(7 years, 9 months ago)
Lords Chamber
Baroness Bonham-Carter of Yarnbury
To ask Her Majesty’s Government whether they have considered how broadcasters based in the United Kingdom will be able to maintain their United Kingdom media hubs if Brexit happens; and what discussions they are having about this within the framework of the Brexit negotiations.
My Lords, the United Kingdom is an important broadcasting hub due to its favourable regulatory and economic environment, access to top talent, and cultural factors such as language. Leaving the EU will not change this. As we have said publicly, we seek to strike a bespoke deal with the EU that will allow for continued cross-border broadcasting post EU exit. This would enable international broadcasting businesses to maintain their UK bases. We have been working with the broadcasting sector to understand its needs and concerns and will work hard to negotiate the right future relationship with the EU over the coming months.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, I thank the Minister for his Answer. I am a bit reassured by what he said, but the broadcasting sector is affected by the same problems of uncertainty as businesses such as Airbus. We are already seeing a number of channels based in this country actively looking to relocate. Can he be a bit more precise on what the Government are doing about the potentially serious matter of country of origin, to which he referred? If the UK loses that, we lose our leadership position as a world-class, international broadcaster. We will also lose a large number of jobs.
I do not necessarily agree with those two assertions. As I said, we have cultural and economic reasons for remaining an audio-visual world hub. We hope to have a mutually agreeable deal with the EU, but we understand that the country of origin principle itself will not apply—there will have to be a negotiated deal. If that does not apply, we are making contingency plans to help not just the broadcasting sector but the wider production sector linked to it.
My Lords, does my noble friend agree that EU funds and EU co-productions have been a great bonus to the UK film industry—though sadly most of the results seem to have been Ken Loach films? Will he ensure that, were we to leave the European Union itself, we will continue to benefit from co-production funds?
We have already said that, subject to negotiation, we would like to remain part of Creative Europe and that any deal done with it will be guaranteed until the end of the multi-annual financial framework. We agree that the new Creative Europe is useful for the UK, not so much in terms of money, but in terms of partnership and the way we can co-operate with creative producers in Europe.
My Lords, we are talking about an industry which represents 5% of our GDP and has huge potential to grow and be at the forefront of our economic recovery. It seems strange that the Government are taking a laissez-faire approach to this, if I read the Minister correctly. Country of origin means that any broadcaster licensed in this country can operate without further regulation across the whole of Europe. Will he specifically reassure the House that that issue alone will be at the top of the agenda when it comes to negotiating the special deal that he talked about?
It will not be country of origin in the way we have it now, because we will not be part of the audio-visual and media services directive. However, we would certainly like to retain the principle that we can broadcast to the EU. There are reasons why that is of mutual benefit. We have the best and most well-resourced regulator in the whole of Europe; we lead broadcasting regulation. On average, 45% of channels in EU countries come from abroad. It is therefore essential for them to have a regulator they can have confidence in.
My Lords, does my noble friend agree that there are few things like broadcasts to bring a nation together? Twenty million of us gathered round the television on Saturday to watch England. Will he encourage everybody to get round the set on Wednesday night to support our English lions? We should declare “Waistcoat Wednesday” to support England against Croatia.
I am very pleased to move seamlessly from the digital part of my brief to sport, and of course I agree with everything my noble friend said.
My Lords, the Minister has put a brave face on it but is it not a fact that, once the Prime Minister had ruled out membership of the digital single market in her Mansion House speech, the chances of reaching an agreement on country of origin principle with a single UK regulator were nil? Does that not mean that it is a question of when—not if—these broadcasters will move their licences, particularly as the Government can give absolutely no certainty, which is what they need?
It is a good thing that the noble Lord is not in charge of our negotiations if he goes in with that attitude. As I tried to point out, there are good reasons for us to continue with a bespoke deal that is to our mutual advantage. I pointed out the fact that our regulation is widely supported around the EU. He asked for certainty; of course there is not 100% certainty, but you never go into a negotiation with that. As we have said, we are preparing a contingency position, just in case the country of origin principle or equivalent is not negotiated.
Lord Pannick (CB)
Does the Minister agree that an effective relationship with the EU in the broadcasting context, as in so many other contexts, will in practice depend on this country accepting the judgments of the European Court of Justice?
I am not sure I accept that. The principle we have in broadcasting is that there is a licensing arrangement: if we are licensed in this country, other countries are prepared to accept that. We delegate that to an independent organisation, Ofcom. I hate to disagree on matters of law with the noble Lord, but I am not sure that that applies. However, of course I will look at what he said, because he knows more about the law than I do.
(7 years, 9 months ago)
Lords ChamberMy Lords, I add my thanks to the noble Lord, Lord Lipsey, for chairing the committee and to the noble Baroness, Lady Jay, for stepping into the breach when needed. I further thank the noble Lord, Lord Lipsey, for taking the time to meet me yesterday to discuss his report. I also thank members of the committee for their timely inquiry and detailed work in examining such a complex set of issues. Lastly, I thank those who have contributed to this debate for highlighting a critical area of concern to the House and indeed to our democratic system of government.
With regard to the committee’s recommendations, as the Government said in our response to the committee, many of its initial recommendations are for the British Polling Council. The council is an independent body, so we feel that it is not for the Government to comment on the detail of the recommendations. What I might say, though, is that after the 2015 general election no one was more interested in addressing polling inaccuracies than the polling industry itself—because there are clear reputational and financial repercussions for the industry from inaccurate or poor-quality polling. We continue to support the independent self-regulation of polling by the BPC and judge that this model is most effective at addressing the risks, rather than additional regulation at the moment. I am sure that the BPC will look carefully at the committee’s recommendations.
I welcome that fact that during its investigation stage the committee took evidence from the Electoral Commission as the independent regulator of elections. While fully respecting its independence, the Government work closely with the commission on a wide range of election issues. We share a concern to ensure that our electoral systems are safe and secure. We do not believe that there is a case for extending the remit of the Electoral Commission to cover polling standards or to create a register of political polling. As I have already argued, self-regulation is the right way to ensure high-quality and transparent polling, with companies responding to existing market incentives rather than bureaucratic ones to improve the standard of their activities.
However, the committee also recommended ensuring that political advertising was clearly advertised, with “digital imprints” for online election materials. As we heard in the debate, imprints are familiar in relation to printed election leaflets and so on. I agree with the committee and several noble Lords who have spoken today that more work needs to be done in the digital world on this issue. So I am pleased to confirm that the Government will soon launch a consultation to consider how digital imprinting might be taken forward.
In their speeches, the noble Lord, Lord Lipsey, and my noble friend Lord Norton also referred to an expanded role for the Electoral Commission, including the commission’s own report of 26 June. I have already spoken about some of the commission’s recommendations—for example, digital imprinting—and how we are addressing them. In reply to my noble friend, other recommendations, including greater transparency in digital campaign spending and greater sanctioning powers for breaches of electoral law, will be considered carefully by the Cabinet Office. We believe that these issues are important. However, we believe it is right to consider these together once we have the recommendations and lessons from the commission’s ongoing investigations and the current court case is completed.
The committee also made a series of recommendations for tackling the recent spread of online disinformation, including so-called “fake news”, and my noble friend Lord Smith addressed this in his speech. The Government take the issue of online manipulation and disinformation seriously, particularly where it may influence political debate. Our democracy is built on trust in electoral processes, as the noble Baroness, Lady Janke, reminded us, and on confidence in public institutions. Disinformation can undermine that trust. It is absolutely unacceptable for any nation to interfere in the democratic elections of another country. To date, we have seen no evidence of successful foreign interference in our democratic processes. However, we are not complacent, and the Government would take robust action should any evidence emerge that this has happened in the UK or that it is being attempted.
I agree with the committee that more work is needed, especially in the online space, to address the negative effects of disinformation and manipulation. As part of our digital charter, the Government have already taken steps to tackle the areas identified in the committee’s report and more besides. The first challenge is to understand more fully the scale and impact of disinformation. As part of this, we look forward to the DCMS Select Committee’s report this summer into fake news. Further, the Government are undertaking research over the summer, working with academics, media and representatives from the tech sector, better to understand the problem. Combined, this will inform the Government’s ongoing policy response, focused on education, technology, communications and ensuring that the right regulation is in place.
As part of our work on internet safety, on which we will publish a White Paper by the end of the year, we are looking at online advertising and microtargeting, and ways to increase transparency. This is one of the most effective ways of ensuring that people have the information they need to make informed choices. The noble Baroness, Lady O’Neill, neatly outlined in her speech why the committee decided that the digital space was beyond its abilities in the time available. We will take her points to heart. We agree that we will not be able to leave everything as it is for ever.
The noble Baroness talked about content on social media. The internet safety strategy that I mentioned just now is looking at exactly those issues, including anonymity. We agree with the need to tackle anonymous abuse and illegal content. As the noble Baroness said, this is a complex issue given the need also to protect human rights.
Targeted advertising is not just for elections. DCMS is looking at advertising in the round. Where does targeting become manipulation? Transparency is important, but not a full solution. The scale, source and impact are hard to assess. That is why, as I said, we look forward to the report of the DCMS Select Committee in the other place and, as I also said, we will be looking at a lot of these issues over the summer.
As part of this, as the report rightly notes, the Government want to help citizens, both young and old, to build their digital literacy skills, because it is important that everyone can spot the dangers, think critically in an informed way about the content that they are consuming and understand that actions have consequences online, just as they do offline. For example, the noble Lord, Lord Lipsey, highlighted the consequences of failure correctly to understand the significance of the margin of error. There is already a range of initiatives across the school curriculum to help with this. DCMS is working with the Department for Education and others to look at how we might build on them, as well as working with other institutions and organisations to reach a wider audience.
In partial answer, at least, to my noble friend Lord Norton, in the citizenship curriculum, pupils are today taught critical media literacy so that they can be helped to distinguish fact from opinion, as well as explore freedom of speech and the role and responsibility of the media in informing and shaping public opinion. I will, however, take his remarks about qualifications and pass them to the Department for Education. We are working on this over the summer in our digital charter. One of the five key areas is education and guidance to ensure that citizens have the skills to tell fact from fiction. That was in the response to the report.
Emerging technologies also have great potential in helping the Government to tackle online manipulation and disinformation. We welcome steps taken so far by the industry—for example, removing the bots that disseminate this information—but more needs to be done to tackle the problem and to support other, smaller companies to address the issue. To do this, we need companies proactively to engage with us on emerging tech solutions.
Another way that the Government will safeguard citizens from online manipulation is by addressing the issue of personal data misuse by technology companies and platforms. As the Prime Minister said, the allegations related to Cambridge Analytica are very concerning, and it is absolutely right that the Information Commissioner is investigating this matter. She is committed to producing a report about the wider implications of her investigation, and we look forward to reviewing the findings.
I cannot avoid it—eventually, I have to come to the issue of Bloomberg. I was aware of what my noble friend said last Thursday as he handed the issue over to me. He is obviously a politician of great experience, and when he gives a hospital pass, you can be sure that you are hospitalised. However, like the noble Lord, Lord Lipsey, I am back. My noble friend was right to say that private polls are not illegal. As the noble Lord, Lord Foulkes, said, the law on exit polls is clear. The Representation of the People Act 1983 prohibits the publication of exit polls at UK parliamentary elections before the close of the poll, and this was applied for the EU referendum.
We do not comment on private arrangements between private polling companies and private hedge funds, but I would say that, if anyone has evidence that an act was illegal under either electoral or financial law or regulations, they should report it to the appropriate authorities. With reference to Mr Farage, I can only repeat what he was reported to have said to Bloomberg. He is reported to have said—rather inarticulately, but the gist is clear:
“That would have been, that would have been—for he and I to have spoken ahead of that 10 o’clock—would have been wrong at every level. Wrong for me, wrong for him, just would have been wrong”.
I am very reluctant to go any further. As I said, we do not comment on private deals.
