Gambling Industry: Gambling Reforms

Lord Parkinson of Whitley Bay Excerpts

Tuesday 17th May 2022 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as chairman of Peers for Gambling Reform.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, without speculating on our ongoing review, gambling duties are based on gross gambling yield. Any changes which reduced industry revenue would lower tax receipts. Conversely, changes which reduce harm could cut costs to the Government and some displaced spending would likely go to other sectors that pay tax. We will publish our White Paper in the coming weeks.

[Lord Foster of Bath (LD)]

I am grateful to the Minister for his response. I am sure he will be aware that some £5 billion of gambling companies’ annual profits tends to come from people with gambling problems or those who are in danger of having them, costing lives and increasing the cost to the NHS. Reducing gambling harm would reduce NHS costs and, with spending displaced from gambling to more labour-intensive sectors, create up to 30,000 additional jobs and increase the funding going into the Treasury coffers, as demonstrated by the NERA report. Does the Minister accept that it is possible to reduce gambling harm and have a stronger economy by doing so?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that tackling problem gambling is good not just for the people affected by it but for the services which treat it. We are also aware that there is a black market in gambling and that problem gamblers may be liable to continue their problem gambling in that area. We are considering both these things as part of our review of the 2005 Act.

[Lord Wigley (PC)]

My Lords, does the Minister accept that I am not the only one in this House who is heartily sick to death of being force-fed gambling adverts before virtually any sporting event carried on commercial television? If there is a role for punitive taxation, it is surely to reduce this level of intrusive advertising, which hits particularly at young people.

[Lord Parkinson of Whitley Bay (Con)]

We called for evidence on advertising as part of our review of the Act. Many people share the noble Lord’s frustrations. Public Health England’s evidence review did not find evidence that exposure to advertising and marketing was a risk factor for harmful gambling, but we are looking at all these issues as part of our review.

[Viscount Colville of Culross (CB)]

My Lords, under UK legislation the definition of gambling is tightly drawn. It excludes increasingly popular mobile phone apps such as social casino apps, which require money to get players started and, once they are hooked, they are given tokens within the game. Does the Minister agree that extending the definition would also lead to an extension of the gambling tax?

[Lord Parkinson of Whitley Bay (Con)]

As the noble Viscount knows, we have looked also at the harms associated with online gambling. Indeed, while awaiting the White Paper and the outcome of our review, we have strengthened the rules on how online operators identify and interact with people at risk of harm. We are not delaying in taking action where that is needed.

[Lord Bassam of Brighton (Lab)]

My Lords, so far as we are concerned the Government continue to drag their feet on reforming gambling regulation, with reports suggesting that the White Paper has been delayed yet again. Gambling firms pay a significant amount in tax and there is a balance to be struck—we all like a flutter. However, with the Exchequer ultimately responsible for the significant costs of problem gambling, it is right that regulatory and fiscal arrangements are reviewed. Does the Minister believe it is right for firms such as bet365 to argue against proposals for a statutory levy while its boss takes home a salary of £250 million a year and £97.5 million in dividend payments?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, we have sought views from all interested parties as part of our review of the Act, including the industry, which is taking action in some areas. We are happy to engage with people on both sides of the argument. We called for evidence on the best way to recoup the regulatory and societal costs of gambling, which includes looking at a levy, and we will set out our conclusions in the White Paper.

[Baroness Neville-Rolfe (Con)]

My Lords, as a member of the APPG on racing, can I ask my noble friend how the new framework that he is considering will support our popular UK racing industry? Can he ensure that it competes with the Republic of Ireland and France, where the prize money at the bottom end is much better than in the UK?

[Lord Parkinson of Whitley Bay (Con)]

We are certainly aware of the close relationship between racing and betting. As the noble Lord, Lord Bassam, rightly said, many people enjoy a flutter and do so without risk of harm. The main area of concern we are hearing from the racing industry is about affordability checks. These are important but must also be proportionate, and we are carefully considering the impact of all our proposals as part of the review.

[Lord Austin of Dudley (Non-Afl)]

My Lords, the vast majority of people gamble responsibly, and their harmless pastime supports 120,000 jobs in an industry paying £4.5 billion in tax and contributing £7.7 billion to the economy, so of course the Minister has got to consider the impact that new legislation might have on the public finances. While one problem gambler is one too many, should it not also be borne in mind that official Gambling Commission figures show that problem gambling has fallen to just 0.2% of the adult population, half the rate of the previous year?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right: 40% of people gamble at least once a year, and if you also include people who only play the National Lottery then most people gamble. Most suffer no ill-effects from a pastime that they enjoy and brings benefits to the economy. However, we are also determined to tackle problem gambling and the misery it causes to many lives, and that is the balance we are trying to strike through our review.

[Lord Sikka (Lab)]

My Lords, the majority of the online servers on which British people gamble are located in offshore tax havens. This means that profits from sales in the UK are booked elsewhere and not taxed in the UK at all. Can the Minister provide an estimate of UK corporation tax lost as a result of these arrangements?

[Lord Parkinson of Whitley Bay (Con)]

I will not hazard such an estimate from the Dispatch Box, but in 2014 we amended the Gambling Act to introduce a point-of-consumption regulatory regime. Since then, every gambling firm which transacts with customers in Great Britain has to have a licence from the Gambling Commission, comply with licence conditions and pay duties on their earnings in this country.

[Lord Alton of Liverpool (CB)]

The Minister has given a number of figures to the House, as have other noble Lords, but will he confirm that Public Health England, in its report of last September, put a figure of £1.2 billion on what it estimated to be the financial cost of problem gambling? It also emphasised suicide, mental health and all the other factors that come into play. Will he return to the question of the noble Lord, Lord Wigley, about aggressive advertising? What does he think the point of advertising is if it is not to influence people?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

The point of advertising is to influence people and sometimes it is from gambling companies encouraging people who are not problem gamblers to gamble with them rather than their competitors, which is a legitimate activity. The noble Lord is right to point to the individual levels at which harms can be committed: one suicide is too many. We want to tackle problem gambling and that is part of the review of the Act.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, further to the question that has just been asked, would the Minister agree that this issue of advertising is not limited, although it is obviously a problem, to sporting programming? It is all over the place and is particularly evident on the catch-up services, where anyone can use the service—it is not age appropriate in any way. There is no question that the advertising is extremely aggressive and extremely seductive. The evidence that the noble Lord referred to from PHE is frankly quite counter- intuitive. Could the Minister tell us a bit more about what the Government intend to do about this?

[Lord Parkinson of Whitley Bay (Con)]

Awaiting the outcome of our review, we have updated the gambling advertising code to ban adverts with a strong appeal to children, such as those involving Premier League footballers and other sports stars. We are very alert to the impacts of advertising on different groups, and will not hesitate to take action to rule out harmful practices. By calling for evidence on advertising as part of the review, we can keep abreast of the problem and come forward with appropriate proposals where needed.

[Lord McNally (LD)]

My Lords, the noble Lord, Lord Bassam of Brighton, drew attention to the fact that one of the Select Committee’s recommendations was a statutory levy on gambling. How much is that still on the Government’s agenda? When bringing any proposals forward on that, will the Minister remember that the smaller, harmless end of gambling such as seaside entertainments would be hit by a punitive levy? Such a levy should be polluter pays and not on the smaller, more harmless end of gambling. I say this as Lord McNally of Blackpool.

[Lord Parkinson of Whitley Bay (Con)]

And I reply as Lord Parkinson of Whitley Bay. I am very alert to the important role played by slot machines at the seaside. We are looking at this area. We have been clear for a number of years that, if the existing system of taxation and voluntary contributions does not deliver what is needed, we would look at a number of options for reform, including a statutory levy. We will set out our conclusions in the White Paper.

Gambling Harm (Social and Economic Impact of the Gambling Industry Committee Report)

Lord Parkinson of Whitley Bay Excerpts

Wednesday 27th April 2022 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I thank all the members of your Lordships’ Select Committee for the thorough and diligent work which led to the report before us today. I hope that does not sound self-congratulatory given that, as has been noted, I had the privilege of serving on the Select Committee, albeit for a limited period. It gave me a deeper appreciation and understanding and the opportunity to hear directly from not just those working in the industry but those whose lives have been affected by problem gambling. It has informed my thinking and approach to the issue, which we have discussed many times since I have had the privilege of speaking from this position. My time on the committee also means that I can congratulate from personal experience my noble friend Lord Grade on his expert chairing of the committee and thank all the staff and witnesses who contributed to its work, as well as all noble Lords who sat on the committee.

Peers for Gambling Reform has been especially well represented today, as it often is when we discuss this issue, but I know that gambling reform is a priority for many people across your Lordships’ House, whether they are a member of that group or not. Indeed, it is a priority for Her Majesty’s Government as well, and it is clear that change is needed to respond to risks and capitalise on the opportunities which have emerged in the 17 years since the Gambling Act 2005 was passed.

As my noble friend Lord Grade and others highlighted, many people enjoy gambling and do so without harm, but technology has very clearly transformed where, when and how people gamble as well as what they gamble on. We have heard some powerful examples in today’s debate. While it is certainly true that the Act gives broad powers to the regulator, the time is right for the Government to take a wide-ranging look at the evidence for change. That is why we have been carrying out a review across many aspects of the regulatory framework to make sure that our law and regulation are right, particularly for the digital age.

Evidence is an important point and one that has been echoed in many noble Lords’ contributions today. Throughout our review we have looked to consider the best available and highest-quality evidence. As part of that, we have looked at the extensive oral and written evidence received and published by your Lordships’ Select Committee. We are again grateful to the committee and its clerks for having put together such a wide-ranging evidence base. We have been able to consider it alongside the 16,000 submissions to our call for evidence last year, as well as the hundreds of stakeholder meetings which Ministers and officials have held and other sources.

