§ Mr. Bernie GrantTo ask the Secretary of State for the Environment whether, under his plans to privatise the management of local authority sport and leisure facilities, local authorities will be permitted to claw back any of the profits made by the companies which are awarded contracts to manage such services; and if he will make a statement.
§ Mr. Moynihan[holding answer 5 July 1988]: If Parliament approves the order to apply the competition provisions of the Local Government Act 1988 to the management of local authority sport and leisure facilities, any question of profit sharing will be a matter for negotiation between individual authorities and potential contractors. Authorities will not, however, be able to insist on profit sharing arrangements which would restrict, distort or prevent competition.