UK Casino Industry

John Spellar Excerpts

Wednesday 7th July 2021 Westminster Hall

[Scott Benton]

My hon. Friend makes a very valid point. Of course, many people will be concerned about some of the Gambling Commission’s proposals on affordability and the extent to which they could drive people into the arms of black-market operators. I know that that will be tied up in the gambling review, and the Minister will potentially address those points—if not today, then as the review continues on its way to the autumn.

[John Spellar (Warley) (Lab)]

I thank the hon. Gentleman for drawing attention to regional casinos, but does he, like me, find strange the Government’s lack of desire to improve and upgrade the legislation? It is especially stranger given that casinos are part of the tourist attraction offer not only domestically, but internationally, particularly in London, with high-value visitors, and that that is an enormous contributor to national revenue through gambling tax—let alone some of the changes that are taking place, such as the disappearance of cheques. Is there not an urgent need to recognise this industry’s importance for the Treasury, but also for the wider ecosystem that makes Britain a desirable destination?

--- Later in debate ---

[The Minister for Media and Data (Mr John Whittingdale)]

It is a pleasure to serve under your chairmanship, Mr Mundell.

I congratulate my hon. Friend the Member for Blackpool South (Scott Benton) on, and thank him for, giving us the opportunity to debate these issues. I also thank the right hon. Member for Warley (John Spellar), the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for Tewkesbury (Mr Robertson) for their contributions.

Casinos come in all shapes and sizes. As my hon. Friend the Member for Blackpool South said, I have been involved in the issue as Opposition spokesman during the passage of the 2005 Act and as Chair of the Select Committee on Culture, Media and Sport for 10 years. As a result, I have visited quite a number of casinos, ranging from the Venetian in Macau, which I believe is the biggest in the world, and the Crown in Melbourne all the way down to the Genting in Westcliff, in Southend-on-Sea, and Aspers in Stratford, which is one of the few operating under one of the new licences.

My hon. Friend is absolutely right to stress that, obviously, casinos are centres for gambling, but that they offer much more. Last week, I was at the Hippodrome in Leicester Square, where I was able to observe not only the gambling, but the excellent restaurant in that place. It is possible to enjoy hospitality there right through the night, unlike many other places in London. Although I did not attend, there is also regular entertainment by, I believe, Magic Mike.

My hon. Friend is right that casinos provide a significant tourist attraction, as well as a major economic contribution. They were, obviously, badly hit during the lockdown, in particular because, even when we were able to relax the measures, there was still a 10 o’clock curfew, and of course a lot of casinos do their business after 10 pm. It was with great relief, I know, that the casino industry was able to reopen on 17 May without a curfew in place. Casinos are still impacted by some restrictions. That affects the income of the local area, especially as casinos provide employment for a large number of people. My hon. Friend is right to remind us that the Chancellor also benefits considerably from the income from gambling duties.

The hon. Member for Strangford referred to the risk of problem gambling, which is at the top of our minds throughout. The gambling review that is taking place will address whether additional measures are needed to offer greater protection to those who may be susceptible to problem gambling. However, there has always been a pyramid of risk in the different places where one can gamble. Casinos have been seen to offer a safer environment than almost any other form of gambling. I have certainly observed that to be so, given the scrutiny of people who are gambling to ensure that they show no sign of having problems, as well as that regular intervention and the self-exclusion schemes. For that reason, it was felt right to allow more casinos to open.

My hon. Friend the Member for Blackpool South talked about the 2005 Act, and he is absolutely right that consideration in Committee was a tortuous process. We ended up with the creation of just eight small licences and eight large licences for new casinos. In actual fact, not all those licences have been taken up, or at least they have not been utilised. The majority of casinos still operate under the licensing arrangements of the original 1968 Act.

My hon. Friend made an excellent case that that has thrown up some bizarre anomalies, in particular the number of machines allowed under the licences pertaining to the new small and large casinos compared with those operating under the 1968 Act. As he said, a large casino under a new licence may have up to 150 machines, but, whatever the size, a casino is limited to 20 under the old Act. The House of Lords Gambling Industry Committee drew attention to that and said it needed to be addressed. That is certainly a matter that we are considering as part of the gambling review.

