© South Wales Evening Post - 22 August 2005
Swansea Council today admitted it might have to cut spending and borrow cash to deliver the city's new £25 million leisure centre. The council's spending programme for the next four years includes using the expected £11.5 million for the sale of land in Gorseinon to supermarket chain Asda for a new store.
But when asked by the Post if the sale was key to the viability of the leisure centre project council bosses said no, adding that they could borrow money or cut spending in future years to balance the books instead.
The city's projected capital budget, the cash for delivering projects like new buildings and roads, for the next four years lists a total of £90.8 million expected expenditure.
The council has projected generating around £33 million through selling off Swansea's assets over the next four years, with more than a third expected to come next year when the Asda deal goes through.Swansea's cabinet has agreed to sell land to the supermarket giant subject to the company getting planning permission for the new store.
If they don't it could scupper the deal and leave a £11.5 million hole in the council's spending plans.
A council spokesman said that the authority's spending plans were subject to a rolling review and that the Asda deal was not vital to plans for the leisure centre.
When asked by the Post where the money would come from if the deal fell through, he said: "The Council is now able to use its prudential borrowing powers to even out short-term fluctuations in the capital programme.
"Furthermore, expenditure commitments beyond 2008/9 could be constrained in order to minimise any strain in funding the programme."
That raises fears for the long-term effects of reopening the leisure centre which closed in November 2003.
It shut suddenly after a report deemed it dangerous and a hazard to the public and staff.
An investigation blamed poor maintenance for the deterioration of the popular foreshore facility, and led to a further, still ongoing, investigation into former leisure chief David Evans.
The centre had been briefly earmarked for demolition before council leader Chris Holley announced plans to refurbish and reopen the centre at a cost of around £25.7 million.
Exact details of what will be included in the new centre have not been finalised, increasing concerns that any financial problems could lead to the scheme being scaled back.
Councillor David Phillips, leader of Swansea's Labour group, said: "From our perspective, the comments confirm that the Lib-Dem led administration is depending hugely on selling off assets, for example land at Gorseinon, to finance their capital spending plans up to the next election.
"If they don't get the planning permission then they will have to borrow another £11 million or cut the equivalent amount for the programme."
