Possible lifelines for Kilkee Waterworld

CLARE County Council is considering three different survival proposals to maintain and develop Kilkee Waterworld as a tourist attraction amid concern about accumulated liabilities of €405,000.
Kilkee town councillors are concerned about the future viability of Kilkee Waterworld following a trading loss of €45,000 at the end of December 2008, according to the most recent set of modified accounts submitted to the Companies Office.
Kilkee Waterworld currently receives an annual subvention of €82,000, of which about €30,000 is returned in the form of commercial rates leaving a net contribution of €50,000 from Clare County Council.
Town councillors, anxious that this tourism facility remains open, believe additional finance or grant aid will be needed from the council or the Government to copper-fasten its future.
Acknowledging the survival of Waterworld is in the hands of the county council, manager Bill Murphy told The Clare Champion this week he is confident the facility would remain open during the summer months from April to August 31.
While securing an acceptable solution to the current financial difficulties could take time, Mr Murphy insisted he has the full support of the county council executive and the centre’s board of management.
Built at a cost of about €3million in 1997, €1.8 million in EU funding was provided on the basis it remained open until December 2009; Clare County Council provided €500,000 and there was a local contribution of €700,000.
When Mr Murphy took over as manager in 2001, the trading loss was a staggering €250,000. His two key objectives were to ensure it discharged its obligations under EU finance arrangements and to secure a trading profit excluding depreciation.
This was achieved in 2008 when the centre recorded a trading profit of €42,000 but it was subsequently hit by a reduction in visitor numbers as a result of the recession.
Accumulated losses total €331,000 to date and when the council’s annual subvention is included, this increases to €405,000 in total liabilities.
Mr Murphy claimed the Acquadome in Tralee is the only facility making money from its off-site enterprises as other similar facilities in Bundoran, Donegal, Lahinch, Courtown, Wexford and Tramore are loss making.
Having visited other similar facilities in Ireland and in Europe during his holidays at his own expense, Mr Murphy pointed out all possible cost cutting and income-generating measures have been implemented.
In fact, he claimed that wage costs as a percentage of income were lower in Kilkee compared with similar facilities in the county.
“Clare County Council have been very supportive of Kilkee Waterworld over the last 10 years. The council views Waterworld as part of the economic fabric, which makes an important contribution to the overall tourism product in the resort. If you take away the council subvention, we would be gone.
“It is not economically viable to leave the centre open for 12 months. Proposals such as solar panels would only save about €4,000 a year because the facility is only open during the summer months and it would take 21 years to pay for itself.
“This proposal does need further investigation. Every euro in expenditure has been examined in detail, re-examined and requoted. The running cost for the facility is lower today than it was eight years ago.
“The expenditure of €80,000 on a new retail facility in 2007 has paid for itself. The last four years have been very difficult cutting costs while improving services. The credit ratings with the banks is A1 because we never fall behind with repayments.
“If I got a sports capital grant tomorrow, I know where I would invest it. Satisfaction with the services we offer is very good according to customer surveys,” he said.
The centre also hired management consultants, the O’Halloran Leisure Group who concluded after a detailed audit there was nothing the centre should change concerning expenditure and generation of income.
While the consultants made a number of recommended improvements, the investment required was deemed unaffordable.
Asked about the possibility of accommodating divers in the winter time in an expanded facility, Mr Murphy said he wouldn’t have any difficulty considering this proposal if the divers covered the cost of a feasibility study.
If the town council presented an economic proposal for the development of the facility in the medium or long term, Mr Murphy said management would be favourably disposed to any new plan.
Mayor of Kilkee, Councillor Elaine Haugh-Hayes felt the provision of a standard size swimming pool would have facilitated a longer season and its use by divers during the winter. However, she acknowledged this wasn’t possible when it was built because of a lack of funding.
The Fine Gael councillor proposed it should be run by Clare County Council similar to its operation of Ennis Leisure Centre. Expressing concern about its viability if financial difficulties persist, she proposed Kilkee Town Council and Clare County Council should meet to discuss the best options.
She also expressed concern accounts hadn’t been filed to the Companies Office for the last two years.
Councillor Lily Marrinan-Sullivan warned if the centre is forced to close it would be a huge loss to Kilkee. Ms Marrinan-Sullivan recalled Waterworld was not built big enough and if it included a standard size swimming pool, it would make it easier to keep it open all year round. She said there was a limit to the funding that was made available at the time, which ensured a bigger facility couldn’t be built.
“I know a lot of people have worked very hard with Waterworld and it would very unfortunate if it was not able to sustain itself. Some additional funding will have to be provided to secure its future. Because it is a leisure pool more lifeguards are needed compared to a standard one,” she said.
Councillor Brian Keane felt the main problem was the short season and proposed that efforts should be made to try and extend it to their financial liabilities.
Clare County Council stated it provided financial support to a range of recreational facilities throughout the county, including Kilkee Waterworld Ltd, which is seen as a significant and valuable resource for the local community and visitors alike.
“€82,000 was provided in the 2011 budget of the council for Kilkee Waterworld Ltd. Decisions about the provision of support funding to Kilkee Waterworld and other recreational facilities in the county are made during the annual budget process of the council,” said a council spokesperson.