Leaked reports show tourist body on brink of total collapse
CRISIS-HIT TOURISM agency Welcome to Yorkshire would have “run out of cash” last month – leaving staff unpaid – without a £500,000 loan from the taxpayer, leaked papers detailing the full extent of the organisation’s perilous financial state have revealed.
Documents also reveal that WTY has been hit by the loss of a £300,000 sponsorship deal with Yorkshire Bank following the latter’s merger with Virgin Money.
It comes as it was confirmed WTY is being removed from running a £2m advertising campaign for the North York Moors after failing to provide reassurances
“We’re focused on ensuring WTY is a strong, open and transparent organisation.”
about its financial stability, while the agency has announced it will not be participating in next year’s Chelsea Flower Show after going £170,000 over budget this year.
The organisation has spent recent months struggling to deal with the fallout from the departure of ex-chief executive Sir Gary Verity in March in the midst of an expenses scandal and bullying allegations. This month, Welcome to Yorkshire, which is privately run but receives millions in public sector funding, published partiallyredacted versions of two previously-confidential reports into its financial position.
They revealed it had spent almost £500,000 on the fallout to Sir Gary’s departure, including on ordering independent investigations into the allegations against him.
The publication decision was taken as part of a commitment to greater transparency after council leaders in West and North Yorkshire agreed to provide up to £1m extra funding to WTY through a business rates pool (BRP) in the coming months. The funding was given on the condition interim chairman Keith Stewart was ousted and replaced by Wakefield councillor Peter Box.
A spokeswoman for WTY said: “Since the BRP funding was agreed and the loan facility drawn WTY will not go overdrawn. The loan repayment is budgeted for.”
WTY does not have an overdraft facility with its bank and when asked what the outcome would be for the company in a hypothetical scenario where it did go overdrawn, the spokeswoman said: “We’re focused on ensuring WTY is a strong, open and transparent organisation that continues to promote the Yorkshire brand across the world.”
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