I respect what the Minister said. We are not asking him to comment on a private deal. There are two points to be made. First, if information is made available to a section of the public, the law is clear—that it is effectively being made available publicly—and the section of the public in this case was the hedge funds. So some breach clearly took place. Secondly, the evidence may be circumstantial, but it is overwhelming. Surely there must be some way that the Government can deal with it. It is not a private arrangement; it is a major issue whereby billions of pounds have been made by currency speculation because of a secret deal between the polling companies and the hedge funds. If the Government cannot take that up and do something about it, they are more impotent than I thought.
The first thing is that the Government have to act according to the law. The law must be obeyed and if there is a breach of the law, the authorities should investigate it. When a private poll is commissioned, quite apart from why a particular poll should be regarded as more accurate than another, that is a different question to a section of the public. I am told that that point was made in the Bloomberg report to which I referred. If it has been shown that acts have taken place that were illegal but questionable, the Government should look at the law. If, however, acts have taken place that were contrary to either electoral or financial law, the authorities should look at them and complaints should be made by people who have evidence of that.
One problem, as I understand it, is that this may not be something that the department for which the Minister is directly responsible can deal with. Will he draw it to the attention of Ministers in the department which might be able to act?
The first thing I will do is find out which department that is, and I will certainly draw the Bloomberg report to its attention. I assume it knows about it already, but I am very happy to do that.
Moving on, and going back to the report at hand, the noble Baroness, Lady Janke, asked whether the Government shared the concern that polling is being misreported and can be misleading. We agree with the British Polling Council that transparency is the best way to guard against polls being misleading—whether deliberately or accidentally. We therefore welcome its statement in May this year, which introduced a new requirement for its members to report the level of uncertainty when reporting estimates of voting intention. We are also encouraged that it will revise its guidance to journalists on the reporting of polls and will work with other relevant organisations to develop a suitable programme of training for journalists. Of course, broadcasters have a duty through Ofcom to ensure impartial reporting.
I have, however, taken on board the caveat to the remarks of the noble Lord, Lord Lipsey—that if at the next general election the polls get it completely wrong again, all of us will have to revisit the issue.
In tackling all these issues, the Government are committed to working with international partners, industry and civil society. I welcome the recent discussion at the G7 summit about tackling disinformation, and look forward to continuing to work with like-minded partners.
I thank noble Lords again for their contributions and hope they can see that we are taking this issue seriously from some of the things we have said about what we are doing before the publication of the White Paper, particularly on the digital space, the internet safety strategy and the digital charter, along with the work we are doing this summer and the assurances I have given that the Cabinet Office is aware of these issues. We will consider the issues raised carefully, with a view to taking concerted action.
(7 years, 10 months ago)
Lords ChamberMy Lords, it is an honour to follow the wise words of the noble Lord, Lord Addington, and perhaps I may focus on one thing that he mentioned. He described the importance of boxing to excluded young people. A care-experienced adult approached me a while ago. He had grown up in a very abusive children’s home. There are some excellent children’s homes but his was very abusive. When he was in his mid-20s he was approached by a police officer and was told that all the other residents there had died or were drug addicts or in prison, and he was the only one who had made his way through. The reason was that he had got involved with his local boxing club, where there were men who set him a good example. He had difficulties. He was in prison for a while and became a bouncer for a while, but later he learned how to read and write, and eventually he wrote the story of his life. He has been a successful author and a successful personal trainer, but it was boxing that really helped to change his life. Building on what works is such an important message.
I am grateful to the Minister for giving me the opportunity to speak to him before this debate. What he said was somewhat comforting and I look forward to hearing more along the same lines today. I am also most grateful to the noble Lord, Lord Storey, for introducing this important and very timely debate.
The summary of the conclusion of the YMCA report given by the noble Lord, Lord Judd, contained a lot of what I would like to say. To my mind, it is very important thing to ensure that a strong youth work profession with great integrity is sustained over time. It is important that youth workers stay in their practice, gain experience over the years and pass on that experience to the next generation. We should have a very sound youth work culture in this country that informs policy—I see that as a very important way forward.
I would like to impress on the Minister the need to see youth work as a profession, in parallel with the teaching profession. The noble Lord, Lord Storey, would like to see an all-qualified youth work profession with a strong institutional base, and so would I. We heard about the National Youth Agency and another agency. I wonder how well they are funded and whether there needs to be an institution run by youth workers that sets guidelines for youth workers in general. How can the institutional base of youth work be strengthened, ensuring the quality of youth work? Whatever policy is developed in this area, I hope that there will be input and buy-in from all parties so that as far as possible we have a consistent policy from one Government to the next.
The current recruitment and retention crisis in the teaching profession, with no consistent policy for developing the teaching workforce, is a tragedy. It is important to develop a common policy and to stick with it. It is also important to recognise the difficulties of adolescence. Adolescence is a hugely challenging period for young people. They need guides and good exemplars to help them through that time. I urge the Minister to look at a statutory underpinning for youth services, as so many of your Lordships have said, to ensure that there is consistent funding, to get the basics right and to focus funding in particular on developing the youth workforce.
Why is there a need for youth workers? Perhaps before that, I will mention an article by the BBC questioning the value of youth work from a research base. Leon Feinstein, a well-respected academic, researched youth work a while ago and found that young people attending youth clubs were more likely to get involved in crime and other such activity than those who stayed at home—Margaret Hodge said that they would have been better staying at home—but in that particular example he said that the qualifications and the status of youth workers was unsound and doubtful. So it really hammers home that you have to have high-quality youth workers.
My Lords, I, too, was going to mention that research. The point was that bad youth services were what did the damage, not good ones.
Absolutely—that is what I was trying to communicate. It was the poor youth work in those clubs that led to the poor outcomes. Several years before that research was produced, a research report on Summer Splash activity schemes found that crime rates around the local area where there were Summer Splash activities went down during the summer because those activities were going on. So it works if it is of high quality.
When I think about the need for adolescents to have this support, I think of Anna Freud’s work. Some time ago, she wrote her paper on Adolescence as a Developmental Disturbance—the clue is in the name. She described adolescence as a period of revolt, when teenagers are trying to break out and rebel against their parents, and their peers become much more important. They undergo many sexual changes, which makes them ripe for exploitation by others but also can cause them to exploit others sexually. They are finding their identity. If you think again about the needs of these young people, many of them are growing up without a father in the home—one in five children in this country is growing up without a father in the home. Visiting young offender institutions over many years now, so often I hear from prison officers that they are the first father figure in this young person’s life.
Visiting Rochester young offender institution a while ago, where there was a programme called Lions into Foxes, I found a 30 year-old BME man talking to a group of young BME lads about how to turn from lions into foxes—how to move from being impulsive and strong to becoming wily and thoughtful before acting. I visited a young offender institution recently where there had been a serious attack on one of the prison officers overnight. I visited one area of a prison and talked to two prison officers, who said that they had not had any serious incidents for the whole year. This was what was called a PIPE—a psychologically informed planned environment—where special attention is paid to the importance of relationships with the young people. Each young person has a key person relating to them, and with those relationships comes the ability to manage their behaviour, so that they do not act in destructive ways.
In conclusion, when we intervene late with young people, the costs can be huge. Last week I was talking to a provider of residential care for young people. A place in his children’s home, if you like, costs £250,000 a year—that is on the hard end, but they have many settings across the country—so if we do not get this right, the cost is huge. There is also, of course, human misery and human loss. So we need to get this right. Again, I emphasise those key issues to the Minister. I urge him to do what is necessary to make youth work an attractive profession; to ensure that there is a strong and well-funded institutional base for youth work; to try, if possible, to get buy-in from all parties in whatever strategy the Government are producing, so that there is consistency from one Government to the next; to look at the statutory underpinning for youth services; and to recognise that adolescence is a very difficult period, which was the point that Anna Freud was trying to make.
We ask far too much of teenagers, and we ask more and more of them as they deal with various things—social media and so on. We should provide them with guides and exemplars, men who they can see as good examples. As for me, if I want to think about how to behave towards women or about how to act towards work, I think back to what my father did and that gives me the guidance that I need. These young people need that kind of guide. I look forward to the Minister’s response.
My Lords, I thank the noble Lord, Lord Storey, who introduced the subject in a very measured way, as did other noble Lords, against an undoubtedly difficult situation. I will come to the financial situation later. This is a very important topic, and I think there are few more pressing issues facing this country than the quality of the investment we make in the personal and social growth of our young people.
I will race through my speech because, unfortunately, I have only two minutes more than every other noble Lord, and I have a lot to talk about. I will do the best I can and write otherwise. We want to make sure that young people have the opportunity to thrive and prosper in our future economy, especially to be active and engaged citizens. My department, DCMS, provides national youth policy leadership, supports youth voice and makes strategic investments to drive excellence and innovation partnerships. Direct delivery of local youth services rightly lies with local authorities and their partners. I will come to that later.
Our national flagship policy is the National Citizen Service, which has been mentioned. It is open to all young people age 15 to 17. It is designed to deliver a concentrated programme of positive activities, personal development and social action for young people. This is delivered through more than 300 organisations, more than 80% of which are from public or voluntary and community sectors. I am pleased to say that more than 400,000 young people from all social backgrounds have so far taken part in NCS, and we expect another 100,000 in 2018. It is important to note that they have given more than 12 million hours of volunteer time.
I am, of course, aware that local youth services operate in a challenging funding environment, which is why we have a track record of funding and supporting successful new delivery models. For example, Knowsley Youth Mutual is an organisation run jointly by staff and young people which was supported by the Government to spin out from the local council. Similarly, Space, formerly the Devon Youth Service, operates eight youth hubs across the county, delivering a range of open-access services, including specialists and one-to-one support. Noble Lords will be pleased to know that we are continuing that support for innovation. We are investing £40 million to support 90 innovative voluntary-sector organisations in different parts of the country. With the Big Lottery Fund and the #iwillFund, Youth Focus: North East, a youth work charity, has received £150,000 over three years to deliver 50 social action projects in 50 local communities.
During the past four years, the Office for Civil Society, which is now in DCMS, has spent more than £667 million on youth. In January this year—this goes to what the noble Lord, Lord Griffiths, said; it is not just the devolved Administrations—the Government announced a further £90 million from dormant bank and building society accounts specifically to support disadvantaged and disengaged young people with their transition to work.
The noble Lord, Lord Storey, mentioned youth expression, so let me turn to the support that we give to young people to have their say. We provide funding to the British Youth Council to deliver youth voice activities, including the UK Youth Parliament, the Make Your Mark youth ballot and the Youth Select Committee. We are clear that youth policy will be a central part of the forthcoming civil society strategy—which I hope will please my noble friend Lady Newlove. That will demonstrate our continuing commitment to invest in the future of young people. In preparing for that, we have gone out and listened to young people and organisations that work with them at recent events across the country.
Perhaps I may tackle head on local authority cuts. It is true that local authorities have decided to prioritise their spending elsewhere. The Government make more than £200 billion available to local authorities, but we believe that difficult decisions are best made at the local level. However, that does not mean that we have not been aware of that, and I have explained briefly some of the areas on which central government has spent money in addition—as I mentioned, in my department alone, that has amounted to £667 million over four years. There is also other cross-government spending—I could go through that in detail, but I do not have time. Of course, local authorities are still doing a good job. It varies, but, in 2018-19, they still spent £460 million on youth services.
Of course, we are looking not just at spending amounts but at great examples, two of which I mentioned, of how local authorities and youth organisations are developing new and innovative models for delivering youth services for benefits. We are looking at the youth sector as part of the civil society strategy—I am afraid that I cannot promise that it will be before the Summer Recess, but it will be out in the summer and the noble Lord, Lord Storey, will not have long to wait.
My noble friend Lady Newlove talked about the OnSide Youth Zones. We recognise some of the brilliant examples across the country of new models. OnSide is providing large, state-of-the-art youth clubs—unlike perhaps those in which the noble Lord, Lord Griffiths, discoed. In partnership with councils, businesses and philanthropists, they are a good example of what can be done. We are proud that we as a Government have invested £20 million in the establishment of some of the first youth zones through the Myplace funding; they are currently in receipt of £2 million through the youth investment fund.
