BLACKPOOL’S PREVIOUS council leader Peter Callow often touted the deal which saw many of the town’s publicly owned tourism assets operated by Merlin Entertainments as being the saviour of Blackpool’s ailing tourism industry.
Indeed, it formed the basis of the Conservatives’ election campaign material and on the face of it, a lot of taxpayers’ cash is being invested into this empire. It’s always good to walk around and see that things are be happening.
The Merlin alliance is labelled as a partnership, but having seen the figures for the amount of money being paid to Merlin every month, I am starting to wonder what’s in it for us and whether the local taxpayer is getting a raw deal.
It reminds me of the so-called special relationship the UK has with the USA; the US puts in almost 100,000 soldiers to Afghanistan and we put in 9,000. I’d be hopping mad if I were the US President.
Whether Merlin were selected through a fair and transparent tendering process is a discussion for another day; some say they were the only company involved in the tendering process; but one thing for sure is that they have been paid a fortune in the last few months alone.
March 2011 – £130,049.27
February 2011 – £258,989.27
January 2011 – £663,483.36
December 2010 – £74,632.59
November 2010 – £310,141.37
Note: The council don’t supply any figures prior to November 2010, but the relationship between the council and Merlin started much earlier. It is therefore likely that these payments were being made for many additional months. Similarly, over half of the entries seem to be missing from the April 2011 figures, which is why they are not above.
Src: http://www.blackpool.gov.uk/Services/M-R/PaymentstoSuppliers/Publications/
What the previous council didn’t seem to understand is that whilst jobs were going and services being cut, money like this was being paid out to Merlin and the Pleasure Beach and people thought the council were propping up big business at the expense of locals. Given that all the million of pounds of building work which is being done on the never-never but guaranteed by the taxpayers’ wallet, what exactly are we getting by paying Merlin almost twice the yearly CCTV budget (before it was cut) in five months?
Was Merlin’s Iain Hawkins charging £10,000 per word for all the positive soundbites he was reeling off which were heavily used in Conservative election propaganda?
We were told at the time the Tower and Winter Gardens were acquired that Merlin would be paying us rent for these assets. So far, the cash seems to be flowing the other way.
The previous administration even tried to spin it and suggest that Merlin were paying for the Tower Ballroom roof to be repaired after M P Marine’s hydrodemolition techniques resulted in tons of water being deposited on top. Not the case, of course: taxpayers were paying every penny of the £650,000 that it cost.
Ever year the Gasjet run endless stories, backed by Claire Smith and her wierd and wonderful ideas to tax hotel businesses, appealing for donations to the Illuminations. They say the Illuminations ‘shortfall’ is around £250,000. So why do the Gasjet not place a huge question mark over this Merlin deal? We’re paying Merlin more than that Illuminations shortfall per month, and it’s going undetected.
Something fishy is going on…
This is the trouble when you do not have transparency within the council,one of the reasons that the Tory’s did not retain power, I only hope that the Labour administration share everything with the electorate, we are not stupid, we can decide for ourselves whether it is a good deal or not. We kept getting this spin from the Tory’s of how good the deal is for the town, well if it is that bloody good why hide the terms and conditions that you have signed us taxpayers up to. Its like the Pleasure Beach loan, we are told that the council is charging them a higher interest rate than the council pays over seven years and that they have adequate assets to secure the loan.
But yet again we have to take the councils word for this, well if that is the case why not show it to the electorate. we would congratulate you on a job well done for a change, instead of being suspicious of another clown hall cock up.
Unlike most people, I’m not opposed to Pleasure Beach being loaned the money. I’m opposed to money being to any business or organisation, but as the council already lends and funds lending to other businesses in the town, it would be inconsistent to oppose this loan – particularly when Pleasure Beach more than many other businesses in the town have paid eye-watering sums in taxes over the years (many residents forget that businesses pay taxes, too).
Where it all went wrong was in the cloak-and-dagger-like way that the council executive dealt with the loan. Anything that isn’t commercially sensitive and is in the public interest should not be kept like an official secret.
John, This is the problem, most of us do not have a problem of the council lending the Pleasure Beach money if it is in our favour, it is the fact that they hide behind commercially sensitivity, there is no reason for this as we could pay a small fee to Company house and download the accounts lodged by the Pleasure Beach, with it being a limited company. all they have achieved is to raise our suspicions that perhaps it is not a good deal.
