A NEW events company financed by Colchester residents will take over parts of Leisure World, the Gazette has learned.

In a move described by Colchester Council's leader as "commercial with a public sector ethos", the arrangement will mean the company runs the cafe at the Cowdray Avenue sports site.

Leader Paul Smith also couldn't rule out prices might go up at the facility as a result and said staff contracts will change in the "part-privatisation."

Until now the leisure centre has been run by Colchester Council.

The new company, Colchester Amphora Trading Ltd, will launch this week.

It replaces the 18-month-old Colchester Events Company which has focused on promoting and hiring out council venues and assets for functions, weddings and concerts.

Colchester Events Company is being replaced because it will be a profit-making limited company.

Colchester Amphora Trading will also take over the running of Leisure World sites in Highwoods, Colchester and in Tiptree.

Mr Smith said this could mean memberships go up or down with the operation currently in a "competitive environment", due to a number of other privately run gyms in Colchester.

He said: "The events company will look at a range of council facilities that can be used in a commercial way.

"What we are trying to do with Leisure World is we don't want it to become fully commercial, because if we privatise it, they would probably look to make money out of something we would prefer not to do - for example sunbeds. With that, we are concerned about the health aspects."

But Mr Smith said "part-privatising" the cafe with its own events firm would be more appropriate - yet could mean changes to prices or new special offers.

"The customers will probably notice very little difference. There might be some changes to opening hours, it might stay open longer," he added.

Defending the part-privatisation move, he added: "That's why we have got a board comprising of four councillors plus the chief executive, to ensure we do maintain the balance between 'yes this is a way to operate and no, we are not having sunbeds."

Mr Smith said the Highwoods and Tiptree sites could benefit from new facilities under the new arrangements.

He added staff such as gym instructors might have different contracts based on numbers per class.

"All the staff will transfer under their existing contracts but one of the things the new company would have the opportunity to do is issue its own contracts.

"This could be on more commercial terms."

Colchester Council needs to save millions of pounds over the next three years after Government cash cuts.

Mr Smith added: "The aim is to operate in a more commercial way, it is not a cost saving measure, it is an income generating measure."