My hon. Friend flagged up one or two other anomalies, such as the fact that sports betting is allowed under the new licences but not under the old, despite the fact that someone who goes to a casino that operates under one of the 1968 Act licences can bet on sports—they just do it on their mobile phone, rather than through the casino itself. There are anomalies that are difficult to provide justification for and that we have said we will look at. There is also the development of technology. Furthermore, my hon. Friend flagged the fact that the requirement to have cash is becoming harder to fulfil as more and more people do not actually use cash any longer, which we need to take account of.

My hon. Friend rightly identified, and the right hon. Member for Warley alluded to, a very small but significant group of people whom I believe are known in the slang as whales, which means those people who tour casinos around the world and are quite capable of losing £1 million in an evening—the high rollers. This is an intensely competitive area, with maybe half a dozen or 10 venues in different countries around the world competing for their custom. The fact that we still require cheques when, as my hon. Friend said, they are becoming outmoded and more countries are not even using them is also something that we need to look at and on which the industry has made a case. The gambling review is considering all those issues.

[John Spellar]

Can the Minister convey a greater sense of urgency? We are competing in a very competitive world—not only in this industry, but across a spectrum. Do we not need more urgency to improve and continue Britain’s attractiveness?

European Football Proposal

John Spellar Excerpts

Finance (No. 2) Bill: (Freeports (Stamp Duty Land Tax)) (Ways and Means) & Ways and Means resolution
Monday 19th April 2021 Commons Chamber

[John Spellar (Warley) (Lab)]

Interestingly, only one of these six clubs has always been in the top division in English football, and now they want permanent status. The Secretary of State’s announcement of a review is welcome, if slightly overdue, but, frankly, has been met by contemptuously indifference by these arrogant oligarchs. The only thing they understand is power, and the Government should be using the power of the state with full force and co-ordinating with other countries. Will he rapidly refer them to the competition authorities, cut them off from any further public funds and look at the tax status of image rights—just for a start—and, quite frankly, drive these sharks out of British football?

[Oliver Dowden]

Somewhat unusually—although not that unusually, to be fair to the right hon. Gentleman—I agree with pretty much everything he said, and I can assure him that we will be looking at all of those options. To reassure the House, we will take robust action when it is required. We will not wait for the outcome of the fan- led review, and all the things he is talking about are the sort of things we are discussing internally in Government.

Covid-19: Cultural and Entertainment Sectors

John Spellar Excerpts

Tuesday 2nd March 2021 Commons Chamber

[John Spellar (Warley) (Lab)]

I want to refocus the debate slightly—on to the public, and the fundamental fact that the public want to get out and have fun. They have been cooped up for the best part of a year, even though many have still been going to work. Now, as spring approaches, they want to get out and enjoy themselves, and good luck to them, I say. They want to get out, let their hair down a bit and enjoy themselves. I would say that they want to get back to merrie England, if I could get that past the hon. Member for Glasgow North (Patrick Grady); I hope he understands that I encompass the good folk of Scotland, Wales and Northern Ireland in that. This applies across all age groups.

We have to reset the balance of the debate. Of course, health concerns are crucial, but so are jobs, businesses and the economy. Like many of their customers, a large part of the workforce are young, and the closure of the industry is one of the drivers of the huge spike in youth unemployment. Unemployment leads not only to deprivation, but to sickness and premature death. Jobs, jobs, jobs really matter. The balance has to shift from whether we open up the sector and the related sectors of hospitality, sport and exercise to how we open them up. I shall coin a phrase, if I may: be driven by the data and not by dates.

[Sir John Hayes]

The right hon. Gentleman is absolutely right about jobs, but of course this is also important for socialisation and community—for people getting together. People are social animals, and he is right that socialisation is critical to individual wellbeing and communal health.

[John Spellar]

The right hon. Gentleman is right about that. If the vaccine certificate will assist, the Government should get a move on, rather than using the languid approach they are taking at the moment.

