Olympic and Paralympic Legacy Committee

Baroness Wheatcroft Excerpts

Wednesday 19th March 2014 Lords Chamber

[Baroness Wheatcroft (Con)]

My Lords, there are many speakers here this evening better equipped than I to talk about the sporting legacy of the Olympics. I was a member of the committee and it was a very enjoyable experience, as others have said, helped by a very able chairman and a back-up team who were excellent. I think it better if I restrict myself to some aspects of the broader legacy, particularly in employment, skills and trade.

The Olympics demonstrated that Britain is indeed Great and gave credence globally to the campaign being run by the Department for Business, Innovation and Skills to market this country and what we can do. However, parts of Britain are not in some ways as great as others. Unemployment in the host boroughs was, as we have heard, prior to the Olympics some of the highest in the region. The massive project of the Games and the regeneration programme has improved the situation a little, but not enough. There is a continuing challenge to ensure that the boroughs get the new jobs that they need.

The Stratford City development as a whole is due to create 30,000 new jobs. Westfield at Stratford has already created 10,000 jobs and of those, a third went to local people who were previously long-term unemployed. There are those who carp that the Westfield shopping centre was going to go ahead, come what may, but it certainly happened sooner than it would have done without the Olympics and, for those who are working there, time of course is money. Meanwhile, of the people now employed at the Copper Box—the first venue on the Olympic park to reopen to the public and a wonderful facility for local people and schools—more than 90 per cent are local. Admittedly, this is a small number but the principle is encouraging. Equally encouraging is that the Copper Box is being run by a social enterprise and that several other businesses now operating within the Olympic park are social enterprises, giving people who work there not just a job but a sense of ownership.

At iCITY, which was the communications hub during the Olympics and Paralympics, tenants are being asked to have a quota of jobs for local people. This is a particularly exciting prospect because iCITY is to be home to some of the digital and communications businesses that are the future of this country—the real engines of growth. As your Lordships have heard, we were lucky enough to go along and visit the BT Sport centre. We saw the state-of-the-art studios that it has built in what was the communications centre during the Olympics. The studios are fantastic and were opened in record time, and they are taking on local people as well. New jobs are being created down there and yet the evidence we heard indicated that there was a degree of doubt, verging on cynicism, about whether the upsurge in job opportunities that is part of the Olympic legacy would benefit the local people.

The noble Lord, Lord Best, pointed out some of the reasons that that might be. One can sympathise with the belief that in getting the stadia ready and finished on time for the Olympics, getting there on time was more of a priority than training locals in the skills needed to create the buildings. However, there are now signs that that is changing. The legacy corporation is already working with local jobs brokerages but we recommended that people needed to be skilled up and that there should be a concerted effort by the Mayor, the host boroughs and employers to invest in developing a construction skills programme. There seems to have been great progress on this front and, as my noble friend Lord Stoneham pointed out, it is great news that not one but two university technical colleges are being built in east London to provide vocational training to lead 14 to 19 year-olds into careers in the construction and engineering fields.

We heard wonderfully cheering news today on the jobs front generally, with the Budget speech revealing that youth unemployment has been falling faster than at any time since 1997. That may, in part, be part of the Olympic legacy but we also heard about the Government’s determination to help businesses flourish and drive exports. There are some businesses which had hoped that their involvement in the Olympics would provide them with a major advantage in winning future contracts, but which have been disappointed. The Olympics provided a fantastic showcase for what Britain could deliver and UK Trade & Investment has done—and continues to do—a great deal to help many of those companies, big and small, that were involved in the 2012 Games. This was the first time that the International Olympic Committee had been persuaded to allow a supplier recognition scheme, which has allowed more than 770 companies to gain official recognition for their contribution to the Games and use it to promote themselves.

It is no fault of the Government that there are many other businesses which are precluded from taking this route. Many of them are in the creative industries, where the UK excels. According to PLASA, the trade association for the professional entertainment technology industry, some of the companies that were responsible for developing the most memorable moments in the opening and closing ceremonies, including the iconic Olympic rings, cannot boast about the fact that they were there and they did it. The reason is that the supplier recognition scheme is limited by the draconian Olympic no marketing rights protocol. The protocol is intended to protect the giants who are the major sponsors of the Olympics, so companies are excluded from the supplier recognition scheme if they are involved in—it is a broad-brush approach—audio, video and audio-visual equipment.

Our committee recommended that the Government should work with the British Olympic Association and suppliers to narrow the list of exclusions. The Government’s response to our recommendation was somewhat disappointing, albeit perhaps realistic. They said:

“There is no scope for changing these categories”.

While I acknowledge that the IOC is not always prepared to compromise—perhaps that is putting it mildly—it is surely worth encouraging the British Olympic Association to press further on this point. To put massive handicaps on David in order to protect Goliath seems to lack a bit of the Olympic spirit.

Let me give you just one example of how these broad-brush restrictions work in practice. Baldwin Boxall is an innovative business which provided the London Olympic stadium with a special voice communication system that would help disabled people in the event of an emergency, particularly a fire. It is for use in emergencies only. The system does not broadcast. Yet the company has been unable to use its involvement to market what it did in 2012 to help it pitch for Sochi or Rio. The reason is that Panasonic and Samsung are among the sponsors who need to be protected. Baldwin Boxall is an innovative business, but it employs just 45 people and has a turnover of around £5 million. Does Panasonic, with around 300,000 employees and revenue last year of $76 billion have anything to fear from Baldwin Boxall? Should Samsung, with 427,000 employees and revenue last year of not £5 million but $269 billion be frightened by the little company from the Wealden Industrial Estate in Crowborough?

Companies such as this helped the UK deliver a superb Games. They ought to be able to reap the rewards and, in so doing, they ought to be helping to boost British exports. The British Olympic Association surely needs to do better in battling for the little guys against the protectionism of the IOC.