'Natural fear' for Welcome to Yorkshire's future after bailout plea rejected, admits chief executive

Wakefield Council cabinet members yesterday went against the advice of the authority’s own officers to support the bailout and refused to provide a requested £78,000 to Welcome to Yorkshire - whose chairman is their former long-serving Labour leader Peter Box.

Mr Box wrote to Yorkshire council leaders in June to warn unless they all contributed towards £1.4m in emergency funding for WtY the agency “simply cannot continue to operate” and it would be a case of “not if but when to discuss the options of closing the organisation”.

The agency has been seeking cash from local authorities as a result of a black hole in its finances caused by the loss of expected business rates funding and the suspension of private members’ fees due to the coronavirus pandemic.

Speaking to The Yorkshire Post after the council meeting, WtY chief executive James Mason admitted the decision gives concern for its future - but hit back at “lavish lifestyle” claims from Wakefield councillors about the organisation, which was embroiled in an expenses spending scandal under the leadership of its former chief executive Sir Gary Verity.

Mr Mason, who joined Welcome to Yorkshire at the start of the year, said: “While the Wakefield news is disappointing, I have probably got to refer this back to our board of directors and take a view on what the implications are both short-term and long-term for the organisation.

“There has to be a natural fear for the future. When I joined Welcome to Yorkshire, we were in a very vulnerable position. That position has only got increasingly difficult day by day. There were funds ringfenced for Welcome to Yorkshire at the start of the year but there was also an operating budget that I had to work with that included Tour de Yorkshire and many festivals up and down the county.

“When those events are pulled away from you, naturally your income streams are less and therefore we have to be concerned about the future. But there needs to be a bigger strategic view about the role of Welcome to Yorkshire with the public sector and private sector as to how we can move forward in promoting Yorkshire.”

Councils in South and North Yorkshire have already separately agreed to provide extra funding totalling £590,000 for the agency, which already receives around half of its £4m annual income from the public sector. But Ryedale, Hambleton and East Riding councils have all previously said they would refuse to give further funding to WtY, which is due to publish its accounts by the end of this month.

Wakefield Council already pays the agency £12,000 a year in membership fees and council leader Denise Jeffery, who succeeded Mr Box last year, said it would not be providing further funds.

“I don’t feel at this time it’s opportune for us to pay the money. We’re in a situation we’ve never seen before with our funding and I feel we’d be better keeping this money in-house.”

Transport portfolio holder Matthew Morley said: “I just don’t think it gives any economic benefit to Wakefield whatsoever. Welcome to Yorkshire have led a very lavish lifestyle, more than they could (afford) really. When you see people going round in helicopters and motorcars, it’s the sort of stuff that would make the President of America jealous.”

Mr Mason said those claims were inaccurate.

“I have seen quotes that we live a lavish lifestyle at Welcome to Yorkshire and are not fit for purpose. That is not the organisation that I am running right now - far from it. We are a really hard-working team and we have reduced in size by 30 staff and saved over £1m. We have to be judged on our merits now. We have worked really hard over the last six months to fight tooth and nail for tourism businesses.”

But further pressure was put on the organisation today as a council leader who has also refused to back the Welcome to Yorkshire bailout called for the tourist agency to close following the Wakefield decision.

Councillor Keane Duncan, leader of Ryedale District Council, said: “Yorkshire deserves a world-class tourism body now more than ever, yet Welcome to Yorkshire has been more occupied in recent months with its own survival than supporting and marketing our county in its time of need.

“Welcome to Yorkshire should now do the right thing, admit its dire financial woes and close its doors for good if it can’t stand on its own two feet.”

“To hand over £1.4m of taxpayer cash to this private organisation would be a scandal when there are so many questions about accountability, transparency and democratic oversight.

“We’ve seen no accounts and no business plan, we’ve not even had a courtesy update since their demand for cash landed with councils three months ago. It’s time to draw a line, move on and look at how we can better support our tourism sector into the future. Enough is enough.”

Following the Wakefield decision, Leeds Council said it is yet to decide on whether it will support the bailout.

A Leeds City Council spokesperson said: “We note the announcement made by Wakefield Council today in relation to future funding for Welcome to Yorkshire. We will be seeking a discussion with our West Yorkshire local authority partners to consider our options and to agree our next steps moving forward.”

'Time to look after our own'

Wakefield Council cabinet members have suggested spending the money that had been earmarked for Welcome to Yorkshire on a new festival or event in the city.

Portfolio holder for communities Maureen Cummings said: “I haven’t seen any benefit from being a member of Welcome to Yorkshire. I think we need to look after our own at this moment in time.”

Speaking after the meeting, Wakefield Liberal Democrat opposition councillor Tom Gordon said: “This is a damning indictment that even Peter Box’s former colleagues don’t feel he can deliver value for money or turn around Welcome To Yorkshire.”

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Thank you

James Mitchinson