THE future of Musselburgh Racecourse is again under threat following a move by East Lothian council’s minority Labour administration, with the support of Conservative councillors, to take over the running of the course.
Consultants Pinsent Masons were called in last year after the racecourse nearly lost its licence to operate from the British Horseracing Authority (BHA) after rows between the council and the Lothian Racing Syndicate (LRS) – who jointly run the course at present through the Musselburgh Joint Racing Committee (MJRC).
The National understands that the report going to the council on February 27 recommends the racecourse either be made an “associate committee” of the council, an arms-length external organisation, or that the operation of the course be put out to tender.
Without any consultation with LRS members, and not going through MJRC, East Lothian Council have decided they will make the racecourse an associate committee.
This is despite the council telling Pinsent Masons that they did not have the skills to run a racecourse.
And while East Lothian Council own the buildings at the racecourse, it is common good land.
The National has learned that East Lothian Labour councillor Fiona O’Donnell and senior official Carlo Grilli met staff at the racecourse on Tuesday to tell staff they would become council employees after the council meeting.
A source at the track said: “This is a blatant power grab by East Lothian Council of a highly successful and profitable racecourse, not to mention an appalling abuse of power in the way they are treating hard-working and dedicated staff.
“The staff are up in arms about the proposals, not just about the proposed changes to their employment status, but because they believe this will seriously harm the reputation and standing of the racecourse.
“At a time of continued austerity and cutbacks, in what parallel universe does it make sense for a local authority to take on the further burden and responsibility of running a complex and challenging sports and leisure business?
“This could be extremely damaging not just to the reputation of an award-winning racecourse which has spent years building up a first-class reputation, but it could also have serious repercussions for the wider Scottish racing industry.”
BHA sources indicate they would be unlikely to accept the new arrangements, about which they have not been consulted.
John Prideaux, chairman of the LRS, commenting on the council’s handling of the racecourse, said: “East Lothian Council now appear to be papering over the cracks with this cack-handed attempt to assume total control of the racecourse.
“The Lothians Racing Syndicate were never informed of this change of status, which is a breach of the existing Minute of Agreement and, indeed, we only found out through the recent Pinsent Masons report into the governance of the racecourse.
“In typically high-handed manner, we have not been consulted about the council’s plans to push this through at the full council meeting, and we do not believe this is in the best interests of the racecourse or the staff who put their all in to making the racecourse such a success.
“The staff are completely demoralised, and it has to be asked, what legal right East Lothian Council have to tear up their current contracts with the Musselburgh Joint Racing Committee and decree they will now become council employees.
“If East Lothian Council continue with this ill-thought-out plan it will almost certainly end in court action which will be costly to the taxpayer at a time when local services and budgets are under severe strain.”
Cllr O’Donnell repsponded: “It would be premature to suggest any decisions have been taken and the options require consideration by all elected members at a full meeting of the council on 27th February.
"We have been regularly keeping the BHA updated on proposals and progress on developing these and I have met and had discussions with members of the LRS concerning the way forward for the racecourse. We are confident of reaching an outcome which puts the racecourse on a sustainable footing for the future, to the benefit of race-goers and employees alike.”
Musselburgh Racecourse management would not comment.
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