As far as I am aware the Pleasure Beach are not a limited company. They are therefore not required to lodge accounts. I understand that this the reason for them remaining ‘privately owned’. I might be wrong, but if their accounts were available we would all know the true extent of their debt and reduced profits over the last few years. The fact that we do not have this information tends to suggest that accounts are unavailable.
So things are not quite as transparent as they should be, if I am correct. I am sure someone here will confirm this either way.
Tramstop, I do know and the info is kosha thats why I ask the question. I cannot say how I know but non the less I do, and was shocked to know how much debt they were in, thats why the banks moved in to sort things out allegedly or so I am told.
Yes Kate, your information is quite right. I made the point that none of this financial information regarding The Pleasure Beach is in the public domain because the company is not required to provide annual accounts. Presumably some members of the council will have seen the ‘books’ before the loan was agreed. That would have been the time to seriously question the granting of the loan. We have to accept, at this time, that it was a sound business decision. Time will tell!
Tramstop, I think you will find that the Pleasure Beach is a limited company with many subsidiary companies, Frustrated commented on there accounts after seeing sight of them from company’s house, here is the link http://philtheone.com/2010/06/pleasure-beach-5m-secret-loan-deal/ Have a look at the comments.
Thank you David for the correction. I am also grateful for the link which does properly clarify matters. I was completely unaware that the level of debt at the PB was a matter of public record. Who said this site was not educational!
No. And a ‘no’ to Kate’s cloak-and-dagger ‘nudge nudge, wink wink, I’m in the know’ information, too.
Pleasure Beach is a limited company. They say so themselves (they’re required to by law) and their accounts are freely available from Companies House.
http://wck2.companieshouse.gov.uk/4df5bd6a65aaff757665336773ea46c7/compdetails
I’ve not splashed out the £1 to have a look, but I understand that they have managed to restructure their finances and turn things around in the past couple of years.
The idea that money of any sum would be loaned to a business without due diligence is total fantasy and not one that even braindead council officers would sign off on, lest the district auditor have something to say about it.
The problem is not that they were loaned the money, but how the council went about handling its disclosure.
Theres nothing nudge nudge wink wink about my comments they are in your face or so I am told.
http://www.bbc.co.uk/news/uk-england-lancashire-13583525
50 UAF v 1500 EDL, the UAF paedophiles were outnumbered,scum that they are.
UAF = Unemployable and Filthy.
EDL= Erroneous Drunken Louts
The EDL are a bunch of racist arseholes with nothing better to do than tour the UK systematically trashing town centres.
It has nothing to do with missing teenagers. They are just there to cause trouble.
You are right about one thing Redshift it had nothing to do with a missing child.
Exactly, I want to know what happens when they cant get the money in the allotted time to pay back the loan. Whats the plan then?
Kate,
I would imagine that if the loan was offered on commercial terms that the council would have the right together with other creditors to seize the assets that were used as security for the loan – namely the Pleasure Beach itself.
Thank you Chris and how lileky is that ? more likely to extent the loan for another number of years. I cant say as I would be happy with that. If that were you or I ,we would be sent packing and assests seized. Only time will tell.
Clearly everything depends upon the loan terms. Usually if loan terms are extended the creditor (in this case taxpayers) tends to receive more money from the debtor (in this case the Pleasure Beach). In the event of a default the assets of the debtor would be seized.
Well I for one would like to thank you Chris for explaining how loans work I for one don’t find your explanation condescending or insulting to peoples intelligence.
Everyone knows how loans works people are just a little bit fed up with are representatives treating us like idiots and refusing to explain the decisions to us.
No one is saying the conservative council lending the money to BPB was wrong, what they are saying is they are not being permitted to make that decision. The conservative council treated the loan as a secret and as such called the Blackpool tax payers to stupid to understand this and as such they got unelected.
Mind you I am sure we can blame the Labour government for this somehow.
Interested,
My comments were intended to answer Kate Burns’s question:
‘Exactly, I want to know what happens when they cant get the money in the allotted time to pay back the loan. Whats the plan then?’
Regarding the secrecy associated with the loan. The fact that we are discussing the loan suggests that a lot of information is already out in the public domain. I understand the loan amount is public knowledge. What further information are you looking for?
With any commercial agreement involving the public sector, it’s easy to speculate… So I will.
