Gambling: Children and Young People

Lord Parkinson of Whitley Bay Excerpts

Monday 6th December 2021 Lords Chamber

[Lord Foster of Bath (LD)]

I beg leave to ask the Question standing in my name on the Order Paper, and I draw attention to 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, this research is a useful contribution to the evidence base and will be considered carefully in our ongoing review of the Gambling Act, which is taking a close look at the impacts of advertising wherever it appears. Gambling adverts must already not be targeted at children or appeal particularly to them. The committees for advertising practice will soon publish more on their plans to tighten the rules in this area.

[Lord Foster of Bath (LD)]

My Lords, I thank the Minister for his reply, but he will know that the research indicates how easily children can be influenced by gambling advertisements even when they are not targeted at children; indeed, under-age gambling is illegal, yet a third do it and over 60,000 are now classed as problem gamblers. Does the Minister agree that, in developing new gambling legislation, we should do what we already do for alcohol, drugs and smoking, and adopt a public health approach, prioritising prevention of harm in the first place?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that a public health approach involves prevention as well as treatment. There is a wide range of provisions in the advertising codes designed to protect children, as well as vulnerable adults, from harm. The Committee of Advertising Practice has consulted on further strengthening the rules on appealing to children. We expect an announcement by the end of the year.

[Lord Watts (Lab)]

This is a very important issue. Does the Minister agree that the Lords committee that looked at the reform of gambling struck the right balance between protecting the vulnerable and allowing people to gamble if they wish to do so?

[Lord Parkinson of Whitley Bay (Con)]

Certainly, I had the pleasure of serving on that committee before I joined Her Majesty’s Government. I thank noble Lords who also served on that committee. That work and much else, including the research that we are discussing today, will be taken into account as part of our review of the Gambling Act.

[The Lord Bishop of St Albans]

My Lords, I declare my interest as a vice-chair of Peers for Gambling Reform. As the noble Lord, Lord Foster, has already mentioned, 60,000-plus young people are diagnosed as suffering from gambling-related harm in this country. What consideration have Her Majesty’s Government given to ensuring, perhaps under the online harms Bill, that social media companies will provide an opt-in age-verification tool so that we can provide additional protections for our young people to protect them from these adverts?

[Lord Parkinson of Whitley Bay (Con)]

I assure the right reverend Prelate that the Gambling Act review is taking a close look at the rules regarding advertising on social media. We want full use to be made of all the scope that technology offers when it comes to targeting adverts appropriately.

[Baroness McIntosh of Pickering (Con)]

My Lords, as chairman of the Proof of Age Standards Scheme board, I ask my noble friend: will he look carefully at our proposals for an online verification proof of age scheme to ensure that underage children are not accessing gambling on the internet?

[Lord Parkinson of Whitley Bay (Con)]

As I have said, there are already strict rules on the targeting of adverts relating to children but, as part of the Gambling Act review, we will certainly look at the evidence that my noble friend cites.

[Baroness Merron (Lab)]

My Lords, it is of course right to shield children from adverts promoting gambling but, as we have heard in this House on a number of occasions, that requires the age stated by the individual for access to be accurate in the first place. As social media companies themselves acknowledge that the systems and safeguards may not work as well as they should, can the Minister confirm that the minimum standards required will be incorporated into the upcoming online harms Bill? Will Ofcom be responsible for ensuring that these standards will protect children?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am conscious that the online safety Bill is in pre-legislative scrutiny in your Lordships’ House, and a Joint Committee of both Houses will be looking at this important area, as will the Gambling Act review.

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

My Lords, the noble Lord, Lord Jones of Cheltenham, wishes to speak virtually. I think this is a convenient point for me to call him.

[Lord Jones of Cheltenham (LD) [V]]

My Lords, the University of Bristol research shows that gambling adverts are much more attractive to the 16-to-24 age group than to adults, so will the Government expand the definition of “young persons” in the advertising codes from 16 to 17 to 16 to 24?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the Gambling Industry Code for Socially Responsible Advertising requires paid-for social media adverts to be targeted only at people aged 25 and above and YouTube content produced by an operator’s own YouTube channels must be restricted to accounts verified as being 18 and above. However, all this will be looked at as part of the Gambling Act review.

