News

Hopes for two new modern sports centres for the district hang in the balance this week. Partners in the plan to deliver a new centre for Hythe and one for Folkestone were told on Tuesday (20 February) that the Department for Culture, Media and Sport (DCMS) could not approve the release of the PFI credits - awarded for the project in 2003 - based on Shepway District Council’s current business case.

The council’s Chief Executive, Alistair Stewart, told members of Shepway Council, Folkestone Sports Centre Trust and Hythe Town Council that the DCMS believed there were ‘significant and fundamental’ issues with the project that looked unlikely to be resolved by simple ‘tinkering.’

“Risks to the DCMS as a funding authority are too great and as a result it is unable to support proceeding on the basis set out in our draft business case,” he told a meeting of the PFI steering group.

He said the DCMS shared the council’s concerns about affordability but had greater concerns over whether the project was viable and could be delivered as proposed and to the agreed timetable. 

“The DCMS has given the council and its partners a 10-day ‘cooling off’ period but has made it clear that if a viable alternative case for the agreed £10m PFI credits, and the additional credits of £1.9m, is not found in that time they will be withdrawn,” said Mr Stewart.

The meeting was told that the DCMS’s major concerns centred on the role proposed for the Folkestone Sports Centre Trust in the project. 

“Although the DCMS encourages partnership working, we were told that it is not happy that a partner has such a key day-to-day role in delivering and running this project,” he said.

A ‘Heads of Terms’ agreement drawn up between the council and the Trust gives the Trust a final say in the facilities to be provided in Folkestone’s new centre and the opportunity to be involved in the day-to-day monitoring of the new facilities. 

“The DCMS says fundamental changes to these agreements are needed,” said Mr Stewart.

He described the news from the DCMS as a ‘major disappointment.’ 

“We have always tried to accommodate everything our partners want. All three partners signed up to the business case, which included the Heads of Terms.” 

The council now has until 1 March to see if an alternative case can be put forward for the PFI credits.

“We have outlined the response from the DCMS to our partners. It is crucial that Folkestone Sports Centre Trust considers what has been said. We will not be in a position to make any further comments until we have heard back from the Trust,” said Mr Stewart.

Cllr Carole Waters, Cabinet Member for Leisure, Sport and Tourism, said: “I am obviously very disappointed. We will all now be working to see if we can keep the PFI on track. 

“Whatever happens, this is not the end of the road. We have already set aside significant capital for the project and we will look at alternative ways of using it to fulfill our commitment to deliver sports facilities - even if this has to be outside the PFI funding system.”