Clwyd Leisure transfer proposals 'progress'
- 24 January 2014
- From the section North East Wales
Proposals to transfer three seaside leisure sites to Denbighshire council is "progress" says the authority, but questions remain about the workforce.
The council said it could not take on the sites from Clwyd Leisure without sorting out that issue first.
Clwyd Leisure employs 70 permanent and 55 seasonal workers at Rhyl Sun Centre, Prestatyn's Nova Centre and the North Wales Indoor Bowls Centre.
The trust is in trouble after the council withdrew £200,000 of support.
Clwyd Leisure was set up by Denbighshire council in 2001 to run facilities on its behalf.
Trustees of the not-for-profit organisation have been holding talks with the authority for months, but the council's cabinet recently decided to withdraw financial support due to concerns over the way the organisation was run.
Last week the trust said it may have to consider going into liquidation.
But on Thursday the trust said its directors had agreed a new proposal to "relinquish and hand back to the council the leases for the Sun Centre, Nova and North Wales Bowls Centre on 1 February".
The transfer would include all site and support staff "save for members of staff required for an orderly closedown of the company".
On Friday Denbighshire council released a statement saying the offer from Clwyd Leisure was "progress", but questions still remained.
"It remains unclear how they intend to deal appropriately with their workforce, something which has been and still is our main concern," said the council.
"The reason cabinet did not agree to take on ownership of the company and leases is because of the huge liabilities around staffing, with many staff without employment contracts, and appropriate checks etc.
"We also want a detailed breakdown of the way they are allocating their cash reserves during the process of winding up the company as we want to make sure the best use of money provided by the council and that it is being used appropriately during the process.
"Until such time as the company can provide us with clarity on how they intend to resolve these employment issues with the workforce, the council is still not in a position to fully agree to this proposal."
In response Clwyd Leisure confirmed it had received "what appears to be a positive letter" from the council.