[Lord Bethell (Con)]

My Lords, Twitter says it would never knowingly market to minors, yet our experience and the report make it clear that that just does not work. Some people want to see these adverts, but I come back to the question of opt-ins and ask the Minister if he will commit to an opt-in protocol for advertising for gambling.

[Lord Parkinson of Whitley Bay (Con)]

My noble friend tempts me to pre-empt the work of the Gambling Act review, which is ongoing. It is certainly looking at issues such as that.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, would the Minister consider advising football clubs not to have betting companies on their shirts but instead to follow the good example of Heart of Midlothian Football Club, which for six years had Save the Children on its shirts and now has the motor neurone disease charity MND Scotland, funded by Dell Technologies? Is that not the way forward?

[Lord Parkinson of Whitley Bay (Con)]

We are looking broadly at the issues of advertising and marketing, including in relation to sports clubs, and have called for evidence on these as part of the review.

[Lord Kirkhope of Harrogate (Con)]

My Lords, as a former Minister for Gambling I have always been very concerned about not only the effects on children of the advertising that we see now on social media but the whole effect of the incredible rise in advertising on our normal media—that is, on television and radio. Can we please have a comment from the Government as to whether we think this has gone too far, as I do, and whether they have any ideas for the future as to how we might restrain those advertisers?

[Lord Parkinson of Whitley Bay (Con)]

Operators must advertise responsibly, and we are committed to tackling aggressive practices. We have called for evidence on advertising and sponsorship as part of our review. The Public Health England evidence review, which we discussed some weeks ago, did not find evidence that exposure to advertising and marketing was a risk factor for harmful gambling, but we continue to keep this issue under review as we review the Gambling Act.

Football: Casey Review

Lord Parkinson of Whitley Bay Excerpts

Monday 6th December 2021 Lords Chamber

[Lord Faulkner of Worcester (Lab)]

My Lords, I beg leave to ask a Question of which I have given private notice, and I declare an interest as a vice-president of the charity Level Playing Field.

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

My Lords, I pay tribute to the noble Baroness, Lady Casey of Blackstock, for her thorough and important review. Her report rightly highlights that responsibility for the reckless and criminal behaviour at the Euro 2020 final lies with a small minority of individuals who sought to undermine the day for the overwhelming majority of fans. The UK has a long and successful record of hosting major international sporting events. The Government will now work with the police and football authorities to consider the report’s recommendations in full.

[Lord Faulkner of Worcester (Lab)]

I thank the Minister for his reply. Does he not agree with me that the noble Baroness, Lady Casey, has produced a truly devastating report, which everyone—the Football Association, the police and the Government—have to take seriously? She makes it clear in her report that we shall never know for sure how close we came to a huge disaster involving major loss of life, caused by 6,000 ticketless fans outside the stadium who were ready to storm inside had England won the penalty shootout. Will the Government pay particular attention to recommendation 6.a:

“Particular attention should be made to ensuring those entering through gates provided for wheelchair users and other more vulnerable members of society are not endangered by the reckless actions of others”?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble Baroness’s report is thorough and very significant, and it includes a number of very important recommendations for the football authorities, the police, the Government and many others. We will be looking at them all and making sure that lessons are learned so that the sorts of scenes we saw at the Euro final are not seen again.

[Lord Addington (LD)]

My Lords, would the Minister take on the fact that it was actually a total breakdown of communication and intelligence that allowed this to happen? Will the Government undertake to ensure that all those groups—the FA, the football authorities, the Metropolitan Police, wherever they are in the country—when we have a game of this magnitude are required to talk to each other, and not at the last minute but before the event takes place?

[Lord Parkinson of Whitley Bay (Con)]

There were meetings between the Metropolitan Police, the Government and others in the days running up to the final, but the noble Lord makes an important point about sharing intelligence during incidents such as these. I know that that was something that the noble Baroness looked into and it is one of the things that must be followed up.

