Annex 2
Letter, 28 February 2001, from the General
Secretary of the University of Hertfordshire to Ms Melanie Johnson
MP
SWIMMING POOL
As you know, I met with Derek Casey of Sport
England on 2 January, having previously met with David Sparkes,
Chief Executive of the ASA on 8 November last year. When I left
the meeting with Derek Casey, the feedback received was very positive,
as it had been with David Sparkes. In summary, we were offering
to develop a 50 metre pool with ASA and Sport England support
on a marginal cost basis—we are committed to constructing
a 25 metre pool. Given the need, and yet the rarity, of such facilities
we were hopeful of a positive outcome. Interestingly, during both
meetings both David Sparkes and Derek Casey estimated the marginal
cost at around £2.5 million—a sum remarkably close
to our QS estimates. Both appeared to be enthusiastic at the concept—the
only real issue being the difficulty of placing funds inside a
PFI deal. However, the fact that the University is retaining the
freehold of the land, and will acquire the freehold of the buildings
over the term, appeared to address these difficulties.
I know that both parties discussed this matter
at a meeting in mid-January and we have been seeking news of the
outcome of these discussions since that time. I have now eventually
received a letter from Derek Casey. I have not copied it to you—if
you wish to have a copy I shall fax one through. In my view it
is a letter designed to discourage further enquiries, offering
an opportunity to apply for a maximum of £1 million, subject
to several conditions. This is regrettable and unfortunate. I
believe we had a real opportunity to provide facilities that would
encourage excellence in a sport that badly needs the investment
and provide a facility of some standing for the Welwyn Hatfield
community, on a marginal cost basis. What is more, we could deliver
the facility in 2003. However, it is clear from the letter that
neither Sport England nor the ASA are supportive, despite earlier
indications. Given the financial gearing that we were offering
the two parties, there must be other strong reasons for dissuading
us from progressing further. In this situation the effort required
to try to turn this decision around and the remote probability
of the success of such an exercise does not justify the management
time involved in opportunity cost terms. We have other priorities
to address. We will now commit to our 25 metre pool. I know that
the swimming community will be disappointed at this outcome, but
chasing lost causes is resource intensive and wasteful.
On reflection, the decision was even more disappointing
in the context of a press release received from Sport England
last week concerning an award of £6 million to fund a £7
million 50 metre pool at Loughborough University. Loughborough,
of course, has a special place in the sector in terms of sport,
but nevertheless the timing of the announcement and the financial
gearing of the investment inevitably increases the disappointment.
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