Thank you very much. Truth be told, with leisure provision, when we started in 2013, we thought that there would be no way that we could keep open all the leisure centres that we had. We commissioned a company to look at the provision and how to move forward with it; should we put it in a trust; should we make it an arm's-length service; or should we keep it in-house. And quite a lot of work was done on this, to be honest, on what was needed, and when the conclusions came back to us, there was no other option than to keep the provision in-house.
The age of the estate is old. The leisure centres, well, perhaps half of them throughout Wales are coming to the end of their ideal life, to be honest, and there's no arm's-length company, or anyone, who would want to take on liabilities at the outset, unless you were to spend millions to update them first. So, with the estate, in terms of its condition—. Actually, everything works properly, but there are not ideal leisure centres across Wales, apart from where there may be one or two new ones somewhere.
So, it's not possible to put a bundle of these things together and give them to an arm's-length company. So, we decided to keep them in-house, but try to make them pay for themselves, and the biggest cost is swimming pools. If you had fewer swimming pools, I'm sure that these leisure facilities would be profitable. But there you go, you want to provide swimming pools in all areas.
What's important is that there's gradual investment in every leisure facility, and in doing that, you increase the income, which makes it a more profitable and sustainable service. I think one huge advantage for us over recent years has been working with Sport Wales, and the improvements we've put in place have increased numbers. We now have around 600,000 people using these sports centres annually, and we've been able to invest; we now have a number of 3G pitches, attracting more footfall. We've installed new fitness equipment in every leisure centre, worth some £200,000, and this is in conjunction with Sport Wales, and the fitness equipment is bilingual, so you can get your results and information in both Welsh and English. So, this investment that we've made, and the branding—we have Môn Actif, which is a different brand—that's really worked for us, and it was the right decision to keep this in house, because we're now in a great position in providing the service, but we looked at that thoroughly and there were no advantages to outsourcing it.
One advantage would have been to get rid of the rates, the national non-domestic rates, but we didn't have enough leisure centres to make that advantageous. We have one leisure centre that is attached to a school, and that leisure centre has the advantage of not having rates attached to it, and so that leisure centre makes a profit, if you can call it a profit as such, but it is at least making a surplus. But that's because there is no taxation on that leisure facility, because it's stuck to the provision of a secondary school during the day. So, the rates are killing leisure centres. Without the rates, I'm sure we'd be in a completely different place.