The noble Lords, Lord Storey and Lord Griffiths, and my noble friend Lady Newlove talked about youth offending, gangs and knife crime—I think that practically everyone did. We recognise that the causes of crime and violence are complex and often tied to local factors. We are investing £80 million, in partnership with the Big Lottery Fund, to ensure that young people have opportunities to develop the skills they need and the resilience that can improve their life chances. The Home Office recently announced an £11 million early intervention youth fund to support youth groups and community organisations in the prevention of crime and violence.
The issue of statutory provision was mentioned by several noble Lords. It is true that local authorities have a statutory duty to secure access to sufficient services and activities to improve young people’s well-being, so far as is reasonably practical. I recognise that this is a challenge, and we are aware of divergent views on this subject. I cannot say more at the moment, but suffice it to say that we understand the issues behind this statutory youth service and we are considering it.
The noble Earl, Lord Listowel, and the noble Lord, Lord Storey, talked about youth workers and how important it is that they are recognised, valued and possibly even fully qualified in order to ensure the consistency of high-quality youth work, and for the reason mentioned—that a bad youth service is worse than not having one at all. We obviously recognise the importance of having well-trained, professional youth workers for the delivery of high-quality services. We expect that all organisations will take seriously the need to ensure that practitioners working with young people have sufficient training and, more importantly, understand the responsibility of safeguarding the children and vulnerable adults they work with. Safeguarding, particularly, is a responsibility for all organisations in the sector, no matter how large or small, and that should be simple and non-negotiable. The Charity Commission—and DCMS has responsibility for the Charity Commission—is there to ensure that the highest standards of transparency and safeguarding procedures are in place, and it has definitely gone up the Charity Commission’s agenda.
The noble Lords, Lord Judd and Lord Addington, talked about sport and its role. I absolutely agree with the points raised on the power of sport to engage young people. We want people to get out and do sport—or to undertake activity more generally. Activity is more important, in some ways, but sport makes activity enjoyable for a lot of people. It is good for your health, it is good for mental well-being, it keeps people out of trouble and we absolutely support it. The Government’s Sporting Future strategy, published in December 2015, sets out how important it is for all children to have a good experience. That extended the age range for which Sport England, which is one of our arm’s-length bodies, is responsible, to cover children from the age of five, in order to have a greater impact across the whole of a person’s sporting life. We have also developed a new Active Lives: Children and Young People survey, which builds on the existing, adult-focused Active Lives to cover children between the ages of five and 15. This survey was launched in September and will provide a world-leading approach to gathering data on how children engage with sport and physical activity, with the first results expected this December.
I finish by saying that Sport England will be investing more than £194 million between 2016 and 2021 into projects focusing on improving children’s capability and enjoyment of physical activity. We absolutely agree with the noble Lords on that. I hope I have shown that we have taken meaningful action at a central government level, not just relying on local authorities to do their statutory duty. We have a strong record of delivery on that; it is one that recognises the undoubted challenges but does support change. We are going to build on our achievements in that, and we intend to deliver yet more for our most important generation. I am looking forward to the civil society strategy in the coming months.
(7 years, 10 months ago)
Lords ChamberThat the draft Regulations and Codes of Practice laid before the House on 17 and 21 May be approved.
Relevant documents: 32nd Report from the Secondary Legislation Scrutiny Committee
My Lords, the purpose of these draft regulations is to allow information sharing between specified bodies for specific purposes. They also seek to make an amendment to the Digital Economy Act 2017. In addition, six codes of practice and one statement of principles associated with Chapters 1 to 5 and 7 of Part 5 of the Digital Economy Act 2017 have been consolidated into four instruments, to be approved by a resolution of each House.
Turning first to the draft regulations, the public service delivery power supports the improvement or targeting of public services. The powers are designed to give public services the information needed to provide early intervention or, where possible, prevent the problems that reduce people’s life chances. In order to exercise the public service delivery power, government must set specific purposes for data sharing via regulations. Those purposes must meet specific criteria defined in the primary legislation. These draft regulations seek to establish four specific objectives for data sharing under the public service delivery power to address “multiple disadvantages”, including fuel poverty and water poverty, and to provide targeted assistance in retuning televisions following spectrum changes.
We have worked closely with colleagues across the UK Government and the devolved Administrations to ensure that these powers have a UK-wide reach. However, due to the absence of a functioning Assembly in Northern Ireland, the data-sharing powers in relation to fraud, debt and public service delivery have not been commenced to cover Northern Ireland at this time.
I am sure that noble Lords will agree that the Government have a clear duty to support the citizens we serve and to ensure that the most vulnerable in society get the help they need. The formulation of each of the public service delivery objectives has been guided by this principle. Data sharing is a vital and effective way of identifying individuals and households experiencing problems which reduce their life chances.
I shall set out some details of the objectives in the regulations. The first concerns multiple disadvantages. The regulations would allow for data sharing between specified public authorities to help identify individuals or households which face two or more disadvantages. By disadvantages, I mean factors which, in combination with each other, limit the life chances of individuals or households—for example, by affecting people’s health or emotional well-being, or their social and economic chances. The objective was initially developed to support the troubled families programme, which supports the identification of families across England, but it is also intended to be available for similar programmes across the UK.
The second objective relates to television retuning. In order to meet the increasing demand for mobile data, the Government have agreed to fund up to £600 million so that the 700 megahertz band, which is currently used for digital terrestrial television, can be allocated for mobile broadband. As a result of the clearing of the band, approximately 150,000 households may need either to replace or realign their aerial to continue receiving all available channels. These powers will help identify those who are on certain benefits and require further support to ensure that they continue to receive digital terrestrial television services.
Thirdly, the fuel poverty objective will provide a gateway for specified public bodies to share information between themselves to help them identify households living in fuel poverty and ensure that those households get the support they need. It will also enable specified public bodies to flag those who are eligible to energy suppliers. The aim is to enable more vulnerable households and families to receive automatic rebates in the same way as over 1 million pensioners do through the warm home discount scheme. However, these rebates can take place only if the state can inform energy suppliers which of their customers should receive them.
The fourth objective concerns water poverty. Similarly, this would allow the sharing of information between public authorities to help identify those who might be living in water poverty and help ensure that they receive the support they need. The information could be shared by public authorities with water and sewerage companies to help them better target their support schemes, such as social tariffs, as allowed by powers in the Digital Economy Act.
My Lords, I am grateful to one of the two speakers for remaining and for the points that both have made. If the noble Lord, Lord Griffiths, thinks that was a rant, compared to the noble Lord, Lord Clement-Jones, he is an amateur; I thought he was very reasonable and measured in what he said. I shall go through his points as quickly as I can.
The noble Lord, Lord Griffiths, was correct to point out that we need to help where we can. The measure is to enable public authorities to share information. A key criterion for the Digital Economy Act was that it had to be for the benefit of individuals and households. The noble Lord, Lord Clement-Jones, suggested that, because things were in the wrong order—I will address some of his points shortly—we should withdraw the codes, wait for the Information Commissioner to issue her code and lay the codes again in six to nine months. That will mean that all the good work that is done, which the noble Lord, Lord Griffiths, identified, in using public information to help individual households that are vulnerable or suffering will effectively be put off. For example, on the fuel poverty measure, that would be another winter when we could not use the information to help the public.
On some of the issues raised by the noble Lord about the information shared, I remind him that the information is permissive: it does not have to be shared; it just allows public authorities to do that. They have very clear outlines of what they are able to do; they must have information sharing agreements. The measure merely allows public authorities to do it; there is no compulsion on any of them. It must also be in accordance with the Digital Economy Act and the Data Protection Act. That will give individuals the right—and mean that they can trust—that their information will not be misused, because it is subject also to the GDPR.
In talking about the difference between the Digital Economy Act and the Data Protection Act the noble Lord was a bit confused about paragraph 9. I was surprised—I thought it seemed pretty clear, but I accept that it could be made simpler. What it is really getting at is that the Digital Economy Act referred not just to living people, as the Data Protection Act does, but also includes bodies corporate and distinguishes between the information in those. So we are saying that there is a distinction, and they therefore need to apply both, but when it comes to the information referred to, and referring to individual living people, the Data Protection Act will apply and so will the General Data Protection Regulation. I will send a letter to the noble Lord outlining that paragraph to see if we can explain it. I doubt we will be able to do it in words of one syllable but we will try to make it a bit clearer for him and I will put a copy in the Library. I accept that it is not immediately obvious to a normal person.
I am glad that the noble Lord, in contrast, said that the codes were “clear, succinct and admirable”. I point out, however, that these are not for small businesses but for public authorities. The only time that they would involve a private business is when the private business has been contracted by a public authority to deliver something.
I am grateful to the noble Lord for that clarification—of course, I should have been clear about that myself—but in my small business I did have registration responsibilities, so under one of the codes I would have had to bear some of these things in mind; so there was just a hint of relevance about what I said.
I am grateful for that reminder.
There has been an awful lot of consultation around this. In many ways, this is a model: it has taken about two years of open, public policy-making. The codes were in place in draft while the Act went through Parliament, so parliamentarians of both Houses were able to discuss the codes. They have been amended as a result of that and made clearer, and we have also put in some increased transparency and some review mechanisms. They were consulted on again after the Act was passed: we had a formal consultation again on the codes that are with us today. That included organisations that might have thought to have worried about it, such as privacy groups, so a lot of stakeholders were involved in that.
Coming eventually to the noble Lord, Lord Clement-Jones, his speech was based on a briefing by the only organisation, I think, which had any worries about this. The overwhelming majority of stakeholders that were involved in the consultation were very supportive of these codes.
The noble Lord asked about the statistical methodology. I cannot remember exactly what it was, but I will write to the noble Lord.
The noble Lord, Lord Griffiths, also asked how we will keep track of all this. Of course, there will be a register in place, open and fully searchable by the public. The Information Commissioner has a power of audit, which will be used to keep track of all the data that is shared, and the audit logs will be kept for all data shared under the powers.
The noble Lord talked about transparency: how are we going to monitor and track the impact of this data sharing? Review boards will be established to oversee any non-devolved and England-only information sharing pilots that are set up, and there will also be a review board to advise Ministers and make recommendations on the establishment of new objectives, if there are any. The membership of those review boards will come from across the various data holding departments, as well as the ICO and representatives of civil society. Lastly, the ICO has said that she will carry out an independent review of all the Part 5 powers in two to three years.
(7 years, 10 months ago)
Lords ChamberThat the draft Regulations laid before the House on 26 April be approved.
My Lords, these regulations will be an important addition in our efforts to stamp out unacceptable behaviour in the ticketing market. I know that the activities of the secondary ticketing market are of interest to many noble Lords, including those here today. The Government recognise that the process of distributing and buying tickets can often be a cause for public frustration and concern. Many of us have experienced the frustration of waiting for tickets to go on sale for our favourite events, our fingers hovering over the keyboard in the final countdown, only to find that all the tickets seem to have been mysteriously snapped up in seconds.
What is even more frustrating is seeing tickets reappear on secondary sites almost instantaneously, often at a huge mark-up in price. There is evidence that this is largely caused by the use of software or bots to automate the ticket purchasing process on the primary market to circumvent limits on the maximum number of tickets that can be purchased. This issue was specifically addressed by Professor Waterson in his independent review of consumer rights provisions relating to online ticket sales, which reported in May 2016. His view, which the Government share, was that ticket sellers should adopt strategies to prevent automated ticket purchasing by bots, although he also noted that there was some uncertainty over the existing legal position on their use. This instrument clarifies the law in this area by making it a criminal offence to purchase more tickets than the maximum permitted for a recreational, sporting or cultural event in the United Kingdom where the purchase is made electronically through the use of software designed for this purpose and where the intent is to obtain financial gain.