[Lord Bassam of Brighton (Lab)]

My Lords, I join others in thanking the noble Baroness, Lady Casey of Blackstock, for her excellent report. We would expect nothing else from her but a high standard of product. The Euro 2020 final should have been a cause for pride and celebration, not life-threatening danger and shame. Of course, due to the nature of the disturbances at Wembley, it was not possible for the majority of the ticketless fans to be identified, ejected and, where appropriate, punished. During the recent Committee stage of the Police, Crime, Sentencing and Courts Bill, we discussed whether those engaging in online racist abuse of sportspeople should be subject to banning orders, and we are hopeful that the Government will finally take action on this. Will the Minister now look more widely at what lessons must be learned from Wembley and whether the current banning-order system is enough to stop reckless behaviour at games? Does he agree that the Government should work more closely with the authorities and with clubs to improve the culture surrounding our national game? Without that change in culture, I fear that these instances will occur on other occasions.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right that what should have been a happy and important day was marred, both by the racist abuse that we saw of some of the England players afterwards and by the disorder that the noble Baroness’s report addresses. In both of those instances, action has been taken to follow up. As noble Lords alluded to, the Government have set out that we will amend legislation to extend the use of football banning orders. However, legislation on its own is not the answer to disorder. That is why we will keep the legislation under review, but we will also be working with the football authorities and others to ensure that the minority of people who spoil days such as 11 July for the majority cannot do so.

[Lord Pannick (CB)]

My Lords, the Minister rightly referred to criminal behaviour. There is a mass of photographic evidence showing unmasked individuals behaving criminally. Can the Minister tell the House how many people have been charged with criminal offences, how many people have been convicted and what sentences have been imposed?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I do not have those figures. However, as the noble Lord points out, where there is CCTV footage and with the further evidence gathered by the noble Baroness in her report, it is obviously for the prosecuting authorities—rightly separate from Government—to look at that and take the decisions they feel are appropriate.

[Lord Campbell of Pittenweem (LD)]

My Lords, does the Minister accept that the most damaging outcome of the events at Wembley—notwithstanding the success of the Olympic Games in London and the Commonwealth Games in Glasgow and the undoubted soon-to-be success of the Commonwealth Games in Birmingham—is that international sporting bodies will be reluctant to send prestigious events to be held in the United Kingdom?

[Lord Parkinson of Whitley Bay (Con)]

I am pleased to say that the UK has a very strong track record in staging international sporting events, the vast majority of which go exceedingly well. We thank the noble Baroness for her report, to make sure that we have learned the lessons from this incident and will continue to do so in future.

[Lord Watts (Lab)]

My Lords, the football authorities have a long record of mismanagement, both domestically and internationally. Does the Minister believe that we need a regulator in the UK to start to get some control over our football and the way it is run?

[Lord Parkinson of Whitley Bay (Con)]

That recommendation was taken up by my honourable friend Tracey Crouch in the fan-led review. The Government have accepted it in principle, but we will come back with our full response to the report and all its recommendations.

[Lord Hogan-Howe (CB)]

My Lords, I support the remark of the noble Lord, Lord Pannick, because that is something that would reassure the House and the public about how good the investigation has been. There is clear evidence, which we have all seen, and it should be available to the investigation. The problem with this type of event is that the crowd trying to get in often gets too close to the gates, by which time it is very difficult for anyone to intervene. One of the big things for Wembley is to see what can be done to prevent those without tickets getting anywhere near the gates. At that ground—though not at all grounds—it would be physically relatively straightforward. In time, it would be helpful for us to hear more about how architecture and engineering can make sure that this does not happen again.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord of course speaks with great authority. The Football Association asked the noble Baroness, Lady Casey, to undertake this review so that matters such as that can be looked into and, in due course, responded to properly. Perhaps I can take this opportunity to thank all the police and stewards who worked very bravely on the day to ensure that the situation did not escalate further and cause further injury or indeed loss of life.

