Birmingham Commonwealth Games Bill [HL]
Lord Ashton of Hyde Excerpts(6 years, 9 months ago)
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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.
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.
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.
Lord Ashton of Hyde
““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;”
Lord Ashton of Hyde
“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.”
Lord Ashton of Hyde
“has the meaning given by section 1(3);”
Lord Ashton of Hyde
“has the meaning given by section 1(3);”
Lord Ashton of Hyde
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.
Lord Ashton of Hyde
Lord Ashton of Hyde
Lord Ashton of Hyde
Lord Ashton of Hyde
““combined authority” means a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;”
Lord Ashton of Hyde
“( ) 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.”
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.
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.
Small-scale Radio Multiplex and Community Digital Radio Order 2019
Lord Ashton of Hyde Excerpts(6 years, 9 months ago)
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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.
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(6 years, 9 months ago)
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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.
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.
Gambling: Children in Africa
Lord Ashton of Hyde Excerpts(6 years, 9 months ago)
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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?
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(6 years, 9 months ago)
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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”.
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?
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.
Free Television Licences
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Lord Naseby
Sorry—old age. I beg leave to ask the Question standing in my name on the Order Paper.
The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, the Government discussed funding with the BBC in 2015. We agreed with the BBC that responsibility for the concession would transfer to it in June 2020. To help with financial planning, we agreed to provide phased transitional funding over two years so as gradually to introduce the cost to the BBC. The Government and the BBC agreed that this was a fair deal for the BBC. The future of the concession is therefore the responsibility of the BBC. The Government are clear that they are disappointed with its decision.
Lord Naseby
Does my noble friend the Minister recognise that, in effect, the BBC is victimising 5.5 million pensioners whose sole real leisure pursuit, unless they are really active, is to watch television and listen to radio? It is no source of help to them to be told that the poorest will be means-tested. Does my noble friend recollect in 1986 the Peacock report recommending that the BBC accept some advertising and sponsorship? Have the Government brought to the BBC’s attention the fact that £140 million of BBC income worldwide now comes from advertising and sponsorship? If that is good enough worldwide, why is it not good enough to be implemented at least to some extent in the United Kingdom?
Lord Ashton of Hyde
My Lords, under the 2015 funding settlement it was agreed that responsibility would go to the BBC in return for an increase in its licence fee that was guaranteed and index-linked for five years. The director-general promoted that agreement and that is why we are disappointed with the BBC’s decision. As for the Peacock report, which as my noble friend said was 33 years ago, the funding model was considered then, but it was also considered again as part of the charter review. I am afraid to say to my noble friend that only 1.5% of those consulted agreed that having advertising on the BBC was a good idea.
Lord Stevenson of Balmacara (Lab)
My Lords, is not the real issue here whether we can believe the party opposite when it made a manifesto commitment to provide free television licences for those over 75 for the whole of the Parliament? The Minister has previously responded on this issue at great length and shared with the House his concern at being beaten up by this, but we are talking about the integrity and truthfulness of his party. What will he do about it? It is not a question of the figures; it is about what action can be taken. Last time, the excuse was that there was no legislation and it would take too long. We have a DCMS Bill in the House at the moment. What is wrong with tabling an amendment to that?
Lord Ashton of Hyde
The DCMS Bill the noble Lord refers to deals with the operational delivery of the Commonwealth Games and has really nothing to do with the BBC at all. As for his question, I have replied to it: I said that everyone knew, when the manifesto was written, that the responsibility had been given to the BBC by Parliament. That is where it rests, because that is where Parliament put it, and that is why we are disappointed with its decision.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, we on these Benches agree that we must support our older citizens. However, does the Minister accept that the introduction of free TV licences for the over 25s; sorry, for the over 75s—that would be expensive—was government policy and should be paid for by the Government? The licence fee is not the Government’s to spend: it is not public money but the public’s money and should be used to invest in BBC programmes and BBC content. There is no point in a free licence if the BBC is so pared to the bone that there is nothing of quality to watch.
Lord Ashton of Hyde
I do not agree that the BBC is pared to the bone. The BBC is a £5 billion organisation; it gets £3.7 billion from the taxpayer, so I do not agree that it is a pared-down organisation.
Lord Grade of Yarmouth (Con)
My Lords, I declare an interest as a former chairman of the BBC and, once upon a time, an executive there—in the good old days. However we got to where we are today on the issue of pensioners, we are where we are. Does my noble friend agree with me in praising the diligence with which the BBC has set about trying to solve the problem of meeting the expectation of help for pensioners while at the same time not impoverishing everyone else’s viewing by making swingeing cuts in programme budgets? The BBC has behaved impeccably and been meticulous in trying to respond to the problem.
Lord Ashton of Hyde
My noble friend makes the point that we are where we are. This was debated by Parliament and agreed. I know that some people, some noble Lords included, did not agree with the decision to pass responsibility to the BBC in the Digital Economy Act; nevertheless, that was done and the BBC is living up to the responsibility it was given. Dealing with the change in the structure of fees is a very difficult job, and television is changing dramatically, so I sympathise with the BBC; it has a difficult job to do. Nevertheless, we gave it a lot of warning—this was agreed in 2015—and that is why we are disappointed with what it has decided.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, I declare an interest as the chair of Age Scotland. This is not a matter for the BBC: it is a government responsibility. The Minister says that the Bill that my noble friend on the Front Bench referred to is not appropriate, but there is an appropriate Bill: I have a Private Member’s Bill, which has had its First Reading and will transfer responsibility back from the BBC to the Government. It will enable the Government to implement the promise that they made in their election manifesto. Will the Government support that Bill? If not, why not?
Lord Ashton of Hyde
The noble Lord repeats his mantra that it is not the BBC’s responsibility. We decided in 2015, and the BBC agreed, that it would be its responsibility. After that, Parliament agreed in the Digital Economy Act that it would be the BBC’s responsibility.
Social Media
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The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, I have greatly enjoyed this debate and am grateful to the right reverend Prelate. I would not dream of calling him by his nickname, although I can say that he is not the only one—after a debate on algorithms, my daughter was pleased to tell me that I was called “Lord of the Nerds” on social media—but I am grateful to him.
In our view, the Church of England’s social media guidelines are a commendable example of the steps individual institutions can take to help support online users to have more positive conversations. That also applies to the users themselves. We welcome the guidelines. As the right reverend Prelate the Bishop of Chelmsford said, the expectations they imply encourage us to be the best we can. We all know that the digital world plays an ever-increasing role in all aspects of life. We agree with the Church of England that it is important that people apply the same common sense, kindness and sound judgment when they are online that they would use in face-to-face encounters. These precepts are not unhelpful in face-to-face encounters anyway.
The transformation of our lives to the online world also comes with risks. We have seen countless stories about the impact the internet is having on our politics, institutions and individual users. It is clear that something needs to change. That is why the Government are taking action to help shape an internet that is open and vibrant and encourages innovation but, importantly, also protects its users from harm. The Government believe the Church of England’s social media guidelines are well aligned with the plans we recently outlined in our online harms White Paper. I thank the right reverend Prelate and other noble Lords for welcoming it and the contributions they made to the consultation. It also aligns well with the 10 principles of the House of Lords Communications Committee, which were mentioned by my noble friend Lady Chisholm.
The right reverend Prelate the Bishop of Chelmsford asked about the digital authority. I commented on that at the end of my speech in the debate on that report. The Government will address that in our response to the consultation that has just ended. There were 2,000 replies, which we are going through at the moment. However, I made the slight warning that we are also conscious of the need for urgent action. Changing the whole regulatory landscape may be a step too far at this time, but we are considering it. That is illustrated by how, instead of a digital authority, the noble Baroness, Lady Grender, recommends Ofcom. There are issues to consider, but we agree that the overall regulatory landscape will have to be looked at in due course. We will come back to that.
Many noble Lords will be familiar with the White Paper, which sets out our plans to make the UK the safest place in the world to go online. In answer to the children who came to see the noble Baroness, Lady Kidron, we will establish a new duty of care on companies for their users, overseen by an independent regulator, so they will no longer be able to say that they do not have responsibility for their actions. The regulator will have the power to take effective action against companies that breach their regulatory requirements. Expectations of companies will be outlined in codes of practice from the regulator.
Between April and July, there was a public consultation on the White Paper proposals. In addition to the responses that I mentioned, we conducted over 100 meetings with stakeholders and international partners. We will use all these contributions to inform our work on online safety. We intend to publish our response to the White Paper consultation by the end of the year and to introduce legislation as soon as possible thereafter.
However, we are conscious of doing what we can sooner, so we are also taking action now, which the noble Lord, Lord McNally, mentioned. In addition to the social media code of practice published alongside the White Paper, the Secretary of State recently announced that the Government will produce a draft code of practice on child online safety. We are also developing guidance about the use of technology to ensure that children are protected from inappropriate content online. These will both be published before the regulatory framework is in place.
The Church of England community guidelines set out the importance of behaving with kindness and respect. We agree that users, as well as tech companies, have a role in creating a positive online environment. The Government are developing an online media literacy strategy to ensure a co-ordinated approach to online media literacy education and awareness for children, young people and adults, but users must also be held to account when their behaviour falls short of the standards we would expect offline. It is, therefore, essential that our legal framework is fit for purpose in an increasingly online world. The Government have asked the Law Commission to complete a second phase of its review of abusive and offensive communications online. The commission will make recommendations about options for legal reform of current communications offences. The project is expected to report in the early part of 2021.
Truthfulness is another of the central principles of the Church of England’s community guidelines. The Government recognise the risks of disinformation and are committed to reducing the potential impact in the UK. The White Paper includes provisions for protecting the public from online disinformation. We will expect platforms to take proportionate and proactive measures to help their users understand the nature and reliability of information they find online. Platforms should take steps to minimise the likelihood of misleading and harmful disinformation going viral and increase the accessibility of trustworthy and varied news content. These measures focus on protecting users from harm by ensuring that there are good processes in place; it is not about judging what is true or not but having sensible precautions which make it harder for disinformation to spread.
The noble Baroness, Lady Grender, asked two questions. In answer to the first, I will develop what I said about action now. We do understand that, to protect children, we need to get on with it. I mentioned the social media code of practice, which sets out principles that companies should follow to tackle online bullying. We have also funded the UK Safer Internet Centre to develop cyberbullying guidance. That provides, via an online safety toolkit, advice for schools on understanding, preventing and responding to cyberbullying. Digital literacy is already taught but, to support young people further, we have been working closely with the Department for Education on the relationships and sex education guidance. That covers how to develop positive, respectful relationships, how to recognise risks, harmful content and contact and how to report them. Positive, respectful relationships relate absolutely to the Church of England guidelines that we are talking about today.
I mentioned the new online media strategy, the online safety guidance and guidance on how to use technology to keep children safe. We know that there is more to do. We are doing quite a lot now but are committed to developing these important aspects. For example, the noble Baroness, Lady Kidron, talked about terms and conditions. We will now expect online companies to develop age-appropriate terms and conditions that people can understand, and a complaints procedure that will work quickly. Ultimately, these will be enforced by significant penalties, on which we are consulting.
The second question was about the 13 to 16 year-olds who are left behind by the GDPR. We applied a derogation in the Bill, but I will check the exact details and write to the noble Baroness.