The danger has been that the debate can be posed in binary terms, pitching hospitals against hospitality, one a matter of life and death, with the other able to be painted as more discretionary and even frivolous. But that is a balance that has to be struck; that is what government is about—that is its function. Currently, millions of people are unemployed, furloughed or laid off. Many of them are freelance workers who are slipping through the gaps and desperate for support. Hundreds of thousands of family businesses, their hopes, dreams, and life’s work and savings sunk into them, are at risk every month of going under and are just hanging on, and that is quite apart from the vast ecosystem that supports them and depends on them.

The loss of this sector would also leave a huge gap in our national life. The cultural and entertainment sector is one in which our nation excels. It is part of what makes living worth while and Britain special. We do not live by bread alone, but give us roses too. Our quality of life would be seriously weakened if we had the withering away of the sector—not just the cultural sector with the international and national centres, but many local theatres, music centres, clubs and pubs. Apart from being good in themselves, they are the crucial supply chain for the sector; no one started in the music industry by playing the O2. This is about keeping our communities thriving. We talk about town centres and the high streets, which have taken a bit hit with the decline of physical retail, but take out culture, entertainment and hospitality and they will wither and die. This sector is a huge draw not just for tourists but for inward investors and the skilled mobile international workforce. Let’s get this industry back to work.

Sport Sector: Financial Support

John Spellar Excerpts

Thursday 19th November 2020 Commons Chamber

[Nigel Huddleston]

As I have said, I can confirm that, as with other support packages, there are Barnett consequentials. I am not able to give the hon. Gentleman the details he seeks today, but I will work with Treasury officials and others to make sure that information is forthcoming.

[John Spellar (Warley) (Lab)]

I welcome this package and congratulate the Minister on securing it from the Treasury. However, we all recognise that it cannot last forever, so does he accept that we need a change of approach for sports participation, with its huge benefits for both physical and mental health?

Does the Minister also accept that we need help for the huge ecosystem of the sport and leisure industries, and their army of employees? They have spent considerable sums on making things safe, and they need the public back through their doors and gates. That includes sports clubs, racecourses and gyms, as well as pubs, clubs, betting shops and casinos. Can the Minister now persuade the Department of Health and Social Care and the Cabinet Office to abandon their risk avoidance and risk aversion strategy, and to adopt an evidence-based risk management approach?

[Nigel Huddleston]

The right hon. Gentleman makes a pertinent point about the importance of the mental health benefits of sport, as well as its physical benefits. The conversations about what we can open and when are always ongoing, and all opinions are welcome, but we will take an evidence-based approach to those decisions.

British Library Board (Power to Borrow) Bill (First sitting)

John Spellar Excerpts

Committee stage & Committee Debate: House of Commons
Wednesday 30th September 2020 Public Bill Committees

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

It is a real pleasure to serve under your chairmanship, Mr Robertson.

I congratulate the hon. Member for Hitchin and Harpenden on his private Member’s Bill and on his very short speech. Mine will be slightly longer, so I would just like a little patience from the other Government Members.

I am a passionate supporter of the Bill. Labour supported it on Second Reading and we continue to support it in Committee. The British Library has been keen to obtain the power to borrow for some time; hopefully, that wait is almost over.

As a member of the British Library, I am a big fan of its work. When we debated the Bill back in March, which seems like a lifetime ago, Members from all parties were enthusiastic about the future of the library, especially after a Budget that brought good news for it: it promised £95 million for the Boston Spa Renewed project, and a further £25 million to support the library in opening a British Library North in Leeds city centre. Members will not be surprised to learn that, as a Yorkshire MP, I am very keen to see that come to fruition.

That is because a physical presence for our national institutions outside central London sends a powerful message, and opens the door to opportunity for all. Examples include the Victoria and Albert Museum in Dundee, the BBC in Salford and the Imperial War Museum North in Manchester, and soon Channel Four will have a presence in Leeds, which I have also championed. The British Library already employs hundreds of people at its impressive Boston Spa site, but I am looking forward to millions more having ready access to the library’s resources and exhibitions when it opens in Leeds.