While the regulations apply to events in the United Kingdom, they cover activity to obtain tickets in any jurisdiction. The intended offence will be summary only, with a maximum punishment of an unlimited fine in England and Wales, and an exceptional summary maximum in Scotland, as magistrates’ courts in Scotland do not have the power to impose unlimited fines. The relevant section of the Digital Economy Act 2017 was not commenced in Northern Ireland because of the ongoing suspension of the Northern Ireland Executive, but it is the intention for it to be commenced and for this instrument to apply to events in Northern Ireland once legislative consent is able to be secured.
These regulations will, we hope, significantly improve the current situation, in which so many tickets for an event can disappear within seconds of their going on sale. They should be seen alongside other measures to address unacceptable behaviour in the ticketing market, such as the ticket information requirements set out in the recently strengthened Consumer Rights Act 2015; the enforcement work of National Trading Standards, the Competition and Markets Authority and the advertising industry’s own regulator, the Advertising Standards Authority; and the adoption by event organisers and ticketing agencies of innovative technological solutions such as blockchain and ticketless tickets. I hope noble Lords will agree that these regulations are a necessary additional tool in helping fans improve their chances of securing tickets at reasonable prices.
My Lords, I want to make a few comments, which I hope the Minister will respond to at the conclusion of our short debate. I very much welcome this important step in continuing the fight against abuse in the ticketing market, in particular the secondary ticketing market. Only earlier today I received representations from a man whose wife and eight year-old daughter received tickets from viagogo, only to discover, having paid a significant amount of money, that once again viagogo has flouted the law and the tickets are illegal. They are due to go to the event tomorrow evening, and the eight year-old girl is desperately looking forward to it. It is appalling that this sort of crime continues to occur. The advice he has been given is that his wife should go to the window next door and buy another set of tickets which might—but only “might”—be available that evening and claim the money back in time. There was no response to the many calls he made to viagogo. That is just one example and those of us who are interested in this subject know that there are many others, on a day-by-day basis, in particular involving viagogo and others in the secondary market.
I am very grateful to the Minister and I know he is very supportive of the work that has been done on this. The principal concern for us this evening is to focus on enforcement. It has been brought to the attention of the All-Party Group on Ticket Abuse, of which I am co-chair, that the current legislation could be interpreted in such a way that only the police have an enforcement power under this instrument. While it is desirable for the police to have that power, the majority of enforcement in respect of ticket legislation is undertaken by trading standards, specifically the National Trading Standards cybercrime unit.
My Lords, I am grateful for all the contributions. It is clear that this is an issue that is close to the heart, or at least the interests, of many of us. I will respond to some of the specific issues that have been raised, although the statutory instrument itself is very narrow. Most of the issues that have been raised are outside its purview. Nevertheless, they are interesting and deserve an answer.
I pay tribute to my noble friend Lord Moynihan. I have spent many happy hours debating the subject with him. Sometimes I have come off best although normally I have come off worst, but we are pleased that he is pleased with this statutory instrument: it is a beginning. I pay tribute to his knowledge and expertise in this; he certainly helped to improve the Digital Economy Act last year.
The noble Lords, Lord Stevenson, Lord Griffiths and Lord Faulkner, among others, talked a lot about enforcement. Of course, I recognise the need for proper enforcement and therefore I welcome the Competition and Markets Authority’s recent announcement, as part of its enforcement investigation, that it had secured commitments from three of the largest ticketing platforms on additional information to be provided about tickets being resold through their platforms, and that it has notified another, more recalcitrant secondary ticketing platform of its intention to pursue court action if it does not fall into line and address the CMA’s concerns satisfactorily.
As I think was mentioned, we are giving approximately £15 million annually to National Trading Standards for national and cross-boundary enforcement. I welcome, therefore, its announcement at the end of last year that its officers had conducted raids at a number of properties across the UK, resulting in four people being arrested on suspicion of breaches of the Consumer Protection from Unfair Trading Regulations 2008. In addition, the Advertising Standards Authority has recently taken action against the four main secondary ticketing websites, banning the misleading presentation of pricing information on their websites. If the sites fail to comply with this requirement properly, the Advertising Standards Authority will ask trading standards to take further enforcement action on this matter. I think this enforcement work demonstrates that the matter is being taken seriously by the enforcement bodies and that we are prepared to go after those who flout the law or abuse the ticketing market.
I recognise the issue that my noble friend Lord Moynihan raised of the bots themselves, as opposed to the platforms, being based abroad. Of course, that is an issue that is common to many online crimes: if they are not within our jurisdiction, we have to co-operate with our partners abroad. We will do that where it is possible to do so and, of course, as I said before, if they have entities in this country then we will pursue them through enforcement action. I believe there is a Swiss site I referred to earlier for which that is being contemplated at the moment.
Lastly, and this applies also to online gambling, if foreign sites or people are committing offences, one of the ways of looking at that is through the payment mechanisms. Payment providers do not like dealing with people who are committing crime, so that is an issue we could look at. My noble friend Lord Moynihan referred specifically to viagogo, and I think the noble Lord, Lord Griffiths, or it may have been the noble Lord, Lord Stevenson, talked about what my honourable friend the Minister for Digital and the Creative Industries said about viagogo.
As I said, the enforcement agencies are committed to investigating breaches of consumer law and we welcome the CMA’s announcement last month that it had secured commitments from three of the top sites, and notified a fourth that it will pursue court action. We should also welcome the Advertising Standards Authority’s announcement at the end of May that it has referred viagogo to National Trading Standards for non-compliance with its rulings. We also welcome FIFA’s decision to file a complaint against viagogo and to protect fans by warning that it will cancel any World Cup tickets identified as having been purchased through the Switzerland-based website. My honourable friend the Minister for Digital and the Creative Industries was clear that her advice to fans is not to buy tickets for the World Cup from viagogo.
Can my noble friend the Minister confirm that the Government are of the view that trading standards do not lack powers in connection with bots under current legislation?
I do not think they lack powers with regard to bots that are based in this country, but the noble Lord’s point, I believe, was that the actual ticket-purchasing software that is based abroad is in the same position. The offence applies to bots if the activity takes place. It is the enforcement that is more difficult. The offence applies as long as it is to buy tickets for events in the UK.
The Minister mentioned earlier that the answer may lie in following the money, which has worked with regard to gambling and child protection. Does he think that this is now a real possibility in this area? Clearly, if these bots are operating from abroad and the instructions are from extraterritorial areas that we cannot reach, the right thing to do is to follow the money.
I have to be careful—I may not have been as careful as I should have been—to distinguish between the bots themselves and the ticketing platforms. Obviously, it is more difficult with regard to the bots, which are, in effect, ticket-purchasing software that could be anywhere, on any computer. I do not think I said that we were doing this. I am just highlighting the fact that following the money is important. I do know that payment providers such as Visa and PayPal do not want to deal with organisations or people who are committing an offence.
The noble Lord, Lord Faulkner, asked about the effectiveness of the Criminal Justice and Public Order Act 1994, which creates an offence,
“for an unauthorised person to … sell a ticket for a designated football match”.
I am not an expert and I will have to follow this up but I think the problem is that that was enacted following the recommendation in Lord Justice Taylor’s final report on the Hillsborough stadium disaster. Lord Justice Taylor was specific that the offence be limited to football because of its unique public order risk. I am not sure it is right to try to address other issues through that. It was for public order reasons more than ticket resale and pricing reasons. But I am happy to look at that and get the noble Lord more detail from someone who understands the law on this.
I am grateful for that answer. If the Minister is able to find out some more information, that would be very helpful. The point about the 1994 Act was to try to achieve proper segregation at football grounds for public order reasons. The difficulty was that if tickets were freely available from unauthorised sellers in the street—this was before the days of internet purchase—it would not be possible to segregate crowds. That is what Lord Justice Taylor was concerned about. But the fact that that offence exists still makes it illegal for companies which are engaged in the secondary market to sell football match tickets unless they have the express permission of the football authorities.
I understand and am grateful to the noble Lord for that. I absolutely agree that the offence was instituted for public safety reasons. But I will go into that in a bit more detail.
The noble Earl, Lord Glasgow, asked about theatre companies and tickets being concentrated in four companies. I have to plead the fact that this is not actually anything to do with this measure. Obviously, how those companies allocate tickets is a matter for them. As far as the Competition and Markets Authority is concerned, that is exactly its job—to look at competition—so the matter could be taken up with that authority.
The noble Lord, Lord Stevenson, raised us to a higher plane, as always, when he asked what the definition of a ticket was. What is a ticket? I think that the nature of tickets has changed with technological developments. If this appears to be an issue when we review how the regulations are operating, we will consider how to address it. I should say at this stage that I said during the passage of the Bill that, once we had let the regulations bed in, we would look at how the technological developments were working and whether the regulations were sufficient. I said that we would consider that in the future when we saw how the regulations were working. As with many issues to do with the internet, I do not pretend that this will solve 100% of the problems with the resale of tickets, but the fact that we are creating an offence that stops multiple tickets being bought by machines to prevent fans getting a fair chance will solve a lot of problems. We will have to consider in future whether any other things need to be addressed—not least because of technological developments, which are moving fast.
I hope that I have covered most or all of the issues raised. With these regulations, alongside the ticket information requirements in the Consumer Rights Act and the enforcement work of the Competition and Markets Authority, National Trading Standards and the Advertising Standards Authority, we hope that the events industry will have the tools it needs to improve the opportunities for fans to buy tickets for events at a reasonable price and to protect them from being exploited. I ask that these draft regulations be approved.
(7 years, 10 months ago)
Lords ChamberTo ask Her Majesty’s Government for what purpose small clubs and charities have to comply with the General Data Protection Regulation, which came into force on 25 May.
My Lords, clubs and charities which handle personal data will need to comply with the general data protection regulation in the Data Protection Act 2018 because people have the right to expect organisations of all sizes to keep their data safe and secure and not to misuse it. Small clubs and charities may also process sensitive personal data, such as medical records or children’s data. It is especially important that this is kept safe and secure and used appropriately. To assist smaller organisations, which may have more limited access to legal resources, the Information Commissioner’s Office has published a range of user-friendly material on the GDPR on its website and set up a dedicated phone line for small businesses and charities.
I am grateful to my noble friend for that reply. He has confirmed that any club, however small, that keeps a record of its membership must register, and not just register but renew and pay up every year. I will not ask my noble friend to give an estimate of the numbers involved, because it must be many thousands and I do not know who on earth is going to keep track of it all. I doubt whether anybody knows the numbers. But can my noble friend tell me what these organisations are doing wrong at the moment? What ill is being done that is going to be cured by making them involve themselves in this process?
My Lords, I am glad that my noble friend realises that it is very important to pay the fee that is required, as agreed by this House last month, in order to fund the ICO. All this is clearly explained on the ICO website under the heading, “The Data Protection Fee: A Guide for Controllers”. As for ills, it is not that any organisation, or even individual, has committed any sin, or that there is an ill to be cured; this is about individual data subjects’ rights. As far as an individual data subject is concerned, if his or her sensitive personal data is misused—for example, by not being kept securely—the damage done to that person or organisation is the same whether it is by a large or a small organisation. That is why the GDPR requires all data controllers, unless they are using it just for personal or household matters, to be clearer with people how their data is going to be used, to process it where it is lawful to do so, and, very importantly, to make sure it is held securely.
My Lords, would it be a good idea for the Government to allow small clubs to opt out of that if their membership wished to?
Will my noble friend explain to all of us data controllers here assembled exactly what this mischief is? I think the principal mischief is that this is a piece of legislation invented in Brussels and cursed on us.
Of course, the noble Lord is entitled to his opinion but I do not agree with him. In this case, as I tried to explain, it does not matter whether it is a large or small organisation, or even an individual data controller, that misuses information. Individuals’ personal data is very important and has grown enormously since the previous Data Protection Act 20 years ago. My noble friend will of course realise that there was a Data Protection Act 20 years ago.
My Lords, does the Minister agree that small clubs perform a useful function for society generally, as do small charities? If a problem becomes apparent, will the Minister give an assurance that the Government will review it and see if there is anything there? I agree with him that data should be guarded but we do not want to damage these clubs unduly.