I now turn to the recommendations in the report. Clearly, many of the more than 50 recommendations are within the scope of the review of the Gambling Act and are being considered through that process. The noble Baroness, Lady Bakewell of Hardington Mandeville, was glad that we are having today’s debate shortly before the publication of the White Paper, but unfortunately it means that I will disappoint but not surprise my noble friend Lord Grade when I must say that I cannot pre-empt everything that the review will conclude and the publication of our White Paper, which will be in the coming weeks.

However, the report of your Lordships’ Select Committee identified a number of areas for action in which we, working together with the Gambling Commission and others, have made significant progress since it was published. A key priority for the Select Committee was rightly the protection of online gamblers. It was while the committee’s report was being finalised that the Government took the important steps of banning the use of credit cards for online gambling and mandating integration with the national online self-exclusion scheme. Self-excluded customers cannot log into their gambling accounts and must not be contacted by operators. If they are, the operators have clearly breached the rules and will face enforcement action by the Gambling Commission.

A few months after the committee’s report, in October 2020, the Gambling Commission brought in significant new rules on VIP schemes to tackle many of the risks identified in the Select Committee’s report. There are now tough checks to make sure that customers on such schemes are not being harmed and that they can afford their losses. Personal management licence holders are now individually accountable for the schemes and, as the report recommended, the rules are clear that incentives for relationship management staff should not be based on customer losses. These measures have led to a reported 70% reduction in the number of customers on such schemes, but we are none the less looking at the issue again through our review to ensure the right mitigations are in place.

There was also significant progress last year to make online slot games safer by design, the need for which was underlined by the speech of the noble Viscount, Lord Colville of Culross. Features that make games more intense or that give a player the illusion of control have been banned. These include slam stops, turbo boosts and auto-play. Also banned were losses disguised as wins, which can give players a false idea of their gambling success. As your Lordships’ committee recommended, online slots have had their spin speeds equalised with the land-based equivalents in bookmakers, bingo premises and casinos. We are exploring whether further controls are needed through our review.

The committee’s report rightly recognised that customer data can be key to protecting online gamblers at risk of harm, and progress has been made here too. Earlier this month, the Gambling Commission announced new measures on customer interaction to make sure that operators use the wealth of data they hold effectively to identify and intervene with people at risk of harm. It is bringing in new requirements on markers of harm, which operators have to monitor, the automatic nature of interventions, and evaluating the impact of customer interactions. These new protections will improve the standard and consistency of how online operators protect their customers, and leave no room for excuses for failure in this regard.

My noble friend Lord Grade and others spoke of data sharing between operators, which has great potential within the array of tools that form harm-prevention measures, as online gamblers have an average of three accounts. Significant progress is being made in this area, driven by the Gambling Commission, which has worked with industry and others such as the Information Commissioner’s Office. The Betting and Gaming Council is currently leading a pilot, with GAMSTOP as the delivery partner, which has been accepted into the ICO sandbox process for real-world trials. This will make sure that there is close scrutiny from both the data and gambling regulators as the system is developed and refined, and that the system is used only for harm prevention, never for commercial objectives.

A further protection the committee highlighted was transaction blocks offered by financial services firms to customers who do not want to be able to gamble. I am pleased that around 90% of current accounts now offer this service, as do other payment service providers such as PayPal. Many of these have followed the gold standard by including a cooling-off period of at least 48 hours.

Many noble Lords touched on advertising in their speeches. The report made several recommendations on advertising, many of which have been mentioned. This is a complex area, as the contributions from the noble Lord, Lord Layard, and the noble Baroness, Lady Fox of Buckley, perhaps exemplify. Advertising can help reputable companies to differentiate themselves from the black market, the dangers of which were powerfully outlined in the contribution from my noble friend Lord Astor. We deliberately called for evidence on advertising and sponsorship in our review, so that we can look at this area properly. We will set out our conclusions in the White Paper but, as I was pressed on this by the noble Baroness, Lady Merron, I will highlight the recent changes made by the Committee of Advertising Practice, which will help to protect young people from gambling-related harm.

Earlier this month, that committee announced that content with strong appeal to children will be banned from gambling adverts. This responds to research on the topic commissioned by GambleAware, which showed the impact that certain aspects of gambling advertising can have on young people, in particular depictions of the association between football and gambling.

Children’s exposure to gambling advertising has declined over recent years but, in the Gambling Commission’s survey of 2020, some 58% still said they had seen gambling advertising or sponsorships. The new rules will help mean that, if children do see adverts, these adverts will be less appealing to them. The use of prominent celebrities such as Premier League footballers will be banned, as will the use of influencers associated with youth culture.

This is not the only action we have taken to protect children and young people. A few months after the Select Committee’s report and in line with its recommendations, we announced that we would increase the minimum age to participate in the National Lottery to 18. That change came into effect early last year. Through the review of the Act, we are looking at whether other products, such as society lotteries, should have their age limits raised as well. A significant number of operators have already made the change voluntarily.

Additionally, your Lordships’ committee made recommendations about education. I am pleased that, shortly after the report’s publication, the risks associated with gambling, including the accumulation of debt, were added to the relationships, sex and health education curriculum for all secondary school pupils—reflecting a point raised by my noble friend Lord Kirkham. As the report envisaged, Ofsted has a role here and its school inspection handbook sets out that inspectors will consider the provision of such education as part of a wider judgment of pupils’ personal development.

A further recommendation with particular relevance to children was in regard to loot boxes in video games—a point made by the noble Viscount, Lord Colville, and a number of other Peers. We launched a bespoke call for evidence on loot boxes and received more than 30,000 responses, which we are considering carefully. We will publish a response to that soon.

Recommendations about the regulator were prominent in the report and have featured heavily in the debate today. Of course, the Gambling Commission’s powers and resources are being thoroughly examined through the review, but I would like to highlight some of the action we have taken. For example, from October last year we increased the fees that the commission charges operators. This is projected to increase its resources by about £5 million per year, or 25%. It will help it to tackle some of the challenges that continual innovation in the gambling sector has presented.

Similarly, like your Lordships’ committee, the commission has now formally recognised the value of listening to people with personal experience of gambling-related harms. It has appointed a lived experience advisory panel, which feeds into decision-making and any advice the regulator provides to government.

A key recommendation in the report was that fines issued by the commission should reflect the seriousness of the offence and the size of the offender. I am pleased that since the revamping of its enforcement strategy, the commission has continued to take increasingly robust action against operators that breach the rules. In the last financial year, operators paid more than £20 million in penalty packages as a result of regulatory failures.

I will also touch on the recommendations regarding research, where there is some progress to report. As the committee recognised, and as the right reverend Prelate the Bishop of St Albans and others mentioned, good evidence on gambling participation and the prevalence of harm is essential to informing policy. I am pleased that the commission is making progress with work on a new approach to collecting participation and prevalence data. This will make sure that we have timely, accurate and robust data. It will improve on the current system of gold-standard but infrequent health surveys and the regular telephone surveys by the commission, which use shorter problem gambling screening. A number of key pieces of research have also been published since your Lordships’ report, along with the Public Health England evidence review of gambling-related harms, which we have heard cited in our debates on many occasions.

The right reverend Prelate the Bishop of St Albans, my noble friend Lord Bourne of Aberystwyth, the noble Baroness, Lady Bakewell of Hardington Mandeville, and others referred to proposals for a levy on the industry to fund the costs of treatment and research. We called for evidence on the best way to recoup the regulatory and societal costs of gambling. We have also been clear that if the existing system fails to deliver what is needed, we will look at a number of options for change, including a statutory levy. We will set out our conclusions in the White Paper.

The noble Baroness, Lady Bennett of Manor Castle, talked about the place-based impact of problem gambling and the clustering of betting shops in certain parts of the country. Local authorities already have a range of powers under the planning system, and as licensing authorities under the Gambling Act, to grant or reject applications for gambling premises in their areas. We have also been looking at the powers that local authorities and other licensing authorities have in relation to gambling premises licences as part of our review.

My noble friends Lord Smith of Hindhead and Lord Astor spoke about the National Lottery. Since its launch in 1994, it has contributed more than £45 billion to good causes, supporting more than 660,000 projects up and down the UK. National Lottery legislation imposes a duty on the Government and the Gambling Commission to ensure that the interests of all those who participate in the National Lottery are protected. The lottery operator is held to account for doing so and must have controls in place to stop underage players and to prevent excessive play. Evidence from the latest Health Survey for England in 2018 shows that National Lottery games were associated with the lowest rates of problem gambling of all gambling products considered.

The noble Lord, Lord Trevethin and Oaksey, and my noble friend Lord Astor spoke about the horseracing industry, and we are certainly aware of the long and close relationship between horseracing and betting. The main area of concern from the racing industry is in relation to affordability checks. As I said, these are important but must also be proportionate. We are carefully considering the impact of all our proposals.

Finally, the noble Lord, Lord Foster of Bath, asked about the work we are doing with the Department of Health and Social Care in preparing the review of the Gambling Act. We have worked closely with the Department of Health and Social Care and other departments throughout the review to consider the links between gambling policy and their remits. As ever, the White Paper will be agreed across government in the normal way, but I can confirm that the Department of Health and Social Care has been involved in its preparation.

The Government made their formal response to the Select Committee’s report in December 2020. None the less, today’s debate on its conclusions remains important and timely, especially given that we will publish our White Paper soon. Like the members of your Lordships’ Select Committee, many of whom I am pleased to have heard speaking today, I recognise that we in government have an important responsibility to get that reform right. We need to strike the right balance between protecting people from gambling harm and respecting the freedom of adults who gamble as a leisure activity. I also recognise and agree with the sentiment widely expressed today that we must take action as swiftly as possible where we can; clearly, not every reform measure will need primary legislation. Following the publication of the White Paper, we will work with the Gambling Commission, and others as needed, to make the necessary changes as swiftly as we can.

