A TRAINING company set up by Mid and West Wales Fire and Rescue Authority has folded, with debts of £427,000.

The fire authority provided the company, Rescue 365, with a £200,000 start-up loan when it launched in 2014.

Rescue 365 was designed to generate income by delivering fire safety training to businesses mainly.

Any profits were to be reinvested into the fire service.

Although Rescue 365 achieved some successes, a significant contract with a large company in the region didn’t materialise, and debts began to build.

Last week, the fire authority’s resource management committee approved a recommendation to dissolve Rescue 365. The final decision was taken in a fire authority meeting on February 3.

Both decisions were taken behind closed doors.

But, in a response to questions from the Local Democracy Reporter Service, the fire service gave details about what had happened.

It said Rescue 365 had delivered training worth £850,000 to more than 100 organisations, but added: “Notwithstanding the services provided in what is a highly competitive and extremely challenging environment, the directors of Rescue 365 have decided the long-term sustainability and operation of the company was unviable.”

The statement said the business environment and commercial opportunities had changed significantly, and that the directors had for some time indicated that the long-term sustainability of Rescue 365 was at risk.

It added: “Subsequently, at its meeting on February 3, after receiving all of the facts and following a detailed discussion, the fire authority supported the decision of the company directors to dissolve Rescue 365 and approved that the outstanding debt owed by the company of £427,000 be written off.

“Owing to the ongoing challenges faced by the company over a period of time, the fire authority has already made appropriate provision within its accounts to cover this adjustment and therefore, as outlined in the fire authority meeting, there is no impact on future budget-setting requirements.”

Rescue 365 used retired firefighters to deliver the fire safety training, although serving firefighters could also deliver it on days off.

Minutes from a fire authority meeting in 2014 said Rescue 365 was the first of its kind in Wales, although six similar companies operated in the UK.

The minutes said Rescue 365 – a community interest company with three directors initially – would be set up in a fully transparent and ethical way, and that significant contracts were due to go out to the market place in the coming months.

Its work, said the minutes, could not conflict with statutory fire service business, and that income would help offset further budget reductions.

Four years later, the fire authority’s statement of accounts said a total of £260,000 had been advanced to Rescue 365 by the fire authority – of which £136,000 was still outstanding – and that the debts stood at £427,000.

The accounts said the fire authority was considering restructuring options for the company.

Fire authority member and councillor Gordon Walker, who used to be a firefighter, said the demise of Rescue 365 was “very sad”.

He said: “Firefighters used to do this training in-house at at no extra cost to the taxpayer. Even staff with light duties were doing this work.”

One former firefighter who did some work with Rescue 365 said: “Why didn’t they nip it in the bud early on and restructure it? I’m embarrassed the company has folded.”