I want to put on record that the power to borrow should not lead to an expectation of borrowing. The grant funding that the British Library receives must remain in place, and new powers to borrow must allow the library to innovate and pursue projects such as efficiency improvements to the estate, upgrading to more efficient digital systems, and developing commercial products and services that could supplement the library’s grant in aid. Also, I am keen to see the library use any financial freedom to improve its digital platforms, as the hon. Member for Hitchin and Harpenden said, and particularly its digital collections.

[John Spellar (Warley) (Lab)]

My hon. Friend rightly identifies the role of the British Library, a great British institution doing a lot of work in this country, but is it not also part of our international outreach? It engages with similar institutions as part of Britain’s cultural offer to the world, which is one of the great attractors to this country.

[Tracy Brabin]

My right hon. Friend is absolutely right. Certainly, when I sit in the reading rooms of the British Library, I see international students from all over the world. The library is part of the soft power that draws the cleverest people from across the world to London, and will hopefully draw them to Leeds.

I want the library to keep growing and expanding its outreach work. In many communities, libraries have been lost or cut, so it is important that exhibitions and galleries are not confined to King’s Cross. The library should always be seeking opportunities to get out to new areas. Indeed, it recently produced pop-up displays in over 20 partner libraries across the UK, through its Living Knowledge Network. That is the sort of innovation that I encourage; let us hope that we see more of it.

It is easy to look excitedly at the possibilities for the future and ignore the elephant in the room. Covid has impacted all walks of life, and the British Library has not been exempt. It was closed for four months, and even now, after reopening, footfall is significantly suppressed due to social distancing requirements. Of course, this has a major financial impact, and with visitor numbers a fraction of what they were, the library is likely to continue to face financial hardship for a period to come. I know that the library has drawn down on DCMS support already, and that all of us present are keen to see the library thrive again in future. I applaud it for prioritising access to reading rooms for medical research, and for using some of its space for a testing centre.

Earlier I touched on digitisation. The library has worked hard during covid to expand its online offering. The current exhibition of Hebrew manuscripts is available online, and its next exhibition, “Unfinished Business: The Fight for Women’s Rights”, has an exciting digital offer, too, including online discussions, a podcast series, and online resources for researchers.

The Bill brings the British Library in line with DCMS-sponsored museums and galleries, as well as the British Film Institute, the Churches Conservation Trust, Historic England and more, by allowing it to borrow money as its peers already do. However, we need to support the library, and many other organisations, not only in borrowing money in future, but in the here and now, during the covid crisis, and we need to reach out across our communities. The British Library has made great strides in that direction already, and we support it and its power to borrow money.

BBC Regional Politics Coverage

John Spellar Excerpts

Monday 22nd June 2020 Commons Chamber

[Neil Parish]

The hon. Gentleman makes an interesting point. Sometimes when we publish a Select Committee report, I do regional radio across the whole country, and I often have to ask which radio station someone is from because their accent is not from the region. It just shows that, through radio and television, people move around the whole country, and that is really good. My hon. Friend and neighbour, the Member for East Devon (Simon Jupp), is a case in point: not only did he do well in the BBC, but he is now here in Parliament. That is probably a retrograde step—I did not say that, did I?

[John Spellar (Warley) (Lab)]

The hon. Gentleman has touched on an important point. In many parts of the media—this also applies to ITN—the reporters stay for a long time, and they become fixtures for the public as, basically, the people who give them the truth. That is one reason why there is now far more cut-through from regional programmes to the public than anything they are seeing on the national news or, indeed, in national newspapers. A lot of that is about continuity, but it is also about relevance.

[Neil Parish]

I agree with the right hon. Gentleman too; I am agreeing with everybody tonight—it is very dangerous. He raises a really good point. People recognise the local face on the television and have seen them for a long time, so they trust them. I expect that he and all hon. Members usually find it much easier dealing with our regional BBC colleagues; we have much more rapport with them than with the national journalists and BBC presenters. That, too, is very useful.

Birmingham Commonwealth Games Bill [Lords]

John Spellar Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Thursday 11th June 2020 Commons Chamber

[Liam Byrne]

What a marvellous opportunity to follow a marvellous speech, which I felt hit almost all the right notes.

