Airshow firm wound up
COUNCIL’S EVENT ARM PRODUCES ‘MEAGRE’ INCOME
QUESTIONS have been raised after council accounts revealed the company behind the Sunderland Airshow has been producing meagre profits for several years.
Sunderland Live Ltd, a company which is wholly owned by Sunderland City Council, has only produced small returns despite millions attending events.
It was set up in 2013 as an arm’s length body to deliver big events such as the airshow and Sunderland Illuminations on behalf of the council.
The figures are revealed in the council’s statement of accounts for 2016/2017.
Council bosses have agreed to scrap the body and review how events are organised in the city in light of the disappointing returns.
The 2017 Sunderland Airshow is still scheduled to go ahead.
The figures show that Sunderland Live Ltd made a small pre-tax operating profit of just £98,000 despite having £930,000 of council money pumped into it.
As we’ve previously reported, the 2016 airshow itself overspent by £120,000.
The council have previously acknowledged that there are “pressures” in the events budget and that it would be reviewed.
Peter Wood, leader of the Conservative opposition group, said: “The figures about lack of income from events don’t come as a surprise but it remains a disappointment.
“It’s important in the current financial climate that councils are able to maximise income streams because it’s all part of being able to fund services.
“The less we can do that, the more we will have to think about what services we actually provide.
“Social services are always under pressure and that’s why it’s important that the council gets returns from every pound it spends.”
Concerns over how much money is raised from Sunderland’s big events have been a long running issue among opposition councillors.
In April, Coun Wood said that introducing a charge on the currently free airshow could be “explored”.
Council cabinet member John Kelly said that there were no “allround plans for visitor charging” but said that the council was looking how to get better value for money from the event.
The relevant section of the council accounts reads: “Sunderland Live Ltd was formed in April 2013 as a local authority trading company to deliver the Council’s core events programme.
“At March 2017 cabinet, a new delivery model for Sunderland events in 2017/2018 and the subsequent winding up of Sunderland Live Limited (and its subsidiary UK Events Live Limited) as at 31st March 2017 was approved.”
When the cabinet agreed to wind up the company, a report stated that financial circumstances and reducing budgets meant the company wasn’t “viable” and not “in a position to continue trading”.
A council spokesperson said: “Sunderland Live helped deliver many high-quality events that attracted thousands of visitors and contributed to the local economy.
“The council and its partners remain committed to many events and attractions such as the Sunderland International Airshow, the Tall Ships Race and our City of Culture bid.”