I again thank the right reverend Prelate and the Church of England for their community guidelines and digital charter and emphasise how aligned we are on some of the fundamental issues. We will continue to engage with the Church of England as this work progresses. I am grateful to all noble Lords for their thoughtful contributions. This is an opportunity to lead the way and work with others globally. Through this work we will protect citizens, increase public trust in new technologies and create the best possible basis on which the digital economy and society can thrive.
Birmingham Commonwealth Games Bill [HL]
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The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, I am grateful for all those helpful suggestions. I genuinely appreciate the offers of help; it is clear that there is a desire to make these a tremendous Games, not only for Birmingham but for the country, as well as for the Commonwealth.
I will start by addressing some of the points directly, then come to my traditional role in Committee of asking noble Lords to withdraw or not press all their amendments. The noble Lord, Lord Addington, talked about information; I absolutely have got that point, which was mentioned at Second Reading, and I tried to be clear that we genuinely want the organising committee and other partners to be transparent. I absolutely take the point of my noble friend Lord Moynihan that transparency is key. We want to build on the good examples of London and Glasgow in that respect.
I will outline for the noble Lord some of the places where he can get information. There is the specific APPG for the Commonwealth Games, which the organising committee has committed to attend. The committee is setting up a specific parliamentary liaison role at the moment. The management plan includes a very detailed reporting schedule; that is public information, signed by the organising committee, the Commonwealth Games Federation and the Secretary of State. I recommend looking at the organising committee website. As an ALB, unlike the London organisation, it will have to produce an annual plan, and is subject to all the Managing Public Money regimes that go with being an ALB. The organising committee has also agreed to report to the Public Accounts Committee and the DCMS Committee, and the chair of the organising committee has already talked to some noble Lords and has volunteered to do so again if that would help.
If all that is too much information, there is of course me and the DCMS civil servants; obviously I am open to questions from noble Lords. While we are on this first group, I point out that I am certainly open to meetings between now and Report if there are any aspects that noble Lords would like to talk about.
Lord Addington
My Lords, is this an undertaking by the department to make sure that Ministers will be available? As wonderful as the noble Lord is, apparently there will be a change of leadership in his party, and Ministers tend to get moved around. Perhaps we could have that commitment that the Government will make Ministers available. Although nobody can replace the noble Lord, to have somebody there we can get to would put another cherry on the cake.
Lord Ashton of Hyde
Obviously, I cannot commit to what future Governments will do. I can say only that, as far as we are concerned, we will be available. It is standard practice for Ministers to be available to Peers, both formally at Questions and debates in the House but also informally; it is normal for any Minister to address questions from noble Lords. Certainly, I do not foresee any change in my department’s attitude, and we have a good reputation for dealing with all noble Lords, particularly on Bills.
On the management agreement, the Secretary of State’s priorities in that agreement, which everyone signed up to, are to deliver a Games which inspire and support the delivery of positive, long-term, sustainable legacies, locally, regionally and nationally. That is the basis on which the organising committee is approaching its task.
Of course, noble Lords are absolutely right that in delivering this major sporting event, we are looking to maximise the benefits for the city, as well as the region, the country and the wider Commonwealth. I absolutely agree with the implication behind many noble Lords’ speeches that sport can and should be a power for lasting good. However, I also noted the caution from my noble friend Lord Coe that that presupposes a good actual Games. That is very important, and we bear it in mind.
The amendments tabled by the noble Lord, Lord Rooker, supported by the noble Lord, Lord Griffiths, would provide for the Secretary of State to direct the organising committee and precisely how that powerful good should be harnessed by requiring it to publish a legacy plan in relation to specific areas. I am grateful for the opportunity to provide more information to noble Lords about the legacy planning under way.
We all agree that the Games are about more than just 11 days of sport. They will leave a transformative physical legacy for the West Midlands. I will not go into that in great detail, but there will be not least the Games village, with 1,400 new homes in Perry Barr. I took on board what the noble Lord, Lord Rooker, said about that. It is more than a series of living units; it must be a community as well. With that in mind, Birmingham City Council has already established a group for local residents in Perry Barr, which is meeting both the organising committee and the council regularly. As mentioned, throughout July, Birmingham 2022 is inviting residents from across the region to share their hopes and ambitions for the Games in a community project called Common Ground. This will culminate, as the right reverend Prelate said, in “three years to go” celebrations in Centenary Square on Saturday 27 July.
Turning to the amendment on the proportion of affordable housing, this is a matter for Birmingham City Council, which is responsible for the delivery. It has confirmed that about 24% of the total number of homes will be affordable housing. This proportion has been derived as part of financial planning for the project, which has been agreed and finalised by the council as part of a bigger long-term project of 5,000 homes. To an extent, this is outside the Games budget itself, although it receives government funding from the Ministry of Housing, Communities and Local Government. As I set out in my letter to the noble Baroness, Lady Burt, a copy of which I put in the Library, representatives of Birmingham City Council would be happy to brief noble Lords on this matter.
The Games will also bring a new aquatics centre to Sandwell and the Alexander Stadium will be significantly refurbished, with increased capacity, providing an excellent administrative base for UK and England athletics. The Games are also accelerating transport infrastructure improvements, all linked with new housing and the Games village, including new Sprint rapid bus routes and upgrading two stations, all of which will leave a significant physical legacy.
Noble Lords have referred to other areas in their amendments. To these, I add as things to consider, potential benefits to trade, business, tourism, volunteering, culture and education and new jobs and skills. Let me provide updates on some of those areas. For example, by Games time, more than 45,000 jobs—staff, contractors and volunteers—will be created. The organising committee has already held eight events to discuss business opportunities with local companies. Birmingham Solihull is benefiting already from £10 million of Sport England investment, separate from the Games budget, aimed at tackling inactivity levels in underrepresented groups. Of course, I hope that the Games will be a catalyst for more physical activity.
The organising committee is also developing a Games-wide sustainability plan. However, maximising the long-term benefits of the Games is not a matter for the organising committee alone: it is a shared responsibility across the Games partnership. I reassure noble Lords that Games partners are already working collaboratively and therefore suggest that placing a requirement for a published legacy plan solely on the organising committee fails to recognise the shared nature of legacy realisation. In fact, to ensure a cohesive and integrated approach to legacy, a cross-partner legacy committee has been established within the Games governance structures.
I agree wholeheartedly with noble Lords’ recognition of the importance of local consultation, which is undoubtedly critical. The Games partners are talking to a vast range of local, regional and national stakeholders. The organising committee has just launched a series of community events across the West Midlands, giving a voice to their hopes and ambitions for the Games, so that this can inform its work. We will continue to consult this House as the plans develop. I know that John Crabtree, chair of the organising committee, is very willing to continue to meet noble Lords to discuss progress.
Lord Ashton of Hyde
My Lords, I am grateful to my noble friend for introducing this amendment and to the noble Lords who subsequently spoke to it. On the previous group, I said that the management agreement is between three parties—the Secretary of State, the organising committee and the Commonwealth Games Federation—but actually, it is between just the organising committee and the Secretary of State. To save me writing to everyone, I put that on the record. I knew there were three people; the accounting officer also signs it. Moving swiftly on, I accept the point the noble Lord, Lord Stevenson, made about signing things by putting them in the Bill. There is another way of making clear things that happen and which we commit to, and that is by me saying things from the Dispatch Box.
The amendment seeks to ensure that sports venues and events for the Games are accessible to athletes and spectators and are funded accordingly. As I explained on the previous amendment, I do not agree that an explicit reference to accessibility is needed in the financial assistance provision in Clause 1. I do not agree that it is necessary to provide for regulations to ensure that accessibility issues are considered as part of the planning and delivery of the Games. However, I welcome the opportunity provided by my noble friend Lord Moynihan to speak on accessibility, which is such an important issue, as the noble Lord, Lord Addington, highlighted.
The Bill is not explicit about every activity or workstream that the organising committee will undertake, but it does not follow that those particular activities will not be taken forward. The Birmingham 2022 Commonwealth Games provide a unique combined sports and parasport competition programme—unlike the Olympics—which demonstrates a truly integrated approach to accessibility. At present the parasport programme includes seven parasports. One further discipline, para table tennis, has been recommended for inclusion and is now subject to the Commonwealth Games Federation membership vote on additional sports. With the inclusion of para table tennis, the parasport programme for Birmingham 2022 would be the most extensive ever for a Commonwealth Games.
The organising committee will follow the same principle of a truly integrated approach in developing its accessibility strategy to include spectators, athletes, media, broadcasters, the Games workforce and volunteers. The organising committee has confirmed that it will appoint a dedicated accessibility manager who will develop the accessibility strategy. When developing this strategy, the Games will draw upon a full range of accessibility good practice, including lessons learned since the production of the International Paralympic Committee’s 2013 guidance, such as lessons from the Commonwealth Games in Glasgow in 2014 and in Gold Coast in 2018. The organising committee will work collaboratively with partners, local authorities, accessibility consultants and local organisations to ensure that venues and services are designed, operated and delivered to ensure that everyone, regardless of ability or any impairments, has a fully accessible and positive Games experience. This is essential for an integrated Games. The organising committee will also, of course, meet the applicable accessibility legislation and guidance when designing and delivering both competition and non-competition venues.
The organising committee will also consider issues such as financial capability, better use of technology, affordable ticketing and access to public transport, alongside understanding what local communities need. This will ensure that all people who live in the local communities have the very best access to the Birmingham 2022 Commonwealth Games. With accessibility at the core of the Games, the existing language of the financial assistance clause—Clause 1—already enables funding to be provided for this purpose. It includes the words,
“any other purpose connected to, or arising from, the Games”.
I hope that I have been able to reassure my noble friend about the central importance that accessibility will play in a truly integrated Games, and I therefore ask him to withdraw his amendment.
Lord Stevenson of Balmacara
Perhaps I might put to the Minister a further point that occurred to me while he was speaking. That was a very impressive list of contextual regulatory and other activity that will ensure the delivery of a Games of the type that he talks about. However, it struck me that he will have heard some of the words offered by other bodies in the sporting world—I think particularly of Premier League football clubs. For many years they have said that they will upgrade their stadia and ensure that they are made more fit for disabled access but they have failed to do so. Does that not give him cause for some concern?
Lord Ashton of Hyde
The partners organising the Commonwealth Games have a very different motivation. Apart from us, they include the Commonwealth Games Federation and local authorities—I think that those are most of the partners. They have a very clear motivation to make sure that these integrated Games—I repeat that, deliberately, they have the biggest para representation ever—work well. I suggest that the motivation of a Premiership football club is somewhat different.
Lord Moynihan
My Lords, I am very grateful to my noble friend the Minister for giving the Committee a comprehensive review of the importance with which the organising committee and the Government view this key area. I am only disappointed that, having said that he is doing absolutely everything that I have asked for in this amendment, and that indeed he has gone further, even to the point of saying “any other purpose”, he has not gone one step further and recognised that “any other purpose” should be very clearly defined where possible, as it is as important to the Government and the organising committee as it is for disability access and the interests of disabled sports men and women.