[Lord Cunningham of Felling (Lab)]

My Lords, I am not accusing the Minister, but he seems to be conveying the impression that nothing is known about the circumstances of this. I am sure that is wrong; not least, how do several thousand people without tickets turn up at a match of such significance not just to the United Kingdom but internationally? It shamed our country and our football. Unless there is a thorough investigation into who organised this—I am quite sure it did not happen by accident—and what their purposes were in doing so, we shall never be able to say in future that it will not happen again.

[Lord Parkinson of Whitley Bay (Con)]

I hope I am not conveying that impression. The report of the noble Baroness is very thorough and detailed; it was published on Friday and all those who will respond to it—the FA, the police and everybody else—need time to look at it with the detail and attention it deserves. However, the noble Lord is right to point to some of the things the noble Baroness found in her report: a lot of the people gathered there were not there to see the match—they were not even watching it on their mobile phones—but had the intention of causing disorder. It was a small minority of people who were intent on spoiling the day for the vast majority of people around the country and at Wembley who were enjoying it, and it is on them that we must focus our principal attentions.

[Lord Laming (CB)]

My Lords, the noble Baroness produced her remarkably good report very speedily. We should acknowledge that; she did a splendid job. The Football Association has aspirations to host other international competitions very soon. Can the Minister assure the House that everything will be done at the speed set by the noble Baroness, Lady Casey, to make sure that lessons are learned before we get into the next international competition?

[Lord Parkinson of Whitley Bay (Con)]

As ever, we need both speed and thoroughness. The noble Baroness achieved both in her report and it is incumbent on everyone responding to it to do the same. I am pleased to say that the heads of FIFA and UEFA have reassured us that the incident in July should not have an impact on the outcome of any current bidding processes. As I said, the UK has a strong track record of staging international sporting events, and it is a record of which we are rightly proud.

[Baroness McIntosh of Pickering (Con)]

My Lords, if that is the case, what reassurance can my noble friend give the House this afternoon that families who take their young children to what should be a joyful sporting event will be safe and will not be exposed to the same dangers as happened on that day?

Network and Information Systems (EU Exit) (Amendment) Regulations 2021

Lord Parkinson of Whitley Bay Excerpts

Monday 6th December 2021 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the draft Regulations laid before the House on 26 October be approved. Considered in Grand Committee on 30 November.

Motion agreed.

BBC: Government Support

Lord Parkinson of Whitley Bay Excerpts

Thursday 2nd December 2021 Lords Chamber

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

My Lords, I thank the noble Lord, Lord Bragg, for securing and for opening this enjoyable and important debate. There are many in your Lordships’ House who have experience of the BBC—either because they or members of their family have worked there. There is no one who can hold a candle to the noble Lord’s wealth and breadth of experience at the corporation. As he said, that began 60 years ago this year when he joined as a graduate trainee. I can only agree with the noble Lord, Lord Londesborough, that that was a very good hire indeed on the part of the BBC.

I also join those noble Lords who welcomed the right reverend Prelate the Bishop of Liverpool and congratulated him on his excellent maiden speech. I agree with the noble Baroness, Lady Merron, when she said that the BBC’s loss is a gain for the Church of England and for your Lordships’ House. I was struck by what the right reverend Prelate said about the need for calm scrutiny and careful consideration of not just what we say but how we say it. This is an important lesson for this place as well as for public discourse in many arenas.

The BBC is a great national institution of which we should all be proud. As my right honourable friend the Secretary of State has said, the BBC is a “beacon” for news reporting and the arts around the globe. It is a first-rate broadcaster, a cultural cornerstone and a producer of some of the best television and radio in the world. It holds a unique place in our cultural heritage. In its near 100-year existence so far, it has contributed enormously to the British sense of self, as it has both evolved and endured during the last century.

