the financial burden on the hard press council taxpayer to whom you refer.
As I have already stated, the trustees of the Riverside Centre have concluded that their current business model is not viable, even within the existing arrangements, so the status quo is not in the best interests of either them, the taxpayer, the local authority or the clients who use the facility and access similar such services elsewhere.
Cllr Welsford Q3
By implication, what you appear to be doing suggests that in your view the Riverside is failing to serve the disabled community by engaging in too much “trading activity” with the able bodied community and that by applying the terms of the lease you feel you are ensuring that the Riverside does what it was originally set up to do: serving the disabled. Is this a fair summation of your position?
Cllr Pugh response
As I have already stated, such trading activities should not be to the detriment or exclusion of potential activities that would be more likely to meet the core aim – which in this case is as a multi-purpose centre for the disabled.
Cllr Welsford Q4
If this is the case then can you point to some examples of where the Riverside Centre has failed to support disabled people, in preference for enabling events undertaken by the able-bodied?
Cllr Pugh response
The Council has recently completed an audit of the building. We are now in discussion with the Trustees regarding its future use and reviewing the current occupancy. We are keen through our discussion to ensure that other organisations that support the vulnerable within our community are able to access the Riverside Centre facilities on favourable terms.
Cllr Welsford Q5
Please would you explain to members, the extent to which the Riverside Centre is a burden on the Council’s finances?
Cllr Pugh response
The Riverside Centre is a Council asset. The current rent of £54k per annum is a considerable reduction on what would be a commercial rent level, which means that the Riverside Centre has been receiving a significant “subsidy” when compared with similar organisations. The lower rent reflected the position of the core purpose of the building contained within the lease.
If the Council, in discussion with the Trustees, is able to secure more effective use of the building in support of a wider range of organisations that provide services to disabled clients, then we may be able to offer not just more integrated services but ones which provide better value-for-money for the taxpayer.
Cllr Welsford Q6
What prevents the Isle of Wight Council, agreeing to vary the terms of the lease, to allow commercial activities for the able-bodied which would enable the financially successful operation of the Riverside Centre to continue?
Cllr Pugh response
There is nothing to stop the Council varying the terms of the lease, but it is our considered view that this should only take place on a basis that is seen to contribute to the Council’s priorities and is broadly consistent with our approach to the leasing of other Council-owned buildings. Our sole aim is to secure this Council asset for the purpose for which it is intended.
Cllr Welsford Q7
Can we please also request that the lawfully determined Policy that is being used to determine the response and actions that are being taken, in respect of the Riverside Centre, is described and explained by the portfolio holder at tomorrow’s Full Council meeting?
Cllr Pugh response
The council is the landlord for the Riverside centre and, as I have stated, the Centre is a council asset which we will seek to maintain for its core purpose.
Cllr Bacon Q1
In respect of the Riverside Centre, what is the current booking policy for the centre, who is responsible for the operation of the booking policy and could a copy be provided to members who wish to see it? Why is it the case that the policy is apparently changing and what plans do the current leadership have for the future of the Centre in 2013 and beyond? Further, will the leader give a commitment to supporting the Riverside Centre continuing to be used as an important resource for all members of the community?
Cllr Pugh response
Firstly, I refer Cllr Bacon to the statement released by the chair of the board of Trustees and to the answers I have provided to Cllr Welsford.
As I have already indicated to Cllr Welsford, as part of the current discussions with the trustees about the future of the building, it has been agreed between both parties that in the long term, the building should only be used in accordance with the current lease. At the request of the trustees, the Council has been giving a view as to which potential bookings are unlikely to be in line with the terms of the current lease and would be likely to inhibit the development of an alternative business model that may involve other voluntary / community sector organisations.
You ask what the Council’s plans are for the future of the Centre in 2013 and beyond. Our plans are clear. We wish to see the Centre once again become a facility principally for the benefit of the disabled, and we are confident that this is something which will be welcomed amongst the wider Island community. We will be, with the Trustees, holding consultation event in early 2013 when the views of the current users and potential new users can be sought. If the Council is able to achieve, in partnership with others, an enhanced use of the building for this purpose in 2013, this will be a positive and worthwhile outcome for everyone who has an interest in this building being used for the original ambitions that its founders had.
Finally, Cllr Bacon asks me to provide a commitment to supporting the Riverside Centre continuing to be used as an important resource for all members of the community. I certainly can provide such a commitment. The Riverside Centre is a well-used facility which should continue to be made available for the wider community of the Island, particularly if such wider use helps the delivery of services in support of its core aim. But this does not mean that the Centre should be prioritised for wider use to the potential exclusion of activities that would be directly in support of its original stated purpose. And that is why we are determined to see a more appropriate balance of usage being achieved, which is more in keeping with the spirit of what was originally intended. This will require some difficult decisions over the coming weeks and months but we consider that this will be to the longer-term benefit of disabled users with a wide range of needs using the facilities, alongside other Island residents.
Image: © Riverside Centre