I am sure the noble Lord is aware that the situation for data controllers has not changed since the Data Protection Act 1998. This is not a question of problems but of protecting the data rights of everyone in this Chamber. Therefore, it applies to all organisations and to individual people, but only if they deal in personal data and are controllers of that information.
Does the Minister accept that one of the benefits of this legislation is that now people have to write and ask you whether or not you want to receive junk mail? That is fine. But with many of them, not only do you click “unsubscribe” but they ask you why you have unsubscribed. Will the Minister make sure that these issues are vigorously pursued and there is no slacking off? Frankly, my current emails have reduced by half and could be reduced by a great deal more.
I believe that when that happens, that is the end of it. If they ask, they obviously want to know why the noble Lord no longer wants to be in touch with them—I do not blame them for that. Of course, I accept that those emails have a benefit. One of the principal features of the GDPR and the Data Protection Act 2018 is that there is a much stronger measure of consent. People have to give active consent to have their personal data processed.
My Lords, are there proposals to review the impact of this measure on small organisations? Irrespective of the fact that there is continuity from the previous Data Protection Act, there is concern that small organisations, such as charities et cetera, will be disproportionately affected. It is important that we should know whether that is the case. I declare an interest as the chairman of the charity Kent Search and Rescue.
Of course, we have to comply with the GDPR while we are members of the EU. We want to continue to have a data protection regime that is in accord with the EU’s when we leave. I believe that all new legislation is reviewed after a period of time, so we will obviously keep an eye on whether there is a disproportionate effect on small organisations. Charities are obviously important but, for the reasons I set out before, individual data subjects’ rights are important so there has to be a balance.
My Lords, the recent document submitted by the Government to the EU as part of their negotiating structure talks about data protection and its importance for our economy. These are indeed important issues. It says, however, that the way forward is not just by an adequacy agreement, which is what I thought we were all expecting, but by a treaty. Can the Minister shed some light on that issue?
As in, I believe, many negotiations with the EU, what we want is frictionless trade. In terms of data it is very important that there is no gap between leaving the EU, when we become a third country, and still being able to exchange personal data between the EU 27 countries and this country. We would like to get an agreement so that we have not only adequacy, which can be achieved only after we leave the EU, but an arrangement that allows us to continue exchanging data with members of the EU. That would have to be done by a treaty.
(7 years, 10 months ago)
Lords Chamber
Lord Mendelsohn (Lab)
My Lords, I thank my noble friend Lord Stevenson for moving this Regret Motion and giving us an opportunity to debate the order. I also thank him for an outstanding speech setting the right context for this, and I thank the noble Lord, Lord Foster, for an excellent speech that placed in context the consequences for small businesses. I share the frustrations of previous speakers—the noble Lord, Lord Aberdare, and the noble Earls, Lord Cathcart and Lord Lytton—about these speeds. I share it although I do not suffer from any of the difficult consequences, as they do.
I live in north London. We have three suppliers into the house. We have all sorts of cabling across the house, with boosters and all sorts of signals, but I have never achieved the stated packages from any of the services. We have problems of latency, contention and all those matters. In fact, my business has a dedicated phone line, which has boosters and other cabling to try to make sure that the signal is not lost, and we are fairly close to BT Tower itself—but our service is barely better than the much cheaper super broadband. It is frequently a problem that the claimed capacities are never fully achieved. That is something that we have to be very wary of, even when we establish a universal service obligation.
I turn my attention to the universal service obligation in this particular order. I want to make the simple point that the order does not achieve its objectives, and I would like the Minister to address that problem. When the Act was passed and the level at which the USO would be introduced was set, it was based on a series of assumptions none of which I believe to be true. I do not believe any more that it achieves the purposes of equity by trying to sort out the digital divide and deal with the problems of rural communities, and nor do I believe that it achieves any of the stated benefits of economic growth.
Some rather good documents on economic growth were produced by DCMS, and I thank it for the work that it did on that. In parenthesis, I acknowledge that the digital team at DCMS has steadily improved, and I suspect that if the same team had been around during the passage of the Bill last time we would not have been stuck with this level of USO. The economic growth benefits are said to be £257 million a year, which relates to:
“Local enterprise growth … Enterprise productivity growth … Increased teleworker productivity … Increased participation of carers and the disabled”.
I apologise for interrupting. Were the figures that the noble Lord quoted from the USO? Is that what he was referring to?
Lord Mendelsohn
I will specify that the figures themselves are on page 3 of the impact assessment and are for the USO. The stated growth figures themselves came from figures previously reported by Ofcom and from other reports. I can cite the reports for the Minister, but they are all in the documents that I mentioned. The assumptions on which they were made were an extrapolation from higher numbers, so even now to suggest that these numbers are consistent with the service is suspect, largely because the key factor in what is happening in the market and in the use of these things is the software and other services that are laid on top of them, which are the applications that people use. There is an idea that this level of service can be delivered on figures a year later when software has increased in order to deal with a market of higher usage, but that does not mean we can achieve these growth figures.
The other options that were rejected, 20 and 30 megabits, still fulfil both objectives, whereas this order fails on both objectives. That has had counterproductive effects. It is certainly true for those of us who spend a lot of time in industry that by setting the USO at 10 megabits we have ended up in a situation where there has been a chill on potential investment from other players. Other people have not been able to enter the market, and even the main providers that are looking to bid have found it hard to justify business cases when the USO is at 10 megabits. That is a huge problem. I agree with all the speakers who have raised the issue that there will be a dramatic impact on our relative position with this low, unambitious target.
The Government’s argument is that the reason why the level has been set is that it is all Europe’s fault, or it is in the directive. I beg to differ. The directive is all about how you interpret it and we have chosen to interpret it in a more restrictive way than others have done, as well as offering interpretations of some of the aspects in the most limited possible fashion. The most significant one is about what the minimum specification is. The documents that were provided state that the connection should be available to,
“permit functional Internet access, taking into account prevailing technologies used by the majority of subscribers and technological feasibility”.
That interpretation has been highly restrictive in how we have looked at the issue. We assume that the sorts of things that people are using in these different areas are based on easy-to-apply averages, but that is not the case. When you start talking about 10 megabits as being the sort of level that people can use, you come to the wrong conclusion. If you are in the rural community and using many of the technological features that are now used to enhance your business, you will tend to use them on a mobile. When you look for a broadband wi-fi connection, you will find that it does not meet the requirements that you can gain if you can get access to 4G.
My Lords, I am grateful to all noble Lords for their contributions. We are faced with a dilemma here. On the one hand, people such as my noble friend Lord Cathcart are begging for anything to be done to allow them to have some decent connection. By decent, I mean something that would enable him to receive his emails and documents. On the other hand, many noble Lords have said that we have lacked ambition. The last, very compelling speech from the noble Lord, Lord Mendelsohn, castigated the Government for their lack of ambition and for setting incoherent USOs, to sum up his speech very briefly.
I have to remind noble Lords that the purpose of the universal service obligation, as outlined in the universal service directive, is to ensure the provision of services to all users. Noble Lords have mentioned Europe, which at the moment has coverage of about 76%. The universal service directive applies only to fixed broadband; it does not apply to mobile. Indeed, the European Commission itself has twice reviewed mobile and concluded that social exclusion does not exist.
The universal service obligation does not exist to promote investment; it exists to make sure universal services are indeed universal and a legal right. It is intended as a safety net. The noble Lord, Lord Foster, said that that safety net lacks ambition; we will deal with the Government’s ambition elsewhere in my speech. Interestingly, the noble Lord also admitted that he would benefit from the USO and cannot wait to have it.
Premises in the USO footprint will be the hardest and most costly to reach in the country. The Government’s position is that the current specification of the USO is sufficient at present and strikes the right balance between meeting consumers’ needs and ensuring that it is proportionate and deliverable. That was not a random decision. The Government carefully considered and consulted on a range of options and three different scenarios that Ofcom modelled: a basic 10 Mbps service; the preferred 10 Mbps service with additional specifications, such as upload speeds, latency and data caps; and the 30 Mbps or superfast service. The 10 Mbps was selected because data usage drops considerably below this, indicating broadband activity is more restricted with speeds under 10 Mbps. Further evidence from Ofcom shows that a speed of 10 Mbps meets the needs of typical households.
I would also point out that 10 Mbps is a higher speed than virtually every USO across Europe. Sweden may be higher. However, we fully recognise the USO will need to be revised over time as consumer needs evolve, so that it continues to meet people’s needs in the years to come. The Government will be closely monitoring this.
Ten Mbps will make a considerable difference. The noble Lord, Lord Foster, gave a list of things that he is currently unable to do, including combating loneliness—and my noble friend, Lord Cathcart mentioned downloading documents. Setting it at 10 Mbps will allow all those things that he mentioned to take place.
As has been mentioned, that is why the Digital Economy Act 2017 provides for the Government to direct Ofcom to undertake a review at any time, and it includes a specific requirement for a review to be undertaken when 75% of premises subscribe to broadband services of 30 Mbps or higher. By the way, despite what the noble Lord, Lord Foster, said, there is virtually no difference between the two definitions of “superfast” that Ofcom, Europe and the Government have been using. At the moment, it is 95% for the Government and 94.9% for 30 Mbps, so it really is not a significant difference.
As I said earlier, the 10 Mbps USO is a safety net, but the Government have much greater ambitions for connectivity across all parts of the UK, so on that I agree with most noble Lords. In his Motion, the noble Lord, Lord Stevenson, referred to the third superfast scenario. Thanks to BDUK and £1.7 billion of public money, over 95% of UK premises already have access to superfast speeds, with savings and clawback due to deliver at least another 2% of coverage. The majority of this access has been delivered by providing fibre to the cabinet. However, we are not content with that, and I agree with the noble Lord, Lord Stevenson, and others. In his speech to the CBI last month, the Chancellor set a national target for full fibre—not just to the cabinet, but all the way to the premises. Our aim is for full fibre to 15 million premises by 2025, and all premises by 2033. So the Government are not short on ambition.
Likewise, at the Fibre Investment Conference, organised by the DDCMS and Ofcom in April this year, the Secretary of State spoke about creating a world-leading environment for investment in full fibre, and reaffirmed how vital full fibre is to building the capacity this country needs. That is why the Government are delivering a series of measures to realise these ambitions. The local full fibre networks programme and gigabit broadband voucher scheme are delivering fibre connections now and incentivising further commercial investment. The £400 million Digital Infrastructure Investment Fund is helping to finance alternative network providers, and the Treasury is further supporting investment through business rates relief for operators who install new fibre. The DDCMS future telecoms infrastructure review will soon publish a report looking at how we can create the best possible market structure to drive investment, and hit the Government’s targets to provide full fibre to all consumers.
The USO is part of these plans, but a higher speed USO would increase the direct costs of delivery as well as increasing the number of eligible premises. This may result in greater costs on consumers’ bills, and would increase competitive distortions. It would increase the risk of negatively affecting commercial incentives to invest. It is therefore crucial that, as a safety net, the USO works to support, and not unduly distort, the current and future market. The potential for market distortion limits what the USO can achieve.
I will try to respond to some of the points which noble Lords made. The noble Lord, Lord Aberdare, asked how the USO is going to be enforced. The order has been passed by both Houses and is now with Ofcom to implement. It will designate the provider and the industry cost-sharing fund. Ofcom expects this to take two years and it will consult on the provider this summer, so it is already working on that. That point was also made by the noble Earl, Lord Lytton. Once it is in place, the USO will enable the noble Earl to do exactly the things which he is complaining he cannot do now, so he should be glad about it.
The noble Lord, Lord Mendelsohn, talked about the needs of businesses, and of course he is right that in some cases a 10 Mbps speed is not sufficient. If you have a high-data business, that would not be ideal: for example, actuaries, whom I used to deal with, have huge data files. However, it will support many small businesses, and it provides access to every government service available.
