The education secretary thinks sport is "essential" to children
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Competitive sport is a "good thing" for pupils
because it teaches teamwork and commitment, Education Secretary Charles Clarkehas said.
It was "ridiculous" to say it was bad for children to compete against each other on sports days, he declared.
Mr Clarke's comments follow the disclosure that a primary school in
Birmingham had banned parents from attending to protect pupils from being "embarrassed".
Mr Clarke, a supporter of Norwich City Football Club, said: "I might be a bit old-fashioned but competitive sport is a good thing - it is ridiculous to suggest otherwise.
'Competition is essential'
"Competitive sport motivates children and is a source of great enjoyment.
"It is also an important way of learning some valuable lessons about teamwork and commitment.
"At every level of sport, from swimming to gymnastics, competition is an essential part.
"It generates excitement, enthusiasm and children strive for excellence - and it promotes a healthy lifestyle - so it is time to end any sort of notion that it is somehow wrong or inappropriate for children to play competitive sport."
Mr Clarke said he agreed with Manchester United manager Sir Alex Ferguson's recent call for more sport to be played in schools.
The education secretary urged football and other sporting clubs that already provide after-school study centres for children struggling with the basics of the "three Rs" to get involved.
'It makes children robust'
Earlier this week it emerged that Maney Hill Primary School in Sutton Coldfield, West Midlands had banned parents from its sports day and reduced the competitive element.
Head teacher Judith Wressel said: "Taking part in traditional races can be difficult and often embarrassing for children which is why we now envisage a different outdoor activity event which will suit all children."
Birmingham Local Education Authority said it was up to individual schools to decide what was appropriate.
Mr Clarke is talking to Culture, Media and Sport Secretary Tessa Jowell about how to raise the profile of the traditional school sports day, his officials said.
A spokesman said: "It is time to kick into touch the idea that competitive sport is wrong and to call time on the idea that it damages children's sensitivities - it makes them more robust."
Children are supposed to get two hours of PE a week but the Government has faced criticism that it has allowed schools to continue selling off playing fields.
The Department for Education and Skills (DfES) responded, saying it had tightened the rules and only 125 sales approved since 1998 had involved a "net loss" of sports pitches.
Fifty of those were at schools which had either closed or were in the process of shutting down.
In more than half the cases, the DfES said they were replaced by "better" sports or other educational facilities.