Obviously, it’s hard to put these payments in to context without further information. Whether or not that will be forthcoming is something else.
Looking at what we have available, I can only suggest two things:
1. The payments are for money accrued via the council’s operating company.
2. The amounts shown appear to be seasonal. Merlin possibly has an agreement to draw profits for a certain amount in each month, with any shortfall being made up by the council and funds awarded by central and European government for this purpose. If this was the case, I don’t think it’s necessarily that an overly-generous rate was agreed by the council (I don’t think that they’re that stupid), but perhaps it more accurately reflects the true operating costs for Merlin and the level of risk the taxpayer has been exposed to by ‘nationalising’ this business.
This is exactly why I got involved I was told by a very good source our money was being seriously wasted, and they werent joking. From dodgy deals, deals not going out to tender but selection of their mates/kiss ass buddies etc. Some of my guests left this weekend a day earlier than they had originally booked in for because of the state of the town and wont be coming back. I always get good reviews except 2 idiots a few years ago who thought they could get away with writing rubbish, I dont do PC. They have written to the council as I instructed, I dont mind taking the blame if I am at fault or the hotel is not up to standard but I draw the line at taking the blame for the state of the roads the congestion the lack of sign posting the fact that sat navs dont work and the bloody weather. I hear the Greenbanks project may be shelved as it is in direct competition to Merlin and Amanda, god forbid. I want to know where our money is going and how these contracts are being dealt out, after all this is not a deck of cards we are dealing with here though there are plenty of jokers about the place thats for sure.
Not much different to first leisure then really, they got maintainence fees for the Tower and the Winter Gardens when they had it, they always seem to find a way to supplement their investments. By the way whos replacing Weaver any intel on that score?
I don’t know if it is true or not as this info was passed onto me by a third party, but I have been told that Merlin will take there operating costs out of any money generated by the Tower and then if there is any profit left it will be split 50/50 with the council. The council will be responsible for covering maintenance costs out of there share of the profits. Like I said this may be a load of rubbish,I hope so because it could turn out to be very expensive for council tax payers.
what profits will they be, the general moan from visitors is the cost of entry to the Tower, the Pleasure Beach, the sea life Centre, the waxworks, families cant afford it these days if you have 3 kids its a second mortgage to take a break here, the sooner these groups realise we are not that family friendly the better then they can address this issue with family tickets at a massively reduced rate, better some money than none at all.
The Pleasure Beach especially is extortionate. Its funny when I have friends over they ask what shall we do? Is the Pleasure Beach any good?
The response:- How much money you got? Let’s go to the pub…
Oh well Maxine said there wasn’t a problem with gridlock – seems like your clients thought otherwise Kate. You should invoice Maxine Callow or sue her for loss of income because of her idiotic stance.
Its a good job there is no tripadvisor comments box for councillors/exec members in this town, we could all allocate a star rating on performance to see if they get to stay or go. See what members of Stay Britain, or any other body from the tourist industry, would comment on that suggestion…nowt would be my guess, they will have their mouths firmly shut, for fear of making an a.. of themselves again.
I have now made a point, of requesting that any colleague who hears negative comments on the state of the town, must let me know immediately before they leave and I will specifically ask the visitor to write to the Town Hall with their comments. Especially if they feel their break/holiday has been spoiled trying to get around the town. Most feel as if they are being ripped off with the fares to and from places and the length of time it takes, I explained it was due to the roadworks and not the taxi’s fault, but rightly so they say there are no trams or buses up this end, when using their own cars they cant get parking spaces, thats if they get to go to where they want to be in the first place. One guy said it was utter bloody chaos, you cant argue with that, WE know our way around the town WE live here, these guys dont they are our VISITORS so how would they know. I would have the Callows sit in a taxi 24/7 one day should be enough, for a tour of their stupidity, give them specific points to reach by a certain time and if this cannot be achieved they relinquish their seat as councillors, see what they think of the non conjestion then. Let them pay the price for what we have to endure at their hands, idiots just dosent cut it, morons.
Kate which part of the town do you have your hotel?
Squires gate, right next to the Carousel unfortunately, near the tram shed, the Solaris and the disco ball.
Good God no wonder your guests were pissed off. With the prom being closed and the alternative routes into and through town gridlocked by more roadworks or increased traffic, their taxi fares would have been astronomical in comparison to previous years every time they wanted to go into town to a show, for a meal or for a drink.