That said, I am sure that between now and Report we will have the opportunity to reflect on whether we can put this in the Bill in a form that will be acceptable to the Government. It will set an excellent precedent for future mega sports events not just in this country but internationally, which I think will be to the benefit of sport.
Lord Ashton of Hyde
The only thing I would say to that is that I think we all agree. This is really a question of signing the importance. “Any other purpose” includes accessibility and many other things. The trouble is that that might be what my noble friend thinks is the most important thing to sign but many other noble Lords might have other priorities. The whole point of including the words,
“any other purpose connected to … the Games”,
is that it covers everything and individuals’ personal priorities are not put on the face of the Bill. I ask him to reflect on that.
Lord Moynihan
I do not want to get into too great a debate with my noble friend on this subject. Suffice it to say that this is not a personal preference; it is an amendment tabled for the consideration of the whole Committee and, ultimately, the House. If the House felt that it was of significance—if that were the view of the House; not my personal preference—that would be the opportunity for it to be considered outside the generic phrase “any other purpose” and put on the face of the Bill. Not only would it then be capable of being implemented—the Minister has set out very ably and in significant detail how it can be implemented—but it could go further, sending a signal of the importance that we attach to disability access and to disabled athletes, and sending a further signal to future holders of Commonwealth Games and mega sporting events. However, for the time being, I am happy to withdraw the amendment and I look forward to further discussions with the Minister.
Lord Ashton of Hyde
My Lords, I am grateful to all noble Lords for their contributions and to my noble friend for raising this issue. As far as I was concerned, the question was whether this issue was appropriate for the Bill rather than some of the more general questions that have been asked in connection with it.
I will not go through my entire argument but, to be succinct, we do not think this is the right Bill to create a new regulatory regime to regulate betting on the Games, which would be administered by the organising committee. We know that sports betting is a popular entertainment, and preventing competitions being manipulated is essential for upholding public trust in betting and the integrity of sport. However, we have an effective regulator in the Gambling Commission, which also has a dedicated sports betting intelligence unit to uphold betting integrity, and it often receives information from gambling operators about, for example, suspicious betting patterns and suspected criminal betting. We do not think that removing that from the commission for the Games is correct or in line with what the Bill is about. I have mentioned before the operational requirements to produce a good Games.
I understand that there were wider questions. My noble friend asked about the Sports Business Council. That was established as a forum to engage with sport as an economic sector and it met several times over the course of 2017 and 2018. Since then the Sports Minister has changed at least once—perhaps twice, I cannot remember—and the other joint chair, Richard Scudamore, has also moved on. However, the department will renew that engagement in due course with the aim of providing the best platform for the sport and physical activity sectors to grow. This is one of the issues that we will certainly pursue through the policy channels in DCMS, and my noble friend is very welcome to continue along that line.
The noble Lord, Lord Stevenson, asked about a sports betting right—in other words, a return to sport for the use of their intellectual property rights. I know that some of our sports are interested in exploring this, particularly those with high-profile professional competitions. Again, however, this is not something that the Government are actively pursuing at the moment, and it is certainly not in the scope of the Bill. At the moment we think that the current risk-based regimes for what type of bets operators can offer is proportionate and effective. There are issues such as the fact that limiting bets would not remove all possibility of manipulating a competition. Anyway, sport is international, and overseas operators not offering services to British customers would not be subject to Gambling Commission rules. I am very happy to continue discussions on this outside the Chamber, and I am sure the Sports Minister will be as well. However, I do not think the Bill is the right place for this suggestion, and I hope my noble friend will feel able to withdraw the amendment.
Lord Moynihan
I am grateful to my noble friend. This was a probing amendment, but it was an important one. We are talking about something in the order of £13 billion of total betting on sport, excluding horseracing and greyhound racing. Governments around the world are increasingly looking favourably on the sport betting rights approach. Under French law, organisers of sports competitions have commercial exploitation rights over their competitions and not only they but the events they organise benefit. Through that, the sportsmen and women who participate may benefit too. However, I fully accept that the complexity of this would be significant and, given the time it would take for the House to get it right for the Commonwealth Games, it is unlikely to be deliverable.
With gratitude to the Minister for saying that he will continue to look at this, and having clarified that the work that has been done has not been lost but is being actively pursued in the department, I beg leave to withdraw the amendment.
Lord Ashton of Hyde
We are always encouraged to stay at the residence, so that saves hotel tax.
Lord Snape
Well, it would be the George V, in that case, for the noble Lord.
Again, for the United Kingdom, this proposal would not be particularly revolutionary. As a result of escaping the dead hand of the Treasury, the Scottish Parliament is now looking at Edinburgh being the first city in the United Kingdom to charge this tax. We wish the Scots well—certainly I do—and I hope that the habit will then spread south of the border.
One of the contributors to this debate talked about the fluctuation in hotel room rates. For the hotel business to pretend that such a tax would deter business people or tourists would be misleading. I looked up the room rates at the Crowne Plaza in Birmingham this week—
Lord Griffiths of Burry Port
That is the opposite stage instruction from:
“Exit, pursued by a bear”.
Never mind; that was too complicated.
To put it simply, if the Minister pours cold water on this, would he like to come up with one or two other proposals for how the local people can raise this £40 million?
Lord Ashton of Hyde
My Lords, I am grateful for those contributions. The noble Lord, Lord Rooker, and the right reverend Prelate are a difficult combination to face. The noble Lord was asking me to make a name for myself by opposing the Treasury and announcing a new tax from the Dispatch Box, while the right reverend Prelate said, “It’s only £1—that’s very little”. This is really a question of “Lead me not into temptation”, but I wonder how long that £1 would stay as £1.
The issue here relates to the actual amount of the budget for the Games and how it can be paid for. As we now know, there will be a £778 million investment, to be split approximately 75:25 between central government and Birmingham City Council and a number of its key partners. I was not quite clear what the noble Lord, Lord Griffiths, meant about the funding shortfall; I understand that the city council’s contribution to the Games budget was considered by a meeting of the full council earlier this year. The spending based on that budget will be tightly monitored across all the Games partners to ensure control—an issue which I know the noble Lord, Lord Rooker, talked about at Second Reading. We are confident that the budget announced is sufficient to deliver a strong Games for the city but I absolutely agree with the points raised at Second Reading, and earlier this afternoon by the noble Lord, Lord Rooker, saying that Parliament should be provided with more information regarding the Games budget. This will be forthcoming.
Lord Griffiths of Burry Port
I am grateful for this opportunity. I mentioned £40 million, as did my noble friend Lord Snape; the briefing papers that we received from Birmingham mentioned £40 million. It seems that when the local authorities calculate their 25%, they will be £40 million short of that. This provision is intended to bridge that gap.
Lord Ashton of Hyde
I understand now. The 25% comes from Birmingham City Council and its partners; it also involves revenue raising in various ways so none of it is certain. However, my point remains that the city council is looking at different ways to do that and I will come on to that in a moment.
This is not a completely uncontroversial proposal. I do not want to go into the detailed arguments about the hotel levy today, but it is not quite as straightforward as some people may think. Tourism in this country pays a much higher rate of VAT than our competitors in Europe. In May, a report on tourism tariffs by the All-Party Parliamentary Group for Hospitality expressed reservations about the likelihood of tourism levies having a long-term, positive benefit on tourism infrastructure. The report concluded that:
“Further studies need to be commissioned on the economic impact and viability of a tourist tax”.
The noble Lord, Lord Rooker, suggested that this should be a pilot, which goes some way to answering that although it would be limited in scope. The noble Lord also mentioned the Scottish Government, who will consult this year on the principles of a locally determined tourist tax, prior to introducing legislation which would allow local authorities to apply such a tax. We will certainly be looking at the benefits of that.
I have to say that matters of taxation are for the Treasury to consider. Treasury Ministers have been in correspondence with Birmingham City Council regarding its options for meeting its required contribution to the Games. That is the right place for those discussions, not this Bill, which provides the framework for the successful operational delivery of the Games. The Government are aware that the city council is actively considering a number of options for local revenue raising, including within existing powers, and stand ready to look at the details of any proposals that the city council wishes to put forward.
I hope that is not cold water, though it may be lukewarm. I hope that noble Lords are reassured that the Government remain committed to working with the city council on its plans for delivering its required financial contribution to the Games. I would therefore be grateful if the noble Lord felt able to withdraw his amendment.
Lord Rooker
When my noble friend on the Front Bench invited the Minister to make a name for himself, I was reminded of an occasion in early 2002, when I was young in this House and the Home Office Minister. At the Dispatch Box in a debate, I was challenged by someone on the opposition side. My answer was that, in my short, five-year experience as a Minister the Treasury had wrecked every good idea I had come across. An exchange took place between my boss—now my noble friend Lord Blunkett—and the Chancellor. I survived another six years as a Minister, but I was never invited to join the Treasury team. When these things get discussed we are always told, “It’s the Treasury; you cannot touch it”. Then, on Budget Day, the Chancellor stands up and says something that the department had no idea was coming. It is a good idea, so it is for the Chancellor to own. In this case, we are out of scope for the Budget, but this gives an opportunity. If it is a bad idea, you do not do it: that is the idea of a pilot and the opportunity for a pilot in taxation does not come along very often.
I do not want to set hares running, but I have a feeling that this would not go amiss in a couple of the national parks. There are sometimes complaints that there is no gateway or passport for visitors to them; hotels are the means of extra revenue. As I say, the broader the tax base, the less high taxes have to be. This is an opportunity for a pilot. We will obviously seek further and better particulars and come back on Report, when this might be worth looking at further. In the meantime, I beg leave to withdraw the amendment.
Lord Stevenson of Balmacara
My Lords, this House owes a great amount of thanks to the noble Lord, Lord Moynihan, for his campaigning over the years on this and related issues. He sees every opportunity to bring forward yet another version of his thinking on these matters. Once again, he has shown that we have a problem here that at some point will crystallise in a way that will require us to act fast. We should be thinking hard about some of the issues he spoke about when he moved this amendment. I think we will now hear from the Minister that everything is perfect and nothing needs to change. There is a certain amount of self-satisfaction around this, because we have heard that before on other occasions. I am in no sense being critical of him; he has a good record to defend, and I am not saying that he should not do so. However, time is moving ahead of us, and we will have to start to move on.
We have no specific legislation in this country to prevent one of our most important common social activities being affected by match fixing or doping. No criminal offence is created by people deciding to cause a goal not to be scored or to be scored, runs to be taken or people to be bowled out on particular balls. The only way that can be addressed at the moment is through the Fraud Act, which the noble Lord, Lord Moynihan, mentioned. It is long overdue for us to begin thinking seriously about the need for specific rules, regulations and laws with regard to sport.
So much depends on it, not just for those who bet on it, although it is bad enough when that happens. Indeed, the case behind some of the remarks made by the noble Lord, Lord Moynihan, was the fixing of a cricket match, which was treated under the Fraud Act. The very faith of supporters and audiences going to watch matches will be checked if they do not think that they are seeing a fair game or fight, or if there is any sense that people are being paid on the sides to influence the outcome.
Match fixing and the particularities related to it are a real and present danger. Do we need to act on that in relation to Birmingham? Should we think seriously about implementing one or more of the points made in Amendment 13? We have to think long and hard about this. As the noble Lord, Lord Moynihan, said, it relates to the question of doping or the using of drugs and artificial stimulants in sport.
