Creative Professionals: EU Tours

Lord Ashton of Hyde Excerpts

Monday 21st February 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is absolutely right. As we emerge from the pandemic, our creative industries are leading the way in helping us to build back stronger. On GOV.UK, landing pages for each member state explain the rules and the outcome of our negotiations with the remaining six states. I will take his point about publishing documentation back to the department and let him know.

[Lord Ashton of Hyde (Con)]

The noble Lord, Lord Strasburger, wishes to contribute virtually and I think this is a good point to call him.

[Lord Strasburger (LD) [V]]

My Lords, the UK’s second largest industry, the creative arts, was left high and dry by the Government’s trade deal with the EU. Touring in Europe is now almost impossible for British musicians and other performers because of a mountain of new red tape and costs. Bilateral deals are not enough. When will the Government do what the Tongan Government were able to do for their performers and negotiate EU-wide cultural exemptions for visas, work permits and trucking restrictions?

Children: Online Protection

Lord Ashton of Hyde Excerpts

Thursday 10th February 2022 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I welcome—

[Lord Ashton of Hyde (Con)]

My Lords, there is plenty of time. One of your Lordships can give way to the other.

[Lord Clement-Jones (LD)]

My Lords—

Charities Bill [HL]

Lord Ashton of Hyde Excerpts

Monday 10th January 2022 Lords Chamber

[Lord Ashton of Hyde (Con)]

My Lords, I have it in command from Her Majesty the Queen and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Charities Bill, have consented to place their interests, so far as they are affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Charities Bill requires no legislative consent Motions. In relation to Wales, charity law is reserved to Her Majesty’s Government of the United Kingdom. In relation to Scotland and Northern Ireland, charity law is devolved to the Scottish Parliament and to the Northern Ireland Assembly.

Clause 41 sets out the territorial extent of the Bill. The Bill extends to England and Wales only, subject to certain exceptions. Those exceptions are Clause 24, Schedule 1 and paragraphs 12 and 46 of Schedule 2, which have a different application than the general application of the Bill set out in Clause 41(1). These differences are explained in the Bill and in the Explanatory Notes. Given the limited scope of the applicability of these parts of the Bill, no legislative consent Motions are required. I beg to move that the Bill be now read a third time.

Motion

Covid-19: Creative Industries

Lord Ashton of Hyde Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Baroness Prashar (CB) [V]]

The pandemic has dealt a devastating blow to people working in the creative industries. Many have lost their livelihoods—[Inaudible.]

[Lord Ashton of Hyde (Con)]

My Lords, I am afraid the noble Baroness is inaudible. If she would like to write to the Minister, I am sure she would be happy to answer her question.

[The Senior Deputy Speaker (Lord McFall of Alcluith)]

My Lords, all supplementary questions have been asked and we now move to the next Question.

EU: British Musicians

Lord Ashton of Hyde Excerpts

Wednesday 3rd June 2020 Lords Chamber

[Baroness Barran]

I think I have been clear already about where the Government’s focus is in these negotiations: on building our presence, in Europe and on the global stage, for our critical cultural sectors.

[Lord Ashton of Hyde (Con)]

My Lords, I am afraid that the time allocated for that Question has passed, so I ask the noble Lord, Lord Blencathra, to ask his Question.

Birmingham Commonwealth Games Bill [HL]

Lord Ashton of Hyde Excerpts

Wednesday 24th July 2019 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, as the noble Lord, Lord Moynihan, said, this is actually the heart of the debate we have been having on the Games, concentrated in one very small group of amendments. As he says, it may well be that we can take all the tricks that are on the table—if that metaphor actually works—at the same time if we get this right. However, as the noble Lord, Lord Addington, said, that will largely depend on the Minister’s response because a lot of this is about how we judge the need to ensure that the legislation that goes through this House—and, presumably, very quickly through the other place thereafter—contains the minimum requirements appropriate for Games of this scale and stature. As I have mentioned before, it is important to note that these Games, unlike the others that we have looked at before, are very much in the direct control of the Government because the organising committee will be a non-departmental public body and the accounting officer of the department will therefore have legal and statutory responsibilities, as well as those that we might want to have placed on the organising committee and its staff in the approach to any other Games.

We want to ensure that the requirements are appropriate but not an undue burden on the organising committee in its main role, which is to produce a brilliant Games for the audience and the participants, to make sure that there is an appropriate and long-lasting urban regeneration programme for the people of Birmingham, and that we have a legacy—a point that has been made by others who have spoken—that is not just immediate but long-lasting and affects the culture and health of everyone in this country as a result of seeing, and possibly experiencing, the Games. That is a big ask for legislation that is just a few words on a piece of paper, but the issue can be addressed.

I turn to Amendment 8, which is in the name of my noble friend Lord Griffiths of Burry Port, but I confess that I had a hand in it. It follows from the point made in Committee that we are not thinking widely enough if we restrict our concern to how the Games are received across the country, and indeed across the world, and do not think about the broadcasting element. This issue came up recently in relation to cricket but it has much wider resonance. The way that this country deals with listed events sometimes runs counter to a common-sense approach to what should be available to people, particularly in this case. I say this without in any sense trying to use it as an excuse. If the Government are taking responsibility for funding a proportion of the Games, they must also take on the responsibility of relating to the people who are paying for them through taxation. One way in which they could discharge that responsibility is by making the Games accessible through free-to-air terrestrial television, but that would require a change to the rules on the listing of events. The amendment therefore seeks to press the Government to look again at the way in which Ofcom deals with that and, if necessary, to amend or impose conditions relating to the broadcasting of the Games on a free-to-air basis. I look forward to the Government’s response.

That is the method that I want to use to test whether government Amendment 4, to which the Minister will speak shortly, meets the issues that have been raised throughout the House, including by the noble Lords, Lord Moynihan and Lord Addington, my noble friend Lord Hunt and the noble Baroness, Lady Brinton, in a very moving speech. If we are to place all our hopes on the Government’s amendment to ensure that the annual reports are extended or carried on in legacy terms by Birmingham City Council, as my noble friend Lord Hunt said, the annual reporting specified needs to be sufficient to capture the spirit laid out in the amendments from the noble Lord, Lord Moynihan, and others.

Amendment 4 says that the report must include certain elements about the delivery of the Games and details of how they promote the values of the Commonwealth Games Federation, which, as has already been mentioned, includes a huge amount of additional activity. I accept all that; the Commonwealth Games has done a great deal of work on these issues, which is reflected in the values. However, I hope the Minister will recognise that proposed new subsection (2)(c) simply refers to,

“details of what the Organising Committee has done to ensure that Games events are accessible to disabled people”.

The wording used by the noble Lords, Lord Moynihan and Lord Addington, and the noble Baroness, Lady Brinton, in Amendment 5 is much more appropriate. I am not seeking a change to the wording, but I wonder whether the Minister recognises the very obvious point that by not mentioning that the Games participants will include disabled people, and all that implies, the question remains as to why that wording is not used. The simple reference to “accessible” does not pick up the richness of the points made by the noble Baroness, Lady Brinton, in the absence of the noble Baroness, Lady Grey-Thompson. However, the recommendations could be improved if we had more of a sense of what will be in the charter.

On sustainability, the amendment framed by the noble Lord on behalf of the Government refers at subsection (2)(d) to,

“details of what the Organising Committee has done to promote sustainability”.

However, if we read across, the charter refers not just to sustainability but to specific development goals and COP 21. It is therefore much richer and more engaged with what the issues are about.

I will not go through all these points, but I accept, as I think noble Lord, Lord Moynihan, does, that if we got behind Amendment 4 and it became the main focus of what we are trying to achieve in setting standards for the Games that are not burdensome but will reflect the importance of human rights, the elimination of fraud and corruption, the carrying out of sustainable development activities, and most particularly—because it is the most important aspect—the acceptance that these Games reflect the totality of human existence, whether able or disabled in terms of performance, and that they therefore must be accessible to all, not just in terms of physical presence but on broadcasting media, then I think we will be moving in the right direction. But it is important that we hear from the Minister whether he thinks the amendment, as drafted, does that. If not, might he be prepared to reflect on what has been said during this short debate and bring it back at Third Reading in a slightly better form to reflect the issues raised here?

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I am very grateful for the opportunity to discuss these amendments and for noble Lords’ constructive comments. I should say right at the beginning that I have been struck all the way through the passage of the Bill by the fact that there is cross-party consensus that this is a good idea, that the Games will provide a tremendous opportunity for the West Midlands and Birmingham, and that amendments from noble Lords are, as I said at Second Reading, trying to improve the Bill. I am taking this on board seriously. That is why we have made some changes and amendments, and I hope that by the end of my remarks, with some further reassurance, that will be adequate. I am also sorry that I might go on a bit, but it is important to get some things on the record. I will address all the amendments.

