The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)
My Lords, I hope this Bill will be welcomed across the House. I am excited to be moving the Second Reading of it, not for the operational details outlined but because of the beneficial effect the Games will have on Birmingham and the West Midlands, and because of the enthusiasm that has already been shown by many in the region.
The 2022 Commonwealth Games in Birmingham will be the biggest sporting and cultural event ever held in the city and the region, featuring thousands of world-class athletes and over 1 million spectators. With an estimated TV audience of 1.5 billion watching 11 days of action-packed competition, the Games will showcase Birmingham, the West Midlands and the entire country to the rest of the world as a destination for sport, business, leisure and education.
Of course, the Games are about more than just two weeks of sport. They will unlock opportunities for people across the region and the UK, delivering benefits and leaving a lasting physical legacy in the form of three major capital projects as well as transport infrastructure upgrades. They will bring wider opportunities, including cultural engagement, trade and business, tourism, volunteering, physical activity, jobs and skills and education. That is why the bid for the Games was underpinned by cross-party support at national and regional level.
I remind the House of the circumstances under which Birmingham was awarded the Games. In March 2017, following its inability to meet a number of hosting requirements, the Commonwealth Games Federation removed hosting rights from Durban. In December 2017, following a bidding process, Birmingham was awarded the right to host. This means delivering the Games in a truncated timeline of four and a half years rather than the more typical seven. I am delighted that the recent co-ordination commission, which met to review progress on Games preparations, expressed its confidence that partners would deliver a fantastic Games.
Delivering the Games at speed relies on effective and collaborative relationships with Games partners. It was in this spirit that partners worked closely together to identify the small number of temporary legislative measures included in the Bill. Noble Lords may recall that similar measures were provided for the 2012 London Olympics and Paralympics and the 2014 Commonwealth Games in Glasgow. I take this opportunity to remember the work of Baroness Jowell in preparing London for the Olympics. Of course, this is not the Olympics; the requirements for hosting the Commonwealth Games are different, and the narrow scope of the Bill reflects that.
I shall outline the main contents of the Bill. It provides a technical measure to ensure that financial assistance given to the organising committee continues to comply with spending rules set out by Her Majesty’s Treasury. The organising committee has been established as a non-departmental public body. It is subject to standard public sector controls, including a full management agreement. The Government have also committed to provide regular budgetary and financial updates to Parliament over the life cycle of the Games.
I am also pleased to be able to set out the agreed 2022 budget. Birmingham and the West Midlands will receive a £778 million investment to stage the Games. The public funding will be split approximately 75:25 between investment from central government and from Birmingham City Council and partners, setting a significant investment in Birmingham and the region that will deliver benefits for years to come.
The Bill also introduces measures, similar to those for London and Glasgow, to protect against unauthorised association with the Games. Securing commercial sponsorship is critical to staging a world-class event and managing public investment in the Games. This can be achieved only when the rights of sponsors are protected. By way of comparison, the Glasgow Games raised over £100 million in commercial revenue.
The Bill introduces a new civil offence which will ensure that only those authorised to associate with the Games, such as those who have contributed to the costs, may do so. This offence will apply only to those acting in the course of business. Association will be permitted only where an organisation has made the financial or other commitments required of an authorised business.
Importantly, enforcement must be sensible and proportionate. We recognise that residents, schools, faith and community groups want to show their support, so the organising committee is developing a “community brand” for use by not-for-profit organisations that share the Games’ vision and mission and want to proudly celebrate their community association. Information is key, which is why the Bill places a duty on the organising committee to produce guidance to ensure that people are clear about activity that may be an infringement.
We are determined to ensure that those who want to be a part of the Games can be, so the organising committee will put in place an accessible and affordable ticketing strategy. The Bill introduces a criminal offence for the unauthorised sale of Games tickets, ensuring that buying tickets will be clear, simple and affordable. This offence will apply to any unauthorised attempt to sell tickets, whether carried out in a public place, in the course of business, or for profit.
The Bill also creates offences for unauthorised advertising and trading. The restrictions on unauthorised trading will improve the spectator experience by ensuring that trading does not obstruct easy movement in the vicinity of Games locations, and the restrictions on unauthorised advertising will ensure that Games locations and their surrounding areas offer a consistent celebratory look and feel. These measures are proportionate and temporary. These restrictions can be in place for no more than 38 days; we will ensure that they take effect for the shortest possible time.