As we have discussed, there are questions about what constitutes match fixing, and what type of drugs could be considered performance enhancing or, in some cases, performance disenhancing, if that is the right word. The principle here is still important. It is an attempt to obtain a result by defrauding those who do not participate in taking drugs. It reduces people’s enjoyment in the games they watch. It is not about fair play but about those who have the ability to cheat best. Those who are caught are the ones who are stupid about this. There is now so much effective doping in sport that, as we learned in the Winter Olympic Games from the state-aided support for the Russian teams, this has gone beyond the individual and whether they achieve a better result as a result of taking drugs. When it got to that stage, it seemed obvious that the world bodies would take action. However, they have not effectively resolved this, even though there is some hope that they may still get around to doing so. In the interim, the only agencies that can operate on this are our own Governments. Action needs to happen on this in this country, because other countries are moving ahead. It is time the Government fessed up to this and began taking steps in the right direction. This may well be their opportunity.
Lord Ashton of Hyde
My Lords, I am grateful for the contributions. I also agree that we owe a great deal to my noble friend Lord Moynihan, even if, on occasion, I have suffered from that. I am not complacent about this, because it is a serious issue that we need to think hard about. I hope I will be able to explain what is happening in Birmingham. I will not be able to agree with everything my noble friend said, and I will explain why. However, we certainly take this seriously, and I agree with the noble Lord, Lord Stevenson, that it is an abuse of spectators and of other athletes. Although some of these issues are covered in existing legislation, I wonder—I have said this in the past—whether it is not covered under fraud, particularly when we have professional athletes. But that is by the by. We take this seriously and I will explain what we are doing about it.
These amendments require the organising committee to publish plans for addressing match fixing and its rules for anti-doping in Birmingham. They would require the organising committee to prepare and publish a plan for preventing match fixing in Birmingham, and it would be required to publish anti-doping rules for Birmingham to comply with UK anti-doping rules and the 2015 World Anti-Doping Code. It would also criminalise anyone found guilty of committing a doping offence at the Games, and they would be liable to fines and imprisonment.
There is no doubt that the Government and the Games partners are fully committed to ensuring the integrity and fairness of the Games. That is why the organising committee will be working with the Commonwealth Games Federation and partners around the Commonwealth to ensure that we deliver a Games free from corruption.
The United Kingdom already has robust internal processes in place to combat match fixing threats through bodies such as the Gambling Commission and the Sports Betting Integrity Forum. Of course, match fixing is a cross-border issue and one that we take very seriously. That is why we demonstrated our commitment to international collaboration in this area by signing the Council of Europe Convention on the Manipulation of Sports Competitions—more commonly known as the Macolin convention—in December last year. The convention encourages sports organisations and competition organisers to put appropriate measures in place, such as adopting principles of good governance and educating athletes.
The Government are fully committed to rooting out corruption in sport and have played a leading role since the 2016 London anti-corruption summit. We have been instrumental in developing the new International Partnership Against Corruption in Sport—IPACS—working with a range of other Governments and sports bodies such as the International Olympic Committee. Indeed, the Commonwealth Games Federation is also a member of IPACS. In addition, the Commonwealth Games Federation has a very strict code of ethics which refers to match fixing. An updated version of this code will be approved in November 2019 and will come into force in January 2021, in time for the Games. It is our view that these existing measures will deliver a Games free from corruption.
Further, in respect of anti-doping, I reassure noble Lords that the Government and Games partners recognise this as one of the most important fights in the battle for sport’s integrity. The organising committee, in developing its anti-doping approach for the Games, will ensure that this not only covers Games-time athlete sample collection and testing but engagement with anti-doping organisations across the Commonwealth and an athlete education programme. These measures will aim to ensure that we deliver a clean and fair sports programme and that the highest possible standards are upheld.
The organising committee has already committed to anti-doping obligations as part of the hosting requirements agreed with the Commonwealth Games Federation. This ensures that anti-doping measures at the Games will comply with the World Anti-Doping Code and the Commonwealth Games Federation’s Anti-Doping Standard, and therefore will satisfy the requirements my noble friend has set out in the amendment. However, the amendment also mentions a provision to criminalise doping, which my noble friend has been assiduous in pushing at every legislative opportunity—at least recently. Noble Lords may be aware that Government commissioned a review into the criminalisation of doping, the results of which were published in October 2017. This followed a period of consultation. The review found that there was no compelling case to criminalise the act of doping in the UK. That reflected the strong consensus of those interviewed, including UK Anti-Doping and the World Anti-Doping Agency. None of those interviewed was in favour of criminalising doping in sport.
I hope I have provided assurance of the Government’s and the Games partners’ full commitment to addressing issues of integrity for the 2022 Games and, above all, to delivering Games which are fair and clean. The Games are already committed to upholding the anti-doping standards set out in my noble friend’s amendment. With that reassurance, I ask him to withdraw his amendment.
Lord Moynihan
This short amendment requests that the Government focus on visa and immigration rules for elite tournaments, not least given the possibility that this event will be under a different visa system from the current one, if the Brexit negotiations head in a somewhat more predictable direction than they have to date.
The focus of this amendment is to simplify the visa process for spectators holding tickets to sporting events due to be hosted in the United Kingdom, but specifically the Commonwealth Games, and to make it easier for athletes to get visas and/or work permits to compete in elite tournaments such as the Commonwealth Games. It would give a power to require the allocation of a certain number of visa and/or work permits to athletes, sports clubs, teams, associations or leagues.
I add one rider: we need to be very careful in our approach to visa and immigration rules and human rights issues. At the World Cup in Russia, a significant number of young boys were boarding a flight in Nigeria with a visa. I am trying to think of a polite word, given my anger towards the people who would do this, but those around them felt that the easiest way to get them into Russia was to acquire a one-way ticket from Nigeria under a simplified visa system. Fortunately, that plane was stopped, but in any visa and immigration relaxation for tournaments, we must pay attention to the human rights dimension in countries coming to compete at our Commonwealth Games. With that unfortunate reality one of the consequences of a more relaxed visa system, I beg to move.
Lord Ashton of Hyde
My Lords, I am grateful to my noble friend. Let me say straightaway that my earlier remarks about human rights and the Games partners having agreed with the Commonwealth Games Federation to abide by a human rights plan bear testament to the fact that we take this matter seriously.
My noble friend’s amendment would provide an expedited process for the administration of visas for spectators and athletes at the 2022 Games. We share his desire to ensure a smooth process for these applications, but I am confident that, through our work with UK Visas and Immigration and its experience from other mega sporting events, the amendment is unnecessary. We have significant experience of managing visa processes for major sporting events using existing legislation—for example, the rugby and cricket World Cups, the World Athletics Championships, Glasgow 2014 and, of course, London 2012, where there were about three times the number of athletes and officials from about three times the number of countries.
We will have robust plans in place for the Games for each category in my noble friend’s amendment without the need for new primary legislation. Let me take them in turn. For athletes, as part of the hosting requirements for the Games, the UK Government have already committed to the Commonwealth Games Federation that we will ensure that entry to the UK will be facilitated for those persons in possession of a valid passport and Commonwealth Games accreditation to carry out their Games functions in accordance with the United Kingdom’s visa system and requirements. That was in the bid commitment.
It is of course also important to ensure that a balance is struck—that we meet the operational requirements of staging an event of this nature while, none the less, protecting the integrity of our borders appropriately. For spectators, under current rules, individuals can apply for a standard visitor visa if they want to visit the UK for leisure. In line with the approach taken for other major sporting events we have hosted, we do not consider it proportionate to put in place a bespoke process for spectators. Nevertheless, we will work closely with UK Visas and Immigration to ensure that visas are processed promptly for the Games. We understand the significance of the extra requirements, based on our experience of other sporting events.
I hope noble Lords will be reassured that we are already working with the Home Office and UK Visas and Immigration to ensure that a robust plan will be in place for the prompt processing of visas for Birmingham. I am very willing to meet my noble friend or other interested Peers to discuss our approach. With that reassurance and the UK Government’s commitment in the bid to facilitate the entry to the UK of Commonwealth Games-accredited persons, I hope my noble friend will feel able to withdraw his amendment.
Lord Moynihan
My Lords, I just add that similar provisions were included in the London Olympics Act and the Glasgow Commonwealth Games Act. Speaking personally, the affirmative procedure is applicable because the range of matters caught both in trading and advertising is very broad; it is not limited to activities connected to the Games. This is exactly the sort of parliamentary process that should require the affirmative resolution, and that is why we used it for the London Olympic Games and the Glasgow Commonwealth Games.
Paragraph 16 of Schedule 2—the third paragraph that has been spoken to—is of equal significance. It is about property damaged during the exercise of the lawful function under the Bill. There is a right to be compensated and provision for consequential loss, but these are not administrative details. There will be important issues such as who is responsible for payment of compensation, what the appeal route is—does it go to court?—and what the grounds for appeal are, on law or on fact. These are really important issues for people living in the vicinity of the Games, who will be impacted by the use of these powers. Therefore, the question for the Committee is whether the affirmative procedure is applicable and appropriate. Having studied it at length both on the Delegated Powers Committee and subsequently, I firmly believe that this is a classic case where the affirmative procedure should be followed. We are talking about the rights of individuals and the impact of the Games on those individuals.
Lord Ashton of Hyde
My Lords, as we come to the last group, I do not think we will have a massive falling out on this subject—it would destroy the overall very satisfactory progress that we have all made in this Committee. I thank noble Lords for their contributions during the afternoon. They were admirably succinct and provide an excellent example for the noble Lord, Lord Hunt, who will join us on Report.
We have listened with interest to the points that noble Lords have made in debating the parliamentary procedure for the regulation-making powers for advertising and trading, and in debating the amendments tabled by noble Lords. The noble Lord, Lord Griffiths, has requested that the draft affirmative procedure should apply to the regulations concerning advertising and trading. The noble Lord, Lord Addington, and my noble friend Lord Moynihan seek the same, unless the Secretary of State considers that, due to urgency, it is necessary for the negative procedure to apply. The regulations will specify the Games locations and the periods when restrictions will be in place and will make provision about the “vicinity” of Games locations.
Noble Lords also seek to apply the draft affirmative procedure to the regulations, under paragraph 16 of Schedule 2, concerning the payment of compensation in certain circumstances following enforcement action. We have carefully considered the recommendations of the Delegated Powers and Regulatory Reform Committee. We are very grateful to the members of that committee, including my noble friend Lord Moynihan, and will respond to them in writing before Report.
Although it is right that the regulations should be placed before Parliament—I appreciate noble Lords’ interest in debating these regulations, and my noble friend Lord Moynihan explained why they are important —there are a number of reasons, which some noble Lords might not have appreciated, why the negative procedure provides a suitable level of scrutiny.
I appreciate the consideration of the noble Lord, Lord Addington, and my noble friend Lord Moynihan that there might be certain circumstances where regulations may need to be made as a matter of urgency due to operational requirements and therefore the negative procedure may be more suitable, but we still consider that all the regulations, whether urgent or not, should be subject to the negative procedure.
