Inside the deal to return Blackpool Tower to council control
PLUS: Who has been whacked on the knuckles over failures to pay the minimum wage?
Hello and welcome to the weekend edition of The Blackpool Lead.
The big news this week was dropped in a press release without warning on Wednesday - Blackpool Council will take back control of the Tower, along with a number of Merlin-managed attractions.
This could be a good thing - more money kept in Blackpool to be invested in Blackpool, in theory - but it leaves a number of questions to be answered and situations to be resolved that we’ve explored in our piece today.
Meanwhile, five businesses in Blackpool have been named and shamed by the government over failure to pay the minimum wage. You can see how many people were affected, and how much money that saved those businesses, in our reporting today.
Operating review at Merlin-operated attractions after council takeover
By Michael Holmes
The council’s arms-length tourism company will launch a review into a number of Merlin-operated resort attractions after taking them over, The Blackpool Lead can reveal.
Blackpool Operating Company (Bocl) - which will change its name to Blackpool Tourism - will from August 1 take over the running of the Tower and its attractions, including the Tower Eye, circus, ballroom and Dungeons.
The firm, which already manages the Sandcastle Waterpark and Showtown Museum, will also take over the running of the Madame Tussauds waxwork museum.
The move does not affect the other Merlin resort attractions in the resort, including the Sea Life aquarium, which runs from a council-owned building on the Promenade and which reports suggest could soon be sold to London-based private equity firm Epiris.
The council has not revealed the financial implications for the taxpayer, though it did say in response to questions from The Blackpool Lead that the “amicable move … ensures that all profits generated by these iconic attractions remain in Blackpool, enabling future investments to enhance the tourism offering”.
And it promised to protect jobs, adding in a statement: “The team are our number one priority and job security remains unchanged.
“All staff have already been informed of the upcoming changes. We will be working collaboratively with staff throughout the coming weeks and months to implement these changes, ensuring ongoing consultation and support.”
However, there will be a review of the businesses’ marketing, operations and finances, it has been revealed.
An authority spokesperson said: “These iconic attractions will continue to offer world-class experiences for the whole family, delivered by the excellent teams already in place, supported by the Blackpool Tourism Limited leadership team.
“Collaboration across the resort is Blackpool Tourism Limited’s key driver and we are committed to working closely with our partners to create compelling reasons for guests to visit, stay and return.
“To support these goals, Blackpool Tourism Limited will assess how to best optimise marketing, operations, finance and delivery to ensure even more guests can have fun in these iconic and innovative attractions.”
Town hall bosses announced the move to bring the venues in-house in a press release last Wednesday and also said the council has partnered with Merlin to operate Madame Tussauds, on the Prom, and The Dungeons, inside the Tower in Bank Hey Street, as part of the first UK franchise deal for the two brands.
They did not say how much will be paid to Merlin as part of the agreement.
The Labour-run authority said the decision “marks an exciting new chapter for Blackpool’s tourism industry, with familiar faces leading the council’s vision for the future of the resort”.
There appears to be cross-party support, with Tory councillor Paul Galley, leader of the opposition at the town hall, welcoming the possibilities he said it will bring to the town.
It comes months after BOCL stepped in to help run the Showtown Museum after a “strategic review”, which saw chief executive Elizabeth Moss leave for a “new challenge” after less than a year and a number of jobs lost, as exclusively revealed by The Blackpool Lead.
Council leader Lynn Williams said “this is … the start of a new era for our tourism industry”.
She said: “In 2010, Blackpool Council bought Blackpool Tower, bringing it into public ownership for the first time, to safeguard the future of our much-loved iconic landmark whilst also transforming it into a tourist attraction fit for the 21st century.
“It was a bold and ambitious move and one that has reaped rewards ever since.
“It is such a special place and needed to be protected and preserved for future generations.”
On why the council has taken over the running of the attractions now, Williams said: “Back in 2010, we did not have the skills or knowledge within the town to redevelop the Tower into a modern attraction.
“Bringing Merlin Entertainments on board was absolutely the right decision and we have enjoyed a long and successful partnership with them, which has brought other quality attractions to the resort.
“The time has come to reassess our position and determine our future vision for our attractions and the town as a whole.
“The benefits that our amazing attractions bring will be kept in Blackpool. Our priority is creating jobs for local people, creating a vibrant economy for local businesses and giving millions of visitors a reason to come and stay in Blackpool.”
Bocl is headed by Kate Shane, who left her job as regional director at Merlin last year to become the managing director of the council’s leisure portfolio.
She was followed from Merlin - whose other Blackpool attractions also include The Gruffalo & Friends Clubhouse and Peter Rabbit: Explore & Play - by former Tower manager Kenny Mew.
Shane said: “Bringing all these key attractions under the umbrella of one company is a bold move but the right one to deliver the ambitions of the resort that punches above its weight.
“Collaboration will be the golden thread running through the new company, bringing together the resort’s amazing tourism businesses, creating compelling reasons to visit and stay in Blackpool ahead of other destinations.”
She went on: “We will support the sector to deliver world-class experiences, and by working together we will drive awareness to re-engage lapsed visitors and reach those that have yet to see everything Blackpool has to offer.
“Blackpool Tourism is dedicated to creating local employment opportunities, supporting cultural heritage and delivering tangible social impact, ensuring a sustainable vibrant environment for both our guests and our local communities.”
The Blackpool Lead asked the council about any impact on jobs and workers, including if employees’ contracts will change.
And it asked what, if any, changes will be noticed by staff, locals and tourists - with the authority saying the “transition to the new company will be seamless”, with all existing tickets set to be honoured.
A spokesperson said: “All staff will be transferred under Tupe (Transfer of Undertakings [Protection of Employment]), with all contracted terms and conditions remaining the same.
“Tupe safeguards employees by ensuring that, when a business or part of a business is transferred to a new employer, their existing employment contracts, including terms and conditions, continuity of employment and rights to bring claims for unfair dismissal, redundancy or discrimination, are preserved.”
Galley, leader of the opposition on the council, said: “I welcome the opportunities this deal will bring to Blackpool - particularly in how we can better co-ordinate training for local people, create efficiencies in back-office operations, and most importantly, reimagine how we market our wonderful town to both new audiences and those who may have forgotten us.
“Blackpool is home to a unique collection of cultural and heritage assets - from our iconic trams to the world-famous Blackpool Tower. This deal gives us a real opportunity in time to keep these treasured landmarks in the hands of local people and to protect the essential Victorian infrastructure that underpins them.
“If we get this right, we can not only preserve our history but also celebrate it in a way that drives pride, investment and tourism for years to come - as well as retained profits.
“Let’s release our inner Victorians and embrace the commercial opportunity this deal gives us.”
Andy Turner from Merlin said the company “fully” supports the council’s “desire to see these attractions return to local management, and we welcome the clear direction the council leadership has provided”.
He said: “Looking ahead, we are delighted to be entering a new partnership with the council to ensure that visitors can continue to enjoy the iconic, immersive experiences which Madame Tussauds and The Dungeons have become known for.
“Merlin remains absolutely committed to the ongoing success of tourism in Blackpool, not least so that the town brands we are franchising to Blackpool Tourism can continue to flourish with our creative input.
“We look forward to continuing to work collaboratively with the council over the months and years ahead.”
Blackpool Zoo among businesses shamed by government over minimum wage failures
By Jamie Lopez
Nineteen businesses across Lancashire have been named by the government for failing to pay the minimum wage.
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