Tourist agency’s pension deficit under scrutiny

WTY had £260,000 liability last year

A REVIEW is taking place into the extent of scandal-hit Welcome to Yorkshire’s pension deficit – following a warning that the liabilities could increase the cost of closing down the financiallytroubled tourism agency.

Previously-classified financial reports published this week have revealed that the privately-run company, which receives millions of pounds of public funding each year, has come close to the financial collapse in recent months in the wake of the expenses scandal linked to its ex-chief executive Sir Gary Verity.

One of the reports, written by interim chairman Keith Stewart – who was ousted by local council leaders last week and replaced as chair by Wakefield Council leader Peter Box – said that closing down Welcome to Yorkshire by March next year would cost £3.18m.

His report added that figure “will” rise further once an ongoing assessment of Welcome to Yorkshire’s pension position is completed. WTY participates in a local government pension scheme administered by North Yorkshire County Council.

“This figure will increase as there is no estimate available at this stage for the negative effect on the NYCC pension fund as a triennial valuation is currently under way,” Mr Stewart’s report said.

A spokesperson for Welcome to Yorkshire said today that the

results of the valuation “will be available in the next few weeks”.

According to Welcome to Yorkshire’s most recently published full accounts, which were for the 2017/18 financial year, the organisation’s pension deficit at the end of March 2018 stood at £260,000 – down from a deficit of £604,000 the year before.

The accounts said that the local government scheme WTY was involved with is a defined benefit scheme based on final pensionable salaries but added that it stopped admitting new members to that scheme in 2010.

The option of a “managed closedown” of WTY was put to North and West Yorkshire council leaders last week but they were warned by Mr Stewart that doing so would cost millions, make almost 50 people redundant, cause “severe reputational damage” to Yorkshire and result in a replacement organisation needing to be established.

Council leaders instead opted to provide £1m in further funding to the organisation in the coming months subject to a series of conditions – including the replacement of Mr Stewart and the implementation of delayed governance changes. It follows WTY taking out a £500,000 loan from North Yorkshire County Council.

The company’s 2018/19 accounts are currently being audited and are due to be published before the end of December –with auditors due to determine whether the organisation remains financially sustainable.

An independent assessment of WTY’s financial position ordered by council bosses and made public this week warned it would currently “seem unlikely that the auditor could easily conclude that Welcome to Yorkshire is a going concern”.

A valuation is under way which will be available in the next few weeks. Spokesperson for Welcome to Yorkshire.