Noble Lords will be aware that the affirmative procedure was, as my noble friend Lord Moynihan said, used for the regulation-making powers for the Olympics and the Glasgow Games, but it is also true that the delegated powers in the Bill are not as broad as their predecessors and there is more detail in the Bill. For example, we have included definitions of trading and advertising in the Bill, whereas in London this was specified in the regulations. Unlike for London, we have defined “Games location” in the Bill. The advertising and trading offences will be able to apply only in, and in the vicinity of, a Games location. In contrast, the London Act 2006 provided that the regulations shall specify or provide criteria for determining the places in respect of which the regulations will apply. London did not stipulate any trading exceptions, whereas in this Bill we have included a number of exceptions and a power to provide more exceptions in the regulations. Existing exceptions cannot be removed, so there will be no broadening of the offence.
I assure noble Lords that a proportionate approach will be taken to these delegated powers, and it is in all our interests that advertising and trading restrictions apply only when and where necessary. This is not about imposing a blanket advertising ban or restricting all outdoor trading across Birmingham or the West Midlands. A Games location will be specified in regulations only where it is necessary for the advertising and/or trading restrictions to apply in, or in the vicinity of, that Games location to deliver a successful Games.
Defining “vicinity” is not as simple as providing a set distance from a Games location in relation to which the offence applies, as location-specific consideration needs to be given to spectator routes and nearby transport hubs. We have also sought to ensure that the periods for restrictions will be in place only when necessary. However, as a—dare I say it?—backstop, we have specified a maximum of 38 days for such restrictions, and we expect this to be much less in many cases; for example, for Games locations in use for only a few days.
In relation to paragraph 16 of Schedule 2, the schedule includes a power to bring forward regulations about compensation to supplement paragraph 15, which makes provision about a person’s entitlement to compensation in certain circumstances. Here, we consider that the negative procedure is appropriate. I would argue to my noble friend Lord Moynihan that these regulations will set out the administrative processes that need to be followed—for example, to whom a claim for compensation should be made, the timeframes for claims, the appeal processes and so on. This type of procedural detail is well suited to regulations and will enable government to ensure further discussion with relevant enforcement agencies in advance. In the London Act, how much compensation could be paid was included in regulations, but we have included it in this Bill.
I have listened carefully to the points raised and I respect the recommendations of the DPRRC, on which I will reflect further over the coming days. However, given the extra detail in the Bill, the maximum time limit of 38 days—come what may—and the lack of any Henry VIII powers at all, we believe that the negative power is not unreasonable. I respectfully ask the noble Lord to reflect on my arguments and, in the meantime, to withdraw his amendment.
Problem Gambling
Lord Ashton of Hyde Excerpts(6 years, 10 months ago)
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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 will now repeat a Statement made by my right honourable friend the Secretary of State for DCMS earlier today in the other place:
“Mr Speaker, with your permission, I would like to make a Statement about today’s announcement on support for those affected by problem gambling. While we all want a healthy gambling industry that makes an important contribution to the economy, we also need one that does all it can to protect those who use it.
Problem gambling can devastate lives, families and communities. I have met users who have lost more than the UK’s annual average salary on credit cards during one night of gambling online and parents who are now without a child as a result of gambling addiction. Over recent months I have also met representatives from the gambling industry and colleagues from across the House to discuss what more needs to be done. We can all agree that it is best to prevent harm before it occurs, and to step in early where people are at risk. But we also need to offer the right support for those people who experience harm. We have already acted to reduce the minimum stake on fixed-odds betting terminals to £2, from £100. This has reduced the potential for large losses on FOBT machines and has reduced the risk of harm to players and wider communities. We have also tightened age and identity checks for online gambling websites, an important step to protect children and vulnerable people who may be at risk.
Today five of the biggest gambling companies have agreed a series of measures which will deliver real and meaningful progress on support for problem gamblers. This announcement has been welcomed by the Gambling Commission, GambleAware and Gamban. These are companies which, together, represent around half the British commercial gambling industry.
At the heart of this package is a very significant increase in their financial contribution to fund support and treatment. Last year voluntary contributions across the whole industry to problem gambling yielded less than £10 million. Now five operators—William Hill, Bet365, GVC, which owns Ladbrokes and Coral; Flutter, formerly known as Paddy Power Betfair; and Sky Betting & Gaming—have pledged that over the next four years they will increase tenfold the funding they give to treatment and support for problem gamblers. In this same period they have committed to spending £100 million pounds on treatment specifically. The companies will report publicly on progress with these commitments, alongside their annual assurance statements to the Gambling Commission.
Last week NHS England announced it is establishing up to 14 clinics for those with the most complex and severe gambling problems. This includes where gambling problems coexist with other mental health problems or childhood trauma. It has also been announced that the first NHS problem gambling clinic offering specific support for children is set to open. The funding announced today enables a huge boost for the other treatment services that complement specialist NHS clinics and will help us to place an increased focus on early intervention. I know that Members across the House have argued for a mandatory, statutory levy to procure funds for treatment and support of problem gambling. I understand the argument, but of course the House knows that legislating for this would take time to complete; in all likelihood more than a year. The proposal made this morning will deliver substantially increased support for problem gamblers this year.
It may also be said that receipts from a statutory levy are certain, and those from a voluntary approach are not. However, it is important to stress two things. First, these voluntary contributions must and will be transparent, including to the regulator, and if they are not made, we will know. Secondly, the Government reserve the right to pursue a mandatory route to funding if a voluntary one does not prove effective. This is a clear financial commitment from the industry to address the harms that can come from gambling, but this is not solely about spending money: this is a package of measures, spanning a number of different areas, to ensure we tackle problem gambling on all possible fronts.
First, a responsible gambling industry is one that works together to reduce harm and wants customers to be safe, whatever platform they use or however they choose to gamble. The companies already identify customers whose gambling suggests they may be at risk, and they take steps to protect them. Their licences require this, but they will go further. We have already seen the successful launch of GamStop, the multioperator self-exclusion scheme. I am pleased that companies have committed to building on this through greater sharing of data to prevent problem gamblers experiencing further harm.
Secondly, the five companies will use emerging technology to make sure their online advertising is used responsibly. Where technology exists that can identify a user showing problem gambling behaviours and target gambling adverts away from that person, they have committed to using it. More generally, the industry has already committed to a voluntary ban on advertising around live sport during the daytime, which will come into force next month.
Thirdly, operators have committed to giving greater prominence to services and campaigns that support those in need of help. They have pledged to increase the volume of their customer safer gambling messaging; to continue their support for the Bet Regret campaign, which is showing promising early results; and to review the tone and content of their marketing, advertising and sponsorship to ensure it is appropriate. These are welcome commitments and represent significant progress in terms of the support operators give for those impacted by problem gambling. However, as technology advances we need to be even more sophisticated in how we respond. The five companies which have proposed these measures today will be working closely with the Government, charities and regulators so that we can address any new or developing harms.
These are landmark measures and I commend the leadership of the five companies that have put them forward. They are proposals from some of the industry’s biggest companies and I believe it is reasonable for the biggest companies with the largest reach and the most resources to do more and show leadership. The industry as a whole needs to engage in tackling problem gambling, and we want other firms to look at what they can also do to step up.
I repeat: it will remain open to the Government to legislate if needed, so this is not the end of the conversation. We will keep working hard as a Government to make sure we protect users, whether online or in the high street.
There is still much more to do, but today’s announcement is a significant step forward. It means substantially more help for problem gamblers, more quickly than other paths we could take. We must and will hold the companies that have made these commitments to them, and we will expect the rest of the industry to match them. They will change lives for the better and contribute to the ongoing work we are doing to make gambling safer for everyone.
I commend this Statement to the House”.
Lord Foster of Bath (LD)
My Lords, I too thank the Minister for repeating the Statement. I am a member of your Lordships’ Social and Economic Impact of the Gambling Industry Committee.
It is, however, my membership of the All-Party Parliamentary Group for Gambling Related Harm that has led me to meet the parents of a number of children who have committed suicide because of gambling. It has given me the opportunity to meet people with mental health problems who have done everything they can to exclude themselves from gambling websites but are still being bombarded with gambling advertisements and free bet offers. I have also met people who have lost thousands of pounds in a very short time because they have been using multiple credit cards.
For far too long, the gambling industry has failed to take responsibility for the harm that it is causing not only to individuals but families and communities. As the noble Lord, Lord Griffiths, pointed out, far too many of the gambling companies are failing to contribute even the 0.1% of the gross gambling yield to the voluntary levy for research, education and treatment. This Statement is of course welcome. The commitment by the so-called “big five” is welcome and I congratulate all, in all parts of the House and elsewhere, including Ministers, who have managed to shame some—but not all—of the gambling companies into taking this action.
An increase from £10 million to £60 million for research, education and treatment is of course welcome, but we should put it into context. Just some of the £60 million will be used to help the approximately 430,000 people, including children, with gambling problems, when we know that only 2% of them are getting any form of treatment. That £60 million should be compared with the £40 billion annual turnover of the gambling companies, the nearly £1 billion of government cuts to our public health budget and the annual salary of the boss of just one gambling company: today we are welcoming £60 million, while Denise Coates, the head of Bet365, earned £265 million last year.
The £60 million is welcome but, as the Secretary of State admits, there is much more to be done, and we need to ensure that this is not a cynical ploy by the gambling companies to prevent the Government introducing further regulation. The Secretary of State says that he is not yet minded to introduce a compulsory levy. If we do not have one, how will the many companies that are not party to this deal, and which do not make an adequate contribution, do so? Surely the way forward is a compulsory levy.
Further, what more does the Minister believe needs to be done to prevent problem gambling in the first instance? Does he agree, for example, that we need to do more to ensure that individuals can afford to gamble at a particular level, and that we should ban the use of credit cards for gambling? Does he agree that we need a code of practice for advertising? The industry says that it is keen to have one but has so far failed to come up with the goods. What will the Government do to make sure that we have one?
Should we not also have a system of redress for individuals? I am sure the Minister is aware that, if an individual has a problem whereby, for example, they have self-excluded but are still bombarded with advertisements and therefore lose more money because they are tempted, they can go to the Gambling Commission and report it. The commission will take evidence from them and other such individuals—it may take action against the gambling company or even fine it, as has happened in the past—but there is no redress for the individual because the commission does not act as an ombudsman. At present, all someone can do is go to the gambling company and seek redress or take expensive legal action. Does the Minister agree that we need a proper redress scheme? Today’s Statement is a small step, but it is certainly not a giant leap.
Lord Ashton of Hyde
I am grateful to both noble Lords. Among the criticism, I think that today’s announcement was welcomed. It is important to reflect on the fact that, whether there is a mandatory levy or not, this is a considerable amount of money in addition to the existing sum.
The noble Lord, Lord Griffiths, said that the current voluntary levy does not produce the goods. We agree, which is why we negotiated with the five biggest companies a significant tenfold increase: they have agreed to increase 0.1% to 1% and, in the first four years, to commit a minimum of £100 million to treatment. Providing more money is not the only important thing here; the companies have also agreed to other voluntary things. We hope that noble Lords will accept that this is a big step forward. Of course, many people have talked about a mandatory levy for some time, saying that nothing would happen without one. Today’s announcement shows that something significant can happen; a tenfold increase is significant in anyone’s terms. As I said, this is about not just money but the attitude of the five largest companies, which should be given credit for providing leadership.