Beyond our shores, the BBC carries British values and identities to a worldwide audience which has more than doubled in the last decade, and reaches hundreds of millions of people every day. The BBC is the single biggest investor in original British content, as the noble Baroness, Lady Bonham-Carter of Yarnbury, noted. In 2019 alone, the corporation spent more than £1.4 billion on original UK television content. Some 54% of its commissions went to independent productions, of which 57% were from outside London. The BBC’s focus on British TV production also attracts investment from others. In 2019, more than £1.2 billion of third-party production spend was directly attributable to the BBC’s grass-roots investments. As noble Lords have pointed out, it acts as a catalyst.

The BBC’s UK-wide investments are reflected in its output. As noble Lords have rightly said, this has been a lifeline for many people during the pandemic—whether through the trusted information highlighted by the noble Viscount, Lord Stansgate, or through Bitesize, which helped those who were home-schooling, as the noble Lord, Lord Storey, mentioned. The invented escapism of new programmes, such as Michael Sheen’s and David Tennant’s “Staged” brought a smile to many faces of people stuck at home.

As my noble friend Lord Vaizey of Didcot said, we all have our preferences and partialities about the BBC. Perhaps we even have our rituals. I wake up to the “Today” programme every morning. I fall asleep to “Today in Parliament”—not, I hasten to add because of the content of the speeches therein.

The BBC is a leader in British programming. Despite increasing competition in the entertainment sector, it is a conduit through which outstanding homegrown talent arrives on our screens, in our speakers and, increasingly, on our smartphones. The BBC’s approach to funding talent will be crucial to our creative industries and the many world-class creative professionals working within them, as the sector recovers from the effects of the pandemic and continues to grow at a brilliant speed, as the noble Baroness, Lady Bonham-Carter, noted. The Government also welcome the BBC’s pledge to move two-thirds of its staff outside London. This will ensure even more diverse programming and create a BBC that better represents every Briton.

The BBC’s reach and influence extend far beyond our shores. This debate rightly has a global focus too. The BBC World Service is the world’s largest international broadcaster. It provides accurate and impartial news, analysis and discussion in more than 40 languages. The BBC recently confirmed that the World Service audience is now 364 million people—its highest ever global figure. In an era of fake news and viral misinformation, the value of a free press has never been so important. The BBC World Service is, therefore, an essential vehicle for information across the world. Founded in the early 1930s, it continues to be just as relevant today—perhaps increasingly so.

Following government investment of £291 million, the BBC World Service has expanded and enhanced its services as part of the World 2020 programme. Today, it broadcasts in dozens of languages—from Indonesian to Igbo and from Punjabi to Portuguese. The noble Viscount, Lord Colville of Culross, stressed the importance of the BBC’s Russian output. The noble Lord, Lord Hannay of Chiswick, rightly spoke of the bravery of the staff of the World Service in their work. Its comprehensiveness and inclusivity are unparalleled.

A number of noble Lords asked about the funding of the World Service. The framework agreement guarantees that the budget for the World Service must be at least £254 million until April 2022. The Government are engaging with the BBC on the future of World Service funding as part of the discussions about the licence fee settlement. While details of the grant-in-aid settlement are still to be finalised, the Foreign, Commonwealth and Development Office is also committed to providing grant-in-aid funding for the BBC World Service through to 2025.

The Government support the BBC’s mission to bring high-quality and impartial news to international audiences. It is a crucial asset to Britain’s soft power and influence across the world, and its reporting is a precious resource to many who view it. The Government also support the BBC’s continued focus on global commercial opportunities, of which noble Lords spoke, working in conjunction with ITV and other partners. By continuing that work, the BBC is increasingly able to export great British content and values around the globe.

However, the Government have been clear that there are areas where the BBC can and should improve. It is perhaps pertinent that the BBC is still often known affectionately as “Auntie”, and, like all families, people can speak with both love and frustration about the corporation, with sincere thoughts about how it can improve and continue to flourish. I agree with the noble Baroness, Lady Fox, who says that we have almost a duty to criticise. I hope that we can do that, in the spirit of the right reverend Prelate the Bishop of Liverpool, in a calmly critical way and provide the calm scrutiny which is needed.

