Ministers deny plan to hand sports centres to private sector

Thursday 26 November 2015

Ministers say a report recommending States-owned sports centres at Fort Regent, Les Quennevais and Springfield could be handed over to the private sector is wide of the mark - and have ruled out any outsourcing or sell-offs.

The report by States cost-cutting adviser Kevin Keen stated that the Economic Development department is planning a review of sports facilities when they are transferred to their remit - and that the review should include handing them over to private operators to run.

But Steve Pallett - the politician in charge of sport in Jersey - says that there is no way that he would allow the sports centres to be sold-off or handed over to private companies.

Mr Pallet, who is Assistant Economic Development Minister, said: "In regards to the quote from Kevin Keen, it is right to suggest that Economic Development department will review all the sports portfolio that will come over from Education, Sport and Culture but it is not the intention, nor has it even been discussed, that sports facilities will be sold off or outsourced.

"Publicly-owned sports centres generally around the UK are run at a loss, especially swimming pools, but these services are vital to maintain a healthy and active lifestyle amongst the general population and ensure that participation levels in sport throughout all age groups is increased.

"Entry to sports facilities in Jersey has to be affordable for all and it will undoubtedly mean that government will need to subsidise sports facilities moving forward but the public does expect the sports department to run all our facilities as efficiently as possible and any review carried out by EDD if and when the transfer takes place will look at any areas where improvement can be made.

"I fully respect Kevin's perspective on government and public reform but we cannot take a 'one size fits all' approach when considering the delivery of sports facilities in Jersey. The sports department will play its part in reducing the cost of government generally by carrying on with work to review all areas of sports delivery as it has been doing over many years,working positively with both staff and users."

Politicians are set to debate shifting the States' sport portfolio - including the ownership and operation of sports centres - from the Education department to the Economic Development department next week. But the report submitted to politicians says nothing about the plans for an outsourcing review.

The review could also include tax incentives for private operators, which could potentially include Income Tax allowances for gym fees.

A report by Mr Keen – disclosed to Bailiwick Express after a Freedom of Information application – has revealed that once the buildings are handed over from the Education department on 1 January, the Economic Development department will look at all of the options.

The executive summary of Mr Keen’s report states: “Although it is hard to be precise (due to the accounting policies of SoJ) there seems little doubt that the sports centres are heavily loss making, even though  they make charges for their services.

“When these activities are passed from Education, Sport and Culture to Economic Development department the Chief Executive Officer of Economic Development [Mike King] is intending a review.

“Economic Development’s review should include potential outsourcing options and initiatives to encourage healthy living using private sector facilities, but with tax incentives for those that need them.

“A heavily loss-making operation subsidised from general tax revenues will discourage private entrants to this market and therefore competition.”