(7 years, 10 months ago)
Lords ChamberMy Lords, I thank my noble friend for proposing this excellent debate. As we have heard, troops from the Empire and Commonwealth played a critical part in the First World War, in many theatres and many roles—a crucial contribution that the Government have consistently recognised throughout the commemorations. The Government led the commemorations of the outbreak of the war, the Battle of Neuve-Chapelle, the Gallipoli campaign, and the Battles of Jutland, the Somme and Passchendaele. In August this year, we will mark the Battle of Amiens, a joint event that we are delivering with our partners from Australia and Canada as well as France and the United States, before turning our focus to the centenary of the Armistice in November.
Throughout these commemorations, we have highlighted and acknowledged the unwavering support of our then Empire and now Commonwealth partners. Their contribution, as so many noble Lords have said, tipped the scales in favour of the allies. They travelled many thousands of miles to answer the call, serving in all theatres of the war, and distinguished themselves time and again in the face of the most terrible conditions and fiercest resistance. Often, their contribution was critical to success, but at considerable cost. Of some 2.5 million men and women from the Commonwealth and Empire, some 200,000 made the ultimate sacrifice in defence of freedom. As my noble friend Lord Lexden has mentioned, in looking at any of these battles in which troops from the Empire and the Commonwealth fought, it is hard to disagree with David Lloyd George: without them, victory might well have eluded us.
It has been right and proper to highlight their significant contributions and to hear their stories and their accents throughout the events. We have been reminded in particular of individual countries’ contributions by my noble friend Lord Goodlad in respect of the Australians, the noble Lord, Lord Desai, in respect of India, the noble Baroness, Lady Benjamin, and my noble friend Lord Shrewsbury on the West Indies, and my noble friend Lord Black on Canada. We also heard about the personal connections of the noble Baroness, Lady Kingsmill, and my noble friend Lord Elton when they spoke in the gap. Their stories are indeed humbling.
We should also not forget that the Commonwealth countries have and will continue to deliver their own range of activities and events telling their own stories of the impact of this truly global conflict. I cite, for example, the opening this April of the new Australian Sir John Monash Centre in France and Canadian events in France to be held in August, as well as in Mons in Belgium on 10 and 11 November. In that month there will also be a New Zealand event to commemorate the capture of Le Quesnoy by the New Zealand Division.
Much of the Government’s wider programme reflects the contribution made by the former Empire and Commonwealth. “The Unremembered”, delivered by the Ministry of Housing, Communities and Local Government, tells some of the lesser-known stories of those who volunteered, such as the Indian Labour Corps and the New Zealand Pioneer Corps. They served in extremely arduous and hazardous conditions, with little recognition at the time. Again, the South African Native Labour Corps, in which 25,000 men enlisted, was remembered at the SS “Mendi” commemorations in 2017, as the noble Lord, Lord Griffiths, mentioned. In 2016, 14-18 NOW, which is our cultural delivery partner, produced “Dr Blighty” in Brighton. This was a spectacular light projection exploring the experience of Indian troops recuperating at the Royal Pavilion military hospital. I hope that the noble Lord, Lord Dholakia, was able to see it and thus be reminded of his youth—obviously his youth as a schoolboy, not in the First World War. I was pleased to attend the “Stories of Sacrifice” exhibition in Manchester marking the contribution of Muslim soldiers in the First World War and delivered by the British Muslim Heritage Centre.
Throughout 2018, the role played by people from the Empire and the Commonwealth will continue to be recognised by 14-18 NOW. “Xenos”, a dance piece combining archive sources with film and artistic reflections, explores the experience of an Indian soldier during the war. In September, John Akomfrah’s new multimedia installation remembers the millions of Africans who served during the First World War. The Government’s programme aims to enable people to commemorate those elements of the greatest significance to them. The Heritage Lottery Fund has supported a range of projects, including £94 million of funding for more than 1,400 community projects. “Empire, Faith and War: The Sikhs in World War One” was delivered by the United Kingdom Punjab Heritage Association with £480,000 of funding from the HLF. Others include “The Caribbean’s Great War”, exploring the role of the West India Committee, and the “Black on Both Sides” project, on the British black and colonial contribution to World War One, which has helped young people from British-African and Caribbean backgrounds to explore the role of black people who served during the war.
I am pleased to say to the noble Baroness, Lady Benjamin, and the noble Lord, Lord Watson, that government funding has also helped to support the Nubian Jak Community Trust to install Britain’s first dedicated African and Caribbean war memorial to service men and women from Africa and the Caribbean who served during World War One and World War Two in Windrush Square in Brixton. It was dedicated on Windrush Day 2017 and is a permanent reminder of the contribution made by men from Africa and the Caribbean during the war.
In speaking of the contribution of the Empire and the Commonwealth, it is appropriate to mention, as many noble Lords did, the marvellous work of the Commonwealth War Graves Commission in maintaining the graves of those who did make the ultimate sacrifice. Many thousands of casualties from the British Empire are buried in some 23,000 Commonwealth War Graves Commission sites in more than 150 countries around the world, and indeed in the UK. These sites are a permanent reminder of their sacrifice, and I will certainly take back from my noble friend Lord McInnes his views, and indeed those of the whole House, on our duty as a Government to support the commission’s work.
I want to answer some of the points that were made in the debate. I agree absolutely with the suggestion made by my noble friend Lord Lexden that it might be appropriate to have a full-scale debate before the end of the centenary commemorations. In fact, I have already asked the Chief Whip whether that would be possible and have received a positive answer—at least, as much as it is possible for him to give one. That would enable us to think about the whole four years and possibly about the legacy of these commemorations, which would be a great thing to do. I also agree with my noble friend that the Middle East campaign should receive more study, not least because of the strategic significance of that part of the world today.
The noble Baroness, Lady Benjamin, spoke of the service at the Commonwealth Memorial Gates attended by the Prime Minister and the Home Secretary. We are very clear that the main commemoration for the First World War and, indeed, other conflicts, is Remembrance Sunday on 11 November. It has a particular resonance, especially as this year, happily, Remembrance Sunday falls on 11 November. Along with our partners, we will make sure that this day is used to highlight the significant contribution from across the Commonwealth.
On commemorations of campaigns in the Middle East and elsewhere, Foreign and Commonwealth Office posts have managed local events, particularly in the Middle East, supported by the Commonwealth War Graves Commission.
With regard to the curriculum, I agree with the noble Baroness, Lady Flather, and my noble friend Lord McInnes, that it is important that pupils are taught about key events such as the First World War and all its ramifications. The current reformed national curriculum, which has been statutory since September 2014, states that pupils at key stage 3 should learn about,
“challenges for Britain, Europe and the wider world from 1901 to the present day”.
The First World War plays an important part in that, of course. However, we have not specified how individual schools should do that—the only exception so far is for the Holocaust.
I did not say that they should learn about the First World War—I think they do anyway—but that they need to know that Britain was not alone. The key thing is that it is very important for the growing generations to know that we have come here because we contributed to Britain’s well-being.
That is a good point well made. What I have tried to explain today is that a lot of the events throughout the community, not just the relatively few central government-organised events, have addressed exactly that point: that we were not alone and that our partners, the members of the Empire and the Commonwealth, were actively involved. The Imperial War Museum’s schools programme is a good example of what has been done during these commemorations. There are lots of opportunities to go around and talk to young people—for example, the young people who have been helping in the commemoration of the third Battle of Ypres at the Commonwealth War Graves Commission. There has been a tremendous advance in the understanding and the interest shown in the First World War during these commemorations.
Throughout the war many thousands of men and women from around the Empire answered the call to arms. The war had a huge impact on these countries and their relationships with Britain. These relationships would be tested again in the Second World War, and the steadfastness of their support was not found wanting. Although the days of Empire are over, this shared history has undoubtedly influenced a continued friendship and co-operation in the Commonwealth as we know it today. I am sure that some of the issues raised by the noble Lord, Lord Griffiths, are rightly discussed there. As I have outlined, this contribution has been rightly reflected throughout the commemorations and we are very grateful for that commemoration. As the baton of remembrance is passed to future generations, I am confident that the role of the Empire and Commonwealth and the sacrifices made by so many young men and women will not be forgotten.
(7 years, 11 months ago)
Lords ChamberMy Lords, with the leave of the House, I will now repeat a Statement made recently by my honourable friend the Minister for Sport and Civil Society in the other place. The Statement is as follows:
“Mr Speaker, with permission, I wish to make a Statement on the gambling review and the publication of our response to the consultation on proposals for changes to gaming machines and on social responsibility requirements across the gambling industry.
The Government announced a review of gaming machines and social responsibility measures in October 2016 in order to ensure that we have the right balance between a sector that can grow and contribute to the economy and one that is socially responsible and doing all it should to protect consumers and communities from harm. Underlying this objective was a deep focus on reducing gambling-related harm, protecting the vulnerable and making sure that those experiencing problems are getting the help they need.
Following a call for evidence, we set out a package of measures in a consultation which was published in October last year. These included social responsibility measures to minimise the risk of gambling-related harm, covering gambling advertising, online gambling, gaming machines and research, education and treatment. The consultation ran from 31 October 2017 to 23 January 2018. We received more than 7,000 survey responses from a wide range of interested parties. We received more than 240 submissions of supplementary information and evidence from the public, industry, local authorities, parliamentarians, academics and charities.
We welcome the responses to the consultation and, in preparing our conclusions, we have reflected on the evidence, concerns and issues that have been raised. We have considered these responses, alongside advice that we have received from the Gambling Commission as well as the Responsible Gambling Strategy Board. We have set out measures on gaming machines, as well as action across online, advertising, research, education and treatment and, more widely, the public health agenda in regard to gambling.
Before I set out the detail of this package of measures, let me say up front that we acknowledge that millions of people enjoy gambling responsibly, and we are committed to supporting a healthy gambling industry that generates employment and investment. But over the process of this review I have met many people who have experienced gambling addiction, and those who are supporting them, including parents who, sadly, lost their son to suicide as a result of the impact of gambling on his mental health. In addition, I have visited the incredible treatment services that are there to support them. We are clear that gambling can involve a serious risk of harm for individual players, as well as for their families and the communities they live in, and we must ensure that they are protected.
The Government are satisfied with the overall framework of gambling regulation but, as part of our action to build a fairer society and a stronger economy, we believe that when new evidence comes to light we need to act to target any gambling products or activities that cause concern. It is also important to acknowledge that while gambling-related harm is about more than any one product or gambling activity, there is a clear case for government to make targeted interventions to tackle the riskiest products, with the objective of reducing harm.
One product in particular, B2 gaming machines or fixed-odds betting terminals—FOBTs—generated enormous interest throughout the review process. In consultation, we set out the evidence for why we believe that targeted intervention is required on B2 gaming machines and options for stake reduction. Although overall problem gambling rates have remained unchanged since the Gambling Act 2005, it is clear that there remain consistently high rates of problem gamblers among players of these machines. Despite action by industry and the regulator, a high proportion of those seeking treatment for gambling addiction identify these machines as their main form of gambling.
According to data for 2015 across Great Britain, 11.5% of players of gaming machines in bookmakers are found to be problem gamblers. A further 32% are considered at risk of harm. The latest data for 2016 for England finds that 13.6% of players of gaming machines in bookmakers are problem gamblers—the highest rate for any gambling activity. We are concerned that factors such as these are further amplified by the relationship between the location of B2 gaming machines and areas of high deprivation, with these players tending to live in areas with greater levels of income deprivation than the population average. We also know that those who are unemployed are more likely to most often stake £100 than any other socioeconomic group.
Following our analysis of all the evidence and advice we received, we have come to the conclusion that only by reducing the maximum stake from £100 to £2 will we substantially impact on harm to the player and to wider communities. A £2 stake will reduce the ability to suffer high session losses, our best proxy for harm, while also targeting the greatest proportion of problem gamblers. It will mitigate risk for the most vulnerable players, for whom even moderate losses might be harmful.
