Councillors have described plans to overhaul sport and leisure in Aberdeenshire as a multi-million “tax avoidance” scheme which they must be ready to embrace.
Last week, local authority chiefs revealed details of the biggest shake-up of leisure in the region for a generation with a proposal to put the service in the hands of a charitable trust.
The arms-length organisation would be in charge of swimming pools, libraries and other community buildings as part of a £15million annual contract.
Consultants Ernst and Young have estimated the council could save as much as £1million in VAT and rates payments every year by handing the services over to a new charity exempt from some taxes and fees.
Yesterday, members of Aberdeenshire Council’s education and leisure committee met at Woodhill House to consider the proposal and concluded it was an opportunity which they should endorse.
Democrat Independent and Green Group member Martin Ford said: “It’s a tax avoidance scheme – the biggest financial advantage accrues from not paying taxes we would otherwise pay.
“It can also generate income and has the opportunity for more proactive management.
“The disadvantage is clearly the loss of direct accountability.”
Mr Ford added that although he was not “attracted” to any plan which would impact public finances overall, he recognised that 30 other councils already took advantage of arms-length organisations.
However, he urged the council to hold off spending a further £300,000 on a full business case until a full public consultation was held.
Committee vice-chairman Charles Buchan, SNP, added: “We would save money, but we’re also looking at the sustainability of the service.
“If we don’t do this or find a different mechanism, then somewhere along the line, we may run into problems.”
The creation of a charitable trust, which would mirror Sport Aberdeen, was one of five options considered by Ernst and Young.
The others included maintaining the current service and an “enhanced status quo” which would improve services, but cost the council more.
Yesterday the committee ruled out creating either a public-private partnership or a private enterprise. They also agreed to ring-fence the community learning and development service out of any future trust.
Councillors have recommended to the full council that a public consultation be held.