The Commonwealth games that we will host in Birmingham in the West Midlands will be the greatest Commonwealth games that the world has ever seen. It will be not only the most spectacular festival of Commonwealth sport, but a magnificent festival of our civic spirit—the civic spirit that helped to build our city in the 19th century and propelled our city to become the second city of this nation. I very much hope that the games will not be the last word in the renaissance of culture and sport in our region; they will be just a first step.

If there is one ideal that I hope we can put centre stage, it is the words that Jo Cox gave us: that we have more in common than anything which can ever divide us. I hope that will be the animating spirit of these games. As the youngest city in Europe, I hope we can use that ethos and ethic to act as an inspiration for a revolution in the youth work we have across our city. On Second Reading, I called for the creation of a young Commonwealth leaders’ programme, because, as a city of 160 different nationalities, we need to look to the next generation to help lead the business of bringing a diverse city together to live and play well. I hope we will find it in ourselves to put youth workers back in every ward, with safe spaces for our young people, to connect the inspiration of “more in common” to the great, animating festival of the Commonwealth games so that a young generation will work not only to bring our communities together but to strengthen the relationships in Birmingham and the west midlands with Commonwealth countries around the world. I am grateful to the high commissioners from around the Commonwealth who have begun to talk through that programme with me.

I hope that these games are the catalyst for a transformation of disability sports. As many people know, our city is home to the Royal Centre for Defence Medicine: a place that, frankly, works miracles. I hope that in due course we can bring that centre together with the Commonwealth games team to create, in our green heart of Britain, the great new centre for the Invictus games for the years to come. That is a practical thing that we could do quickly and well.

I hope that these games are the catalyst for an extraordinary cultural renaissance in our part of the world. We are looking forward to an extraordinary decade with not just the city of culture in Coventry, starting most likely in June next year, but the Commonwealth games and then the arrival—when it is finally built—of High Speed 2. There could be an extraordinary transformation of the cityscape in our city region. As the right hon. Member for Sutton Coldfield (Mr Mitchell) said, this is an optimistic moment and the Bill will give the decade an extraordinary kick-start.

[John Spellar (Warley) (Lab)]

Following on from what my right hon. Friend and the right hon. Member for Sutton Coldfield (Mr Mitchell) said, this Bill is of enormous importance not only for the future of Birmingham and the wider west midlands but for the here and now. As we face a tidal wave of redundancies, this boost to the construction sector, keeping our construction workers in work now, will be enormously important for the long term.

[Liam Byrne]

My right hon. Friend is absolutely right, and that is the second big point I want to make. This is a partnership. I am grateful for the investment that the Government have made, which will not just help unlock the greatest festival of Commonwealth sport that we have ever seen but bring 5,000 new homes to the constituency of my hon. Friend the Member for Birmingham, Perry Barr (Mr Mahmood), who I know is watching us. That gain, however, would not be happening without the leadership of Ian Ward and the team at Birmingham City Council. Together, the city council is putting in about £184 million. It had the political courage to step up to the mark when Durban pulled out. Given the halving of Birmingham’s budget in the last 10 years, that was a brave act, a courageous act and a wise act. We will be grateful for that political decision for decades to come.

My right hon. Friend puts his finger on something critical. In the debate we just had on new clause 2, the Minister did not betray much sense of how the world had changed. I hope he will reflect on that remark and what he has heard this afternoon. If the Bank of England is correct—you never know. it might be—we will see unemployment in our region rise by 192,000 next year, to 320,000. That will put unemployment in our region at the highest level we have seen since 1987. The fiscal maths tells us that we need a capital kick-start of about £3.5 billion to deal with unemployment of that significance. As I said in earlier debates, our cultural institutions are crying out to the Secretary of State for Digital, Culture, Media and Sport for help. The DCMS must look at the realities of what is going on in the sector and work with the Chancellor to do whatever is necessary to de-risk our bridge from where we are now to the beginning of the city of culture next year.

