Collecting and distributing sensitive personal data

[Number 7]

I'm looking at a contract clause concerning "sensitive personal data", which is defined as including that relating to racial or ethnic origin, political opinions, religious beliefs, membership of a trade union, physical / mental health, sexual life etc.

The clause would permit the company to collect, retain and distribute such data for any purpose relating to the contract anywhere in the world.

Contract is under English law. Does this seem reasonable? (I don't think so).

[edc]

Just make sure it is compatible with http://ico.org.uk/