National Park Concessionaires Block Release of Federal Audit

National park concessionaires, accused of earning excessive profits at the government’s expense, have blocked release of a government audit to prevent their finances from being made public, a congressional committee said Thursday.

The audit, a detailed appraisal of problems outlined in an Interior Department task force report released in April, was conducted by the agency’s inspector general and contains specific profit figures for businesses that operate concessions in national parks.

A group representing the concessionaires was granted a temporary restraining order Wednesday from a federal court in the District of Columbia, preventing release of audit information that the concessionaires consider confidential.

A copy of the audit, with the disputed material removed, was released Thursday by the House Interior and Insular Affairs subcommittee on national parks and public lands.

“These findings seem to paint a picture of sweetheart deals, whether intended as such or not, resulting in excess profits at taxpayer expense,” said Rep. Bruce F. Vento (D-Minn.), chairman of the subcommittee.

More than 100 private firms operate concessions in 355 national parks, many holding several contracts. They range from small food stands to large operations.

The April task force report criticized current government policies, such as giving concessionaires preferential rights to renew their contracts, granting contracts for as long as 30 years and reducing fees in return for physical improvements to concession property.

After reviewing 45 of the 500 concession contracts in force, the auditors concluded that “the U.S. Treasury did not receive adequate fees from the larger concessioners in the national parks,” Inspector General James R. Richards told the subcommittee.

Richards said that while the concessions generated gross receipts of $500 million in 1988, the National Park Service received only $12.5 million in franchise fees, or about 2.5% of the concession revenues.

But Phyllis O’Connell, secretary of the Conference of Park Concessioners, told the subcommittee that the audit was conducted “in relative isolation from many facts needed for full evaluation.”