Regulations will be brought forward specifying when and where the advertising and trading provisions apply. This may differ by Games location to ensure that the restrictions are proportionate and apply only where necessary. We will also consult on whether further exceptions to the offences should apply.
There is a duty on the organising committee to produce guidance to support understanding of the provisions. Local authorities will be required to share this guidance with traders known to them who may be affected by the offence. Affected traders could also seek authorisation, free of charge, from the organising committee to continue trading or apply to the local authority for consent to trade on a street not specified in the regulations. Similarly, should an advertiser wish to carry out Games location advertising at a restricted time, it will be able to make an application, without cost, to the organising committee.
We provide a suite of powers to enable effective enforcement of these offences. These powers build on those already available to enforcement officers under the Consumer Rights Act 2015, ensuring that, where needed, swift and robust action can be taken. Work is already under way with the organising committee, police and local trading standards to ensure that any enforcement activity is proportionate. Experience demonstrates that the effect of these powers is mainly one of deterrence: we are not aware of any court cases for similar offences at Glasgow 2014 and only a small number of court cases in London for the ticketing offence.
Finally, key to a successful Games is ensuring that transport works efficiently for those living and working around Games locations, and those involved in the Games. The transport provisions in the Bill enable this. They set a statutory basis for the Games transport plan, which will be subject to public consultation later this year.
The measures also provide bespoke traffic regulatory powers, allowing short-term changes of road use—where needed—to ensure minimal disruption. Also included are powers for the Secretary of State to provide for concurrent regulation of road use by the person directed to prepare the transport plan, where they are not already a traffic authority, and provided there is agreement from the relevant local traffic authority. We believe that these powers facilitate co-ordination of Games transport planning. The Bill further provides a power of direction for the Secretary of State to safeguard the delivery of essential Games traffic-regulation measures. This would be used only if absolutely necessary.
I must make it clear that the organisers intend that any road regulation measures are kept to a minimum. Local residents and businesses will be kept closely informed of the proposals. Also, work is under way to deliver a clean and green Games supported by the delivery of new and accelerated infrastructure, additional services and effective use of the transport network.
I look forward to the comments and advice on improvements from noble Lords. I beg to move.
Lord Hunt of Kings Heath (Lab)
My Lords, I welcome the Bill and the Minister’s opening statement. In view of the remarks I will make on health and well-being, I declare an interest as a member of the advisory board of Sweatcoin, a healthy walking app.
It was a great day when the Commonwealth Games Federation selected Birmingham as the host city in 2022. Congratulations are due to Ian Ward, the leader of the city council, to Birmingham as a whole, and to partners such as Andy Street, Mayor of the West Midlands, the West Midlands Combined Authority, the department the Minister speaks for and Commonwealth Games England. This is a fantastic opportunity for Birmingham and the West Midlands, which we need to grasp enthusiastically and with both hands, as the Minister said. The sports that will feature are in themselves very interesting, and the Commonwealth Games’ track record of ensuring that the Paralympic Games have equity with the other Games is to be commended and will be continued in Birmingham. Living half a mile from Edgbaston cricket ground, I also know that women’s cricket is being considered for a place in the final list of games. I hope that the Minister will use his best offices to encourage such a decision.
Lord Hunt of Kings Heath
My Lords, the Minister’s powers of persuasion are remarkable.
My one item of concern is that noble Lords have found it very difficult to get any briefing from the city council, the mayor or the West Midlands Combined Authority. I suspect that they have been told by the Minister’s department not to provide briefing. This is a great pity. We should ask for the leader of the city council and Andy Street to brief Members before we reach Committee. I have never known a Bill affecting a sector on which we have not had formal briefing from the people concerned. Frankly, it is very disappointing that we had to beg the organising committee for the paucity of information that we have received. If this is going to be the approach in the future, it worries me—because, goodness knows, we are here to help the Games be as successful as possible.
There are only two issues I wish to raise. The first is funding and the second is the question of legacy. In relation to funding, today the Minister announced what I understand to be the final budget figures for the Games, and confirmed the split as 75:25. Can the Minister explain where financial liability lies for ensuring that that resource is spent wisely, and who is responsible if there is a cost overrun? Since the organising committee is, as I think he said, a non-departmental public body, I assume that its responsibilities are covered by the department. But what happens to the money that is to be provided through the city council? I would be grateful if the Minister could provide some information.