We support the intention behind these amendments, as I said, and the paramount importance of delivering Games that are fully accessible to everyone. I turn to the amendments, in the names of the noble Lords, Lord Griffiths, Lord Moynihan and Lord Addington, and the noble Baroness, Lady Brinton, on accessibility first. As accessibility is already at the forefront of Games planning, I do not agree that all the amendments are necessary on the face of this Bill, and I will explain why.

First, however, I want to first address the comments that I made in Committee on this issue. The noble Baroness, Lady Brinton, kindly gave me advance notice that I may have suggested that I do not consider accessibility to be of great importance. I want to be clear that that is absolutely not the case. In this vein, I hope now to provide the necessary assurance that accessibility is at the core of these Games. I say to the noble Baroness that, if I gave that misleading impression, it is my fault and that is a lesson learnt that we have to be very careful in our language, even if we are doing it on spec, as it were. I hope that this will reassure the noble Baroness.

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[Lord Moynihan]

Before the Minister leaves that point, can he also ask the organising committee, when it is in the process of developing this welcome accessibility strategy, to take fully into account the points made on the Floor of the House today, and the letter from the noble Baroness, Lady Grey-Thompson, which I am sure will be of assistance to it in developing that strategy?

[Lord Ashton of Hyde]

Can I come to that later? I certainly will bear that in mind.

My officials have made the Birmingham Organising Committee and the Commonwealth Games Federation aware of the issues raised by the noble Baroness. We take this very seriously, we do not want similar concerns raised about the Birmingham Games and we would be happy to continue engaging with the noble Baroness on this matter. Further, in developing this strategy, the organising committee will establish a disability forum, which will include disability specialists, charities and regional organisations, to ensure that venues and services are designed, operated and delivered so that everyone has a positive Games experience. The organising committee is happy to listen to the views of noble Lords as this strategy is developed. Once it is available, the strategy will be published on the committee’s website, and a copy will be placed in the Library.

Recognising the strength of feeling in the House, the Government also wish to place accessibility on the face of the legislation. That is why the Government have brought forward Amendments 3, 4, 10 and 11, which require the organising committee to report annually on the details of what it has done to ensure Games events are accessible to disabled people. This report will be laid before Parliament. I will come to those amendments later.

I turn to subsection (3) of the new clause proposed in Amendment 8, in the name of the noble Lord, Lord Griffiths, on accessibility relating to the list of designated sporting events, as mentioned by the noble Lord, Lord Stevenson. We want as many people as possible to experience the Games. The organising committee is looking to maximise the audience by exploiting a range of platforms. As the Commonwealth Games is a listed event, broadcasting rights must already be offered to the qualifying free-to-air terrestrial broadcasters on fair and reasonable terms. There is nothing to prevent free-to-air channels bidding successfully to show live coverage of group B events, as with the BBC’s live coverage of the Gold Coast Games and ITV’s forthcoming exclusive coverage of all 48 matches at this year’s Rugby World Cup. Indeed, the Commonwealth Games has been in group B since the list was compiled in 1998 and has had excellent live coverage for many years on free-to-air television. We believe that group B is the correct listing for the Games, helping to enable extensive free-to-air coverage for the nation and allowing the organising committee to agree live free-to-air coverage as it sees fit.

Further, reconsidering which group the Commonwealth Games sits in would not be appropriate at this time. The organising committee is already in the middle of a competitive commercial process with potential rights holders. These negotiations may not be concluded until next year. Any changes to the listed events regime during this process could significantly and detrimentally affect those negotiations. Finally, contrary to the drafting of this amendment, Ofcom does not hold the responsibility for amending the listed events regime; that power rests with the Secretary of State. The organising committee would be very happy to discuss its approach in all these areas with interested Peers. I hope that I have been able to further reassure noble Lords of the organising committee’s strong commitment to accessibility and to delivering a truly integrated and inclusive Games in 2022.

I turn to Amendment 5, on a charter for the Games. I make it clear that I agree with the spirit of this amendment, which highlights a range of important matters, but we do not consider it necessary to put the charter on the face of the Bill. As I have said before, the organising committee is merely the custodian of the Games for the next three years. It is the role of the Commonwealth Games Federation to set the level of expectation from a host city. That is why the federation is working with hosts of the Games to support delivery of its vision, mission and values.

As I will come to discuss, the Government will require the organising committee to report on what it has done to ensure that its delivery of the Games promotes the values of the Commonwealth Games Federation. As such, the values of the federation provide an important foundation for the government amendment on reporting and represent a further mechanism to ensure the organising committee upholds and delivers on these important values. In promoting these values, the organising committee is wholly committed to protecting human rights, tackling corruption and promoting sustainability.

Indeed, I am pleased to confirm that the organising committee is developing a Birmingham 2022 Commonwealth Games social values charter, which will be published in due course. The charter will include policies on equality, human rights and anti-corruption, and objectives on legacy delivery, reflecting the values of the Commonwealth Games Federation. Such a charter will underline the committee’s commitment to delivering a Games which builds on the matters set out in noble Lords’ amendments. I know that the organising committee would again be happy to engage further with Peers on this.

As I mentioned earlier—my noble friend Lord Moynihan also mentioned this, and the noble Lord, Lord Addington, alluded to it as well—the organising committee is already required to comply with the Equality Act 2010, the Bribery Act 2010, the Fraud Act 2006, the Health and Safety at Work etc. Act 1974 and other health and safety legislation, the Human Rights Act and the Public Services (Social Value) Act. In addition, the organising committee will include a requirement in all its contracts for suppliers to comply with its social values charter, once published. Recently, the organising committee also agreed a modern slavery statement, which will be published on its new website. I hope I have demonstrated that many of the issues in Amendment 5 are covered by existing statute or are already being proactively considered by the organising committee.

I hope that my noble friend Lord Moynihan recognises that the organising committee is already taking great strides in this area—for example, with the development of a social value charter. The requirement that I have outlined will ensure that the committee reports on what it has done to promote the values of the Commonwealth Games Federation. Therefore, we think the Government’s amendment is a good compromise on the issue. However, I am pleased to give the further reassurance to my noble friend that I shall write to the organising committee to stress the importance of ensuring that it addresses all the issues raised by noble Lords in this debate, including the accessibility guidance issued by the International Paralympic Committee, in preparing its statutory report. Going a little further in that respect speaks also to the issue raised by the noble Lord, Lord Stevenson.

I am grateful also for Amendment 9, in the name of the noble Lord, Lord Addington, which I consider is addressed by the government amendments. I think he alluded to the fact that he agrees with that, so I shall spare the House some words.

The government amendments will place a statutory requirement on the organising committee to report annually on its functions and the progress made towards delivery of the Games, and for the report to be laid before Parliament. This will ensure that there is a single source of information about what the organising committee has done to prepare, addressing the matters raised by the noble Lord, Lord Addington. The amendments also reflect a number of other matters that this House and the Government consider important. I want quickly to mention some of them because they refer to comments made by noble Lords.

As I explained earlier in responding to my noble friend Lord Moynihan on the charter, we will require the organising committee to report on what it has done to ensure delivery of Commonwealth Games Federation values—I gave some additional reassurance on that. As the report will be laid in Parliament, noble Lords will be able to hold the organising committee to account on those values.

On accessibility, to address points raised by noble Lords in their amendments, it will be a statutory requirement of the organising committee to report on what it has done to ensure that Games events are accessible for disabled people, whether competitors, spectators or officials. Having those annual reports will allow noble Lords and others to look at progress made before the Games. It will not just be a question of waiting for the Games to happen and seeing whether something is wrong; proactive steps can be taken.

On sustainability, the Games partners are committed to embedding sustainability. I acknowledge the interest expressed in that—the noble Lord, Lord Stevenson, mentioned it. The organising committee is in the process of developing a Games-wide sustainability plan. When this is published, I will place a copy in the House Library.

On legacy, as I said in the House previously, in delivering this event we must maximise the benefits for the city, the region, the country and the wider Commonwealth. There was agreement across the House that this was extremely important, which is why the Government have brought forward a requirement for the organising committee to report on the steps taken to maximise the Games benefits. However, responsibility does not sit solely with the organising committee. All Games partners will be working together to make sure that there is a lasting legacy from the Games that starts benefiting the people of Birmingham now. Games partners will develop a cross-partner legacy plan which will be published in due course and a copy will be made available.