I am sure that we will continue this debate following the publication of the White Paper and on many other occasions, but I am very glad to have had the opportunity to debate this issue again today. I congratulate my noble friend Lord Grade and all the members of the Select Committee on their work in informing this important debate.

English Football: Independent Regulator

Lord Parkinson of Whitley Bay Excerpts

Monday 25th April 2022 Lords Chamber

[Lord Ravensdale]

To ask Her Majesty’s Government when they plan to introduce legislation to create an independent regulator for English football.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Government have endorsed the principle that football requires a strong independent regulator to secure the future of our national game. I am pleased to say that we will publish the government response later today, where we will set out plans to reform radically the governance of men’s football in England, accepting the 10 strategic recommendations of the fan-led review. Any legislation required to put an independent regulator on a statutory footing is of course subject to parliamentary time.

[Lord Ravensdale (CB)]

My Lords, as a supporter of Derby County Football Club, who as a team have shown tremendous spirit again adversity in the past months, I followed the fan-led review closely. Does the Minister accept that the time to legislate for an independent regulator is now, in the forthcoming Queen’s Speech? Further delays will add to the risk that the proposals will be watered down or simply not happen. What plans do the Government have to introduce a shadow regulator before legislation takes effect, which was also one of the key recommendations in the fan-led review?

[Lord Parkinson of Whitley Bay (Con)]

As the noble Lord will know, the Government continue to engage closely with the English Football League about Derby County Football Club. Speaking so close to the gracious Speech, I hope that he will forgive me if I do not anticipate that, but the full government response to the fan-led review—which the Government commissioned —is published this afternoon. We have accepted all 10 of the strategic recommendations put forward by Tracey Crouch and the review. My honourable friend the Sports Minister will be setting out further detail in another place.

[Lord Austin of Dudley (Non-Afl)]

My Lords, as a supporter of Aston Villa, who beat Derby County to return to Premier League three years ago, I tell the House that the Premier League has accepted the need for reform of football. Can the Government therefore reassure the House that nothing will be implemented that could damage the global success of the Premier League and, in so doing, undermine the rest of the football pyramid?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord makes an important point. We want to make sure that those who generously invest in football are able to continue to do so, and to make sure that this investment flows right down the football pyramid so that it can be enjoyed by people, because football clubs are important to their local communities, as noble Lords know. We think that the owner and director test needs to be looked at, but we want to encourage investment across the whole of football.

[Lord Flight (Con)]

My Lords, does the Minister accept that history demonstrates the need for tough regulation? I am slightly worried about the wording here, which refers to creating an “independent regulator”. We need something stronger.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the independence of the regulator is an important aspect of its work. The Government see the two key problems in English football as the significant risk of financial failure and the risk of harm to the cultural heritage of clubs. That is why we agree with the recommendations of the fan-led review and are setting out our details in another place.

[Lord Woodley (Lab)]

My Lords, today’s announcement on football governance is of course a very welcome step forward. Fans, when you talk to us all, are demanding more than just consultation about club colours and stadiums. It is the day-to-day running and ownership of clubs that makes a difference to fans’ real involvement, as with their counterparts in Germany, for example. Therefore, can the Minister give assurance that this first step is not the last, and that fans will at long last have real input and a say in the running of their clubs in their communities? As already mentioned, can he explain why we need a White Paper or another consultation when Tracey Crouch has already consulted so widely? The last thing that football needs is more dilly-dallying and delays on this really important matter for fans and clubs.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that the voices of fans need to be heard clearly. That is why this was a fan-led review and why we are grateful for all those who participated and gave their thoughts. The issues highlighted in the review are, in some areas, complex and the reforms need careful analysis to make sure that we get them right and safeguard the sustainable long-term future of the sector. My honourable friend the Sport Minister will set out further detail in another place.

[Lord Addington (LD)]

My Lords, does the Minister agree that all professional sport has had problems? Community-based clubs representing us nationally in both forms of rugby, for example, have come under pressure and indeed collapsed or had to be reconstituted. Will the Government use this example as a way of making sure that all sports are better regulated? If they become successful, they become community assets, and all deserve to be looked after.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord makes an important point. There are lessons to be learned for other sports from the work that is being done here. The fan-led review had its origins in some of the challenges facing a number of football clubs, which is why the Government set it up. We are grateful to Tracey Crouch and to everyone for their thoughts. This review does have a wider application.

[Lord Watts (Lab)]

My Lords, I am grateful for this government initiative. It is overdue. Will Ministers talk to people in Europe and around the world? Given the problems we have seen in recent years, the same regulation is needed for both the European and international game.

[Lord Parkinson of Whitley Bay (Con)]

The focus of the fan-led review is on men’s football in England. This is where the Government’s response, which is being set out today, is focused. There is work to be done internationally. We are discussing this with the international bodies, as well as with those at home.

[Lord Faulkner of Worcester (Lab)]

My Lords, I hope that the noble Lord’s ministerial colleagues will have heard the strength of feeling in this House about the need to legislate quickly and to include something in the Queen’s Speech. I understand that the Minister cannot give an answer now. I accept the very welcome commitment in the response published today, but what assurance can the Minister give that the excellent report by Tracey Crouch does not suffer the same fate as that of the Football Task Force, on which I served more than 20 years ago? Those recommendations were kicked into touch, in effect, by the Football Association and the Premier League. I urge the Minister not to listen to the noble Lord, Lord Austin. He certainly does not speak for fans on this matter; nor does he reflect the feeling in this House.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord knows Tracey Crouch, the former Sport Minister, as well as I do. She has worked extremely hard in leading the review and is the greatest evidence that it will be followed through. She will see that action is taken. We are glad to accept all 10 strategic recommendations in her report.

[Lord Trefgarne (Con)]

My Lords, will the activities of the regulator be confined to football or might other sports be included; for example, cricket?

[Lord Parkinson of Whitley Bay (Con)]

This regulator is solely for football.

[Baroness Merron (Lab)]

My Lords, at the end of March it was reported that DCMS had hired a New York consultancy firm, Oliver Wyman, to design the future independent regulator of English football. The department confirmed that but did not offer any further comment at the time. Can the Minister update your Lordships’ House on this contract today? Can he provide further information about, for example, the length of the contract, the terms of reference and its estimated value?

[Lord Parkinson of Whitley Bay (Con)]

I cannot give the noble Baroness all these details, not least because my honourable friend the Sport Minister is setting out further detail in another place. I shall be glad to write to the noble Baroness to follow up on all these points.

[Lord Jones (Lab)]

My Lords, the running of the football league includes Welsh clubs. Under the new auspices, what do the Government intend regarding, for example, Swansea, Cardiff, Wrexham and Newport? In this sense the English football league is also the Welsh football league. Lastly, will the Minister use his considerable influence to persuade the Lords spiritual to pray hard for my own team, Everton FC? It is in trouble and may go down to a hotter place.

[Lord Parkinson of Whitley Bay (Con)]

I cannot speak for the Lords spiritual, but I know that their prayers will be ecumenically directed. The noble Lord makes an important point. As with the application of the review to other sports, there are lessons to be learned for football internationally and elsewhere in the United Kingdom. We are discussing this with individual teams and with sports bodies.

[Lord Hunt of Kings Heath (Lab)]

My Lords, is the Minister aware that one of the problems with the Football League is that it never seems to have enough resources to conduct a proper fitness test on prospective owners and directors of football clubs? I realise that the Statement is yet to come. Is this issue being taken seriously enough to ensure that the regulator will have sufficient resources to do an effective job?

[Lord Parkinson of Whitley Bay (Con)]

As I said, the current tests for owners and directors do not go far enough in assessing the suitability for ownership of clubs. My honourable friend will set out more detail, following the recommendations made in Tracey Crouch’s fan-led review. I hope that the noble Lord will forgive me if I do not anticipate what he will say.

Cultural Objects (Protection from Seizure) Bill

Lord Parkinson of Whitley Bay Excerpts

3rd reading
Monday 25th April 2022 Lords Chamber

[Lord Vaizey of Didcot (Con)]

My Lords, I will keep my remarks extremely brief. The Cultural Objects (Protection from Seizure) Bill amends Part 6 of the Tribunals, Courts and Enforcement Act 2007, which provides immunity from seizure for cultural objects on loan from abroad in temporary exhibitions in public museums and galleries in the UK. Cultural objects on loan from abroad featuring in exhibitions held in UK museums and galleries approved under the Act are at the moment protected from a court order seizure for a period of 12 months from the time when the object comes into the UK.

The Secretary of State for Digital, Culture, Media and Sport is responsible for approving these institutions in England, which can come under this regime, and the devolved Administrations have similar powers in other parts of the UK. To gain approval under the Act, the institutions must demonstrate that their procedures for establishing the provenance and ownership of objects are of a high standard.

When this Act was passed, 12 months was considered to be a very adequate period for objects to arrive in the UK and to be returned. During the Bill’s Second Reading, I mentioned that unforeseen travel delays can now result in works not being returned on time, and that risks undermining the confidence of foreign lenders to lend their art treasures to the UK.

The measures in the Bill would allow the current period, therefore, to be extended beyond 12 months at the discretion of the Secretary of State for Digital, Culture, Media and Sport, or indeed Scottish Ministers when it comes to Scotland. That will ensure that this protection remains fit for purpose. The new power to extend would only apply following an application from the approved museum or gallery. Extensions would be granted for a further three months initially, with a possibility of a further extension if considered necessary.

