Contact: Bevis Ingram, ext 7508 and Mike Wickenden, ext 6007

1. Background

1.1 At the Executive Member - Recreation and Heritage decision day on 28 February 2002 a budget monitoring report for 2001/02 was considered.

1.2 The Executive Member decided, in accepting the report, that members of the Recreation and Heritage Policy Review Committee should be appraised of the management action taken to offset the losses that had accrued in the first half of 2001/02 due to the foot and mouth outbreak.

1.3 A copy of the report considered on 28 February 2002 is attached at Appendix A.

2. Financial position

2.1 A forecast overspend of £376,000 for 2001/02 was assessed in September 2001 and reported to the Executive Member in October. Restrictions were very firmly in place affecting key facilities over the spring and summer period, most notably Staunton Country Park, Manor Farm Country Park and the Welsh Mountain Centres. Most other sites in the countryside and outdoor services suffered income loss in the first three months of the year particularly during the very lucrative Easter period. The forecast overspend was made up as follows:

2.2 Although the three key facilities already mentioned were not able to open fully until the autumn much of the service set about recovering markets and laying on additional events to attract the public back into the countryside during the summer. Some additional costs were incurred in laying on these events but at many sites flexible working arrangements had enabled managers to "bank" seasonal hours from what had been, by necessity, a quiet start to the trading year. By calling in these hours later in the year site managers were able to maximise income at a time when the public were looking to access facilities after an enforced dormant period of activity in the countryside. The co-operation and flexibility of staff was crucial and once again demonstrated their commitment and professionalism in taking advantage of a potential financial crisis and using their skills to seek to minimise the overall impact.

2.3 The Cabinet recognised the very difficult situation facing Recreation and Heritage and this lead to a resolution by the Executive Member for Policy and Resources to underwrite up to 50% of the anticipated overspend at the closing of the 2001/02 accounts. In his budget speech to County Council on 21 February 2002, the Leader stated that "any final overspend on Recreation and Heritage from the Foot and Mouth epidemic when the accounts are closed" will be met from reserves. In response the officers continued to take prudent management action to minimise the final overspend.

3. Management action

3.1 In addition to the steps taken by the Countryside Service to organise additional events managers also took further action where it could be proved that there would be no reduction in the level of service provision. It was also important that the action did not in any way restrict management's ability to re-launch the Countryside. In summary the measures were:

3.2 When added to the £32,000 of additional income offset by additional event costs of £7,000 the total value of savings achieved through prudent management action in the Countryside Service is £74,000.

3.3 In the Outdoor Service the enforced closure allowed a reduction in the engagement of visiting instructors which helped to reduce the eventual loss. Staff at the Welsh Mountain Centres were also able to refurbish the centres to save future maintenance costs. Staff were also deployed to other Outdoor Centres in Hampshire to assist with groups who had been diverted to Calshot and the Tile Barn Centre. This action had a developmental impact on staff who were able to learn new skills and share expertise with colleagues across the service.

3.4 A reduction of £28,000 in the net overspend has been achieved by the Sport and Community Service. £14,000 of income arose from increased business at Calshot and Tile Barn as groups were offered alternative packages in-county together with some new commercial customers at the Beaulieu Centre. Additionally the Welsh Mountain Centres were able to hire out equipment locally to other groups in areas not affected. Members will recall that our centres were opened and then immediately closed due to an outbreak on adjacent land. This prolonged the closure period significantly but it is pleasing to report that business since the beginning of 2002 has been higher than usual and the Centres are virtually fully booked already for the coming season.

3.5 Expenditure savings to the value of £14,000 were achieved as follows:

3.6 A small saving of £3,000 is forecast at Calshot. This figure could have been higher but additional income from school courses has been used to fund essential service improvements in the recently refurbished Schneider Hangar.

3.7 The additional income and savings made total £105,000 as follows:

3.8 The total forecast overspend due to foot and mouth disease is therefore now £271,000.

4. Conclusion

4.1 The Foot and Mouth outbreak hit the countryside and outdoor services particularly hard. However, through a combination of staff commitment and ingenuity, corporate financial support, prudent financial management and a measure of good fortune the services have succeeded in rising to one of the toughest challenges faced in recent years.

Recommendation

That members of the Recreation and Heritage Policy Review Committee endorse the action taken to minimise losses incurred through the foot and mouth outbreak whilst continuing to deliver front line services to the public.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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