The government amendment requires a final report to be produced by the organising committee after the Games. The noble Lord, Lord Hunt, and my noble friend Lord Moynihan asked what we could do in that regard. I can confirm that the Government will carefully consider who will be best placed to report on the impact of the Games and how, because it is our ambition that the positive effects of the Games are lasting. Both noble Lords were right to point out that the organising committee will not be around to do it. That is a commitment from the Government.

As for keeping the public updated on Games preparations, the organising committee will launch a new website this Saturday, marking three years to go. It will include information on sports and venues, when people can sign up to volunteer at the Games and apply for tickets, and the plans I have outlined. I hope that the noble Lord, Lord Addington, is satisfied that there are considerable plans and mechanisms in place to ensure that the organising committee communicates appropriately and effectively and that he will not press his amendment.

I believe that Amendments 3, 4, 10 and 11 in my name strengthen the Bill and address the House’s desire that information on Games delivery is available and accessible. In light of my reassurance to my noble friend Lord Moynihan, I hope he will withdraw his amendment.

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[Lord Griffiths of Burry Port]

I am grateful for that intervention. It allows me simply to give the assurance that in the findings of the committee to which I have referred those specific points have been considered, with figures identical to those that have been mentioned. The business side of things needs to be heard. VAT at 20% in this country compares with 12%, 6% or 7% in other European countries, and it loads the tax base here much more than there. It puts this country’s hotels at a disadvantage compared with those overseas. I am not denying these important considerations at all; I am simply saying that, by approving this measure, we could have a specific, properly looked at piece of work that would allow us to take all these factors into consideration and come to a conclusion that would be justified evidentially rather than simply being based on a feeling at this particular moment—on the last day but one of a Session, when, as noble Lords can see, sartorially I am dressed for other occasions.

[Lord Ashton of Hyde]

My Lords, I did not expect to enjoy a debate on raising tax but it was very entertaining. I thought that the noble Lords, Lord Hunt and Lord Griffiths, put their case very persuasively. I was going to mention the thin edge of the wedge but it has already been mentioned several times. The noble Lord, Lord Rooker, made a new suggestion about taking advantage of the absence of a Chancellor of the Exchequer. There might not be a Minister soon, and it would guarantee that there would not be a Minister if I did that. I am also grateful for the support of my noble friends.

Perhaps I might say something about the state of Birmingham’s finances and what Birmingham City Council is doing. As I mentioned in Committee, Birmingham and the West Midlands region will benefit, as the noble Lord, Lord Hunt, said, from a £778 million investment to stage the 2022 Commonwealth Games, with Birmingham City Council and a number of its key partners providing funding of £184 million—25%—of the Games budget.

Birmingham City Council has publicly committed to meet its financial obligations for the Games, and approved a four-year council budget at a full council meeting on 26 February this year, stating that there are sufficient reserves to cover the city’s share of the costs. It has already explained how it will meet its obligations without impacting on existing services. I refer noble Lords to Birmingham City Council’s publicly available Financial Plan 2019-2023. This states that,

“resources have been identified for this purpose that will be sufficient to meet these funding liabilities as they fall due”.

It might interest noble Lords to know that the Government have already committed to working constructively with Birmingham City Council, to the extent that there was correspondence on 7 December 2017 from the Chief Secretary to the Treasury to Birmingham City Council on reviewing existing legislative powers and listening to requests for new powers, should the case for additional funding be made.

As the noble Lord, Lord Griffiths, said, we are in frequent dialogue with Birmingham City Council but, to date, no detailed case has been put forward to evidence the need for an additional power. However, I understand that Birmingham City Council is now undertaking detailed work, with expert advice, on various options for revenue-raising to offset the costs of the Games, including the use of existing powers or the introduction of a new tax, such as a hotel tax. We and Her Majesty’s Treasury await the conclusion of that analysis and stand ready to look at the details of any proposals put forward by the council.

My honourable friend the Minister for Sport and Civil Society—I have her full title right this time—has spoken to the Chief Secretary to the Treasury about this. As I stated previously, matters of taxation are for HM Treasury to consider, with appropriate evidence, consultation and assessment of impact—for example, on tourism—as my noble friends Lady McIntosh and Lady Neville-Rolfe mentioned. I am grateful to my noble friends for their support.

We consider that these amendments are not an appropriate measure for the Bill, which, I remind your Lordships, is focused on providing the temporary operational powers required to deliver a successful Games, and they would pre-empt the outcome of the work already being undertaken by Birmingham City Council.

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Moved by

[Lord Ashton of Hyde]

3: Clause 1, page 1, line 14, at end insert—
““Games event” means—(a) an event forming part of the Games (whether or not a sporting event), or(b) any other event arranged by, or on behalf of, the Organising Committee;”

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Moved by

[Lord Ashton of Hyde]

4: After Clause 1, insert the following new Clause—
“Annual reporting: the Organising Committee
(1) As soon as is reasonably practicable after the end of each reporting period, the Organising Committee must send to the Secretary of State a report on the exercise of the Organising Committee’s functions during the period.(2) The report must include—(a) an assessment of the Organising Committee’s progress towards delivery of the Games;(b) details of what the Organising Committee has done to ensure that its delivery of the Games promotes the values of the Commonwealth Games Federation;(c) details of what the Organising Committee has done to ensure that Games events are accessible to disabled people;(d) details of what the Organising Committee has done to promote sustainability in its delivery of the Games;(e) details of what the Organising Committee has done to maximise the benefits to be derived from the Games.(3) The reference in subsection (2)(b) to the values of the Commonwealth Games Federation is a reference to the values expressed in the constitution of the Commonwealth Games Federation, as amended from time to time.(4) The Secretary of State must lay before Parliament a copy of each report received by the Secretary of State under this section.(5) In this section “reporting period” means—(a) the period beginning with the day on which this section comes into force and ending with 31 March 2020,(b) the period beginning with 1 April 2020 and ending with 31 March 2021,(c) the period beginning with 1 April 2021 and ending with 31 March 2022, and(d) the period beginning with 1 April 2022 and ending with 31 December 2022.”

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Moved by

[Lord Ashton of Hyde]

10: Clause 8, page 5, line 23, leave out from “event”” to end of line 27 and insert—
“has the meaning given by section 1(3);”

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Moved by

[Lord Ashton of Hyde]

11: Clause 23, page 14, line 37, leave out from “event”” to end of line 41 and insert—
“has the meaning given by section 1(3);”

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Moved by

[Lord Ashton of Hyde]

12: Clause 24, page 15, line 32, leave out “person” and insert “local authority in England or a combined authority”

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[Lord Ashton of Hyde]

My Lords, the Government have listened carefully to the issues regarding Clause 24 raised by noble Lords during previous stages of the Bill and to the comments of the DPRRC. I am pleased that the House is in agreement on the need for a well-understood and supported Games transport plan. By giving this plan a statutory footing, we are ensuring that it has the appropriate authority and weight to deliver on the transport measures required for an event on the scale of the Commonwealth Games.

While it has always been our intention that the body directed to prepare a plan would be a local authority or combined authority, we recognise that simply providing for “a person” may not offer the assurance needed. That is why we have brought forward amendments setting out that only a local authority in England or a combined authority may be directed to prepare the plan. The House can be assured that an appropriate body will receive this direction and can be held accountable. To ensure that Parliament is appropriately sighted, we will make a Written Ministerial Statement when the direction has been made by the Secretary of State. Further, once the draft transport plan has been made available, we will deposit a copy in the House Library.

I would like to highlight the importance of placing the Games transport plan on a statutory footing. This, alongside a requirement on local traffic authorities to implement the plan, provides the clear framework needed for the effective delivery of Games transport operations. It will facilitate co-operation between transport partners, minimise the risk of disruption and disagreement and give the Government the assurance that they need. I beg to move.

[Lord Addington]

My Lords, I would just like to thank the Minister for listening when these issues were raised, I think by me. The Delegated Powers committee report on that raised a real point and the Government have responded, so thank you.

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Moved by

[Lord Ashton of Hyde]

13: Clause 24, page 15, line 35, leave out “A person” and insert “An authority”

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Moved by

[Lord Ashton of Hyde]

20: Clause 26, page 17, line 2, leave out “A person” and insert “An authority”

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Moved by

[Lord Ashton of Hyde]

26: Clause 27, page 17, line 31, leave out “a person” and insert “if different, an authority”

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Moved by

[Lord Ashton of Hyde]

29: Clause 28, page 18, line 16, at end insert—
““combined authority” means a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;”

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Moved by

[Lord Ashton of Hyde]

30: Clause 30, page 19, line 3, leave out subsection (3) and insert—
“( ) A statutory instrument containing regulations under paragraph 16 of Schedule 2 (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.( ) Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.”