The prize is significant. I agree with the right hon. Member for Sutton Coldfield that this Bill is an optimistic moment. This is a once-in-a-generation opportunity for us, but it has to lift a generation out of unemployment, out of poverty, out of hunger, and out of hopelessness. We have to make sure that, when the eyes of the world —of 1.5 billion people—are on us in 2022, we dazzle them not simply with an extraordinary spectacle of sport, but with an extraordinary society that, together, we have built.

Oral Answers to Questions

John Spellar Excerpts

Thursday 4th June 2020 Commons Chamber

[Caroline Dinenage]

My hon. Friend is absolutely right. Local broadcasters and newspapers such as the excellent Stoke Sentinel have played a key role during this crisis, sharing accurate information but also offering vital support to individuals and bringing communities together. That is why I am really pleased that they have been eligible to access most of the Government’s package of business support schemes.

[John Spellar (Warley) (Lab)]

9. What steps he has taken to support the sporting sector during the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

Covid-19 has significantly impacted sport at all levels right across the country. To fully understand the issues faced by the sector, I chair a fortnightly meeting with more than 25 sporting organisations representing millions of people who participate in sport. Sporting organisations have been supported by the Government through their job retention scheme, business loan scheme, business rates relief and business grants. In addition, Sport England has announced £210 million of funding to help sport and physical activity organisations with the effects of coronavirus.

[John Spellar]

With all these Ministers running in and out, it is less like a Westminster farce and more like a Whitehall farce, but I hope that the Minister will appreciate my tone slightly more than the Home Secretary did yesterday, because I want to congratulate him on his efforts in getting live sport back, which is not only a huge boost to morale across the country, but a major provider of jobs. To take one example, racing alone supports more than 80,000 jobs, but in addition, the betting industry supports 100,000 jobs and pays £3.2 billion in tax each year to the Treasury. Will he ensure an early return for a properly regulated, job-providing, successful, British-based gambling industry?

[Nigel Huddleston]

I do appreciate the right hon. Member’s tone, and I agree with him. Indeed, we are very relieved. Millions of people across the country were very pleased to see racing back this week, and other sports are coming as well. It was great to see Newcastle races on Monday. We have Newmarket today. I would like to thank everybody involved in making sure that we are able to get sport back safely.

Birmingham Commonwealth Games Bill [Lords]

John Spellar Excerpts

2nd reading & 2nd reading: House of Commons
Monday 9th March 2020 Commons Chamber

[Nigel Huddleston]

I am afraid the hon. Gentleman is giving me powers I do not have. He knows that these decisions are made elsewhere, but I am sure he will continue to make his case. He has already made it to me personally and he has now made it again in the Chamber. I will continue with my speech for a few moments now.

The Birmingham Commonwealth games will have been successfully delivered in a much shorter time than other games: in just four and a half years, rather than the typical seven. Just as for the London 2012 Olympic games, a pre-games Bill is essential if we are to support the successful delivery of such a landmark event. On that occasion, the House came together to approve a vital Bill. I am sure that the Birmingham Commonwealth Games Bill will be no different. The Bill contains four important measures, the first of which relates to transport.

Putting in place effective transport provision is a crucial part of any major sporting event. I know that Andy Street, the Mayor of the west midlands combined authority, is strongly focused on that so that athletes, officials and the 10,000 volunteers can get to their events and shifts on time, and, crucially, so that residents can also move around easily. The measures will make sure we can do just that. They will allow temporary changes to road use where needed, so that anyone travelling to and from the games, and around the region, can do so safely and with minimal disruption.

[John Spellar (Warley) (Lab)]

Many of the facilities, for example the aquatic centre in Smethwick, will be used after the games have ended. Is there not a need for consideration of longer-term changes to transport arrangements? Will they be included in the legacy plans to ensure such facilities are properly used and enjoyed in the future?

[Nigel Huddleston]

The right hon. Gentleman makes a fair point. The integration of transport and the co-operation of all stakeholders in the run-up to the games, as well as during and after, is being considered by the organising committee and other stakeholders, including the Department for Transport. That is a key factor that we hope will ensure the legacy of the games.