It will strike those of us in particular who have observed Olympic Games that clearly, because Birmingham was a late entry after the failure of the original bid on financial grounds, the financial liabilities are pretty huge. Even a city the size of Birmingham is particularly vulnerable in relation to its current financial situation. It is a fact that only a few months ago it faced warnings that hosting the Commonwealth Games could bankrupt the city; an audit report by Grant Thornton revealed an £84 million hole in its budget, at a time when vast sums of its emergency reserves had been spent. We know from newspaper cuttings that the West Midlands Combined Authority has said that the lack of a secure funding plan is:
“The most significant risk regarding the Commonwealth Games”.
I realise that that is partly in relation to the budgetary figure that the Minister has announced today, but it is in part based on the vulnerability of Birmingham City Council’s finances. It is reasonable for us to ask the Minister to spell out what he considers to be the impact on Birmingham City Council’s finances before your Lordships give the Bill their approval.
I turn to the legacy. Clearly, the Games are to be enjoyed in the moment—that is what they are all about—but legacy is important, too. It is not just the use of the stadia after the events but the environmental regeneration and, I hope to persuade the House, the health and well-being of the people of Birmingham and the West Midlands. We know that legacy was very important in relation to the London Olympics. They were a fantastic and very successful Games, and a lot of their legacy has been successfully undertaken. But, in relation to participation in sports and well-being, I do not think that the organisers have achieved what they set out to achieve. I really hope that we learn those lessons and translate them into a plan for Birmingham that will help us to make a real impact on people’s health and well-being.
Lord Ashton of Hyde
My Lords, I am grateful for all the suggestions and points that have been made by an intimidating mix of former Olympians, Brummies and local residents, politicians and former politicians with a lot more local knowledge than I have. I have not matched the noble Lord, Lord Griffiths, in trying to link my home town with Birmingham; Stow-on-the-Wold is not immediately connected with Birmingham but it is only an hour away.
I realise that I mentioned bipartisanship in my opening remarks. We have form on that; we arranged the First World War commemorations, which had a very successful outcome with a lot of support from all quarters, so I do not see why we cannot do that. I also noted that a number of issues were raised by noble Lords about Birmingham City Council. It is a bit of a tough ask for a Conservative Minister to defend a Labour city council, but I will take those issues on board and ensure that the communication referred to by the noble Lord, Lord Addington, improves—particularly now that the main communication will be with the organising committee, which will be responsible for producing these Games and spending the money wisely. I will come on to that in a minute.
The noble Lords, Lord Griffiths and Lord Addington, talked about engagement. There are now plenty of opportunities for that. There is an APPG for the Commonwealth Games, at a meeting of which the organising committee has already been present. We in DCMS are certainly happy to engage with any noble Lords and answer questions—let alone official Questions in Parliament, which I cannot avoid. The Government have already said that the organising committee will report to the Public Accounts Committee and the DCMS Committee. As an arm’s-length body, it will have to fulfil the normal annual reporting requirements on finances, ethnicity and diversity. So, there will be plenty of opportunities. The Minister for Sport is also available for noble Lords. Last and probably least, they can always ask me. We will be able to improve the level of information that all noble Lords receive. I know that the organising committee intends to have within it a parliamentary liaison organisation.
I agree with many noble Lords that a key theme is legacy. As I said in my opening remarks, that legacy is not just in sport; it is an economic legacy, a volunteering legacy and a cultural legacy—I am sure that there are others that I have forgotten. We understand that the legacy is critical. It is easy to talk just about the infrastructure legacy, which will be not insignificant, but we understand that there are more things to it.
Of course, we will have the Commonwealth Games village, a new aquatic centre—which is for diving as well as swimming—and a park that goes with it, all in an area which certainly needs them. There will be a quite a lot of transport upgrade, including upgrades to two railway stations and highway improvements in Perry Barr. I will make sure that those organising the transport bear in mind my noble friend Lady Berridge’s comments about people travelling east to west as well as north to south.
The Games will also require upwards of 45,000 organising committee staff, contractors and volunteers. The organising committee has already engaged with local companies on the economic opportunities, with the Birmingham 2022 portal already established as a one-stop shop to bid for Games contracts. In Glasgow, 76% of organising committee contracts went to local or regional companies and the Games there contributed more than £750 million to the Scottish economy.