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[Lord Ashton of Hyde]

My Lords, we had an interesting debate in Committee regarding the delegated powers in this Bill and whether certain powers should be subject to the draft affirmative procedure rather than the negative procedure. I have carefully considered the arguments raised in Committee and the recommendations made in the Delegated Powers and Regulatory Reform Committee’s report, which also formed part of the last group. I issued a written response to the chair of the DPRRC last Wednesday, and a copy is available in the Library.

After reflecting on suggestions made, I am pleased to move government Amendment 30. The amendment applies the draft affirmative procedure, instead of the negative procedure, to the regulations under paragraph 16 of Schedule 2. This means that the draft affirmative process will apply to the regulations regarding the procedures for compensation claims in certain circumstances following enforcement action.

As far as compensation is concerned, the amendment is in line with Amendment 31 tabled by the noble Lord, Lord Addington, and the recommendations in the DPRRC report concerning the compensation power, and will offer Parliament the opportunity to debate the Government’s proposals. I hope noble Lords will welcome the amendment. At this point, it may help the House if I let the noble Lord, Lord Addington, speak to his amendment, or I could carry on. He has said that I should carry on.

I still believe that the negative procedure is appropriate for the other regulation-making powers in the Bill. This includes powers to make regulations to specify the Games locations and the time periods when the temporary advertising and trading restrictions will be in place, and will make provision about the vicinity of Games locations. I have been clear before that we have looked carefully at the approach taken in London and Glasgow and have subsequently ensured that the powers taken in the Bill are not as broad. As such, I maintain that the differences in approach mean that the negative procedure is appropriate here.

I reiterate the important point that these restrictions will be proportionate and temporary; they will last for a maximum of 38 days, and many for considerably less time than that. I reassure the House that we are focused on proportionality here. I anticipate taking a similar approach to Glasgow regarding time periods, Games locations and their vicinity. We are talking not about blanket restrictions across the region but about an area that in most cases may extend a few hundred metres beyond a Games location. In particular, this will ensure a celebratory look and feel around Games locations and create a welcoming environment for spectators. I remind noble Lords that the offences can be further narrowed in regulations through the provision of additional exceptions to the offence. The Government will run a public consultation on those exceptions.

Given government Amendment 30 and the reassurances that I have provided to the House on the proportionality of these measures, I respectfully ask the noble Lord, Lord Addington, not to move his amendment. I beg to move.

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[Lord Ashton of Hyde]

My Lords, I am grateful to my noble friend. Of course, we will continue to have discussions with advertising stakeholders. As I think I have made clear throughout the passage of this Bill, we and the organising committee are very willing to talk to people about any concerns they have on it. I have made that point before and I repeat it now.

[Lord Foulkes of Cumnock (Lab Co-op)]

Could the Minister help me? He mentioned the Commonwealth Games in Glasgow and the Commonwealth Games London. I had the great privilege of attending the Commonwealth Games in Edinburgh in 1970, which were very different from the Games in Glasgow and London. I know the noble Lord, Lord Campbell of Pittenweem, did not participate in the Edinburgh Games, but it was not long after he had participated. Has the Minister taken account of anything that happened with the Edinburgh Games?

[Lord Ashton of Hyde]

I ought to correct the noble Lord for the record. Glasgow certainly hosted the Commonwealth Games, but London had the Olympic Games. I am not trying to show him up; it is important because they are very different. One of the interesting things about this proposal, and one of the reasons why we are dealing with it in a shortened timescale, is that the costs of putting on the Commonwealth Games are considerable, as has been mentioned. The Commonwealth Games Federation had to look at how to make it possible for them to be put on around the world, not just in the richest nations of the Commonwealth.

On lessons from previous Games, we have looked at financing and the other issues we discussed earlier. We can learn lessons from Glasgow and Edinburgh, and I hope the noble Lord enjoys watching the Games in Birmingham—I assume he is not participating—as much as he did those in Edinburgh.

[Lord Campbell of Pittenweem (LD)]

To add briefly to what the noble Lord, Lord Foulkes, said, Edinburgh has hosted the Commonwealth Games twice: once in 1970, which was a complete success, and again in 1986, which was, frankly, a total failure in many respects. The organising committee ran out of money and the Government of the day—Lady Thatcher was Prime Minister at the time—declined to offer any additional assistance. It is a measure of the comparative costs of 1986 and now that the total deficit from the 1986 Games was £4 million. That is but a drop in the ocean of the cost of the Games with which we are concerned.

To some extent, I am retreading remarks I have made before, but Birmingham has made an enormous contribution to the Commonwealth Games movement through its willingness to undertake the responsibility for these Games at relatively short notice. I am not sure how often that is acknowledged. I suspect we are about to end Report and it is worth reminding people that, without that willingness, there is every possibility that the Commonwealth Games movement might have found itself in very deep embarrassment. On other occasions, people have referred to the fact that the cost of these Games is now such that the number of cities—remember, the Games are awarded to cities, not countries—able to undertake that responsibility is declining. I think we are all conscious that it would be a great pity if the Games became something for what is sometimes called the white Commonwealth—I use the term with some delicacy—rather than being part of the whole Commonwealth story. On that basis, with respect, it seems Report has improved this legislation greatly. For that, all those who have participated, among whom I cannot number myself for various reasons, deserve great credit.

[Lord Ashton of Hyde]

I am very grateful to the noble Lord, and I agree with everything he said. It is important that we get this right for Birmingham and the West Midlands. It is also important for the Commonwealth, for the reasons he suggested. The Games have been expensive in the past, but Birmingham will cost considerably less than the last Commonwealth Games. We are introducing the partnership model in addition to the host city, as he rightly says, to enable us to do that. It is more complicated in some ways and there is risk involved in doing it at short notice. However, I am sure that if we show the constructive, helpful attitude that has been the hallmark of Report, it will be a great success.

Amendment 30 agreed.

Small-scale Radio Multiplex and Community Digital Radio Order 2019

Lord Ashton of Hyde Excerpts

Tuesday 23rd July 2019 Lords Chamber

Moved by

[Lord Ashton of Hyde]

That the draft Order laid before the House on 20 June be approved.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the order that we are debating today will facilitate a new approach to open up broadcasting on terrestrial digital radio to more than 300 existing community stations and smaller commercial services. It will also offer an opportunity for new entrants who wish to launch new services.

There has been a marked change in listening habits over the past decade, with a significant shift towards consuming radio via various digital platforms. The latest RAJAR audience listening figures, published in May 2019, show that digital radio now accounts for 56.4% of all radio listening; 10 years ago, it was just 20.1%. This shift has significant implications for around 300 existing community stations and small commercial radio stations that are currently broadcasting to local audiences only on FM or AM. For most of these small stations, a move to digital by broadcasting on their existing local digital radio multiplex is not an option, because many local multiplexes have insufficient capacity available for carrying additional stations and the cost of carriage for an individual station is too high. Smaller stations recognise that they will increasingly be at a disadvantage in retaining their audience as digital becomes the default mode.

To address this issue, the Government supported the development of an innovative approach known as small-scale DAB. Small-scale DAB is digital radio. It uses advances in technology to provide a flexible and cheap approach to digital transmission which performs well in localised geographical areas. DCMS funded a programme of work by Ofcom to examine the feasibility of small-scale DAB technology. This included 10 successful technical trials in towns and cities across the country. However, the trials licences were issued under temporary licensing arrangements and we concluded that these arrangements would not be appropriate for the longer term.

The existing legislation is more than 20 years old and places a number of burdens on radio multiplex operators that are not necessary or appropriate for small-scale radio multiplex services. Importantly, the existing legislation does not allow Ofcom to reserve capacity for community radio stations or enforce restrictions on ownership; both are essential if smaller stations are to have a viable opportunity to broadcast on DAB. To enable the necessary legislative changes to be made, DCMS supported a Private Member’s Bill sponsored in your Lordships’ House by my noble friend Lady Bloomfield of Hinton Waldrist, which received cross-party support; I extend my thanks to her.

The Broadcasting (Radio Multiplex Services) Act 2017 amended the Communications Act 2003 to provide a power to modify, through secondary legislation, the rules for radio multiplex licensing set out in Part 2 of the Broadcasting Act 1996. In 2018, the Government consulted stakeholders about detailed proposals on new arrangements for licensing new small-scale radio multiplexes, and we received 87 mainly detailed responses, including from commercial and community radio operators. Overall, there was strong support for the proposals, but there were representations, including from the Community Media Association—the CMA—on whether we had got the balance right between protecting the legitimate interests of the community radio sector and allowing the commercial sector to be involved. We have reflected all these points in drawing up the order. The order secures important protections for community radio and small commercial stations which want to use these networks while ensuring that only minimum, necessary burdens are placed on new operators.