The Bill will also set a statutory basis for a games transport plan and provide the Secretary of State with a power of direction to safeguard the delivery of essential road regulation measures. I can assure the House that any road regulation measures will be kept to a minimum, so we can run a safe and efficient games. Local residents and businesses will be consulted and kept informed of the proposals.

Secondly, the Bill will work to protect the commercial rights of those who invest in the games as sponsors. Securing commercial sponsorship is critical to staging a world-class event and maintaining investment in the games. That can be achieved only when the rights of sponsors are protected. The Bill introduces measures, similar to those for the Olympic games in London and the Commonwealth games in Glasgow, to protect against unauthorised association. That is not designed to stop the many local residents and community groups who will want to show their support for the games; in fact, the organising committee wants to make it easier for them. Last week, it launched its new community programme, United by Birmingham 2022. Community projects that share the vision and mission of the games can apply to join.

The provisions are instead aimed at stopping commercial infringements, where a business is claiming an association with the games without making the commitments required of an authorised business. The Bill places a duty on the organising committee to produce guidance to ensure that everyone is clear about what activity may constitute an infringement. It introduces restrictions to advertising and trading in and around games locations. Again, they are in line with the approach of previous games. The restrictions will ensure that trading does not obstruct easy movement in the vicinity of games locations and will provide a consistent approach at each venue.

Regulations will set out the detail of when and where the temporary and proportionate restrictions will apply. They will be driven by the particular usage of each games location. The organising committee will be required to produce guidance on the effect of the advertising and trading restrictions, which local authorities will share with traders that may be affected. That will help to ensure that traders likely to be affected will be aware of what they need to do.

Thirdly, there are provisions on ticket touting. There is a role for a responsible secondary ticketing market for those who are genuinely no longer able to attend events, but professional touts are a scourge on any major event. They make tickets more expensive and make it harder for fans to see the events they love. We have already legislated to ensure there is a responsible market, from strengthening requirements on secondary platforms to banning touts from using bots to dodge security measures. Those measures received the support of both sides of the House. These are robust powers that stop online touts hoovering up large numbers of tickets for profit and help consumers to make informed choices when buying tickets on the secondary market. However, these games are a global, multi-sport event underpinned by significant public investment, so we want to go even further so that fans can buy tickets, confident that they will not be funding unscrupulous touts. That is vital if we are to act as a powerful deterrent to touts and protect the integrity of the games. Only those vendors authorised to sell tickets by the Birmingham 2022 organising committee will be permitted to do so, meaning that buying tickets will be clear, simple and affordable for genuine fans.

The Bill will create an offence that will apply to any unauthorised attempt to sell tickets for profit in the course of business or in a public place. Over 1 million tickets will be available for games events.

Huawei and 5G

John Spellar Excerpts

Wednesday 4th March 2020 Westminster Hall

[Sir Iain Duncan Smith]

My hon. Friend is absolutely right and prompts the question: who has been asleep on their watch? That goes right back to the time when the Labour party was in government and was not even told by civil servants that they had made the decision to approve the involvement of 5G. Saying that is not to blame Ministers; it was the fault originally of civil servants.

Even if the Government disagree about the urgent need for such developments or disagree with my argument about this issue, surely, as my hon. Friend the Member for Folkestone and Hythe (Damian Collins) said, security is a greater priority. Government policy must consider the wisdom of proceeding to deploy vast numbers of IOT sensors in our environment, offices and homes, unless and until current legitimate security concerns about this issue have been laid to rest.

[John Spellar (Warley) (Lab)]

I thank the right hon. Gentleman for securing this extremely important debate. First, may I say that it is quite clear in this Chamber that there is bipartisan support for his position, as indeed there is in the United States among Republicans and Democrats on this issue, and as indeed there is in Australia with the Australian Liberal Government and the Australian Labour party on this issue? Therefore, one must ask: why are the Government pursuing this course? I ask that because the right hon. Gentleman is slightly in danger of accepting the argument that somehow Huawei is light years ahead of other companies in this field. It is probably a few months ahead, given the nature of this industry, which is always changing rapidly, and companies such as Ericsson, Nokia and Samsung are clearly developing, too. What those companies really need are orders, which are what Huawei has had from the Chinese Government, to pull through their development.