In particular, we note from gaming machine data that of the 170,000 sessions on B2 roulette machines that ended with losses to the player of over £1,000, none involved average stakes of £2 or below, but at stakes of £5 to £10 losses of this scale still persist. At a £2 stake it is very hard for a player to even lose more than £500 in a session. Out of approximately 600,000 sessions that involved losses of between £500 and £1,000, only 14 of those cases involved average stakes of £2 or below. However, losses of this scale also persist at even £5 or £10. Clearly losses of £500 or £1,000 in one sitting might be harmful to problem and non-problem gamblers alike.
The response to our consultation has been overwhelmingly in support of a significant reduction in B2 stakes. The majority of respondents to the consultation submitted opinions in favour of a £2 limit, indicating strong public approval for this step. This included local authorities, charities, faith groups, parliamentarians, interest groups and academics. I am grateful for the cross-party work that has been undertaken on this issue, and would like to pay particular tribute to the honourable Member for Swansea East and the right honourable Member for Chingford and Woodford Green.
Elsewhere in the industry we are, for the time being, maintaining the status quo across all other gaming machine stakes, prizes and allocations. We have, however, agreed to an uplift for stakes and prizes on prize gaming, which we consider sufficiently low risk.
We are aware that the factors which influence the extent of harm to a given player are wider than any one product, and include factors around the player, the product and the environment. The response therefore also sets out action on: increasing player protection measures on other gaming machines on the high street; increasing protections around online gambling, including stronger age verification rules and proposals to require operators to set limits on consumers’ spending until affordability checks have been conducted; doing more on research, education and treatment of problem gambling, including a review by Public Health England of the evidence relating to the public health harms of gambling; enhancing protections around gambling advertising, including a major multimillion-pound advertising campaign led by GambleAware, around responsible gambling, to be launched later this year; and filling the gaps in evidence around advertising and harm with substantial new research commissioned by GambleAware on the effects of gambling advertising and marketing on children, young people and vulnerable groups.
Looking ahead, we will also be considering the issue of 16 year-olds playing National Lottery products as part of the next licence competition for the National Lottery. We will aim to gather evidence on this issue with sufficient time to consider it fully ahead of the next licence competition.
Changes to B2 stakes will be effected through regulations in Parliament. The move will need parliamentary approval and, in recognition of the potential impact of this change for betting shops, we will also engage with the gambling industry to ensure it is given sufficient time for implementation. In addition, in order to cover any negative impact on the public finances, and to protect funding for vital public services, this change will be linked to an increase in remote gaming duty, paid by online operators. The Chancellor will set out more detail on this at the relevant Budget.
To conclude, we want a healthy gambling industry that contributes to the economy, but also one that does all it can to protect players and their families, as well as the wider communities, from harm. We will work with the industry on the impact of these changes and are confident that this innovative sector will step up and help achieve the necessary balance”.
My Lords, that concludes the Statement.
My Lords, in the other place in 2010 I proposed that the stake for a fixed-odds betting terminal be reduced to £2, and in 2015 my noble friend Lord Clement-Jones introduced a Private Member’s Bill in your Lordships’ House proposing the same. We knew then that FOBTs were blighting the lives of thousands of gamblers and their families, and that the betting shops blighting our high streets were getting something like 70% of their profits from these terminals, which were a catalyst for anti-social behaviour and serious crime. So we on these Benches very much welcome the Statement that has been made today.
However, as the Minister acknowledged in the Statement, this has been a cross-party campaign to get changes, and I, too, pay tribute to Carolyn Harris and all members of the All-Party Parliamentary Group on Fixed Odds Betting Terminals. Outwith politics, there have been many, including the churches—and I pay a particular tribute to the right reverend Prelate the Bishop of St Albans for the work that he has done —and many within the gambling industry itself who have also been campaigning for this change to take place. Many tributes have been paid to the late Baroness Tessa Jowell, and I support all them all. I will make one further one, because it was the noble Baroness who, as Secretary of State in 2005, introduced the legislation that allowed the establishment of fixed-odds betting terminals. It is to her enormous credit that she showed bravery and courage when, two years ago, she publicly acknowledged that she and her Government at the time had got it wrong. She would be the first to say that the decision today is the right decision for the families and individuals who have been affected, and for society—but I am sure that she would have gone further and said that there is still more to be done in relation to online gambling and the advertising of gambling.
I have three quick questions to the Minister. The first is that the Statement makes it clear that this move will need parliamentary approval and that there is still to be further consultation with the gambling industry to ensure that it is given “sufficient time for implementation”. I think that all of us are anxious for this change to take place as rapidly as possible. Can the Minister give us an indication of the timeframe that he envisages before we see a £2 maximum limit?
Many concerns have been expressed about the number of betting shops on our high streets. Although changes were made in 2015, will the Minister acknowledge that the planned changes to the National Planning Policy Framework would give an opportunity to enhance the powers that local authorities have to be able to take action if problems emerge in future following this change?
Finally, I welcome very much that Public Health England is to conduct an evidence review into the health aspects of gambling-related harm. We are all keen to ensure that enough money is made available by the industry to pay for research into, education around and treatment of gambling problems. Will the Minister tell your Lordships’ House whether the time has not come to change the current voluntary levy to a compulsory one? As I have said in your Lordships’ House before, it is very strange that the compulsory levy for horseracing raises 10 times more to support horses than the voluntary levy currently raises to support people. The time has come to change that.
My Lords, I am very grateful to the two Front Benches for their comments. They are welcome to this announcement. It is a great pleasure to be congratulated for a change, and I genuinely am very grateful for that. I absolutely take noble Lords’ point that it was a cross-party effort to change this. As the noble Lord, Lord Foster, said, he has been around a long time and he has been at this particular subject for some time—I am glad that he is glad that what he wanted has finally come to pass. I, too, pay tribute to Carolyn Harris and the work of the cross-party APPG, and I am sure I shall have a chance to acknowledge other contributions later. I will also pass on the noble Lord’s mention of Tracey Crouch. She has taken this on as a personal crusade in many ways, so I will pass on those views.
As is only to be expected, a number of other points were raised, some possibly with disappointment, as were some questions. Both noble Lords mentioned the levy. This has been an ongoing discussion point. The reason we have not introduced a compulsory statutory levy at the moment is that we want the industry, Gamble Aware and the commission to build and improve on the voluntary system. We want them to do this voluntarily and with enthusiasm; we want them to be socially responsible and we expect them to make a lot of progress on this. This announcement today shows that if they do not, and if they are not socially responsible, we will be prepared to legislate. I am absolutely clear, as the Secretary of State has been, that if we do not get the right level of contribution and enthusiasm from the industry, we will consider legislation.
The noble Lord, Lord Griffiths, talked about children gambling and we absolutely understand the issues about children, the possible effect of online gambling on them and the normalisation of gambling, which is an issue to be aware of. Strict controls are, of course, already in place to prevent children gambling online or in individual premises. These are enforced by the Gambling Commission, which is actively looking at increasing the protections online. We have outlined in the response today some of the extra things that we are doing to protect children. The fact is that most gambling by children at the moment is legal—such as betting in playgrounds and so on. We are absolutely aware of the problems, and I can assure noble Lords that we will monitor this. The additional features that we have announced today will help, but this is not the end of the story; we will continue to monitor these things.
The noble Lord, Lord Foster, talked about implementation. We want to get on with this. We have waited long enough and we have sat and listened to a lot of representations from a lot of people. We have made this decision and we want to get on with it. However, this has to go through Parliament, and I hope noble Lords will give it their support when it arrives here. We want, equally, to engage with the gambling industry, because—quite possibly this is the only bad thing about today—there will be some job losses. There are mitigating factors in this: we have a very full employment situation, the possible job losses are spread around the country and there are measures to help, but there will be some involuntary redundancies as a result of this. Interestingly, however, the gambling operators’ own figures showed that there would be about 3,200 job losses by 2020, even if we had not changed the stake at all, because the mood of the public is changing on this. I cannot set out an exact timetable today, but obviously we want to carry on with implementation and do it as quickly as we can.
The noble Lord, Lord Griffiths, asked about contactless cards. We made clear at the consultation stage that we had concerns about the introduction of contactless payment on gaming machines, but there appears to be continued industry-wide support for the introduction of contactless payments. This gives the potential for corresponding player protection measures that could be introduced alongside this form of payment, because of the data that can be received from them.
The noble Lord, Lord Foster, asked about the powers of local authorities. Of course we understand the concerns about the number of betting shops on the high street. Although the numbers have been stable over the past year, they are actually in decline, and I think the effect of what we have announced today will mean that there will be less to be concerned about. We will have to see what the impact is and whether it is quite as bad as the industry says—we will have to see, as the figures are not absolutely clear. We will have to monitor that, and I can assure the noble Lord that we will do so.
I say again that I am very grateful for the welcome that noble Lords have given. Lastly, I agree entirely with the noble Lord, Lord Foster, about the bravery of Baroness Jowell, not only in facing her death but in being able to say that they had got it wrong. To his credit, Tom Watson for the Labour Party said the same this morning.
My Lords, I too welcome this Statement, which represents a significant progress in our efforts to bring about a sensible and ordered scheme of gambling regulation in this country. I also pay tribute to the Minister in this House, to the Minister in the other place, to the Secretary of State and to the Prime Minister for their moral courage in the face of a lot of opposition in making this excellent decision, not least to reduce the stakes for FOBTs down to £2.
I note that the report includes a whole section on gambling advertising. Many Members, in both Houses, are deeply concerned about the normalisation of gambling at a very formative time for children, not least because of the wall-to-wall adverts that are shown via various forms of media but especially online, and because of the development of games which in themselves are not gambling but are designed to encourage people to undertake these sorts of activities and normalise them for later in life. Could the noble Lord tell us a little more about how that might be addressed and when some of this will be implemented?
My Lords, I am grateful to the right reverend Prelate, who has led on this subject and has, I know, spent a lot of time worrying about this and making positive suggestions. I am glad he is glad about this announcement.
Of course we understand the issues around children and advertising, and that is why gambling advertisements must not be targeted at children. They must not be shown around children’s programmes or include anything that appeals particularly to children or young people or that exploits them. Tougher guidance is being published on what that means by the Committee of Advertising Practice. As we set out in the consultation, the number of TV gambling advertisements seen by children has been going down each year since 2013. However, we are not complacent, and that is why we are setting out a package of measures on advertising today. We understand the right reverend Prelate’s point that advertising could normalise gambling for children, and that is why the strict controls on children’s advertising apply. As far as games and skins and things like that are concerned, the Advertising Standards Authority is aware and the Gambling Commission has cracked down hard on operators that try to get round the rules by using games and non-monetary prizes in games online.
My Lords, I add my thanks and congratulations to my noble friend. He should bask in this glory while he can, but may I just say to him that I hope the Government will have a target date for implementation? One understands that there has to be time, but could we please fix a date—the end of the year, perhaps—by which this will come into force? Every week that goes by adds to human misery. Could we perhaps also suggest to those who want to have a £2 flutter that they can benefit their communities if they buy lottery tickets?
My noble friend makes a good point. I have spent many minutes—possibly even hours—not giving a timetable for various things, and I am afraid that I cannot be very specific today. I can only repeat to my noble friend what I said before. We have spent a lot of time considering this issue and have taken a lot of advice, and people have expressed strong opinions. We have now come to a decision and therefore want to implement it. There are procedures to go through —it has to go through Parliament—and we will do what we can to implement it. However, I am unable today to give a precise timetable, not least because the parliamentary timetable is somewhat uncertain.
Viscount Falkland (CB)
My Lords, I congratulate the Government on finally taking action on the casino gaming machines in betting shops. One must not be too harsh about the bookmakers, because the history here is of course that betting on horses and greyhounds—the traditional betting in betting shops—has declined enormously, as people tend now to bet more and more online. This will be a sad day for bookmakers, with the reduction of the amount to be bet on these machines. I do not know whether that is the right amount; I would not criticise it, but it will make the bookmakers’ position quite difficult. There will be job losses, and so on. When I was on the pre-legislative scrutiny committee on the draft gambling Bill I tried to persuade the Government and the DCMS officials of the problems with gambling, particularly on machines in betting shops. But since then four machines have been allowed. I argued the toss with Baroness Jowell, one of the nicest women you could possibly argue with, and it was a great pleasure to work against her. Along with a number of my colleagues, I did not like the Bill that came forward, because it did not deal with the realities. I say to my ex-noble friend Lord Foster that it is not right to criticise the owners—
Viscount Falkland
Does the Minister agree that the remarks of the noble Lord, Lord Foster, on the question of whether horses are valued more than people and the dangers of addiction and racing are somewhat misplaced? Racing has the greatest difficulty in funding national competitions. Could the Minister comment on that?