I am pleased to inform noble Lords that guidance for approved museums and galleries on how they can submit an application for extension has now been published in draft by the department, so the process and the guidance to support it are now ready to go.

I am delighted that the Bill has received such strong support, and I thank everyone who has contributed, including the Member for Central Devon, Mel Stride, for his work steering the Bill through, and the civil servants in the Department for Digital, Culture, Media and Sport. As the department’s Secretary of State pointed out in the newspapers only today, they are knocking it out of the park in DCMS—whether they are present at their desks or not. Finally, I thank my favourite cultural object, who is, of course, our wonderful Minister, my noble friend Lord Parkinson. I am delighted that, after his successful visit to the Venice Biennale, he was protected from seizure and has returned to our shores to give the Bill the final seal of approval.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am very grateful to my noble friend not just for bringing forward this Bill but for his kind words. I would like to take this opportunity to congratulate Sonia Boyce, who represented the United Kingdom at the UK Pavilion at the Venice Biennale, as well as Emma Ridgway, the curator, and everyone at the British Council who commissioned her work, which I am very pleased to report won the coveted Golden Lion for the first time since 1993. It is a tremendous achievement and everyone in the UK is very proud of them all.

I am pleased to reiterate the support of Her Majesty’s Government for this Bill. It is short and straightforward but will be of great benefit to the many approved museums and galleries in England and Scotland that rely on immunity from seizure protection when they borrow cultural objects from abroad. It will add an appropriate layer of flexibility to the existing legislation covering immunity from seizure. Currently, as my noble friend says, the maximum length of time an object can be protected from seizure while on loan is 12 months. As we learn and move on from the unprecedented challenges that museums and galleries have faced over the past two years in particular, the Bill rightly recognises that unpredictable delays do sometimes happen and that it may not always be possible for objects to be returned within that existing timeframe. The ability to extend the protection afforded to cultural objects is a sensible option to have. I am very grateful to my noble friend for presenting these helpful measures and for all his work in guiding the Bill through your Lordships’ House, to all noble Lords who have supported it, from all corners of the House, and, as my noble friend says, to the DCMS officials who have supported it.

As my noble friend says, the guidance for approved museums and galleries on how and when to apply for an extended period of protection has now been published in draft. The policy is therefore ready to be put into effect, subject to Royal Assent being granted. I am grateful to all those who helped the Bill speed on its way to the statute book.

Legislative Reform (Renewal of National Radio Multiplex Licences) Order 2022

Lord Parkinson of Whitley Bay Excerpts

Wednesday 6th April 2022 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the Order laid before the House on 31 January be approved.

Relevant document: 21st Report from the Regulatory Reform Committee. Considered in Grand Committee on 4 April.

Motion agreed.

Channel 4 Privatisation

Lord Parkinson of Whitley Bay Excerpts

Tuesday 5th April 2022 Lords Chamber

[Lord McNally (LD)]

My Lords, on behalf of my noble friend Lady Bonham-Carter, I beg leave to ask the Question of which she gave private notice.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, following a consultation, the Culture Secretary has come to a decision that, although Channel 4 as a business is currently performing well, government ownership is holding it back in the face of a rapidly changing and competitive media landscape. The Secretary of State is now consulting her Cabinet colleagues on that decision. The Government will set out their future plans for Channel 4 in a White Paper shortly.

[Lord McNally (LD)]

My Lords, will the Government publish immediately the consultation, which was completed over six months ago and has not yet seen the light of day, on which the Secretary of State is allegedly making this decision? Is the Minister not ashamed that this extraordinarily well-run company is being dealt with in this way—a shabby decision, made in a hole-in-the-corner way—while the House of Commons is in recess? The chairman of the DCMS Committee, Julian Knight, has commented that this is “payback time” for the record of Channel 4 in holding the Government to account and helping our collective creative industries. Does the Minister not feel a little ashamed answering this Question today?

[Lord Parkinson of Whitley Bay (Con)]

On the noble Lord’s first point, the responses to the consultation will be published alongside the White Paper to which I alluded in my initial Answer. I disagree deeply with the rest of his question: the Government value highly Channel 4 and the part it plays, and has played for 40 years, in our broadcasting ecosystem. We want to ensure that its next 40 years and beyond are just as successful and that it can flourish. It is doing that in a very rapidly changing and increasingly competitive media landscape. Channel 4 is uniquely constrained by its current ownership model and limited access to capital. It is such a successful broadcaster that we think it will make an attractive proposition for people to buy, and private ownership will allow it to create new revenue streams and compete as effectively as possible to be fit for the future.

[Lord Bassam of Brighton (Lab)]

My Lords, last Friday the energy price cap increased by £700; inflation continues to climb and may reach 10%; we face record costs at petrol pumps and bumper increases to phone and broadband bills; and social security payments are to be cut in real terms from tomorrow. All this is at the same time as fines have been dished out to Downing Street officials for breaches of Covid regulations, so can the Minister tell us why the Government have chosen now to announce the privatisation of Channel 4, and can he give us three good reasons for doing so? It is not in the interest of public services or public service broadcasting.

[Lord Parkinson of Whitley Bay (Con)]

I must say that I find that a weak argument from the noble Lord. The Government are capable of doing many things. There is an urgency in addressing this issue so that Channel 4 is fit for what is a rapidly changing media landscape. The proportion of viewing on subscription on-demand services has trebled since 2017; it is important that Channel 4 is able to compete with the likes of Netflix and Amazon, so that it can continue to support the independent production sector and produce the viewing for which it is rightly renowned. That is why, as part of a wider package of reforms to public service broadcasting, the Secretary of State has announced her decision, ahead of having the vehicles to do that.

[Lord Deben (Con)]

Perhaps my noble friend could help me. If a former constituent came up to me in the street and said, “Lord Deben, given Covid, the disastrous Brexit, the European war and the cost of living crisis, why have the Government thought it urgent to bring forward something for which there is no public demand, and real opposition across the House?”, what would my noble friend say?

[Lord Parkinson of Whitley Bay (Con)]

I am not sure that all my noble friend’s constituents might phrase it like that. As I said to the noble Lord, Lord Bassam, the risk of doing nothing is to leave Channel 4 reliant on linear advertising. Currently 74% of its income comes from linear advertising, which is part of the broadcasting landscape that is changing rapidly. It is trying to compete with the likes of Netflix, which spent £9.2 billion on original content in 2019, compared with £2.1 billion by all the UK’s public service broadcasters. We want to ensure that Channel 4 is fit for the future so that it can continue to thrive and flourish.

[Lord Newby (LD)]

My Lords, in his initial Answer the Minister said that the current structure of Channel 4 was holding it back and that there was an urgency to move now. Yet in its own evidence to the Government, Channel 4 said that it had

“proposed a vision for the next 40 years”

seeking to

“build on the successes of the first 40”.

That is from the management of Channel 4. Why do the Government think they know better than the management of Channel 4 about its future?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the Government recognise the huge success that Channel 4 has been over the last 40 years. We want to make sure that it is fit for the future. Sometimes people who are close to organisations can be restricted in their thinking because of it. A responsible Government are looking to the next 40 years and the rapidly changing media landscape to ensure that Channel 4 has access to private capital to borrow, invest and continue to do what it is rightly renowned for.

[Lord Stevenson of Balmacara (Lab)]

My Lords, the Minister mentioned a long-awaited and much-needed White Paper. This is a very complicated and difficult issue which he has attempted to unscramble, but we will need a White Paper to see behind what he is trying to tell us today. Will the sale proceeds—which are highly contingent on a number of very key policy decisions that are yet to be taken—be dealt with in the White Paper? This is so that we will know about the new licence required for Channel 4, the prominence issues affecting its online and offline support, and the question of advertising he mentioned—which is buoyant beyond all measure at the moment. It is very difficult to see why it needs to suddenly be brought forward. These matters all need to be considered in the context of what the Government plan to do with the BBC and what they plan for other areas. We need a White Paper. Can he give us some timings?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is absolutely right; there are many issues of detail which of course we cannot cover in a 15-minute exchange on a Private Notice Question. The White Paper will set out more detail and legislation will be brought forward to enable both Houses to have their say on all those points of detail. It is our intention to publish the White Paper in the coming weeks.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not think it extraordinary that people who constantly complain about the need for more public expenditure are opposed to a policy which will result in revenue for the Exchequer, and more importantly, enable Channel 4 to grow and expand without competing for resources with the health service and other groups?

[Lord Parkinson of Whitley Bay (Con)]

I heartily agree with my noble friend. Of course, the production companies in the independent sector, which are privately owned and run, are a shining example of how private investment can deliver the content which is enjoyed by people not just across the UK but around the world.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, the Minister has made much of the competitive challenges facing Channel 4 and has referred particularly—as have many other commentators today—to Netflix and the other streaming services. Does he believe that those are the right comparators? Netflix is doing a completely different job from Channel 4, and it is not reasonable to suggest that Netflix represents a significantly greater threat to Channel 4 than to anybody else, or indeed, that Channel 4 and Netflix cannot coexist within a complicated and sophisticated media landscape.

[Lord Parkinson of Whitley Bay (Con)]

Of course they can coexist. What we want to make sure of is that Channel 4 is existing, competing and able to continue to attract the viewership it deserves for its excellent programming. Netflix, Amazon and many others are increasingly competing, particularly among a younger audience—who make up such an important part of Channel 4’s current viewership. The way people consume television is changing rapidly. Netflix spends two and a half times as much as Channel 4 does on original content. We want to make sure that Channel 4 has the ability to borrow and invest so that it can compete and continue to attract viewers.