[Sir Iain Duncan Smith]

I am grateful, as ever, to the right hon. Gentleman, who is in danger of making my speech before I do, because I am coming on to those points. He will find that we not do not just have cross-party support; we are absolutely linked in our concern about Huawei.

I will come back to this point later, but I am afraid that a lot of this issue is about the way in which the establishment at the moment in the UK has somehow found itself locked into this Huawei process, and we need to break it free; it is like getting somebody free of an addiction to heroin. We need to put it into rehabilitation, which is the point of my speech at the moment.

--- Later in debate ---

[Sir Iain Duncan Smith]

Yes, I agree. My hon. Friend makes a very good point. In fact, I have read a note from Samsung declaring that it is completely feasible to do this work without any involvement from Huawei. Indeed, Samsung made very clear its belief that Huawei is a direct threat to our national security because its system is not a trusted one.

Far from Huawei having some insurmountable technological lead, it seems, when one starts to investigate, that the quality of its work is no better than anybody else’s, and in some cases somewhat worse. I recall even Dr Ian Levy, the technical director of GCHQ’s National Cyber Security Centre, saying about a year ago that Huawei’s security was “very, very shoddy”. He also said that

“it’s engineering like it’s back in the year 2000”.

We need to take stock of this nonsense propaganda that Huawei is light years ahead as an organisation. Yes, it has a lot of people in research and development, but the reality is that its development has been about money.

The Government say that telecommunications companies are all reliant on Huawei. It was said earlier in the debate that telcos are absolutely reliant on Huawei, so delay would leave them significantly out of pocket. According to that line of argument, however, I would argue that reducing Huawei’s involvement to even 35% would leave telcos out of pocket, so we are already halfway there, as it were. It seems daft to try to make that argument.

Of course, the reliance on Huawei comes as a result of it having constantly bid well below other market competitors for UK and other business. After all, there is a long history of the China Development Bank providing low-cost financing for Huawei customers, and that approach is updated every few years. A recent report estimates that, when one takes in tax breaks, grants and low-cost land acquisitions, the subsidy comes to more than $75 billion. No western company in this sector will be able to compete on those grounds.

Despite all that, it is not common knowledge that at least one very significant UK service provider has contacted me to say that it has already made clear that it will not use Huawei in its 5G network. O2 suggests that the idea that these systems cannot be created without Huawei—my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) mentioned this earlier—is complete and utter nonsense.

The NCSC’s guidance does not even mention services. I understand that Huawei is now taking over the managed services for another operator, Three, which opens up yet another huge area to gather information from. If someone has a map of a radio network, they will also have a map of everything connected to that radio network. They will know what each piece is, what it does and how to attack it.

Yet our dependence on Huawei goes even deeper—much deeper than many people realise. I have just noticed that Huawei is present in the emergency services network, which is often referred to as the blue lamp or blue light service. The service is part of our critical national infrastructure, but the issue did not come out in the statements. I am astonished that that would be allowed. We can imagine how dangerous any form of disruption would be to that service. It beggars belief. Then I discovered that MI5 uses a systems provider that is heavily dependent on Huawei equipment. These decisions are barking mad.

[John Spellar]

The right hon. Gentleman mentions Three. My hon. Friend the Member for Leeds North West (Alex Sobel), who is much more technically proficient, has looked that up for me. Three is owned by a company in Hong Kong.

[Sir Iain Duncan Smith]

The point I am making is that the systems and everything else that is being used are making things very vulnerable. The right hon. Gentleman makes my point exactly.

I am worried about the Government mobile system, which I understand the Government are working on. As usual for the civil service, it has some ghastly acronym. It is called gomo for short, which rather describes the process that we have been going through so far with Huawei. The Government have decreed that it will be one supplier only. It stands to reason that unless the Government block untrusted providers from the system, we will likely be handing over control of yet another vital and sensitive system to the organisation under discussion. That is a big question for the Government. Will they ensure that when that contract is let, the supplier will not have any input from untrusted providers such as Huawei? The Minister needs to answer that question.