I agree that there is an issue with the remaining 50% of the industry. As I said, and as the Secretary of State made clear, we have not taken a mandatory levy off the table. However, the difference between this approach and doing the mandatory levy now is that we will get money into where it is meant to be, which is treating problem gamblers. That is to be welcomed.
The issue of credit cards was raised. We acknowledge the question of whether they should be used for gambling. We are looking at the evidence that the Gambling Commission has finished taking and at what the banks can do in addition to what they currently do, using their data on customers to look at forms of behaviour that their systems tell them might indicate problem gambling.
Today’s announcement comes in addition to the 14 new clinics already announced by the Secretary of State for Health; they are there to treat problem gamblers and addicts. We think that the Statement brings significant benefits. We will observe what happens over the next four years. This is entirely transparent. The companies will say what they do in the annual assurance that they must give to the Gambling Commission, so we can monitor them. We hope that the extra money and action will make a significant difference to what is generally acknowledged to be a significant problem.
The Lord Bishop of St Albans
I welcome this announcement today, but I notice from a press release from the companies that they see it as a health issue:
“The key priority will be to quadruple the number of those accessing treatment from 2.5% to 10%”.
After four years, 90% of those with gambling addiction problems will still be unable to access help. Surely that cannot be acceptable.
We know from Simon Stevens, the head of the NHS in England, that it looks like it will cost the NHS between £260 million and £1.2 billion a year. This is costing the general taxpayer a huge amount, when the industry, as I have said in the past, is privatising the profits and nationalising the costs. The key issue here is that we have to treat this as a public health issue. I declare my interest as a member of the Select Committee on the Social and Economic Impact of the Gambling Industry, which is just beginning to do its work. We need to take a fresh look at this. In particular, we have to legislate. All these companies are competing with one another, which is one of the reasons why we have this explosion in advertising; even the “whistle to whistle” ban is not going to stop the logos on shirts and the wraparound adverts that are blazoned all the time. We need to legislate to put these companies on an equal footing and protect the vulnerable, especially the young.
Lord Ashton of Hyde
The right reverend Prelate, who has been vociferous in his views on this—I have been on the receiving end for several years—has done good work, but he is overexaggerating slightly. On the increase in the proportion of problem gamblers receiving treatment, we will never reach 100%. They have to agree to be part of it. We have significantly increased the resources available to do it. We had one gambling clinic in the east; another has just opened, specialising in children. We have announced plans to open 14, and today’s announcement is in addition to that. In every other sphere of potentially harmful industries, such as smoking and alcohol, the industry pays taxes and the treatment of people affected by those industries is paid for out of general taxation. The gambling industry pays £3 billion in gambling tax plus income tax and NI. In addition to that, the top five companies have agreed to pay a 1% levy on that to fund treatment. They are producing a large amount of money. Because it will be transparent, we will monitor what needs to be done, but this is a dramatic increase in resources in a very short time and it will make a significant difference.
Lord Browne of Ladyton (Lab)
My Lords, betting advertising around televised sport, both live and recorded, has reached saturation point. The dominant sports broadcaster in this country is part of a bigger business that has a sporting and gaming division and it advertises on the platform on which the sport is broadcast. The sports advertisers use sports presenters and sports pundits to advertise, and they advertise live odds on the events that are happening and being broadcast. All this is aimed at—and has succeeded in—blurring the difference between the advertising and the event itself. It all looks like the one thing and it works for them. In this context, therefore, what on earth is expected to be delivered by a voluntary ban on advertising around live sport only during the daytime? What do the Government expect this to deliver in reducing this problem, and why did they agree to it if they did not expect it to make a real difference?
Lord Ashton of Hyde
I do not see why the noble Lord thinks that the proposal will not make a difference, but it is in addition to other areas. It works in sync with the fact that there is now agreement to use online technology to target gambling advertisements away from people identified as being at risk of problem gambling. Responsible gambling messaging will be increased and the tone and content of marketing will be reviewed. That is an addition to the previous commitment that the noble Lord mentioned of a whistle-to-whistle ban and the funding of a new multimillion-pound responsible gambling advertising campaign led by GambleAware. We are asking gambling firms to act responsibly. Where they do not, we will continue to talk to them as we have—the results of which have come today. We are not, however, ruling out legislation. We expect change and we expect firms to behave responsibly, but if they do not we will have to take other measures.
Lord Deben (Con)
I remind the House of my declaration of interest. I just do not understand this—I really do not. I do not think I can be accused of putting forward the Methodist point of view but, given that we have this agreement, why can we not set in train plans for some sort of legislation? That seems sensible. Secondly, given that the chief executive of one of the firms joining in this year paid herself four times the amount of money that the whole industry is putting into this scheme, is the amount sufficient? How do we expect those firms that have not joined in—the 50%—to join in? Is it not necessary to say to them, “You have not joined in voluntarily, so the first thing that will happen is that everyone has to join in up to the level voluntarily agreed”?
I want to see this move on and I ask my noble friend to accept that there is problem gambling, and that we should make gambling more difficult. So why is it possible to gamble on credit? That cannot be right. It should never be possible to gamble on credit. That is the first thing the Government could stop.
Lord Ashton of Hyde
As I said, the Gambling Commission has just finished taking evidence on that very subject and it is something that we will look at. The Secretary of State has indicated that it is an area that concerns him. We have to work on the basis of evidence, but that evidence has been collected and I assure my noble friend that it is an area being considered at the moment.
I just do not think there is any connection between the amount that a private owner of a gambling company pays him or herself and the issue. The issue is: where is the harm to the just under 1% of problem gamblers and how are we addressing it? Today’s announcement means that it will be addressed. Combined with the increase in NHS facilities, it means we are able to do a lot more to help problem gamblers than we have before. The remainder of the gambling industry not among those five big companies will be under no illusions after today. Hitherto, we were told that a voluntary system could not work and today we have increased the amount available tenfold. We will see what the remaining 50% of companies do, but it is much better to get people to contribute the right amount voluntarily than to make regulations for the sake of it. But we will monitor that and regulation will come if it is necessary.
Lord Kirkhope of Harrogate (Con)
My Lords, following on from the presidency of the noble Lord, Lord Griffiths, of the Methodist Conference, I declare my interest: I became the Minister with responsibility for gambling back in 1995. Indeed, at that time we wanted to deregulate the gambling industry in a reasonable, balanced and gentle way to bring it up to date and more into line with the circumstances we found ourselves in. However, I never thought that we would end up with the situation we have now. The Statement, as far as it goes, is helpful but does not tackle the underlying problems that all of us see day after day as we watch television or go online. We are bombarded with advertising encouraging gambling at all levels. My noble friend talks about problem gambling. It is difficult to assess at what point someone’s gambling habits become a problem. Is it a problem to them or a problem to society? All gambling must have regulation and be responsible. All those involved in producing the gambling industry must be responsible and answer to regulation that the Government must bring up to date—and bring up to date soon.
Lord Ashton of Hyde
I absolutely agree, and that is why we are doing so. The industry is regulated by the Gambling Commission, which was set up to do that. One of the licence conditions is that those in the industry should behave responsibly. Having said that, we have made recent changes. It is not just a question of the amount of money spent on treatment, important though that is, but a question of preventing problem gambling in the first place. I accept my noble friend’s point, which is that while the statistics are not perfect and debatable, and the number of problem gamblers small, there is a wider problem to the extent that, even if there are fewer than 1% problem gamblers, they affect a wider number of people, including families, communities and so on. However, the figures are not particularly big in numerical terms and are not, from all the evidence we have, growing; they are under 1%. A lot of work has been done on increasing the preventive element as well, not just treatment. There has been agreement on using new technology to divert advertising away from online gambling. More people are gambling online, so using online technology is a modern response to that.
We want to increase the availability of online messaging to review the tone and content of gambling companies’ marketing. We have launched a modern, up-to-date online system, GamStop, which is not perfect but is making a significant difference. It is a real-time self-exclusion scheme and the results so far have been good. That is in addition to the changes in advertising. The Government have not sat still and done nothing. We understand that changes have been made and that we must monitor the evidence to make sure that we are up to date. As I say, this is not cast in stone and, together with our advisers, the Gambling Commission, we will monitor the situation to make sure that we keep up to date.
Lord Adonis (Lab)
I commiserate with the Minister for having to repeat this embarrassing Statement. Does he realise that it essentially shows that the Government have become the pawns of the big gambling industry? He has said, with the full authority of the state behind him, that the Government are not prepared to move at all to tackle a massive social evil that is wrecking hundreds of thousands of lives, including those of young people who are becoming addicted to gambling in their early and mid-teens, which will then afflict them for life. Instead, the state is relying on the industry that has caused these evils to regulate itself by making paltry contributions, given the overall figures involved in this industry.
The noble Lord started to lose the House when he accused the right reverent Prelate of exaggerating. He made a compelling argument, along with the noble Lord, Lord Foster, about exactly what the social evils are and why the Government should be addressing them. When people come to look back at this massive social evil of gambling, they will equate it with the problems caused by tobacco addiction in the previous generation, when, after huge rearguard actions by the industry involved—particularly on the issue of advertising—the state finally moved. After that, everyone said, “Why has it taken so long?” The big issue that the Government will have to address is: when will they move to end the wall-to-wall advertising that promotes people into gambling? To my mind, that is morally and socially unjustifiable. Until the Government start to move on banning gambling advertising, everything they do in the meantime will seem beside the point.
Lord Ashton of Hyde
The noble Lord has made many predictions in this House and we will see whether he is right. If it were true that the present Government were pawns of the gambling industry, they would not have reduced the FOBT limit from £100 to £2.
Viscount Thurso (LD)
My Lords, perhaps I may press the Minister on his comments about technological advances, particularly with regard to what my noble friend said about pop-up advertising. These adverts are insidious. They are made possible by the use of cookies and algorithms, and are directly designed to entrap the people most likely to want to gamble. Can anything be done with the technological advances that he is talking about to prevent that kind of advertising?
Lord Ashton of Hyde
I shall not give a technical answer to that but there is technology using cookies and other data to direct advertising and gambling advertisements to certain people. If you can do that, you can also target it away from people, and that is what the companies have committed to do today. Banks and other financial institutions can use data and algorithms to work out when people are getting involved in problem gambling. We are investigating that with the banks and it is something that we would expect them to do. As I said to my noble friend Lord Deben, we are also looking at the use of credit cards in that respect.
Lord Brooke of Alverthorpe (Lab)
First, following on from that point, can the Minister say whether the Government have had discussions with the gambling industry about the use of algorithms? Secondly, he says that the Government are now looking to the industry to act responsibly and will be monitoring what it does. How long will that period of monitoring last? Thirdly, a Select Committee in this House has been appointed to look at this issue. Will any agreement that the Government reach with the gambling industry inhibit the implementation of recommendations from the Select Committee?
Lord Ashton of Hyde
I do not know specifically whether we have directly talked about algorithms. However, I know that we have talked about the use of data, which of course is the food for algorithms. Essentially, whenever you use data and computers to make decisions, you use an algorithm. I assume that is the case but I have not been given the specifics on it. The noble Lord asked for how long the industry will be monitored. We have been clear that there will be monitoring. It happens the whole time. Gambling companies have to give an annual assurance to the Gambling Commission and that will continue on a permanent basis. We will certainly take the Select Committee’s deliberations and conclusions into account, and we may or may not act on them depending on what they are.