Getting people engaged in exercise is important. If sport helps with that, that is great. Sport England is investing up to £100 million in 12 pilots looking at using sport to engage underrepresented and traditionally inactive groups. In February 2019, Birmingham and Solihull received nearly £10 million from Sport England as one of those pilots. The Active Communities project is designed to tackle inequality among older adults, women, young families and BAME people. I agree that that is a key legacy, albeit an extremely tough one to deliver—it has not necessarily been delivered in the past and certainly not in the last two cases.
The noble Lords, Lord Hunt and Lord Rooker, and others talked about briefing on the Bill. I can tell the noble Lord, Lord Hunt, that the organising committee will be able to call him this week and, as I have said, it will continue to do so.
So far as the budget and shortfalls are concerned, the Games partners, including DCMS, have oversight of the organising committee’s spending via the governance structure for the Games, including the organising committee’s own contracts committee and audit and risk committee, which includes DCMS-appointed board members. These provide an opportunity to influence spending decisions and obtain ongoing oversight of expenditure and value for money. The Government will also be able to scrutinise and, if necessary, block calls on contingency budgets. The noble Lords, Lord Hunt and Lord Rooker, also drew attention to difficulties with the financial position of Birmingham City Council. The council has said that its funding for the Games should not impact on day-to-day services and will not be met by increases in council tax. All the Games partners—including the council—are focused on ensuring that the Games deliver value for money. We will continue working very closely with the city council to look at how, with its partners, it can meet its commitment to financing the Games.
Birmingham City Council finally approved the budget in January. Since then, the overall budget has been passed by the major projects review board and the Treasury. The Minister or I will outline more detail about the budget in a Written Ministerial Statement. We may have to have a presentation or meeting with noble Lords to explain this in detail. Not only is the Games budget reasonably complicated but there is other government spending on infrastructure that will be used by the Games but is not part of the Games budget itself. It is not straightforward.
The athletes’ village will be built in Perry Barr with 1,400 homes, part of a larger development of 5,000 homes in due course. The village is being developed by Birmingham City Council, as part of its commitment to the Games. It will be responsible for the strategy for the housing, as one would expect a council to be, including the percentage provided as social housing. In response to the noble Baroness, Lady Burt, and the noble Lord, Lord Rooker, the council has told us that all homes will be built to the relevant building regulations standards for accessibility. There will be a mix of affordable, private rent and market-sale tenures. About 24% will be affordable housing. The noble Baroness asked about construction jobs and apprenticeships. The construction will provide at least 2,000 jobs, including 400 new jobs in construction and 50 apprenticeships during the construction period. As part of the social value commitments confirmed by Lendlease, the main contractor, at least 10,000 students will be supported across Birmingham. This will include mentoring, career advice, curriculum support, employability support and business projects. I will be happy to write to the noble Baroness on her other detailed construction and supply questions when we have talked to the Games partners.
My noble friend Lady Berridge talked about the wider aspects of the Games around the Commonwealth and the chance to promote equality and diversity in the “youngest city in Europe”. The organising committee recognises that diversity and equality must be embedded in its organisational culture. This can be achieved only by ensuring that the best possible people are selected through a fair and transparent recruitment process. The organising committee encourages applications from a diverse range of backgrounds. In particular, work is progressing with the Department for Education and the Department for Work and Pensions to ensure that opportunities are targeted at underrepresented groups. As I said, as a non-departmental public body of DCMS, the organising committee is required to report annually on equality and diversity. The noble Baroness also asked me to nudge the right reverend Prelate the Bishop of Birmingham on a scheme. I will do my best to nudge the right reverend Prelate, assuming that that is within the rules of the House. He attended the meeting I had, so I will bear it in mind to keep in close touch with him.
The noble Lord, Lord Rooker, warned us that oversight and governance need close attention. I agree. It is a tight schedule and we are aware of the need to get value for the public money being spent. The Games delivery programme is overseen and managed through an integrated governance structure that involves all the Games partners, including DCMS, Birmingham City Council, the organising committee, the Commonwealth Games Federation, Commonwealth Games England, West Midlands Police and the West Midlands Combined Authority. As I say, we will pay close attention to that.
The noble Lord, Lord Snape, mentioned the appointment of Nick Timothy as one of the non-executives. I think he used the expression “jobs for the boys”. All the non-executive director appointments made by the Secretary of State complied with the Governance Code on Public Appointments and were therefore open and transparent. They were assessed by an advisory assessment panel, so it was not just the Secretary of State. They were subject to the same selection process and were assessed against criteria published in the role specification. Nick Timothy, as the noble Lord may know, is a true Brummie and has a great and deep interest in and love of the city. I am sure he will put a lot of work and effort into his role on the organising committee.