The issue that attracted the most attention during the consultation was who could hold a small-scale radio multiplex licence and the proposed limits to the number of licences that could be held. The CMA proposed strict rules that limited licences to not-for-profit entities and to holding a single licence. However, we were not attracted to this approach as it would have excluded many of the existing operators of the successful small-scale trials.

We think it is important to have a mixed economy, and for commercial entities to be involved and apply their skills and investment to develop small-scale DAB. This will help ensure that there is interest in taking up licences—something that will actually benefit community stations that would otherwise find it difficult to run a small-scale multiplex service. None the less, we recognise that some restrictions on ownership are necessary to avoid a potential concentration of ownership, and we consulted on this basis. Since the consultation, we have listened and made a small number of changes to the original proposals to strengthen the protections for community radio.

The order ensures that capacity reserved for community stations on a small-scale multiplex is a firm reservation; in other words, it must be maintained for use by community digital radio stations—C-DSP licence holders —and not by temporary commercial services. This removes an incentive for operators to seek to overcharge community radio stations. The order requires Ofcom to ensure that small-scale radio multiplex licence holders publish information about the carriage fees charged. This will allow fees to be compared and benchmarked, which will also help to limit charges. Finally, the order requires Ofcom to consider the extent of involvement of community radio in a particular application when awarding a small-scale radio multiplex licence. In other words, an application supported by local community services, for example as consortium partners, will have a greater chance of success.

In addition to these measures, the order sets out the other elements of the new licensing framework for small-scale radio multiplex services. Taken together, these measures will help to ensure that community radio’s interests will be protected. The key elements are as follows. First, they require Ofcom to reserve capacity on small-scale multiplexes for community digital radio stations. There must be a minimum of three slots available, with a variable upper limit set by Ofcom based on an assessment of local need. Ofcom will be able to review the reservation at the point of renewal.

Secondly, they create a new C-DSP category of licence for community stations broadcasting on digital. C-DSP licensees will need to commit to the same social value requirements that apply to existing community stations. Thirdly, they restrict the total number of small-scale radio multiplex licences that can be held by one company at a given time. They also place much stricter restrictions on the number of small-scale radio multiplex licences that existing national operators can be involved with and require them to do so in consortia with other partners.

The order also contains a small but important provision relating to community radio licensing. Community radio has been a major success story, with more than 280 services on air. But the licence terms for the first stations launched in 2005 are due to expire in 2020. We want community stations to continue to focus on what they are doing well—serving their local communities—rather than being concerned about the renewal of licences during a period when stations will need to think about digital radio carriage on new, small-scale multiplexes. Therefore, the order will also allow for a further extension of analogue community radio licences for a fourth five-year term, up to a maximum of 20 years. This avoids the need for Ofcom to readvertise the first wave of community radio licences, which it would need to do later this year. This proposal has strong support from the CMA.

We believe that small-scale DAB has the potential to revolutionise radio in the UK. This order will facilitate a clear pathway to digital for over 300 existing community and small commercial radio stations, as well as providing an opening for new entrants. The extensive technical trials have demonstrated that small-scale DAB provides a low-cost, viable option for smaller stations to broadcast on a terrestrial digital platform. I beg to move.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I will make just a short intervention. I declare my interest as someone who has been involved in commercial radio since about 1972, first with the White Paper at the time and then, with the emergence of commercial radio, as an applicant for one of the first commercial radio licences, which I did not get. Subsequently, I have been very much involved in the hospital radio movement—and am to this day.

I very much welcome the general tenor of the order, and the nature of it has been very much to do with realising the importance of the community in radio broadcasting. I think all of us agree that radio, as opposed to TV and online services, is still absolutely indispensable to vast numbers of people all over the country—in particular in localities where they can have local information that they could not otherwise get quickly and immediately to their benefit.

My concern over many years has been that the original ideas behind what was then the Independent Broadcasting Authority, which granted the original licences to commercial stations, required in the criteria a considerable level of local input. Over the years, as I think my noble friend will acknowledge, the way in which our commercial broadcasting and radio have developed in this country has been more towards monopolistic situations, combining radio stations, wherever they may be located, in a way that has taken from them the importance of that local interest. Therefore, it has to some extent been up to the new community broadcasters, of which there are many now, mostly broadcasting in analogue on AM or FM frequencies, to provide local input.

--- Later in debate ---

[Lord Stevenson of Balmacara (Lab)]

My Lords, we too welcome the broad approach of the legislation. In so doing, I echo the points already made. Some very difficult questions have been raised by some of the issues the Minister referred to in his opening speech and picked up by the noble Lords, Lord Kirkhope and Lord Storey, but the central one, which I think we all got a fair amount of correspondence about, is how we provide for and support the community activity we are looking for from the digital radio service or services, and ensure the commercial pressures from those larger-scale operators do not squeeze out that initiative. I do not think we will be able to bottom this out in the debate today, but the SI goes some way to do so. Indeed, about four pages’ worth of restrictions and limits are being placed on ownership and various types of constructions that can be made for companies operating in this area, which will try to achieve that balance. We will have to see how that works in practice, but the issue has been well raised.

I will make two points about the broader context. I remember asking the noble Baroness, Lady Bloomfield, when the Private Member’s Bill she supported went through the House what its implication might be for the broader context of digital radio in this country. We have been waiting for some time for some news about the digital switchover date. I am sure the Minister will have a note about that. Could we see whether this brings us a bit closer? Of the two criteria, I think that more than 50% of new cars being bought that had digital radios fitted as standard was reached three or four years ago, but we were also waiting for more than 50% of the listening public to be listening on digital services. I think the Minister said in his opening remarks that that is now well over 50%. The barriers to that appear to be disappearing, and if, as we are hearing, local radio is moving in swarms—even in Harrogate—to digital, why are we not hearing about the switchover date from the Government? Is this not the sort of “get up and go” we have been promised by the soon to become new Prime Minister, taking advantage of the new technology and driving it through for the greater benefit of Britain? I look forward to the Minister’s response.

Of the comments received, there are three small issues I want to leave with the Minister as questions. The question of coverage is to some extent included in the SI, but the broader question of whether all communities will benefit is not. Is there any intention behind the SI? If not, will the Government think about looking at this within a year or two’s time to make sure that all communities, certainly the ones beyond urban areas, are not left behind? True local radio provision has to be local for everybody. This is a step in the process of trying to get greater community radio coverage. I wondered whether there was anything in the thinking that would encourage the point made by Local Radio Group that some areas are still not covered.

The comments from the Community Media Association about making sure that we have a sufficient number of not-for-profit companies organised have already been mentioned. That raises the question of the Community Radio Fund, which is referred to in the Explanatory Memorandum. It has not been uplifted from its current level of £400,000, despite the fact that there are more community radio stations operating and possibly more to come. Does the Minister have any thoughts on how that fund might be moved forward and whether there are any prospects of that happening? It will certainly be an important floor for those wanting to operate these systems to have at least some public money available to get them started.

The third question concerns the impact this order will have on the local commercial radio services that are currently broadcasting, and the question of analogue licence renewal. He said that the extension was going to be made for a 20-year period, to ensure that those currently in it do not feel that they have to go through the process of resubmitting their bids for new licences. The point has been made, and I think we accept, that a balance has to be struck between those who are proposing these services and ensuring that they continue to exist, and not placing undue burdens. However, 20 years seems a long time. Given that this has already been extended once, what will the impact be on trying to drive competition in this area? Surely, if a number of people were interested in bidding for these licences, the opportunity to do so would be when they are advertised. If I am repeating correctly what the Minister said, we are again going to lose out again for another five years on that. Perhaps he will comment on that.

[Lord Ashton of Hyde]

My Lords, I am very grateful for all noble Lords’ comments. I detected a general approval of the order. It provides a benefit to the country, allowing stations specific to local areas and local communities to be set up, which may, to an extent, counter the effects mentioned by the noble Lord, Lord Storey.

Starting with my noble friend Lord Kirkhope, I completely agree that even in this age of Netflix and video-on-demand services, radio is still indispensable. I can provide reassurance to him and the noble Lord, Lord Storey, that the whole point of these requirements is to avoid a concentration of ownership, and that there will be a local interest. In every single small-scale radio multiplex, there will be a firm reservation for community radio. Even though we think that it is beneficial to have a mixed policy of commercial and community, there must always be a reservation for community, which will be a minimum of three. Ofcom has the power to vary that to an unlimited higher amount, depending on its assessment of demand. There are also specific concentration rules stating that no organisation can hold more than 20% of the multiplex licences. This will prevent a concentration.

