Select Committee on Culture, Media and Sport Appendices to the Minutes of Evidence


Memorandum submitted by PMP Consultancy


  PMP Consultancy are the largest sport and leisure consultancy in the UK. They manage and advise on key schemes on behalf of Sport England, the 4ps and Local Authority clients.

  These include:

    —  Quest.

    —  Lottery Monitoring.

    —  The standardisation of PPP contracts documentation and procurement pack.

    —  Best value reviews.

    —  Procurement and advice on over 100 pools currently being undertaken.


    —  Swimming pools are the largest part of the declining stock of public assets that are estimated by Sport England to require £3.2 billion of refurbishment works, with £10 billion required to satisfy current levels of needing the country.

    —  The levels of lottery funding for municipal facilities is currently circa £50 million per annum and expected to decline, with falling ticket sales and advent of online gambling.

    —  Local authorities have declining access to capital to spend on leisure as a non statutory function, and have consistently underspent on leisure facilities, directly causing high running costs and outdated provision.

    —  PFI funding through PFI credits has been limited to £30 million per year over the last three years. These monies are supporting 10 new or refurbished pools.

    —  PPP schemes with lottery support (of circa £6 million) within a Sport England Pilot Programme at Bexley and Croydon are providing seven pools and over £41 million of initial investment and over £120 million of private investment over 25 years.


  PMP have been working with the 4ps to consult with the leisure market into opportunities to build, repair, fund and operate municipal leisure provision in England (consultees included Local Authorities, leading leisure operators, banks, funders, building contractors, PFI providers, insurers and Government Departments.) In addition we are producing the Standardisation Contract Documentation to aid speed up and encourage PFI and PPP transactions. Results of the consultation suggest:

    —  Muncipal operators have circa £50 million to £75 million to fund municipal provision in an equity capacity.

    —  The banks and PFI funds have significant funds to invest in PFI/PPP based contracts. One potential fund alone, has £400 million to invest in PFI transactions. This is a typical amount for such a fund.

    —  With PPP vehicles there is the potential for massive investment in leisure stock including Municipal swimming pools. There are numerous successful examples across the country including Sefton, Wokingham, Castle Morpeth, Lewisham with deals being finalised in Bexley, Croydon, Hackney and procurement to commence in Penwith, Amber Valley, Breckland and Lewisham.


    —  The existing 4ps work to be extended to investigate and make proposals to fund and deliver municipal leisure provision, including swimming pools, through public private partnership vehicles. This to include proposals on:

    —  Integration proposals with Government and Lottery Funding

    —  The involvement of public sector equity in leveraging private sector investment

    —  The role for NPDO's

    —  The development of private sector leisure procurement funds

    —  An update on the roll out of the standardised PPP Contract documentation and guidance pack

    —  A taskforce to be established involving Sport England, 4ps DCMS and specialist representative groups (Business in Sport and Leisure-BISL) ASA, NGBs and advisors as appropriate to aid consultation and ensure delivery of proposal within an agreed timeframe.

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Prepared 15 January 2002