Lord Snape
I am sure that everything the Minister said about Mr Nick Timothy is correct. Does he agree, though, that although I am not a native Brummie, I have a great love of the city too, yet no one has asked me to be a non-executive director of this organisation? Does he think the fact that Mr Timothy, like the mayor, Mr Andy Street, and the mayor’s principal adviser, Mr Andrew Browning, went to King Edward’s School, which currently charges £13,320 per year, has anything to do with his appointment?
Lord Ashton of Hyde
It is a bit difficult for me, as an old Etonian, to comment on that. I really do not think it has anything to do with it, but I may be biased. All I can say is that it was a proper and sensible appointment process. I am sorry that the noble Lord was not asked to apply but, of course, he could have applied himself and I am sure his application would have been treated with all the seriousness it deserves.
Lord Snape
One of the reasons I do not get old Etonians, of course, is that I do not share their sense of humour.
Lord Ashton of Hyde
Not everyone does, I agree.
My noble friend Lord Moynihan talked about delegated powers and the report from the DPRRC. We look forward to receiving that report fairly shortly, I believe. We have learned from the experience of the London Olympics Act and have sought to ensure that the delegated powers in the Bill are as narrow as possible. We have included things in the Bill not included in the 2006 Act. There are no Henry VIII powers. Those that have been included are limited to matters that cannot be determined until the detailed operational planning for the Games is further advanced, or when further consultation is needed. For example, what it means to be,
“in, or in the vicinity of”,
a Games location will depend on the Games schedule, which will not be known until much closer to Games time. Regulations about time periods and Games locations may need to be quickly amended in the event of a change in a competition venue. I look forward to discussing the detail of the individual clauses with my noble friend and other noble Lords in Committee. I think it will be useful to wait until we get the DPRRC report to see what it advises on that, but I do not foresee any particularly serious problems.
The noble Lord also asked why we are not extending the offence of ticket touting to other major sporting and cultural events. We have had this debate over a number of years, and I have debated it personally with my noble friend Lord Moynihan. At the moment we think there is a role for a responsible secondary ticketing market which allows consumers to make informed choices. That is why we do not want to impose a blanket ban on the resale of tickets for all major sporting or cultural events, but I accept that there is a debate to be had on that. These provisions, however, are designed to protect the integrity of the Commonwealth Games and reflect the uniqueness of a multi-sport event which, unlike most sporting events, is underpinned by significant public investment. That is why we have decided to ban it for this event. That is also why similar provisions were enacted for the London Olympic and Paralympic Games and the Glasgow Commonwealth Games. As I say, I am sure that we can discuss that in Committee if necessary.
The noble Lord also mentioned shooting—I believe on behalf of the noble Lord, Lord Bilimoria—and its exclusion from the sports programme. That is not directly connected to the powers in this Bill, but is worth mentioning because it is important to those who are keen on it. The key criteria were set, written submissions invited and presentations made to the assessment panel for each sport. Those included financial considerations, the availability of suitable venues, the potential for additional revenue generation and alignment with the CGF constitution and the objectives of Games partners. Those submissions were evaluated and a report then presented to the Birmingham 2022 organising committee board. The decision it made now goes to the Commonwealth Games Federation’s membership, where the ultimate decision lies. It is worth pointing out that shooting was offered the opportunity to transfer, with a suggestion that some of those events could take place in the West Midlands area, but the offer was declined.
The noble Lord, Lord Grocott, talked about budget governance. As I said, the figure today is a headline figure; I will let your Lordships know more detail when it is available. Overall, the governance is broadly as follows: the police oversee security, with the chief constable of the West Midlands having overall operational control of that—he will liaise and use national security agencies as well, but has overall responsibility; the organising committee is responsible for delivering the Games; and Birmingham City Council is responsible for overseeing the capital projects.
There will be more detail to go through in Committee and later. I repeat my offer: my department is happy to answer specific questions in more detail if anyone wants. I hope that will enable noble Lords to support this operational Bill, which, as we approach three years to go next month, is an essential milestone in the preparation for the Games. I look forward to working closely with all noble Lords as the Bill progresses through this House and I commend the Bill.