The noble Lord, Lord Storey, also mentioned national operators. They will be able to hold only a 30% stake in any company, and they are limited to being involved in a maximum of six licences. There are 700 expressions of interest already; I think that is a meaningful limit. There is a strict overlapping rule, which will avoid a local monopoly, and there is also an adjacent area rule. This prevents small-scale radio multiplex licensees holding adjacent licences where the overlap is significant, and avoids operators trying to replicate local regional coverage by holding a collection of small-scale multiplexes.

Lastly in answer to my noble friend, when Ofcom considers a new small-scale multiplex licence, it will look favourably on an application which contains community radio within it. There will be a presumption in favour of community radio if it is combined with commercial radio to set up a multiplex. We set up the rules deliberately to prevent some of the problems that the noble Lord, Lord Storey, mentioned. In many cases, the community and local radio element will benefit from commercial radio as well, because it will be able to contribute to the investment required. Admittedly, the investment required is much less: one of the benefits of the new technology, and the reason there are so many expressions of interest, is that it makes the price of one transmitter, I think, £9,000, and £17,000 for two. It is much more affordable than it was. We have tried to promote competition and diversity of ownership and to address some of the concerns about concentration of ownership; that is why we have taken those steps.

Lotteries: Good Causes

Lord Ashton of Hyde Excerpts

Thursday 18th July 2019 Lords Chamber

[Lord Addington]

To ask Her Majesty’s Government what plans they have to ensure that lottery providers who operate on a national basis, other than the National Lottery, spend a minimum of 25 per cent of their profits on the funding of good causes, which are currently funded by the National Lottery.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the Government’s response to the consultation on society lottery reform was published two days ago, on 16 July. As set out in the Gambling Act 2005, all society lotteries must return a minimum of 20% to good causes; the average is 44%. We expect that lotteries will use the administrative costs saved as a result of higher sales limits announced earlier this week to return a higher share to good causes.

[Lord Addington (LD)]

I thank the Minister for his reply. Does he accept that when we speak about lotteries, we speak about “the” National Lottery? Indeed, in a Statement on Tuesday, he repeatedly referred to its “unique position”. We have two synthetic national lotteries operating and funding from the National Lottery has guaranteed long-term support which has turned us from a third-rate sporting nation to a first-rate one. Can the players in this field guarantee this long-term support? If they are not prepared to do this, can they be restricted to operating as the other society lotteries do?

[Lord Ashton of Hyde]

The noble Lord is right: we stressed in the reforms that we would preserve the unique status of the National Lottery. That is why we did not raise the annual sales limit by as much as was suggested in the consultation, and by as much as some of the larger society lotteries wanted. We said that the Gambling Commission would take specific evidence and look at the evidence for raising the annual sales limit to £50 million to make sure that it did not impact on the National Lottery. As far as sport is concerned, the Gambling Commission has found no evidence that society lotteries have impacted on the National Lottery in any way. Indeed, they are complementary; in both sectors, lotteries have increased in recent years. I know that sport is of interest to the noble Lord, but there is no reason to think that funding for sport will reduce. Indeed, for next year’s Olympics the amount of money has been underwritten by the Treasury.

[Lord Stevenson of Balmacara (Lab)]

The outside world will have noticed the very generous welcome given by the whole House, but particularly by the other side, to my noble friend Lady Hayter when she entered this morning.

--- Later in debate ---

[Lord Ashton of Hyde]

First, I am very grateful to the noble Lord. I assure him that nobody is more amazed than I am that I have survived for three years. Moving on to society lotteries, it is right that we did what we did. We agree that there is cause to look at transparency, particularly in what society lotteries do with the money they raise and the good causes. They should be clear about that and their expenses. That is why the Gambling Commission is specifically looking at that and consulting on what increased requirements should be in place, particularly if we move from a £50 million annual sales limit to a £100 million annual sales limit, which we have not said we will do. We are taking evidence on that and on whether the very few large society lotteries that the annual sale limit applies to should have increased transparency requirements.

[The Lord Bishop of St Albans]

My Lords, research shows that not all lotteries that operate on a national scale make it clear that they are neither charities nor not-for-profit organisations. People often do not realise that. Does the Minister agree that making it mandatory to declare on each ticket the minimum percentage of each pound spent on charity, for both draw-based and instant-win games, would ensure that users really understand just where their money is going?

[Lord Ashton of Hyde]

There is of course already a difference between the National Lottery and society lotteries on that. The National Lottery has no minimum amount going to good causes and no limits. As a result, over the 25 years it has been in existence, it has had an average return of 25% and £40 billion has gone to good causes. Society lotteries already have a statutory minimum limit. They have to give 20% to good causes. The average is 44%, so the system is working well. On increased transparency, suggested by the right reverend Prelate, the Gambling Commission is looking at increased transparency requirements for society lotteries and will be consulting on that.

[The Earl of Clancarty (CB)]

My Lords, I wonder whether more can be done to publicise the good causes that the National Lottery funds. I am thinking in particular of telling the public at points of sale what has been done at local and regional level.

[Lord Ashton of Hyde]

I am sure that more could be done. I will certainly take that suggestion away. The interesting statistic is that 55% of people who buy society lottery tickets are motivated by supporting a specific charity. On the National Lottery, however, only 15% buy a ticket to support good causes; people want to win large jackpots and life-changing amounts of money.

[Lord Hamilton of Epsom (Con)]

As we are discussing good causes, perhaps we could return to the noble Baroness, Lady Hayter. We bitterly regret her removal from the Front Bench. She and I have had great disagreements over Europe, but we very much regret the fact that she will no longer represent her party on this issue.

[Lord Ashton of Hyde]

I agree—life is a lottery.

Gambling: Children in Africa

Lord Ashton of Hyde Excerpts

Wednesday 17th July 2019 Lords Chamber

[Baroness Sheehan]

To ask Her Majesty’s Government what assessment they have made of the role of British gambling companies and football clubs in encouraging children in Africa to gamble illegally.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the Gambling Commission expects operators which it licenses to obey the law in other jurisdictions in which they operate. It is first and foremost for the Kenyan authorities to investigate the alleged breaches of Kenyan law, as reported by the Sunday Times. Operators licensed by the Gambling Commission are required to report any regulatory investigation or finding into their activities in any other jurisdiction. This lets the commission assess their suitability to hold a licence. We are proud of English football’s global appeal, and want this to continue to grow. At the same time, our clubs and sporting organisations must ensure that they are responsible when it comes to their relationships with betting partners, both in the UK and abroad.

[Baroness Sheehan (LD)]

I thank the Minister for his response. Companies with British links use techniques banned in the UK to appeal to African youngsters by using cartoon characters and free branded merchandise. The weekend before last, several Everton players in SportPesa-branded kit took part in a DfID-funded event for a project for slum girls, Let Our Girls Succeed. Why are the Government aiding and abetting the steep rise in unscrupulous and illegal gambling aimed at children in Africa?

--- Later in debate ---

[Lord Ashton of Hyde]

I completely understand the worries behind the noble Baroness’s Question. It is important that companies obey the law, but I do not understand why she thinks the Government are aiding and abetting that. We expect companies to obey the law in jurisdictions, and if they do not, they are required to report to the Gambling Commission. It is up to the Gambling Commission to take regulatory action if it deems it correct. Ultimately it can take a gambling licence away from an operator if it is not regarded as suitable to hold one.

[Lord Stevenson of Balmacara (Lab)]

My Lords, is not the most egregious issue here that the sort of activity witnessed in the reports, and referred to already, is being used in this country, where high-visibility celebrities endorse the active participation of those watching the sport to gamble in it? This may well account for—and the Minister is aware of this—the quadrupling of the number of 11-16 year-olds who have now been classified as problem gamblers. All we have at the moment is a voluntary code. Is it not time for this to become a statutory code?

[Lord Ashton of Hyde]

The code has made significant progress, and this is in response to evidence, when it appears. If there is evidence that there is a problem, the Gambling Commission will look at it. It is the adviser to the Government, and the Government have said many times that if there is a problem that needs addressing, we will do so. There has been substantial change, both on advertising and gambling activities, to restrict the amount of gambling advertised and its availability to young people. The issue is that there is a difference in this country because those regulations are enforced, and there is also substantial progress on a voluntary basis.

[Lord Garnier (Con)]

My Lords, would my noble friend the Minister agree that if individuals or companies break regulations or commit offences to do with gambling in this country, it is a matter for the authorities, be they prosecutors or regulators, in this country? If they do so abroad, it is a matter for the overseas jurisdictions. Can the Gambling Commission take into account misconduct proven abroad when considering the licensing of relevant companies in this country?

