THE long-running saga of who will finally foot the bill for the massive £1.2 million overspend and maintenance problems at the beleaguered Herons leisure centre in Haslemere, could be resolved this year.

In the meantime, negotiations which have been in progress since the centre opened four years ago, will remain secret, according to a statement from Waverley borough councillor Ann Mugford on Wednesday.

"No one enjoys a protracted situation and no councillor likes having to discuss an issue of such importance in confidential session, but there there was no choice on this complex subject."

In a special statement released on Tuesday, a spokesman for Waverley said that since June 2000, when Waverley had informed the public of the total overspend of £1.2 million, it has been working to determine whether and how it could recoup all or part of these funds.

But the spokesman added: "It would clearly prejudice the chances of recovery to publicise the details of our position while litigation remains a possibility.

"We expect to finalise our decision in 2002."

Among the defects believed to have caused problems since the centre opened were cracking to external glazing and cleaning difficulties relating to the changing room tiles, as well as landscaping problems.

It is believed that among the costs also incurred are painting and redecoration of water-damaged areas, making good water leaks in the showers and other areas, including replacing an area of the roof and flooring to the squash courts.

Mrs Mugford said in her statement that she had alerted the public in 1998/99 to "the huge overspend of £1,200,000 by the then ruling Liberal Democrat administration", saying it could take seven years to sort out.

She said that it was "good news" that the matter is expected to be concluded this year.

The Waverley statement was made before councillors on the executive committee were expected to reach a decision about an extension of the management contract to DC Leisure Ltd (DCL) on Wednesday night.

The meeting was expected to hear a report by Waverley officers outlining DCL proposals to invest £70,000 in improvement schemes at The Herons in return for a decision about the extension of its contract.

The report went on to recommend that Waverley enters into a new contract with DCL for an extended period of four years, bringing the revised contract to March 2008.

"This would provide DCL with certainty about their contract term at The Herons in respect of their ability to recoup their capital investment.

"It provides the council, in return, with much-needed capital investment, wholly funded by DCL," officers stated.

Waverley Borough Council stressed that the current issues at The Herons have no impact on public health and safety or on the effective day-to-day running of the centre.