[Lord Watts (Lab)]

My Lords, is it not the case that the Government do not like criticism? They have cowed the BBC over the licence fee. Now they are taking on Channel 4. Can the Minister explain how the privatisation of Channel 4, which will have to pay dividends to shareholders, will give Channel 4 more money for programmes?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

At the moment, Channel 4 is uniquely constrained; it can neither borrow nor benefit from private investment in the way that other companies can. We see how you can be a privately owned public service broadcaster—ITV does it very well. What we want is to ensure that Channel 4 is able to borrow, invest and create excellent content, some of which may be critical of the Government and some of which may entertain people. This is not about the output of Channel 4; it is about ensuring that it is fit for the future.

[Lord Sherbourne of Didsbury (Con)]

My Lords, does the Minister realise that it was the Labour Party in the 1950s which bitterly opposed the establishment of independent television? He should not be surprised by the reaction of the party opposite.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to my noble friend for that reminder; he is absolutely right. It is important that our broadcasting sector continues to innovate and to remain competitive. It is doing so in an increasingly innovative and competitive field.

[Lord Dubs (Lab)]

My Lords, if the Government insist on pursuing this policy, what safeguard will there be against a foreign company buying Channel 4 and yet another of our major media becoming owned by people outside this country?

[Lord Parkinson of Whitley Bay (Con)]

Like the sale of any Government asset, the sale of Channel 4 will need to meet a careful assessment process to ensure value for money for the taxpayer. Further details will be set out in the White Paper to address that. We expect a lot of interest in Channel 4 from around the world.

[Lord Campbell of Pittenweem (LD)]

My Lords, but is not Netflix a complete red herring? How many journalists and camera crews has Netflix sent to Ukraine?

[Lord Parkinson of Whitley Bay (Con)]

Netflix is not a news producer in the way that Channel 4 is a public service broadcaster, but it is competing with Channel 4 for all the other things which Channel 4 does, including its entertainment and other content. This debate is not about the remit of Channel 4 but about ensuring that it can continue to compete with those, such as Netflix, which produce different but, at the moment, very competitive things.

[Baroness Altmann (Con)]

My Lords, I understand the need for Channel 4 to have extra resources, but could my noble friend the Minister reassure the House that Channel 4’s particular benefits—in sponsoring some of the very newest companies and young producers, especially in current affairs and documentary programming, which I often find of huge value—will be considered carefully when any buyer is found?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

Absolutely. The independent production sector has exploded since Channel 4 was created 40 years ago. The revenues have grown from £500 million in 1995 to £3 billion today. However, Channel 4’s competitors spend more on commissioning original programming than Channel 4 does—ITV spends twice as much and Netflix spends two and a half times as much in the UK. This is why we want to ensure that Channel 4 can borrow, invest and continue to support the independent sector, which it has done so much to support over the last four decades.

[Lord Hannan of Kingsclere (Con)]

My Lords, ever since the announcement was made, we have been hearing about all these rare cultural gems which are made possible by the unique way in which Channel 4 is financed and which somehow would not be possible in a red in tooth and claw jungle capitalism. So I have just been looking at what the programming is now. With permission, I will tell your Lordships’ House: “Kitchen Nightmares”, “Undercover Boss”, “Steph’s Packed Lunch”, “Countdown”, “A Place in the Sun”, “A New Life in the Sun” and “Sun, Sea and Selling Houses”. Is it really credible to say that we are defending something which could not be provided by the private sector? Will my noble friend the Minister comment on the disparity between the funds which come from the private sector to independent production companies and those which come from state broadcasters?

[Lord Parkinson of Whitley Bay (Con)]

I will not join my noble friend in singling out particular programmes —de gustibus non est disputandum, and all that. This is not about the content which Channel 4 currently produces or about its recent results; it is about ensuring that it is able, in the decades to come, to compete, invest and continue to provide a range of programming from which a range of people can benefit.

[Lord Addington (LD)]

My Lords, following on from the last question, would the Minister give us his thoughts on which other body could have done the work which has been done for the Paralympics and disability rights in general? Once he has dealt with that, could he possibly tell us how that will be put into some sort of bidding contract?

[Lord Parkinson of Whitley Bay (Con)]

Channel 4 did a fantastic job in broadcasting the Paralympics, and indeed in bringing the entire country together to cheer on Emma Raducanu in the US Open final. We want it to keep doing that fantastic job in the years to come, and that is why we want to set it on the right path, so that it is a sustainable and successful organisation.

[Lord Grocott (Lab)]

I have been trying to follow the Minister’s logic over the last 14 minutes. Basically, he is saying that it is a wonderful company, doing a fantastic job, and so we need to change it fundamentally—that does not follow.

[Lord Parkinson of Whitley Bay (Con)]

It is a wonderful company doing a fantastic job, but the last 40 years look very different from the next 40 years, and it is the job of a responsible Government to make sure that Channel 4 is fit to face those next 40 years.

Legislative Reform (Renewal of National Radio Multiplex Licences) Order 2022

Lord Parkinson of Whitley Bay Excerpts

Monday 4th April 2022 Grand Committee

Moved by

[Lord Parkinson of Whitley Bay]

That the Grand Committee do consider the Legislative Reform (Renewal of National Radio Multiplex Licences) Order 2022.

Relevant document: 21st Report from the Regulatory Reform Committee

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am pleased to introduce a statutory instrument which was laid before your Lordships’ House on 31 January 2022: the draft Legislative Reform (Renewal of National Radio Multiplex Licences) Order 2022.

This is a short but important order that will bring clarity and certainty to the UK’s commercial radio sector. In particular, it will allow the holders of the two national commercial radio multiplex licences, Digital One and Sound Digital, to renew these licences for a further period—12 years and 7 years respectively—to 2035. This provision will have the most immediate effect for the Digital One licence, which is due to expire in November 2023. The measure meets the tests set out in the Legislative and Regulatory Reform Act 2006 and has been approved by the Delegated Powers and Regulatory Reform Committee of your Lordships’ House and the Business, Energy and Industrial Strategy Committee in another place as being appropriate for a legislative reform order with the affirmative procedure.

Since the launch of the Digital Radio Action Plan in 2010, the Government have supported the listener-led transition of radio from analogue to digital, through measures including the expansion of the digital transmission networks to substantially match FM coverage. There has been significant progress in the past decade. Digital radio now accounts for two-thirds of all radio listening, having been less than 30% 10 years ago.

Digital radio differs from analogue broadcasting, where a single encoded signal is broadcast on an analogue frequency, such as AM or FM. A digital radio multiplex or network compresses and bundles a number of radio services into one frequency and transmits it digitally to a certain geographic area. The signal is then decoded by a digital radio receiver used by listeners either in-home or in-vehicle. Digitisation allows radio broadcasters to use spectrum more efficiently, giving listeners more choice when listening to digital radio.

The UK’s independent broadcasting regulator, Ofcom, is responsible for the licensing of commercial digital radio multiplex services under Part 2 of the Broadcasting Act 1996. Radio multiplex services are licensed by Ofcom in terms of national, local and small-scale coverage.

Currently, there are two UK-wide national commercial digital radio multiplexes with around 20 digital radio stations broadcasting on each network. The licence holders are Digital One Ltd and Sound Digital Ltd. These two national digital radio multiplexes are an essential means of distributing national commercial radio stations to audiences across the UK. They have been successful in opening the national airwaves to more commercial radio services and in allowing commercial radio to compete with the BBC, which operates its own national multiplex.

The licence for the Digital One national radio multiplex was first issued in November 1999 and was granted with a right for one further renewal of 12 years. The licence was renewed by Ofcom in 2011 and runs to November 2023. The second licence is held by Sound Digital Ltd and was issued in March 2016. This multiplex licence will expire in March 2028 and currently has no renewal option.

Under the Broadcasting Act 1996, Ofcom does not at present have power to renew these national multiplex licences beyond the current expiry dates. Therefore, with the existing Digital One licence due to reach its final expiry date in November next year, and with Ofcom having no authority under the existing legislation to extend these further, the Government believed it was important to give the commercial radio operators who use these networks clarity and certainty about the future of the platform.

In July 2021, we issued a consultation to explore the options for reform: a do-nothing option, which would involve allowing the licences to be readvertised, or to legislate to allow the further renewal of the two licences for a further period, to either December 2030 or December 2035. Having carefully considered the feedback from the consultation, our conclusion was to legislate to allow for an automatic renewal of the two national radio multiplex licences. This was supported by the majority of respondents.

We believe that allowing the licences to be renewed will give national commercial radio broadcasters the long-term certainty and stability for their businesses and the confidence to continue to invest in digital radio services. It will also avoid a complex, disruptive and time-consuming relicensing process at a time when commercial radio is still recovering from the impacts of the Covid-19 pandemic on advertising revenues.

While some respondents were in favour of opening up the national radio multiplex licences to new competition, in our view a competitive bidding process for relicensing the licences would be disruptive and would have administrative, cost and management time burdens not just for the existing multiplex operators in rebidding for the licences but, more importantly, for the commercial radio stations carried on the networks. There would also be an administrative burden for Ofcom in running a competitive process for the licences.

Noble Lords may be concerned that the measure restricts competition. However, there has been little interest in operating a national radio multiplex, in part due to the high barriers to entry. There have been no market, technical or regulatory changes in recent years that would in our view make it more attractive for an external party to operate a national radio multiplex; indeed, digital radio is now an increasingly mature platform. The Business, Energy and Industrial Strategy Committee in another place considered this issue in detail and was satisfied that the competition concerns were fully considered by Her Majesty’s Government.

In setting the length of renewals, we reflected carefully on the feedback received from respondents, which was strongly supportive of a longer renewal for both licences. The provisions in this order will therefore update the legislation to allow Ofcom to grant a renewal of the national commercial radio multiplex licences for an additional 12 years in the case of the Digital One multiplex and seven years for the Sound Digital multiplex, with both licences to end on 31 December 2035.