[Lord Ashton of Hyde]

My noble and learned friend is right. I agree that it is the responsibility of sovereign countries to enforce their own gambling laws. Certainly, as I think I said in my opening Answer, the Gambling Commission in this country can take account of action abroad. The commission can also help and advise foreign countries if they so require. Indeed, in 2018-19 the Gambling Commission responded to 115 formal requests for assistance and hosted a number of jurisdictions planning reform for their gambling legislation which wanted to learn about the approach in the UK.

[Lord Foster of Bath (LD)]

My Lords, as the Minister has already explained, holding a UK gambling licence requires relevant companies to comply with relevant legislation in all the other countries in which they operate, but the amount of evidence they have to provide of compliance is somewhat limited. Does the Minister agree that it would be a good idea to require the chief executive of each company to sign a certificate of compliance, and then treat any fraudulent certificates as a matter of criminal law, alongside the potential fines by the Gambling Commission or the possible loss of a licence?

[Lord Ashton of Hyde]

I certainly agree that that is an interesting suggestion, particularly the bit about chief executives taking responsibility for the companies. I would not go so far as to say that it should be a matter for the criminal law but it is an interesting suggestion. As I said before, the Gambling Commission is the Government’s adviser; I am sure that it will bear the noble Lord’s suggestions in mind.

[Lord Harris of Haringey (Lab)]

Can the Minister explain why it is not a matter for the criminal law?

[Lord Ashton of Hyde]

I was suggesting that that would be a change to the existing arrangements and that I do not think it right to suggest a change in the criminal law from the Dispatch Box without considering it fully.

[Lord McNally (LD)]

My Lords, an earlier Minister referred to corporate social responsibility. Clubs such as Everton and Tottenham Hotspur have corporate social responsibility not only in this country but abroad; they should not be allowing their players to endorse gambling in Kenya and other foreign countries in ways that would not be allowed in this country.

[Lord Ashton of Hyde]

I do not completely agree with the noble Lord. I agree that they have social responsibility and must protect not only their own good name but that of football, which is an asset to this country. But corporate bodies have to obey the laws of the countries in which they perform. That is their legal duty and what the Gambling Commission will take into consideration.

Lotteries Regulation

Lord Ashton of Hyde Excerpts

Tuesday 16th July 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, with the leave of the House I shall repeat a Statement made in another place earlier today by Mims Davies, my honourable friend the Minister for Sport and—oh, I cannot remember what her title is. I am going to be in trouble now. The Statement is as follows:

“Mr Speaker, with permission, I would like to make a Statement in relation to lotteries. The National Lottery and society lotteries contribute around £2 billion a year to good causes in this country, forming the backbone of giving across the UK. As preparations start on the competition for the next licence to run the National Lottery, it is important that we ensure that the wider lotteries landscape is fit for the future and allows as much money as possible to be raised for good causes within a suitable framework. To ensure clarity ahead of the upcoming fourth licence competition, I am today announcing next steps on society lotteries, and launching a consultation on increasing the age limit for playing the National Lottery.

Turning to society lotteries, first, in June last year, the Government launched a consultation seeking views on proposals to reform the existing limits on society lotteries, which have not been raised for more than a decade. I am aware that there has been strong support from across this House for the Government to increase the sales and prize limits for society lotteries and that changes have taken a long time to come. Society lotteries are a vital source of funds for charities and other non-commercial organisations, and in 2018 alone raised more than £300 million. As not just the Minister for Lotteries but the Charities Minister, I want to support the third sector and grow the overall pie for everybody’s benefit. I am aware that society lotteries are a vital funding mechanism for hundreds of charities in many of our local communities, including air ambulances and local hospices.

The consultation aims to ensure that both society lotteries and the National Lottery are able to thrive and that society lotteries can continue to grow, while maintaining the unique position of the National Lottery and its ability to raise funds across the country by offering the largest jackpots. We heard strong arguments from both sectors, and I am grateful to everyone who shared their views. In coming to a final decision I have balanced needs across the sector to ensure that returns to good causes can grow overall.

I am pleased to announce that I will raise the per-draw sales limit from £4 million to £5 million and the maximum prize limit from £400,000 to £500,000 for large society lotteries. These increases will allow for significant headroom for most of the sector to continue to grow, and I am pleased that the Gambling Commission has agreed carefully to monitor these changes for any potential wider impact. This will enable us to analyse the impact of the changes over time.

In addition, I will raise the annual sales limit from £10 million to £50 million. In recent years we have seen charities forced to slow their fundraising from lotteries as a result of the current limits or to adopt costly alternative structures to avoid breaching them, increasing admin costs and diverting money away from good causes. Indeed, one charity told us that introducing such arrangements could cost £345,000, with further additional running costs of more than £100,000 per year. A £50 million annual limit will reduce or prevent administrative burdens for society lotteries, and I fully expect to see an equivalent increase when it comes to the amount of money directed to good causes as a result of the lower admin costs and this increase. I will be watching this closely.

I am aware that many Members support an even higher annual limit of £100 million. I too share this ambition. However, this is a significant increase and I want to be certain that moving to this much higher limit will in reality increase returns to good causes across the sector. I want to be assured that there is an appropriate regulatory regime in place. It is therefore my aim to launch a further consultation, looking at an additional tier of licence, with suitable additional requirements for those very largest lotteries.

It is also important that society lotteries demonstrate the highest levels of transparency. I am therefore pleased that the Gambling Commission is also planning to consult on measures to tighten the existing licensing framework for all large society lotteries, looking in particular at the information provided to players on how the proceeds of society lotteries are used and the good causes which benefit. We will also be looking to consider further how best to increase transparency in relation to executive pay and will seek further advice from the Gambling Commission. I will look to legislate, if necessary, if these measures do not go far enough.

Turning to small society lotteries, there was less support for changing the limits. Having considered the evidence carefully, I do not plan to increase these limits at this time.

I have previously committed to laying Camelot’s response to the society lotteries consultation in the Library and will also lay the other key responses that my department received.

Today, I am also announcing a 12-week consultation on the minimum age for playing National Lottery games. The current licence period has seen a range of technological developments which have changed how we play the National Lottery, and changes in people’s gambling behaviours. Therefore, as we fully consider what the fourth licence might look like, I believe it is right to consider whether it remains appropriate to sell all National Lottery games to those under 18 as part of future-proofing it for the duration of the next licence.

Eighteen is widely recognised as the age at which one becomes an adult, gaining full citizenship rights and responsibilities. At present, all lotteries can be played from 16, one of the few exceptions to the age limit of 18 for gambling products. In addition to the option to raise the minimum age to 18 for all National Lottery games and retain the current limit of 16, I am seeking views on a differentiated approach that would increase the minimum age for instant-win games only. This includes scratchcards and online instant-win games.

My initial view, based on the evidence reviewed so far, is that such a split could be the best approach. This takes into account that the risks of harm associated with playing the National Lottery are the lowest of any form of gambling, but we know that the risk of harm is slightly higher for instant-win games than for draw-based games such as lotto. Given that the National Lottery matters so much to so many people, I am keen to see further evidence in this area and to hear what others think, including hearing from operators, distributors and retailers about any potential impacts and benefits of any change.

This year the National Lottery celebrates its 25th birthday and Mystic Meg herself could not have predicted how successful it has been in that time, raising over £40 billion to support our local communities, protect heritage, enhance the arts and transform funding across sport. The National Lottery has been at the very heart of creating, protecting and driving much of what we love. Each week it raises around £30 million for good causes. Since 1992, it has funded over 4,000 world-class UK Paralympians and Olympians. Each year it invests around £325 million in protecting some of our most prized national heritage, and it has funded the development of our artistic talent and access to art. It has ensured access to sporting opportunities for people in all communities and, alongside all this, it supports over 10,000 charitable causes each year with over £500 million of funding. I thank National Lottery players, the 12 distributors, the Gambling Commission and my department for making this possible.

Importantly, the announcements that I have made today both give clarity to those interested in running our National Lottery when the current licence expires in four years’ time, and provide society lotteries with the greater capacity to continue and increase their work across many colleagues’ constituencies. I look forward to seeing the real benefits that these changes will have for the charities and good causes supported by our lotteries across the UK. I commend this Statement to the House”.

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[Lord Addington (LD)]

My Lords, on these Benches we welcome the Statement and much of the direction of travel on this. It may not be the way that we would do it, but it is certainly not something on which we would want to make a huge stand. What I particularly like about the Statement is that it emphasises again and again the fact that we have a National Lottery that does certain things and has underpinned certain types of activity in our society which simply would not have happened without it.

John Major has said on several occasions how important he thinks it is; he brought it in because the dread hand of the Treasury would not otherwise have allowed us the types of sporting heritage, assistance for the arts, et cetera, that we have had. It was a realpolitik response to what was going on, and it should be preserved. I like the definition that these are two separate things: the National Lottery and the society lotteries.

