A seniors fitness group has been saved from likely closure by Sutherland Shire Council backtracking on a direction that it arrange and pay for $20 million public liability insurance.
For 12 years, the group, who call themselves the Geriatric Gym have met weekly in Bundeena Community Centre for gentle exercise and to socialise.
They pay the council to hire the hall and for a cupboard to store equipment, but were shocked when told of the new insurance requirement from July 1.
Closure seemed likely, but after questions from the Leader, the council said it would cover the insurance fees.
The group's organiser George Barrett said, "Everyone is relieved. I don't think the council realised the situation and thought we were making money out of it."
A council spokeswoman said the council worked with nearly 300 community groups and organisations on hire arrangements for 33 community venues.
"Under council's Fees and Charges Policy, it has always been a requirement for regular hirers of council operated halls to secure their own public liability insurance," she said.
"Council has, however, previously taken out public liability insurance cover on behalf of approximately four regular private groups, in instances where these groups do not seek to recover costs from patrons while using our facilities.
"In these limited instances, council has applied an annual fee to contribute towards the costs of providing this service."
The spokeswoman said a recent change in the policy meant this small number of community groups would be required to take out their own public liability insurance by July 1.
"While the majority of these groups were prepared to comply with this request, council has remained mindful this planned change would have some impact on the finances of each of them," she said.
"Council has undertaken a detailed examination of the terms of the current policy to determine if there is scope for council to continue to arrange public liability insurance on behalf of the limited number of regular groups affected by the planned change.
"We believe there is a way this can occur and we are currently working with these private hirers to help support their continued use of council facilities."