I am very keen on people and horses, so I will not say that one is more important. On the noble Viscount’s point about the bookmakers, I understand about jobs, the difficulties that some bookmakers will face and the possible effect on racing. We have been clear that this will involve some job losses, but it is not right that a business operates on a business model that creates a significant amount of harm to some vulnerable people. As I said earlier on, we want a responsible gambling industry that is strong and secure. As regards racing, we are keen to support it; for example, we have already allowed the bookmakers on the course, most of whom have a gross gambling income of less than half a million pounds a year, not to have to pay the levy at all. We have put the statutory levy on online bookmakers, raising an extra £35 million a year, and we will monitor to review the rate of the horse race betting levy; we originally said that we would review it by 2024 but we have said that if necessary, when we see what the effect of these changes are, we will bring that review forward. Ultimately, however, this is the right decision for people in the gambling industry.
My Lords, I speak as a member of the all-party group on racing. Does my noble friend not agree that the implication for market towns with a high proportion of betting shops is that they will have a disproportionately high number of job losses, with the internet companies being let off the hook?
No, I do not agree. The evidence is that these betting shops are overwhelmingly in urban places and places with economic deprivation. The majority of them are in London, which alone has 22% of these shops. In addition, there is very high employment in this particular jobs market, so there is a good chance of people being able to get another job. A very important point is that the money spent on FOBTs and betting gaming machines will now be spent on other things in the economy, and sometimes it will be better spent than on FOBTs.
Lord Wigley (PC)
My Lords, I very warmly welcome the announcement of the £2 stake. Perhaps I may follow up on the words of the right reverend Prelate about the impact of advertising on children. Does the Minister accept that it is not just children’s programmes that need to avoid such advertising but, in particular, sports programmes which appeal to children? Will the Government take that into account?
Yes, we will take that into account. That is why GambleAware is commissioning further research into the impact of marketing and advertising on children and young people. It will include how advertising influences attitudes to gambling, so I understand the noble Lord’s point. For example, that is why logos and so on are not allowed on sports shirts sold to those under the age of 18.
My Lords, some of us predicted these problems when the Bill went through in 2005. Sadly, we were ignored. What assessment has been made of the possibility of drift into other high-stake gambling products as a result of this measure? I congratulate the Government on their courage in taking what I believe is an absolutely critical decision.
I think that there is a possibility of drift, as the noble Lord called it, and we have certainly taken that into account. The most obvious point is that gambling will move online from betting shops, but there is an advantage in that, in that it is an account-based system. With the data that comes from online sources, gambling operators are able to spot problem gamblers using modern technology, artificial intelligence, algorithms and things like that. We have said to the gambling industry that we expect it to use this technology to improve the way in which it spots problem gamblers, and I think that it will be a lot easier for it to do that when it moves online. However, it is of course a problem and we will be monitoring it. We have put forward specific proposals in today’s response to address it.
My Lords, I too congratulate the department on undertaking a very effective consultation exercise and then taking very decisive action. Does my noble friend the Minister agree that this is an example that other government departments could usefully follow?
I am sure that the Secretary of State would agree with that. The difference here is that it was a very popular decision, which always makes it easier.
My Lords, will the Minister take a more sober judgment? In 2005 this House, and Parliament as a whole, thought that it had done a magnificent thing in stopping the advent of super-casinos. It was the euphoria of stopping them that allowed for the introduction of gambling machines to go through almost unnoticed. There is a danger in the euphoria here also. I think that the noble Lord, Lord Campbell-Savours, and others are right. It is the growth of online gambling and the changes in technology that afford it that will give us the next problem. I urge that the research and analysis into online gambling is carried out with rigour and it is not simply left to the industry to self-regulate, clever as it may be with its artificial intelligence and its algorithms. Independent research is needed, which can advise government in the future, otherwise this problem will come back in another form.
I take that point. I am absolutely not suggesting that today’s announcement is the end of it. We will be very specific: the Gambling Commission is looking at requiring operators to set limits on customer spending until affordability checks have been concluded and at bringing forward stricter licence requirements for gambling companies to interact with vulnerable customers. This is not something that we are just letting them get on with; it is being required of them. If a company were to break such stricter licence requirements, it could lose its licence. There would be very serious sanctions if a company did it wrong. The Gambling Commission is also examining proposals to prohibit reverse withdrawals and the use of credit cards for online gambling. We will continue to pay close attention to the operators’ progress in using behavioural data to identify problem gamblers. We are not just sitting back and saying that this is it. We are monitoring it. The Gambling Commission continues to monitor it and is putting in stricter conditions.
My Lords, I very much welcome the Statement today and congratulate the Minister on achieving the £2 stake. We have heard that problem gamblers could now turn to online sites in a big way. Does the Minister therefore agree that this is the time for the Government to look again at introducing measures, such as those that operate in Sweden, to restrict late-night internet gambling and, as he said, ensure that only debit cards and not credit cards can be used as a means of paying the stake?
I have said that this is not the end. As an aim, we want to encourage responsible gambling, so of course we will take into account suggestions such as that from the noble Lord. We are not against gambling, but we want it to be responsible. There is opportunity to monitor it more if it is done online, because of the data that goes backwards and forwards. We will look at these things and we expect policy-making on this to be evidence-based. One thing we will do is increase the research to make sure that we have good evidence that this is a problem, as we have on FOBTs, and that the solution will achieve the result that we want.
My Lords, several noble Lords have mentioned that this is a package and have welcomed the reduction in the stake for FOBTs, which I endorse entirely. However, the 78-page document that accompanies the Statement is a bit thin on action, so I wonder whether the noble Lord can respond to two points. On advertising, which is really important, we are getting guidance on tone and content and on children and young people, and the welcome, if limited, news that a “responsible gambling” message will appear during TV adverts. At least there is action, but it is not exactly action at a punitive level against the harms we see already. On online gambling, which around the House we are all agreed is the next big problem, all we seem to be getting is a round table and a clear plan of action to come forward at some future unspecified date from the Gambling Commission. Is there not a need for more urgency across this range of issues?
I do not agree that this is just a series of guidance. First, as far as advertising is concerned, plenty of things are happening already. There are strict controls on gambling advertising. There are rules to prevent it being aimed at children. Those apply across all advertising, so that is happening already. There has also been progress on measures that were mentioned in the consultation, such as strengthening rules on gambling advertising. The Committee of Advertising Practice has published tough new guidance already on protecting the vulnerable. From June, a responsible message will appear on the screen. The Gambling Commission has consulted on expanding sanctions for a full breach of the advertising code. I mentioned before the social responsibility provisions that the Gambling Commission can produce.
Not only that, we are suggesting more. There is a multimillion-pound, industry-funded safer gambling advertising campaign. That is not a small amount: it is £5 million to £7 million for two years running, which is a social advertising campaign equivalent to a big health campaign such as the Drink Drive campaign, which was remarkably successful. Further guidance on protecting children will be produced later this year. Guidance is important to enable people to do what we have asked them to do. GambleAware has commissioned significant research on the impact of marketing and advertising on children and young people. These things are designed to strengthen existing protections, so I am afraid that I reject the criticisms of the noble Lord, Lord Stevenson.
(7 years, 11 months ago)
Lords ChamberI beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as chairman of the Association of Leading Visitor Attractions.
My Lords, the Government recognise that tourism is vital to the UK economy. Tourism makes important contributions to local economies across the UK and is particularly significant in rural and coastal areas. In 2016, direct tourism GVA was estimated to be worth £66.1 billion to the UK economy, a 2.2% increase on 2015. The sector is predicted to grow at an annual rate of 3.8% through to 2025.
My Lords, last year’s tourism growth was four times greater than that of the overall economy. Tourism is now arguably the number one industry in more parliamentary constituencies than any other single industry, and future developments such as Diageo’s £150 million investment in its whisky distilleries’ visitor centres, the £28 million upgrade to Blackpool’s Winter Gardens and the £55 million master plan for the Royal Albert Hall will provide complementary boosts to design and construction industries and food and drink manufacturers.
In Northern Ireland, 8.5% of the total jobs are in tourism. Approximately 500,000 visitors cross the border from the Republic of Ireland annually, 30% of them visitors to Titanic Belfast. Does the Minister accept that any hard border would be a big no-no for Northern Ireland’s tourism?
My Lords, in her Mansion House speech, the PM made a commitment to avoid a hard border, which is important because 28% of all visits to Northern Ireland by residents from outside the island of Ireland arrived at a port or airport in Ireland. We understand that Northern Ireland’s visitor attractions, including the Titanic and the Giant’s Causeway, rely heavily on external visitors, many of whom travel across the border.
My Lords, may I ask the Minister a slightly shorter question? Is he aware of the contribution that heritage railways make to the tourist economy? On the latest estimate, it is somewhere between £250 million and £300 million a year, particularly in the coastal and rural areas to which he referred in his Answer. Could he please have a look at the Written Answer his noble friend Lord Henley gave me last week about the future supplies of coal, which are so important to steam railways, and give an assurance that, after 2023, coal supplies will continue to be available?
My Lords, I do not have specific figures on heritage railways, but I can assure the noble Lord that I shall not shunt his question into a siding and, with the help of my noble friend Lord Henley, I shall endeavour to smoke out the answer.
My Lords, tourism is the third or fourth largest export earner for the UK. Since we relaxed the tourism visa for the Chinese, we have more than doubled the number of Chinese people coming to the UK. Are we proposing to do the same thing for some of Africa and India?
My noble friend makes a good point. We have offered a two-year visa to the Chinese since 2016 for the same price as a six-month visa. This is a pilot scheme that is currently being evaluated, and we have no plans to stop that. However, until the pilot scheme has been evaluated, there are no plans to extend it.
My Lords, to build on what the noble Lord, Lord Popat, just said, the precise figure is £85 for a two-year multiple entry visa from China since 2016, whereas from India the figure is four times that, at nearly £350. With India being one of the fastest-growing economies in the world, and a huge number of tourists from India going abroad, we are losing out on those tourist visitors. Would the Minister agree with that? Secondly, the Government’s plan for Brexit is to do free trade deals around the world. Free trade deals are about movement of people. Without doing this, do the British Government think they will have a free trade deal with India? Dream on!
My Lords, I have not seen any evidence that the cost of visas has penalised tourism from India. Although visas are constantly being looked at by the Home Office, the tourism industry overall has gone from strength to strength, with year-on-year increases since 2012.
Does the Minister accept that the motor car is one of the greatest challenges to the tourist industry, and that we are not helped when railway companies, such as Northern, frequently cancel trains? Two weeks ago, 94 trains on the Lakes line into the Lake District were cancelled in a single week. Will the Government look at the possibility of forcing Northern Rail to run a proper service into the Lake District?
I agree that a proper service is important for tourism. One of our main problems at the moment is persuading tourists from outside the UK to go to places apart from London, which accounts for 58% of visits. It therefore follows that a proper transport infrastructure is essential to get visitors away from London to look at the benefits of our wonderful heritage.
My Lords, VisitBritain estimates that the UK will attract more than 40 million overseas visitors this year, following six years of record-breaking growth. However, the UK is losing market share because many of our competitors, particularly the major ones, are spending much more than us on promoting their countries abroad. Will the Government act to secure the long-term future of Britain’s tourism industry by including this vital sector in the modern industrial strategy?
Absolutely. That is why the tourism industry has brought its sector deal together. It is with BEIS at the moment and I believe the department will comment on it imminently.
My Lords, in my enthusiasm to ask my question, I omitted to declare my interest as president of the Heritage Railway Association.