Lord Beecham (Lab)
My Lords, when will the Government review the outcome of the change to fixed-odds betting terminals, which has recently come into force? Will there be a review this year?
Lord Ashton of Hyde
I do not know the answer to that but I will write to the noble Lord. The evidence that the Gambling Commission gets will be monitored continually. I shall have to ask whether it will be made public but the commission will certainly look at that. I signed off a Written Answer today about the number of outlets. That of course is significant in terms of the reduction in the FOBT limit, because that was one of the worries that the gambling industry had. It will be interesting to see what happens to the number of outlets. However, I will write to the noble Lord on that subject.
Birmingham Commonwealth Games Bill [HL]
Lord Ashton of Hyde Excerpts(6 years, 10 months ago)
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The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, I hope this Bill will be welcomed across the House. I am excited to be moving the Second Reading of it, not for the operational details outlined but because of the beneficial effect the Games will have on Birmingham and the West Midlands, and because of the enthusiasm that has already been shown by many in the region.
The 2022 Commonwealth Games in Birmingham will be the biggest sporting and cultural event ever held in the city and the region, featuring thousands of world-class athletes and over 1 million spectators. With an estimated TV audience of 1.5 billion watching 11 days of action-packed competition, the Games will showcase Birmingham, the West Midlands and the entire country to the rest of the world as a destination for sport, business, leisure and education.
Of course, the Games are about more than just two weeks of sport. They will unlock opportunities for people across the region and the UK, delivering benefits and leaving a lasting physical legacy in the form of three major capital projects as well as transport infrastructure upgrades. They will bring wider opportunities, including cultural engagement, trade and business, tourism, volunteering, physical activity, jobs and skills and education. That is why the bid for the Games was underpinned by cross-party support at national and regional level.
I remind the House of the circumstances under which Birmingham was awarded the Games. In March 2017, following its inability to meet a number of hosting requirements, the Commonwealth Games Federation removed hosting rights from Durban. In December 2017, following a bidding process, Birmingham was awarded the right to host. This means delivering the Games in a truncated timeline of four and a half years rather than the more typical seven. I am delighted that the recent co-ordination commission, which met to review progress on Games preparations, expressed its confidence that partners would deliver a fantastic Games.
Delivering the Games at speed relies on effective and collaborative relationships with Games partners. It was in this spirit that partners worked closely together to identify the small number of temporary legislative measures included in the Bill. Noble Lords may recall that similar measures were provided for the 2012 London Olympics and Paralympics and the 2014 Commonwealth Games in Glasgow. I take this opportunity to remember the work of Baroness Jowell in preparing London for the Olympics. Of course, this is not the Olympics; the requirements for hosting the Commonwealth Games are different, and the narrow scope of the Bill reflects that.
I shall outline the main contents of the Bill. It provides a technical measure to ensure that financial assistance given to the organising committee continues to comply with spending rules set out by Her Majesty’s Treasury. The organising committee has been established as a non-departmental public body. It is subject to standard public sector controls, including a full management agreement. The Government have also committed to provide regular budgetary and financial updates to Parliament over the life cycle of the Games.
I am also pleased to be able to set out the agreed 2022 budget. Birmingham and the West Midlands will receive a £778 million investment to stage the Games. The public funding will be split approximately 75:25 between investment from central government and from Birmingham City Council and partners, setting a significant investment in Birmingham and the region that will deliver benefits for years to come.
The Bill also introduces measures, similar to those for London and Glasgow, to protect against unauthorised association with the Games. Securing commercial sponsorship is critical to staging a world-class event and managing public investment in the Games. This can be achieved only when the rights of sponsors are protected. By way of comparison, the Glasgow Games raised over £100 million in commercial revenue.
The Bill introduces a new civil offence which will ensure that only those authorised to associate with the Games, such as those who have contributed to the costs, may do so. This offence will apply only to those acting in the course of business. Association will be permitted only where an organisation has made the financial or other commitments required of an authorised business.
Importantly, enforcement must be sensible and proportionate. We recognise that residents, schools, faith and community groups want to show their support, so the organising committee is developing a “community brand” for use by not-for-profit organisations that share the Games’ vision and mission and want to proudly celebrate their community association. Information is key, which is why the Bill places a duty on the organising committee to produce guidance to ensure that people are clear about activity that may be an infringement.
We are determined to ensure that those who want to be a part of the Games can be, so the organising committee will put in place an accessible and affordable ticketing strategy. The Bill introduces a criminal offence for the unauthorised sale of Games tickets, ensuring that buying tickets will be clear, simple and affordable. This offence will apply to any unauthorised attempt to sell tickets, whether carried out in a public place, in the course of business, or for profit.
The Bill also creates offences for unauthorised advertising and trading. The restrictions on unauthorised trading will improve the spectator experience by ensuring that trading does not obstruct easy movement in the vicinity of Games locations, and the restrictions on unauthorised advertising will ensure that Games locations and their surrounding areas offer a consistent celebratory look and feel. These measures are proportionate and temporary. These restrictions can be in place for no more than 38 days; we will ensure that they take effect for the shortest possible time.
Regulations will be brought forward specifying when and where the advertising and trading provisions apply. This may differ by Games location to ensure that the restrictions are proportionate and apply only where necessary. We will also consult on whether further exceptions to the offences should apply.
There is a duty on the organising committee to produce guidance to support understanding of the provisions. Local authorities will be required to share this guidance with traders known to them who may be affected by the offence. Affected traders could also seek authorisation, free of charge, from the organising committee to continue trading or apply to the local authority for consent to trade on a street not specified in the regulations. Similarly, should an advertiser wish to carry out Games location advertising at a restricted time, it will be able to make an application, without cost, to the organising committee.
We provide a suite of powers to enable effective enforcement of these offences. These powers build on those already available to enforcement officers under the Consumer Rights Act 2015, ensuring that, where needed, swift and robust action can be taken. Work is already under way with the organising committee, police and local trading standards to ensure that any enforcement activity is proportionate. Experience demonstrates that the effect of these powers is mainly one of deterrence: we are not aware of any court cases for similar offences at Glasgow 2014 and only a small number of court cases in London for the ticketing offence.
Finally, key to a successful Games is ensuring that transport works efficiently for those living and working around Games locations, and those involved in the Games. The transport provisions in the Bill enable this. They set a statutory basis for the Games transport plan, which will be subject to public consultation later this year.
The measures also provide bespoke traffic regulatory powers, allowing short-term changes of road use—where needed—to ensure minimal disruption. Also included are powers for the Secretary of State to provide for concurrent regulation of road use by the person directed to prepare the transport plan, where they are not already a traffic authority, and provided there is agreement from the relevant local traffic authority. We believe that these powers facilitate co-ordination of Games transport planning. The Bill further provides a power of direction for the Secretary of State to safeguard the delivery of essential Games traffic-regulation measures. This would be used only if absolutely necessary.
I must make it clear that the organisers intend that any road regulation measures are kept to a minimum. Local residents and businesses will be kept closely informed of the proposals. Also, work is under way to deliver a clean and green Games supported by the delivery of new and accelerated infrastructure, additional services and effective use of the transport network.
I look forward to the comments and advice on improvements from noble Lords. I beg to move.
Lord Hunt of Kings Heath (Lab)
My Lords, I welcome the Bill and the Minister’s opening statement. In view of the remarks I will make on health and well-being, I declare an interest as a member of the advisory board of Sweatcoin, a healthy walking app.
It was a great day when the Commonwealth Games Federation selected Birmingham as the host city in 2022. Congratulations are due to Ian Ward, the leader of the city council, to Birmingham as a whole, and to partners such as Andy Street, Mayor of the West Midlands, the West Midlands Combined Authority, the department the Minister speaks for and Commonwealth Games England. This is a fantastic opportunity for Birmingham and the West Midlands, which we need to grasp enthusiastically and with both hands, as the Minister said. The sports that will feature are in themselves very interesting, and the Commonwealth Games’ track record of ensuring that the Paralympic Games have equity with the other Games is to be commended and will be continued in Birmingham. Living half a mile from Edgbaston cricket ground, I also know that women’s cricket is being considered for a place in the final list of games. I hope that the Minister will use his best offices to encourage such a decision.
Lord Hunt of Kings Heath
My Lords, the Minister’s powers of persuasion are remarkable.
My one item of concern is that noble Lords have found it very difficult to get any briefing from the city council, the mayor or the West Midlands Combined Authority. I suspect that they have been told by the Minister’s department not to provide briefing. This is a great pity. We should ask for the leader of the city council and Andy Street to brief Members before we reach Committee. I have never known a Bill affecting a sector on which we have not had formal briefing from the people concerned. Frankly, it is very disappointing that we had to beg the organising committee for the paucity of information that we have received. If this is going to be the approach in the future, it worries me—because, goodness knows, we are here to help the Games be as successful as possible.
There are only two issues I wish to raise. The first is funding and the second is the question of legacy. In relation to funding, today the Minister announced what I understand to be the final budget figures for the Games, and confirmed the split as 75:25. Can the Minister explain where financial liability lies for ensuring that that resource is spent wisely, and who is responsible if there is a cost overrun? Since the organising committee is, as I think he said, a non-departmental public body, I assume that its responsibilities are covered by the department. But what happens to the money that is to be provided through the city council? I would be grateful if the Minister could provide some information.
It will strike those of us in particular who have observed Olympic Games that clearly, because Birmingham was a late entry after the failure of the original bid on financial grounds, the financial liabilities are pretty huge. Even a city the size of Birmingham is particularly vulnerable in relation to its current financial situation. It is a fact that only a few months ago it faced warnings that hosting the Commonwealth Games could bankrupt the city; an audit report by Grant Thornton revealed an £84 million hole in its budget, at a time when vast sums of its emergency reserves had been spent. We know from newspaper cuttings that the West Midlands Combined Authority has said that the lack of a secure funding plan is:
“The most significant risk regarding the Commonwealth Games”.
I realise that that is partly in relation to the budgetary figure that the Minister has announced today, but it is in part based on the vulnerability of Birmingham City Council’s finances. It is reasonable for us to ask the Minister to spell out what he considers to be the impact on Birmingham City Council’s finances before your Lordships give the Bill their approval.
I turn to the legacy. Clearly, the Games are to be enjoyed in the moment—that is what they are all about—but legacy is important, too. It is not just the use of the stadia after the events but the environmental regeneration and, I hope to persuade the House, the health and well-being of the people of Birmingham and the West Midlands. We know that legacy was very important in relation to the London Olympics. They were a fantastic and very successful Games, and a lot of their legacy has been successfully undertaken. But, in relation to participation in sports and well-being, I do not think that the organisers have achieved what they set out to achieve. I really hope that we learn those lessons and translate them into a plan for Birmingham that will help us to make a real impact on people’s health and well-being.
