In June, the municipal council of Avannaata Kommunia made the fitness center in Ilulissat virtually free to encourage residents to get off the couch. Now the decision must be reversed: A legal review shows that it was made in violation of the rules and undermines competition. The matter will be discussed at the municipal council meeting on Friday, August 28.
An annual membership to the fitness center in Ilulissat for the price of a single workout and a soda. That was what the municipal council of Avannaata Kommunia promised residents when, at its meeting in June, it voted to lower the price for using the municipality’s fitness facilities to 50 kroner per year for everyone.
The proposal came from the mayor, who wanted to make it easy and affordable for all citizens to become healthier and thereby support the national goal of increasing physical activity among the population of Greenland.
But now politicians must say goodbye to the dream price. A legal review, which the opposition demanded after the vote, shows that the decision was made in violation of the applicable rules—and the municipal council is therefore being urged to reverse it.
The municipality must not drive private businesses out of business
Upon request, the matter was referred for legal review, and the conclusion has since been submitted to the Ministry of Social Affairs, Labor, and Home Affairs. It was agreed that the ministry’s guidelines must be followed: A municipality may operate a fitness center, but it may not compete in the market.
According to the assessment, the problem is that an annual fee of 50 kroner would effectively reduce competition. In several Greenlandic towns, fitness centers are operated by private companies, and it is believed that this model could also work in Ilulissat. However, the argument goes, no private business can compete with a municipal service that is essentially free—and the low rates would therefore deter potential entrepreneurs.
