Charlotte Varcoe
MOUNT Gambier City Council’s plans to privatise the operation of the Wulanda recreation hub are well advanced and existing businesses are concerned that the playing field won’t be level as ratepayers may be subsidising it.
Council chief executive Sarah Philpott revealed to The Border Watch last week that council was in the process of finalising a contract with a private operator for the $57.5m facility.
Mount Gambier privately owned sporting facilities are concerned that the private operation of the hub will result in unfair competition.
Squashbrook Fitness and Leisure owner Simon Brook said he was concerned about the recent development due to an already flooded market.
“I believe the original recommendation was not to put a fitness facility into the centre, however that has changed,” Mr Brook said.
“I think that is done to try and find a way to fund the massive losses that will come from running a large aquatic facility.”
Council has previously estimated that the running cost of the hub would be $1.4m each year.
Mr Brook said, despite the community originally “screaming” for an indoor pool facility, the centre has now developed into a large community centre.
“There is already a big market presence of private enterprise in our industry so it is a bit concerning that the council’s centre will also be privately operated,” he said.
He said there are government requirements that council facilities are required not to unfairly impact private businesses.
“If the centre runs at a loss, council can just extract more funds from its constituents whereas, if we run at a loss, we go out of business, so I don’t think we are on a level playing field at all.”
Mr Brook said the private operation of the facility reflected a “lack of regard” for existing operators, especially for private enterprises across Mount Gambier.
“There will be a commercial rent arrangement for someone to come in and manage their facility, we don’t know what that will look like and we don’t know what will happen when they have decided on someone,” he said.
“We do want to know what kind of facilities they are actually going to install and what they are going to charge because then, and only then, will we understand exactly what we are up against.”
Owner and operator of SwimSkool Mount Gambier, Vivienne Peate said there was also going to be an impact on her business as well.
“Obviously with a new facility there will be an impact on my business but how big of an impact is an unknown quantity until the facility is up and running,” Ms Peate said.
“I haven’t been contacted by the council with regards to the impact the centre will have on my business and I think the council would say that it doesn’t have to do so.”
Ms Peate said she was not surprised to find out council had been speaking with private operators and it was her assumption that would happen from the beginning.
“All I can do is run my business to the best of my ability and offer the best product I can, whether it be swimming lessons, aqua aerobics, lap swimming or more and hope my customers remain loyal,” she said.
Elected members discussed the management and operation of the centre in confidence during this week’s monthly meeting.
Ms Philpott said council was in the final stages of negotiating a contract with an operator for the centre.
“This is expected to be concluded early in the new year and follows an extensive tender process and this information is in confidence due to its commercial nature,” Ms Philpott said.
“Details regarding the operating model and entry fees associated with the centre are not available at this point in time and fees will be discussed further following the announcement of an operator for the facility.”