Trouble is people will then vote with their feet and never return to Blackpool for a holiday. I know that I would.
It needs sorting out right now or there will be a disasterous season in store for hoteliers and other businesses – are you reading this Mr Blackburn and your gang?
I am a therapist no a f…agony aunt, I dont do counselling I leave that to one of the guys who assists me here. I have heard nothing but moans since last season, but rightly so. I would be p…off too if faced with that carry on. I only attend the hotel at weekends as mum is due to leave us soon and have to be there for her right now. I have to smile and offer what I can in the way of compensation, I have given more free drinks to people complaining this year than any other. The only problem with that is I get their life story then, you could quite easily become an alcoholic drowning your sorrows in someone elses troubles, good job I only take one night cap of a weekend. I could flatten that stupid mare Maxine for all the trouble she has caused. She couldnt run a brothel never mind a council.
apparently under the Callow dictatorship, even conservative councillors were never consulted about the purchase of Tower and Winter gardens and dare not speak out, the Labour lot also naffed off couldn’t say anything cos it was their Peter Mandelson facilitating much of the cash, so no great democracy given to the people of Blackpool who may end up with a long term financial hole.!
Phil, that your article uses the statement you’d be annoyed if you were the US President is beyond the boundary of the ridiculous, and as you use it as the lever for the whole debate then it makes your case look like you needed something to write. Considering the UK is the biggest contributor of support and the political cost to any European leader of involvement, the US President should be very grateful to the UK. As your article seems to imply you don’t really know why the payments are being made, might it be suggested that during refurbishment there is an up front investment cost.
laywer’d
The story is not only unique to Blackpool but Blackpool is amongst those councils not wanting to make their account public. http://fylde-bootnecks.blogspot.com/2011/05/council-spending-again-questioned.html and http://www.telegraph.co.uk/news/politics/council-spending/8541970/Blackpool-Council-credit-card-spending.html
Not making mileage out of the dubious accountancy within this secretive borough, the cabal has gone and the books ought to be made public yesterday.
At the end of day the pleasure beach is a company that is in “competition” with other local tourist based companies. If the council provides a service that directly helps one company, but not another then one could argue that that puts the the other companies at a serious disadvantage.
One could argue that the Pleasure Beach has a distinct market advantage having access to a service which its competitors do not have access to, in this case a loan by the Council. Surely this is a breach of the ‘Competition Act 1998′, specifically under section 18 Abuse of dominant position, section 2 (c)applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage.
http://www.legislation.gov.uk/ukpga/1998/41/section/18
If the council don’t provide the same financial service to other competing companies then that puts them at a disadvantage which one could argue breaches the competiton act. In my opinion they should have never offerd public money to the company.
Hmm. It’s all gone a bit quiet on this website. Has SB fulfilled all of our dreams? Has euphoria turned to despair and apathy? Does Harold know the secret of the Black Magic box as he shins up Kate’s drainpipe? Or should that be Milk Tray?
Simon ‘s on holiday for the week so I am told, more to come when he gets back. Then its my turn to be quiet for a while, did I detect a sigh of relief:o) glad you didnt say tree trunks Tang. Still in the throws of trying to find documents, before the -hit hits the proverbial.
Cavill to take over from Helen France? On the same pay scale?
Nothing to do with Simon the bolshevik. I don’t notice if he’s working or not. I was referring to Phil being quiet and not creating a new thread for nearly a week when in the run-up to the election his threads were almost a daily occurence. I was just commenting that this looks a bit like political post-coital depression
Tree trunks? What on earth are you talking about woman? I know that you’re into all this tree-hugging, lentil-sucking, sandal-wearing, beardy-hippy, liberal democrat acid-dropping free love malarkey but I can’t see Harold going for it can you?
yes I know you meant Phil, I meant there was more to come to debate when he gets back. You would be surprised, I am the total opposite. I am good at what I do in my work. I am not your typical god squad veggie, liberal democrat my a— , dont do beardy hippy smelly things, as for free love your fishing again cheeky b——- what do you say Dave Phil.
Fishing? Moi? No I don’t think so. I need free love at the moment like Harry The Haddock needs to take his cycling proficiency test
I like the sound of the acid TT, but throw in some SS outfits and zyclon B for good measure,lol.