In our view, the order will support the next phase of the radio industry’s transition towards digital transmission. It will provide national commercial radio operators much-needed certainty and the confidence to continue to invest in their digital services. I should make clear, however, that the Government, while supportive of the transition to digital transmission, have made no firm commitments about a future radio switchover. The joint industry and government Digital Radio and Audio Review, published in October last year, examined future trends and concluded that, while digital’s share of listening will continue to grow, FM will be needed until at least 2030—a view the Government support, given the important role that FM listening still plays for many radio listeners.

In summary, the order will allow for the renewal of the national multiplex licences. It will provide stability and certainty to the commercial radio industry during this tough time, while supporting the progress of UK radio and audio towards a digital future. I beg to move.

[Lord Clement-Jones (LD)]

My Lords, I cannot believe that this is going to be a mass event. I thank the Minister for his introduction to the LRO and welcome the commitment to digital radio represented by this LRO. However, as we noted during recent Oral Questions, we are all looking forward to the government response to the Digital Radio and Audio Review of last October, which has not yet been published. Perhaps the Minister would reveal a little more than he did about when we can expect it to be forthcoming—“spring” or “summer” would do; “shortly” is a word he might wish to deploy as well.

There are some questions to be answered, which I hope will appear in the response and which are relevant to today’s LRO. I recognise that the BEIS Select Committee asked some of these, but I want to go a little further. Clearly, IP radio is coming in in force, especially with smart speakers and voice assistants now beginning to replace dedicated radio sets. I for one will be interested in what the Government have to say about prominence and algorithmic curation of playlists, station selection and content, and how this will fit with the new statutory competition framework for the Digital Markets Unit.

Last week, representatives from news media and publishing, including radio, highlighted the need for the Government to introduce statutory powers for the DMU to help tackle the threat of tech platforms, but over the weekend there were reports that this may be dropped from the Queen’s Speech. Does the Minister recognise the urgency of putting in place such powers in regulating online gatekeepers such as smart speakers and voice assistants? What proposals will there be in the next parliamentary Session to address the significant current risk to media plurality and broadcasters’ business models from the digital platforms linked to these devices?

In June 2021, the then Secretary of State for DCMS announced plans for a broadcasting White Paper, which would address a range of issues, including regulation of commercial radio and prominence of UK radio services online and on smart speakers. When is this White Paper expected and will it address these issues?

However, surely key in all this is that spectrum for the multiplexes is a scarce commodity, and demand for it will depend on how much commercial radio DAB is replaced by IP broadcasting. Should not any renewal of the DAB multiplex licences have been set in context with the response to the review on this, particularly in terms of the competition issues associated with any renewal and the pressures on the two multiplexes? In addition, is not the potential change to mandatory licence conditions to include the necessity to include DAB+ relevant in terms of the pressure on the two systems, as well as the ability to satisfy demand for space on the multiplexes?

Similarly, I note the commitment mentioned by the Minister not to switch off FM services before 2030, despite digital reaching 66% of listening. Is not the future of FM relevant to the renewal of the multiplex licences? Will this be covered by the response to the review?

There seems little price competition in the grant of licences. In other areas, such as mobile telephony spectrum, we have seen a bidding system—why not in this area now that digital radio technology is well established?

The general impression is that the Government might have jumped the gun in this area, but in other areas relating to commercial radio they are dragging their heels. What can the Government say in response to all these concerns, many of which are shared by the commercial radio industry?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to both noble Lords for their comments and their support for the order. As ever, with a brisk debate such as this, it can be difficult to scribble down all the questions, so if I have missed anything I will of course write to noble Lords with points that I have not been able to address.

The noble Lord, Lord Bassam of Brighton, is right to name some of the much-loved stations that are covered by the order—that is the importance of this for radio listeners across the country, and it is right to have them in mind.

Both noble Lords took the opportunity, not unreasonably, to ask about other legislative vehicles. They will understand that, this close to the gracious Speech, I am limited in what I can say, but the Government certainly agree that the current commercial radio licensing framework requires simplification. In particular, we need a regulatory structure for commercial radio that supports investment by broadcasters in content and the long-term sustainability of the sector. We feel that the current structure falls short, and we will be introducing the relevant legislation as soon as parliamentary time allows. On other legislative vehicles, I am afraid that noble Lords will have to wait for the gracious Speech and the details contained therein.

On the legislative background and technical details, as I set out in my opening speech the Government have decided to allow the two national commercial radio multiplex licences on the digital terrestrial radio platform, which are due to expire, to be renewed for a further period. The two national multiplexes, which carry 44 national commercial radio stations, in total facilitate coverage to around 91% of homes across the UK at the moment.

The noble Lord, Lord Clement-Jones, asked about our support for this technology into the 2030s. We know that the terrestrial DAB platform is popular with UK audiences and plays an important role in supporting public service broadcasting by providing a universal, reliable, secure and free-to-air distribution channel. Audience figures from Radio Joint Audience Research show that DAB is the single largest platform, with a 42.5% share of all radio listening in the fourth quarter of last year. By contrast, analogue radio via FM or AM services continues to fall and accounts for 35.6% of all listening. Research for the joint government and industry Digital Radio and Audio Review indicates that the terrestrial DAB platform will continue to be the most important means by which listeners access radio content into the mid to late-2030s.

The noble Lord, Lord Clement-Jones, asked about the Digital Radio and Audio Review, which looked at the issue of smart speakers that we touched on in the Oral Question a few days ago. As I said then, we agree that good arguments have been made for taking action to protect radio’s long-term position, in the context of the rapid growth in usage of connected audio devices, and to ensure the continuation of the huge public value which radio provides. But, as we noted in the exchange on that Question, this will not be straightforward: any significant intervention in this area will need to be considered in the wider context of other work that we are carrying out, particularly in relation to digital markets and data protection reform. Both noble Lords asked when our response to the Digital Radio and Audio Review will be published; we expect to publish this response in the coming weeks.

We believe that the provisions in the order before us will allow national commercial radio operators to focus their efforts at this difficult time on continuing to deliver the vital news and entertainment that listeners value most, while supporting the ongoing transition towards a digital future for the radio sector. I commend this order to the Committee.

[Lord Clement-Jones (LD)]

Before the Minister sits down, one question that he has not really answered is why this LRO is taking place before the response to the review is available. The particular question that I asked in relation to that response was about the place of IP radio, for instance. This is all about what different kinds of radio broadcasting are taking place. Of course, if one wishes to renew these multiplexes, it is all about how much multiplex space is required relative to IP and FM. I talked about jumping the gun, but I do not quite understand why the LRO is taking place now, before the response, when if it were actually set in context we would have a much better idea when that response comes out.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, as I outlined at the beginning, this is the result of significant consultation, which agreed very much with the Government’s approach. We want to provide national commercial radio operators with the certainty and confidence that they need to continue to invest in their digital services, which is why we are doing it now. However, I will certainly write to the noble Lord with further detail on the point about IP radio, which we continue to look at. As we noted on the Question a few days ago, that area is changing rapidly. The landscape continues to evolve, but this order is being made so that the industry has the confidence and certainty that it needs to invest to support the transition to the digital future, which I think all noble Lords have agreed with today.

Motion agreed.

British Museum: Ethiopian Sacred Altar Tablets

Lord Parkinson of Whitley Bay Excerpts

Wednesday 30th March 2022 Lords Chamber

[Lord Carey of Clifton]

To ask Her Majesty’s Government what discussions they have had with (1) the British Museum, and (2) the government of Ethiopia, regarding the return to that country of 11 sacred altar tablets held by the British Museum.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the British Museum operates independently of government, meaning that decisions relating to the care and management of its collections, including these tablets, are a matter for its trustees. The museum has said that it recognises the significance of the tablets and has held meaningful talks with the Ethiopian Church on this issue. The museum’s stated ambition is to seek to lend these objects to an Ethiopian Orthodox Church in the UK. The Government fully support the trustees. We have had no recent discussions with the Government of Ethiopia on this matter. We are gravely concerned by the current conflict in Ethiopia, and have called for all sides to begin peace talks and to facilitate humanitarian access.

[Lord Carey of Clifton (CB)]

My Lords, I thank the Minister for his guarded reply. The issue for me is respecting another nation’s culture and religious values. In the light of the fact that the tabots entered the collection of the British Museum after British troops led by Lord Napier in 1868 looted them, following the Battle of Maqdala, would not he agree that Her Majesty’s Government bear some basic moral responsibility? As that is surely the case, would the Government give some words of encouragement—and I believe that they have implied something—to the trustees of the British Museum to do the right thing and return the tabots to Ethiopia?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble and right reverend Lord alludes to the complexity of this case, and the 150 year-old matter that it concerns. The expedition to which he refers was, of course, to free hostages who have been taken, including an Anglican missionary whose two servants had been beaten to death by Emperor Tewodros II. But the main issue is the way in which these items are now cared for by the British Museum—and he is absolutely right to point to their religious significance. The tablets are housed in a special location which is maintained in consultation with the Ethiopian Church; they are well looked after by a committed curatorial and conservation team and available to be visited only by Ethiopian Orthodox priests. As I say, the museum has had constructive conversations with the Ethiopian Church on this, and would welcome further discussions.

[The Lord Bishop of Worcester]

My Lords, apart from the way in which these artefacts were obtained, and the responsibility of the British Museum and its independence, I wonder whether the Minister would agree that what sets these artefacts apart, as he has intimated, from any others in the British Museum and other museums across our land, is that they are sacred. As such, they relate to a living faith—the Ethiopian Orthodox Church. Whereas these tabots mean very little to anyone here except as stones of limited historical value, and no one is able to see them anyway, they are of profound religious significance in Ethiopia. Would not the Minister agree that they should therefore be returned to those who understand them to be holy and will cherish them as such?