Lord Ashton of Hyde
My Lords, I am grateful for all the suggestions and points that have been made by an intimidating mix of former Olympians, Brummies and local residents, politicians and former politicians with a lot more local knowledge than I have. I have not matched the noble Lord, Lord Griffiths, in trying to link my home town with Birmingham; Stow-on-the-Wold is not immediately connected with Birmingham but it is only an hour away.
I realise that I mentioned bipartisanship in my opening remarks. We have form on that; we arranged the First World War commemorations, which had a very successful outcome with a lot of support from all quarters, so I do not see why we cannot do that. I also noted that a number of issues were raised by noble Lords about Birmingham City Council. It is a bit of a tough ask for a Conservative Minister to defend a Labour city council, but I will take those issues on board and ensure that the communication referred to by the noble Lord, Lord Addington, improves—particularly now that the main communication will be with the organising committee, which will be responsible for producing these Games and spending the money wisely. I will come on to that in a minute.
The noble Lords, Lord Griffiths and Lord Addington, talked about engagement. There are now plenty of opportunities for that. There is an APPG for the Commonwealth Games, at a meeting of which the organising committee has already been present. We in DCMS are certainly happy to engage with any noble Lords and answer questions—let alone official Questions in Parliament, which I cannot avoid. The Government have already said that the organising committee will report to the Public Accounts Committee and the DCMS Committee. As an arm’s-length body, it will have to fulfil the normal annual reporting requirements on finances, ethnicity and diversity. So, there will be plenty of opportunities. The Minister for Sport is also available for noble Lords. Last and probably least, they can always ask me. We will be able to improve the level of information that all noble Lords receive. I know that the organising committee intends to have within it a parliamentary liaison organisation.
I agree with many noble Lords that a key theme is legacy. As I said in my opening remarks, that legacy is not just in sport; it is an economic legacy, a volunteering legacy and a cultural legacy—I am sure that there are others that I have forgotten. We understand that the legacy is critical. It is easy to talk just about the infrastructure legacy, which will be not insignificant, but we understand that there are more things to it.
Of course, we will have the Commonwealth Games village, a new aquatic centre—which is for diving as well as swimming—and a park that goes with it, all in an area which certainly needs them. There will be a quite a lot of transport upgrade, including upgrades to two railway stations and highway improvements in Perry Barr. I will make sure that those organising the transport bear in mind my noble friend Lady Berridge’s comments about people travelling east to west as well as north to south.
The Games will also require upwards of 45,000 organising committee staff, contractors and volunteers. The organising committee has already engaged with local companies on the economic opportunities, with the Birmingham 2022 portal already established as a one-stop shop to bid for Games contracts. In Glasgow, 76% of organising committee contracts went to local or regional companies and the Games there contributed more than £750 million to the Scottish economy.
Getting people engaged in exercise is important. If sport helps with that, that is great. Sport England is investing up to £100 million in 12 pilots looking at using sport to engage underrepresented and traditionally inactive groups. In February 2019, Birmingham and Solihull received nearly £10 million from Sport England as one of those pilots. The Active Communities project is designed to tackle inequality among older adults, women, young families and BAME people. I agree that that is a key legacy, albeit an extremely tough one to deliver—it has not necessarily been delivered in the past and certainly not in the last two cases.
The noble Lords, Lord Hunt and Lord Rooker, and others talked about briefing on the Bill. I can tell the noble Lord, Lord Hunt, that the organising committee will be able to call him this week and, as I have said, it will continue to do so.
So far as the budget and shortfalls are concerned, the Games partners, including DCMS, have oversight of the organising committee’s spending via the governance structure for the Games, including the organising committee’s own contracts committee and audit and risk committee, which includes DCMS-appointed board members. These provide an opportunity to influence spending decisions and obtain ongoing oversight of expenditure and value for money. The Government will also be able to scrutinise and, if necessary, block calls on contingency budgets. The noble Lords, Lord Hunt and Lord Rooker, also drew attention to difficulties with the financial position of Birmingham City Council. The council has said that its funding for the Games should not impact on day-to-day services and will not be met by increases in council tax. All the Games partners—including the council—are focused on ensuring that the Games deliver value for money. We will continue working very closely with the city council to look at how, with its partners, it can meet its commitment to financing the Games.
Birmingham City Council finally approved the budget in January. Since then, the overall budget has been passed by the major projects review board and the Treasury. The Minister or I will outline more detail about the budget in a Written Ministerial Statement. We may have to have a presentation or meeting with noble Lords to explain this in detail. Not only is the Games budget reasonably complicated but there is other government spending on infrastructure that will be used by the Games but is not part of the Games budget itself. It is not straightforward.
The athletes’ village will be built in Perry Barr with 1,400 homes, part of a larger development of 5,000 homes in due course. The village is being developed by Birmingham City Council, as part of its commitment to the Games. It will be responsible for the strategy for the housing, as one would expect a council to be, including the percentage provided as social housing. In response to the noble Baroness, Lady Burt, and the noble Lord, Lord Rooker, the council has told us that all homes will be built to the relevant building regulations standards for accessibility. There will be a mix of affordable, private rent and market-sale tenures. About 24% will be affordable housing. The noble Baroness asked about construction jobs and apprenticeships. The construction will provide at least 2,000 jobs, including 400 new jobs in construction and 50 apprenticeships during the construction period. As part of the social value commitments confirmed by Lendlease, the main contractor, at least 10,000 students will be supported across Birmingham. This will include mentoring, career advice, curriculum support, employability support and business projects. I will be happy to write to the noble Baroness on her other detailed construction and supply questions when we have talked to the Games partners.
My noble friend Lady Berridge talked about the wider aspects of the Games around the Commonwealth and the chance to promote equality and diversity in the “youngest city in Europe”. The organising committee recognises that diversity and equality must be embedded in its organisational culture. This can be achieved only by ensuring that the best possible people are selected through a fair and transparent recruitment process. The organising committee encourages applications from a diverse range of backgrounds. In particular, work is progressing with the Department for Education and the Department for Work and Pensions to ensure that opportunities are targeted at underrepresented groups. As I said, as a non-departmental public body of DCMS, the organising committee is required to report annually on equality and diversity. The noble Baroness also asked me to nudge the right reverend Prelate the Bishop of Birmingham on a scheme. I will do my best to nudge the right reverend Prelate, assuming that that is within the rules of the House. He attended the meeting I had, so I will bear it in mind to keep in close touch with him.
The noble Lord, Lord Rooker, warned us that oversight and governance need close attention. I agree. It is a tight schedule and we are aware of the need to get value for the public money being spent. The Games delivery programme is overseen and managed through an integrated governance structure that involves all the Games partners, including DCMS, Birmingham City Council, the organising committee, the Commonwealth Games Federation, Commonwealth Games England, West Midlands Police and the West Midlands Combined Authority. As I say, we will pay close attention to that.
The noble Lord, Lord Snape, mentioned the appointment of Nick Timothy as one of the non-executives. I think he used the expression “jobs for the boys”. All the non-executive director appointments made by the Secretary of State complied with the Governance Code on Public Appointments and were therefore open and transparent. They were assessed by an advisory assessment panel, so it was not just the Secretary of State. They were subject to the same selection process and were assessed against criteria published in the role specification. Nick Timothy, as the noble Lord may know, is a true Brummie and has a great and deep interest in and love of the city. I am sure he will put a lot of work and effort into his role on the organising committee.
Lord Snape
I am sure that everything the Minister said about Mr Nick Timothy is correct. Does he agree, though, that although I am not a native Brummie, I have a great love of the city too, yet no one has asked me to be a non-executive director of this organisation? Does he think the fact that Mr Timothy, like the mayor, Mr Andy Street, and the mayor’s principal adviser, Mr Andrew Browning, went to King Edward’s School, which currently charges £13,320 per year, has anything to do with his appointment?
Lord Ashton of Hyde
It is a bit difficult for me, as an old Etonian, to comment on that. I really do not think it has anything to do with it, but I may be biased. All I can say is that it was a proper and sensible appointment process. I am sorry that the noble Lord was not asked to apply but, of course, he could have applied himself and I am sure his application would have been treated with all the seriousness it deserves.
Lord Snape
One of the reasons I do not get old Etonians, of course, is that I do not share their sense of humour.
Lord Ashton of Hyde
Not everyone does, I agree.
My noble friend Lord Moynihan talked about delegated powers and the report from the DPRRC. We look forward to receiving that report fairly shortly, I believe. We have learned from the experience of the London Olympics Act and have sought to ensure that the delegated powers in the Bill are as narrow as possible. We have included things in the Bill not included in the 2006 Act. There are no Henry VIII powers. Those that have been included are limited to matters that cannot be determined until the detailed operational planning for the Games is further advanced, or when further consultation is needed. For example, what it means to be,
“in, or in the vicinity of”,
a Games location will depend on the Games schedule, which will not be known until much closer to Games time. Regulations about time periods and Games locations may need to be quickly amended in the event of a change in a competition venue. I look forward to discussing the detail of the individual clauses with my noble friend and other noble Lords in Committee. I think it will be useful to wait until we get the DPRRC report to see what it advises on that, but I do not foresee any particularly serious problems.
The noble Lord also asked why we are not extending the offence of ticket touting to other major sporting and cultural events. We have had this debate over a number of years, and I have debated it personally with my noble friend Lord Moynihan. At the moment we think there is a role for a responsible secondary ticketing market which allows consumers to make informed choices. That is why we do not want to impose a blanket ban on the resale of tickets for all major sporting or cultural events, but I accept that there is a debate to be had on that. These provisions, however, are designed to protect the integrity of the Commonwealth Games and reflect the uniqueness of a multi-sport event which, unlike most sporting events, is underpinned by significant public investment. That is why we have decided to ban it for this event. That is also why similar provisions were enacted for the London Olympic and Paralympic Games and the Glasgow Commonwealth Games. As I say, I am sure that we can discuss that in Committee if necessary.
The noble Lord also mentioned shooting—I believe on behalf of the noble Lord, Lord Bilimoria—and its exclusion from the sports programme. That is not directly connected to the powers in this Bill, but is worth mentioning because it is important to those who are keen on it. The key criteria were set, written submissions invited and presentations made to the assessment panel for each sport. Those included financial considerations, the availability of suitable venues, the potential for additional revenue generation and alignment with the CGF constitution and the objectives of Games partners. Those submissions were evaluated and a report then presented to the Birmingham 2022 organising committee board. The decision it made now goes to the Commonwealth Games Federation’s membership, where the ultimate decision lies. It is worth pointing out that shooting was offered the opportunity to transfer, with a suggestion that some of those events could take place in the West Midlands area, but the offer was declined.
The noble Lord, Lord Grocott, talked about budget governance. As I said, the figure today is a headline figure; I will let your Lordships know more detail when it is available. Overall, the governance is broadly as follows: the police oversee security, with the chief constable of the West Midlands having overall operational control of that—he will liaise and use national security agencies as well, but has overall responsibility; the organising committee is responsible for delivering the Games; and Birmingham City Council is responsible for overseeing the capital projects.
There will be more detail to go through in Committee and later. I repeat my offer: my department is happy to answer specific questions in more detail if anyone wants. I hope that will enable noble Lords to support this operational Bill, which, as we approach three years to go next month, is an essential milestone in the preparation for the Games. I look forward to working closely with all noble Lords as the Bill progresses through this House and I commend the Bill.