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.
The standardisation of PPP contracts
documentation and procurement pack.
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 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causing high running costs and outdated provision.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 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