[Lord Parkinson of Whitley Bay (Con)]

The right reverend Prelate is right that these items remain of enduring importance to people, and the British Museum is very sensitively discussing those matters with the Ethiopian Orthodox Church, so that those sensitivities can be understood and reflected and so that the future of the items can be discussed appropriately. The past may be distant, but it remains around us, and the issues of sensitivity and importance are of course considered very carefully by the British Museum and all other cultural institutions.

[Lord Sassoon (Con)]

My Lords, as a former trustee of the British Museum, may I ask my noble friend the Minister whether he agrees with me that, more generally, museums have a responsibility to be clear about the provenance of contested objects and that the British Museum’s website provides a model of openness and transparency for museums globally on how to deal with, and explain the provenance of, such objects?

[Lord Parkinson of Whitley Bay (Con)]

I completely agree with my noble friend, and am grateful to him for alluding to the British Museum’s work in this area. The pages on its website that explain both these items and, more generally, the museum’s approach to issues of restitution and contested heritage, are a model of transparency. They set out the facts very clearly so that people can understand the past and make their own decisions—and also so that they can understand the claims for restitution that have been made to the museum, and how the museum is dealing with them.

[Lord Bassam of Brighton (Lab)]

My Lords, while I appreciate that there are some legal complexities surrounding the return of the sacred tabots to Ethiopia, these highly significant religious artefacts have resided unseen in the British Museum’s stores for the best part of 150 years. As I understand it, not even students, researchers or historians are able to view them. This cannot be right. Can the Minister give some comfort to Ethiopia by encouraging the trustees of the British Museum to find a solution that satisfies curatorial concerns and the understandable desire from Ethiopia for them to be returned to their rightful home?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord touches on the core sensitivity of the matter. Some of these items are considered so sacred and holy that they can be looked at only by Ethiopian Orthodox priests, which would be the case in Ethiopia as in London. That is why the British Museum is in discussion with the Church. There are other items, however, from Maqdala that can be found in the museum’s public galleries or changing displays. Together and individually, they demonstrate some of the great artistic traditions of Ethiopia, showing the breadth and explaining the diversity of the religious traditions in that country, including Christianity, Islam, Judaism and many other faiths.

[Lord Foster of Bath (LD)]

My Lords—

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the museum is independent of the Government; it is up to the trustees. The Government support the trustees in their earnest work and the discussions they are having on these sensitive issues with the Ethiopian Orthodox Church and others.

[Lord Boateng (Lab)]

My Lords, these items, which are of huge religious significance, were looted. They were stolen after a brutal, punitive expedition—that is the reality. Given that reality and given the fact that they are not able to be seen, venerated or studied by anybody, would it not be the right thing to do—the moral thing to do—and would it not enhance the moral position of the trustees and the British Government in their discussions with the Ethiopian Government about human rights, if they were to be returned without delay?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the items have a complicated provenance. They were indeed taken by British troops after the expedition, but some of the items in the collection were themselves stolen by Tewodros II to assemble the collection in the first place. Some of the items have been given back, including by Her Majesty the Queen in 1965 to Emperor Haile Selassie. The British Museum is looking at the complexity of this issue, talking sensitively to the Ethiopian Church and others to decide the best way of caring for them and reflecting that complex past.

[Viscount Colville of Culross (CB)]

My Lords, I declare an interest as a trustee of the Museum of the Home. Museums across Ukraine are desperately trying to save internationally important works of art from being looted by invading Russian forces. Can the Minister tell the House what the Government are doing to help them?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I had the pleasure of addressing the All-Party Parliamentary Group on the United Nations yesterday where there was a special parliamentary briefing from UNESCO on this important matter. The Government are providing initial funding through the Prince Claus Fund to help with the preservation of cultural objects in Ukraine.

[Lord Kirkhope of Harrogate (Con)]

My Lords, may I say to my noble friend that I fully understand his difficulties with this matter. It is a complex matter, as it is with many countries and these arguments about artefacts. Can I ask him whether he has ever had any discussions with his Danish opposite number about the large amount of Anglo-Saxon silver that is held by Danish institutions—more than is held by English institutions? What is the prospect of having these artefacts returned to this country?

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to my noble friend. I have had no such discussions with my Danish counterpart, but my noble friend’s question does allude to the complexities of these issues. There are sensitivities that remain very present, on which museums and cultural organisations do such important work in helping us to understand in their fullness, but we must always come to terms with the past and draw our own conclusions.

Loneliness Strategy

Lord Parkinson of Whitley Bay Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Merron]

To ask Her Majesty’s Government what assessment they have made of the impact of their loneliness strategy.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the launch of the loneliness strategy in 2018 marked a lasting shift in the Government’s approach to tackling loneliness. Since 2018, the Government and their partners have invested almost £50 million in tackling loneliness, including in response to the Covid-19 pandemic. We have reached millions of people through awareness-raising campaigns and have developed a network of more than 150 organisations to join us in this work. Our latest annual report provides further detail on its impact.

[Baroness Merron (Lab)]

My Lords, I thank the Minister for that reply. Loneliness remains endemic, with the Office for National Statistics reporting that the long-term disabled, widowed homeowners, unmarried middle-agers and young renters are those who are most likely to experience social isolation. While the strategy suggests that it is a government priority, I note that loneliness is no longer featured as a ministerial responsibility on the department’s website. Does the Minister agree that it is more important than ever to keep focused on tackling and preventing loneliness as we emerge from the pandemic? Will the strategy be reviewed, so that no one is left behind as the world continues to open?

[Lord Parkinson of Whitley Bay (Con)]

As the noble Baroness said, the pandemic has thrown into relief the importance of tackling loneliness. We were aware of it before the pandemic, and the pandemic made it more urgent. My honourable friend Nigel Huddleston, the Minister responsible, sees himself very much as the lead Minister, but not the only Minister, for it, because this is a cross-government effort. That is the reason for the cross-government strategy, and work has been done in all departments. Of course, we continue to evaluate the work to see how we can do it better.

[Lord Farmer (Con)]

My Lords, the strategy highlights family well-being as crucial in preventing loneliness and the need to support families. The Children’s Commissioner has just been tasked with reviewing family life, following the finding of the commission on race and ethnic disparities that high rates of family breakdown are a major risk factor in loneliness and are key to outcome disparities. Some 63% of black Caribbean children grow up in a lone-parent household. Will measures to prevent family breakdown be included in her remit?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to point to the importance of family in tackling loneliness. Of course, family events such as bereavement, becoming a parent and moving house can have an impact. Research also suggests that people of colour are more likely to experience certain barriers, which can cause loneliness for them, including access to community services, harassment, discrimination and feeling disconnected from the community. I will discuss the point about the Children’s Commissioner’s review with my noble friend Lady Barran, who is responsible, as the Minister in the Department for Education, and who of course, as a previous lead Minister for Loneliness, has done so much herself to tackle awareness of this important issue.

[Lord Addington (LD)]

My Lords, will the Minister take into account the fact that sporting and artistic voluntary groups are almost by definition an answer to this problem? What are the Government doing to allow them to rebuild their capacity after Covid and how far across government does it go?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right. Community and volunteer groups of all shapes and sizes play an important role. Since April 2020, we have continued to grow the membership of the Tackling Loneliness Network to over 150 members. Last year, we published our Tackling Loneliness Network action plan, setting out actions that members of the network committed to take to tackle loneliness during the pandemic. We will continue to review that and see how that work can be furthered.

[Baroness Meacher (CB)]

There can be no more lonely experience than that of CFS/ME sufferers, for whom crushing fatigue is just one of a long list of symptoms that interfere with—and I would say prevent—normal social interactions. NICE recently issued guidelines for CFS/ME sufferers. Will the Minister agree to contact NICE to see if it would consider adding a section on loneliness for these particular sufferers—as I understand it, it did not include that issue within its guidelines?

[Lord Parkinson of Whitley Bay (Con)]

I shall follow up that point with my honourable friend Nigel Huddleston and colleagues at the Department of Health. The noble Baroness is right: we know that people with long-term health conditions are significantly more likely to report feeling lonely. Through our loneliness funding, we have supported groups that work with people with disabilities and long-term health conditions to support them to feel more connected, including Mencap, the National Autistic Society, the British Deaf Association and the RNIB, to name just a few. I will follow up the point that she makes about NICE as well.

[Lord Mackenzie of Framwellgate (Non-Afl)]

My Lords, this Question is a tribute to the late Jo Cox MP. It is shocking that 200,000 older people have not had a conversation with a friend or relative for over a month. I am old enough to remember when, in the north-east, most family members lived nearby, in close-knit communities. If I cut my head as a child, my mother would run three doors down the street and consult granny, who would tell her what to do. In a sense, this is the negative side of social mobility. Does the noble Lord agree that, by properly addressing the question of loneliness, we will reduce a burden on the National Health Service?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is absolutely right to remind us of the important contribution made by the late Jo Cox in driving forward cross-party work in this important area. Through our loneliness funding we have supported groups that work with older people to help them connect, including the Alzheimer’s Society and the English Football League Trust. Last year, members of our Tackling Loneliness Network formed a group focused on loneliness among older people to explore the issue further. The group’s recommendations were included as part of the action plan which I mentioned earlier, and an update on progress to deliver that was included in our most recent annual report.

[Lord Lang of Monkton (Con)]

My Lords, there can be no doubt that the subject of loneliness is very well worth discussion in this House, and we are all grateful that it should be raised. I would like to endorse the comments of my noble friend Lord Farmer when he pointed out the relationship between loneliness and family. Surely the most important unit of all in social policy considerations should be the family. I would like to hear my noble friend endorse that and say that family considerations will be taken into account in all future consideration of social policy.