When it comes to the details of, for instance, the age limitation, I am afraid much of my gut reaction is with the noble Lord, Lord Collins. I cannot see any real argument against raising the limit in relation to the instant scratchcard. There is that instant little buzz—although it is a long time since I have done it—that anyone who has bought one will recognise: “I just missed that; maybe I will have a second go”. That is not something we should be giving to a 16-year-old. If we keep the age limit at 16 for the National Lottery, the wait for a draw is sometimes several hours; by raising the age limit to 18, we would be removing that. I hope the change comes in.

The framework for the society lotteries could probably be described as “steady as they go”. Will the Minister give an assurance that things will be speeded up after the long wait we have had? Will there be greater clarification on when we can expect everything to come again, just to emphasise the development and the structure of what is going to happen in the future? I know he has mentioned it before, but a little more clarification would help. Will he also give a little more reassurance about the fact that we will make sure that the National Lottery and the society lotteries are kept apart, doing different things for different functions?

[Lord Ashton of Hyde]

I thank both noble Lords for their comments. Certainly, I completely agree from this side of the House with the noble Lord’s remarks about the noble Lord, Lord Judd. I hope he is back here soon.

The noble Lord, Lord Collins, asked three questions. As far as transparency is concerned, it is not that there is worry about the regulatory regime at the moment. Society lotteries have been regulated by the Gambling Commission for more than 50 years and we think they have been a success. There are not many larger society lotteries, but we need to keep an eye on them. If we increase their limits, we need to make sure that there is transparency. It is only right that we should review that and look at some of these problems. That does not imply that we are worried that there is a problem at the moment. The Gambling Commission will review the evidence on this.

The noble Lord also asked when these limits will be implemented. The plan is that there will be secondary legislation in the autumn, subject to parliamentary time—I always have to say that. The plan is to have the statutory instrument in the autumn, and then the implementation will take place when the Gambling Commission has to change the licence requirements in April, so we expect this to be in 2020. We want to get on with this, so we aim to do the legislative part when we come back in the autumn.

On the minimum age for the lottery, on the one hand, we are celebrating the fact that for 25 years the National Lottery has been a tremendous success—it has raised £40 billion for good causes; on the other hand, if we want to change it, or prepare for changes in the new licence competition, we need to get evidence on this. That is why we are asking for a consultation to change what has been a successful lottery. We recognise that there are different dangers associated with instant gratification games, such as scratchcards, and the lotto, which is the least harmful form of gambling, according to the evidence. It is reasonable to ask for consultation on that. Both noble Lords mentioned under-16s.

The noble Lord, Lord Addington, was very clear and asked me to emphasise that we will keep the National Lottery and the society lotteries separate. We do not want to do anything to harm the National Lottery. Just over 90% of the money that goes to good causes is from the National Lottery, and just over £300 million, or 9.2%, is from society lotteries, so they are very different beasts. One reason we did not raise the limit to the level that some people wanted was because we wanted to make sure that the National Lottery, which is a monopoly lottery—that is the most efficient method for getting money to good causes—continued to be the mechanism that gives the large, life-changing payouts, and that society lotteries, which most people play to support good causes, continue in that vein.

[Lord Cormack (Con)]

My Lords, I thank my noble friend for doing all he can to protect the exclusive position of the National Lottery. John Major’s legacy is in fact one of the most positive legacies of any Prime Minister in peacetime. He deserves the thanks of all parts of the House for that. But I enter one note of caution. Is my noble friend aware that the munificent grants from the National Lottery have recently begun to decline in the heritage sector? The assisted places of worship scheme has been abandoned, which does not mean that money is not being given to places of worship but there is no longer one exclusive earmarked pot. I am glad to see the noble Baroness, Lady Harris, with her interest in Ripon Cathedral—mine, of course, is in Lincoln—nodding vigorously. Will my noble friend keep his eye on this? Anything that significantly reduced the impact of the National Lottery in the field of heritage, sport and the arts would be a blow to all parts of the nation.

[Lord Ashton of Hyde]

I completely agree with my noble friend. Heritage causes, among others, are very important and have benefited hugely from the National Lottery, which gives about £1.6 billion a year to good causes. I cannot remember the exact figure for national heritage, but I think it is £300 million to £400 million of that. It is a reasonably significant amount. I certainly will keep an eye on it. The Minister, whose name I have forgotten—I did not forget her name, I forgot her title; I know what her name is—is keen to make sure we continue to provide as much as we can for good causes, which certainly include heritage. In many ways the structure we have prevents Governments directly getting into exactly what is provided for through the National Lottery, which is good, but I certainly take my noble friend’s point about heritage, which continues to be a very important part of what the National Lottery supports.

[Baroness Harris of Richmond (LD)]

My Lords, to take on the comments of the noble Lord, Lord Cormack, about cathedrals and places of worship, I declare my interest as high steward of Ripon Cathedral, where we have just lost an essential part of a planning development because we have no money from the National Lottery Heritage Fund, in spite of producing a very good plan. Will the Minister look at how the lottery heritage fund gives out money and the criteria it uses for these very special places of worship around the country?

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[Lord Ashton of Hyde]

I am sorry to hear that the noble Baroness’s cathedral has not received what she hoped it would get. That is, of course, the problem with the lottery: it gives out an awful lot of money, but sometimes it also has to say no. I say only that it is worth trying again. I have heard of cases where requests have been denied but when they try again they are successful. It is not up to Ministers to take up special cases and treat them unlike others, but I encourage her to try again, because Ripon Cathedral is obviously a good cause. I hope she succeeds next time.

[Baroness Andrews (Lab)]

My Lords, I hope your Lordships will allow me: unfortunately, I was detained and did not hear the Minister’s Statement. I welcome what he has said about the principle that, while the society lotteries are very worthy and excellent in their way, the Government still have a care to protect the National Lottery, for all the reasons he said.

I declare an interest as a member of the board of the National Lottery Heritage Fund. I will talk to the noble Baroness afterwards about how we have had to make decisions, but I emphasise the point made by the noble Lord, Lord Cormack. We have had an extremely hard few years planning our commitments in the face of declining incomes, and the competition has been extraordinarily tough. We still make every effort to fund places of worship. We are incredibly lucky in this country—we have so much heritage and so much ecclesiastical heritage—and we try our very best to be fair in all that we do. There are so many excellent and equal claims on our resources that we have to be scrupulous and transparent in our decisions. I hope the noble Baroness will forgive me if I leave discussing it for a later occasion.

[Lord Ashton of Hyde]

I am grateful to the noble Baroness for her question—or perhaps her statement—and for her efforts in the very difficult job that she does.

The consultation which preceded this found that views were very polarised. Supporters of the National Lottery were fearful that an increase in limits to society lotteries could affect it. We were very careful to strike a balance between the interests of the National Lottery—and all its good causes—and society lotteries, which are very important for individual charities, and have a place. By doing what we have done, we think we have struck the right balance. The Gambling Commission has confirmed that there is no evidence so far that society lotteries have affected the National Lottery. Indeed, over the years, both sectors have increased. The noble Baroness talked about National Lottery funds, and sales going down. That position has now stabilised, following the actions that the National Lottery has taken. It is about £1.6 billion on a stable basis every year.

[Lord Scriven (LD)]

My Lords, in answer to the noble Lord, Lord Collins, the Minister said that consultation on raising the age from 16 to 18 had to take place to ensure that it did not damage the success of the lottery and the revenue that was coming in. Can I ask the Minister two questions? First, what percentage of revenue comes into the National Lottery from those aged 16 to 18? Secondly, what positive arguments can the Government put forward for young people aged 16 to 18 gambling on the National Lottery?

[Lord Ashton of Hyde]

I think I said that we need an evidence base to change legislation for the National Lottery, as it has been such a conspicuous success. The noble Lord implies that it is not the right thing to do. Technological changes to the way that people can play the lottery now are a concern, but in going out to consultation we are not presupposing the rights and wrongs. We are saying that if we are going to change what has been a very successful institution, we need evidence, and we want to ask people what they think about it.

[Lord West of Spithead (Lab)]

Talking of evidence, do we have any evidence about what strata of society, in terms of income, tend to buy most lottery tickets? Is it the less affluent or the more affluent, and is there any evidence as to how that is split?

[Lord Ashton of Hyde]

I should have said to the previous noble Lord that I do not have the figures for the percentage of lottery sales made to 16 to 18-year olds, but I will write to him. Speaking very generally, there is evidence that the less affluent sections of society spend disproportionately more on the National Lottery.