[Lord Parkinson of Whitley Bay (Con)]

Family is vital, not just in this area but across so many areas of social policy and the Government’s work. We know that peoples’ family situations can have an impact on their experience of loneliness. We are looking to improve the evidence base to understand the challenges that people face through loneliness, including the impact of their family situation. We have brought together experts and academics in the tackling loneliness evidence group to identify what areas we need to look into further, and what research should be done, to see how we can address the remaining evidence gaps.

[The Earl of Clancarty (CB)]

My Lords, the Government’s idea of a socially connected society is a good one, but do they recognise enough, or recognise at all, the key role that poverty plays in disconnecting society? Has the Minister seen the recent study by UCL and the University of Manchester which found that older people in the poorest sector of the population in England were more than twice as likely to feel isolated as those in the richest, and that this was true both during and before the first lockdown?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord makes an important point which links to the Government’s wider work in levelling up to ensure that people of all backgrounds, across the country, have access to the services and the opportunities that they need. The levelling-up White Paper set out clear ambitions to improve peoples’ well-being, their pride in place and sense of community, and to create opportunities across the country. We know that connected communities provide people with opportunities to develop strong social relationships, and this is an important point. We will continue to explore opportunities to embed loneliness in the Government’s thinking on our important work on levelling up.

[The Lord Bishop of Leeds]

My Lords, have the Government made any assessment of the likely impact of the cost of living crisis, including energy prices and all of that, on family breakdown in this country?

[Lord Parkinson of Whitley Bay (Con)]

I am very mindful that my right honourable friend the Chancellor has, in another place, been setting out the Spring Statement, the details of which I have not yet had a chance to acquaint myself with. From what I have seen, I know he is addressing the pressures on public finances and household budgets, including the point made by the right reverend Prelate.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I wish to follow up the question from the noble Baroness, Lady Meacher, on people with ME, and to include other long-term conditions. Does the Minister think it possible to give guidance to the new integrated care systems in the health service to develop a local strategy to deal specifically with the issue of loneliness for people with long-term conditions?

[Lord Parkinson of Whitley Bay (Con)]

Local councils, local health systems and voluntary and community sector organisations all have important roles to play in tackling loneliness. I will follow up the point made by the noble Lord, as I will the point made by the noble Baroness, Lady Meacher, in relation to health.

Football Governance

Lord Parkinson of Whitley Bay Excerpts

Tuesday 22nd March 2022 Lords Chamber

[Lord Faulkner of Worcester (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and refer to my football interests as declared on the register.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, Her Majesty’s Government have endorsed the principle that football requires a strong, independent regulator to secure the future of our national game. We are working swiftly to consider the recommendations of the fan-led review and to determine the most effective way to deliver an independent regulator. My right honourable friend the Secretary of State committed in another place on 3 March to bring forward the government response as soon as possible. This will be issued in the coming weeks.

[Lord Faulkner of Worcester (Lab)]

My Lords, that is an encouraging Answer, but can I press the Minister on when we might expect to see the Government’s response to Tracey Crouch’s excellent report, and whether he can give an undertaking that the legislation which will be necessary to establish the regulator will be included in the next Queen’s Speech? Football fans have waited a very long time for some action, and as Mr Huddleston, the Sports Minister, said to the DCMS Committee last week:

“We recognise there are failures in the structure and governance of English football and the fan-led review is pivotally important because it will contain an independent regulator.”

[Lord Parkinson of Whitley Bay (Con)]

First, I wish the noble Lord a happy birthday. I am afraid I cannot give him a birthday present of anticipating what might be in the gracious Speech, as I am sure he will understand, but I certainly agree wholeheartedly with my honourable friend the Sports Minister. The primary recommendation of the review is clear and one that the Government have endorsed: that football requires a strong independent regulator to secure the future of our national game. As I say, we are working quickly to determine the most effective way to deliver that and to see the powers that it may need. Football has had too many opportunities to get its house in order but has not done so. Without intervention, we risk the long-term future of a game which is enjoyed by people across the land.

[Lord Bellingham (Con)]

My Lords, I reiterate the support that the noble Lord gave to Tracey Crouch and her excellent report the other day. Can I ask the Minister about Chelsea Football Club? While it is imperative that Roman Abramovich is punished and sanctioned, it is also important that ordinary Chelsea fans are not too heavily penalised.

[Lord Parkinson of Whitley Bay (Con)]

I agree with my noble friend on both points—first, in commending the work of Tracey Crouch MP in leading the fan-led review, which of course was a manifesto commitment from the Government. My noble friend is right: we must punish individuals with links to the Putin regime. The sanctions we have announced in this and other areas will target the assets and lifestyles of those implicated, but it is right that we have a safety net in place to protect the sport, the club and the fans from irreparable damage that would prevent the club from competing.

[Lord Addington (LD)]

My Lords, would the Minister like to take this opportunity to assure the House that the Government are going to make sure that the big professional football clubs and other clubs, which are community assets and part of the social structure, are actually protected? At the moment, they are literally used as a football by financial institutions; they are seen as merely a business. Can we make sure that when we have some reform and change in this area, the fact that they are more than that to most people is recognised at a fundamental level?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord makes the very pertinent point that football clubs are rooted in their communities and are community assets. That is why we are very glad that the review by Tracey Crouch was fan-led. We are very grateful to all those who took part in it; we will set out our response in full having given it the thorough consideration it deserves.

[Lord Birt (CB)]

My Lords, I am a Liverpool, not a Chelsea, fan. We all support sanctions designed to bring an end to Russia’s acts of sheer evil in Ukraine, but it is surely not right that Chelsea’s fans, players and operational managers should be directly affected by sanction measures while they await new owners. Will the Minister urgently review and remove these purely sporting constraints?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, given the significant impact that sanctions would have on Chelsea Football Club and their potential knock-on effects, Her Majesty’s Treasury issued a licence which authorises a number of football-related activities to continue at Chelsea, including permissions for the club to continue playing matches and other football-related activity, which will in turn protect the Premier League, the wider football pyramid, the loyal fans and other clubs. The licence allows only certain explicitly named actions, to ensure that the designated individual cannot circumvent UK sanctions. However, we are meeting daily with the club and football authorities to discuss further amendments to the licence should they be necessary.

[Lord Clark of Windermere (Lab)]

My Lords, I declare an interest as director of Carlisle United. As the Minister has recognised, English football is in a mess. A new study by Fair Game has come out showing that over half the top clubs are technically insolvent, yet clubs in League One and League Two are surviving on a 1.2% handout from the Premier League. Will the Minister commit that the widely recognised Tracey Crouch proposals will be endorsed by the Government before the end of this season in six weeks’ time?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, Tracey Crouch’s review recommended that football should seek to resolve distribution issues itself. The Government have written to football authorities to ask how they intend to do this; we have received responses and will address this issue in our response to the review.

[Lord Brooke of Alverthorpe (Lab)]

I welcome much of the report, but does the Minister recall that the Prime Minister, when he was Mayor of London, was very concerned about domestic abuse that arose after football matches where drinking had taken place? Recommendations 42 and 43 of the report are that there should be experiments in reintroducing alcohol into these leagues, which had been banned since 1988. Can he tell me why the Government have changed their view?

[Lord Parkinson of Whitley Bay (Con)]

I advise the noble Lord to await the Government’s response to the fan-led review, in which we will deal with all its recommendations.

[Lord Hunt of Kings Heath (Lab)]

My Lords, will the noble Lord come back to ground ownership and the problems that have occurred when grounds have been sold off? The review recommended a golden share to be held by a community benefit society—in other words, supporters of the club—to have a veto, essentially, over such ground share sales in the future. Are the Government sympathetic to that?

[Lord Parkinson of Whitley Bay (Con)]

I am afraid I cannot anticipate all the areas of the review to which we must respond, but I repeat that football has clearly proven unable in the past to reform itself and deliver the changes needed. It is clear that current oversight of the game is not up to solving the structural challenges and that action must be taken. That is why we welcome the review and will respond to it in detail.

[Lord Austin of Dudley (Non-Afl)]

My Lords, some of us said at the time that it was a complete disgrace that Putin could use the World Cup for propaganda purposes. It is completely unacceptable that Qatar was able to bribe its way to hosting the World Cup this year, with its appalling record on human rights, women’s rights, LGBT rights and the way it has exploited labour to build the stadia. While I recognise the Government’s case for reform of the domestic game, do they agree with me that the international institutions running football need urgent reform as well?

[Lord Parkinson of Whitley Bay (Con)]

The suitability of football club ownership was an important part of the fan-led review, and we welcome recognition from the Premier League that current tests are not sufficient. The fan-led review is about future-proofing the system, both domestically and, as the noble Lord says, in the international leagues, and we will set out our response to all these issues in full.

[Lord Bassam of Brighton (Lab)]

My Lords, the takeover of Newcastle by a consortium with links to the Saudi regime prompted questions about the appropriateness of the current fit and proper person test for owners and directors, and Mr Abramovich’s recent hasty attempts to sell Chelsea also raised concerns about due process. Can the Minister give us some confidence that these issues will be dealt with when the Government issue their response to the excellent Crouch review?

To pick up a comment made by the noble Lord who preceded me, the Premier League confirmed recently that it is looking to add human rights components to its assessment of prospective owners and directors. Do the Government support such a change? If so, what discussions have they had with other football stakeholders, including the FA and the EFL?

[Lord Parkinson of Whitley Bay (Con)]

As I say, the suitability of club ownership was an important part of the review. The review is about future-proofing the system, and that is why we are considering how to enhance the owners and directors tests to ensure that football has only suitable custodians. It is difficult to look back retrospectively at individual cases, but we are determined to get this right, and we are discussing the matter with people across the football pyramid to make sure that we do so properly.