The BBC knows this too. The Dyson report and subsequent Serota review identified that significant changes should be made in order to provide assurance to Parliament and the public, and restore the BBC’s reputation. While much has changed since Martin Bashir’s interview with the late Diana, Princess of Wales, there is still scope for improvements to be made. The Serota review’s recommendations include an overhaul of the BBC’s approach to impartiality and transparency, and tackling what staff have called a “culture of defensiveness”.

The review also identified the risks of groupthink at the BBC, something that a number of noble Lords alighted on today. Like all big and long-established institutions, there is a risk, as with so many others, of succumbing to a “we know best” attitude that can be detached both from the criticism and the values of all parts of the nation that it serves. The BBC must continue to commit to improving diversity of opinion and perspectives at all levels in defending the pluralism of which my noble friend Lord Hannan of Kingsclere spoke. The BBC should also enhance opportunities for underrepresented groups of people, particularly those from lower socioeconomic backgrounds, to access and enjoy and have careers at the BBC. It is right that the BBC reflects all communities across the UK, both on and off the screen.

The Government support the BBC. We want to see it rectify the institutional failings that led to the events in the Dyson report. A renewed focus on editorial standards, impartiality and accountability is essential in rebuilding trust. In that context, we welcome the BBC’s 10-point Impartiality and Editorial Standards action plan, and the commitment to implement the recommendations of the Serota review in full. But the proof, as ever, will be in the pudding. As Ofcom outlined in its annual report on the BBC last week, while the action plan is a good start, it needs to be delivered. The BBC must move forward with its plan as quickly as possible and should do so with appropriate transparency. This is necessary to show to the public the BBC’s real commitment to reform.

The Government also agree with findings in Ofcom’s recent report that the BBC

“must keep evolving to be relevant to all audiences”.

That is not a partisan point. Indeed, it was clearly articulated earlier in the week by the noble Lord, Lord Blunkett, who cannot take part in our debate today. I would not presume to paraphrase the noble Lord, who speaks with great care and consideration, but I will quote from the article that he wrote. He explained that he would be unable to be part in this debate as he is chairing another meeting, but that

“if I could, I’d be loud in my praises of the Corporation. But I’d also have some stern criticism. Radio 4 has become so determined to address multicultural diversity, gender issues and identity politics that it forgets about all-embracing inclusion. People who live outside a narrow class of well-off professionals with rigidly right-on opinions, almost all of them in London, no longer feel included by the station.”

While not everyone will agree with every word of what the noble Lord said, it is clear that there are groups across the country who do not feel represented by the BBC, and it needs to do better in engaging those audiences across the UK, so that criticism like that can be met and need not be levelled.

I agree with the noble Lord, Lord Young of Norwood Green, about the soft but important power of programmes such as “Strictly Come Dancing” in telling stories and increasing the representation of gay and deaf people, for instance. But there are so many other stories that need to be told too—points made by my noble friend Lord Lilley, the noble Baroness, Lady Fox of Buckley, and the noble Lord, Lord Addington, in his well-made point about elite-level sport and the diversity that we need there.

On that point, and the point made by the noble Baroness, Lady Merron, on listed events for sporting endeavours, we are considering the proposals made by Ofcom on the listed events framework but, at this stage, think that the current regime strikes an appropriate balance in ensuring that significant sporting events are available to as wide an audience as possible, with the ability of sporting organisations to generate revenues to invest in their sports. But we will of course continue to keep that issue under review, with the Olympics and other big sporting events coming up.

The Government will shortly begin work on the mid- term charter review, which will examine the governance and regulation of the corporation. This will consider whether the current arrangements are working effectively or if further reform is required. We have also committed to examining the licence fee funding model ahead of the next charter review. The noble Baroness, Lady Bonham-Carter, knows the answer to that question: work on this will begin well in advance of the end of the current charter period.

The noble Baroness, Lady Jay of Paddington, raised the question of gender equality at the BBC. I do not know whether other noble Lords enjoy watching former general election night programmes as much as I do or have seen the broadcast of the 1970 general election, when my noble friend Lady Fookes was first elected to another place. It went viral, as is said nowadays, when her interview with Sir Robin Day, moments after her election to the House of Commons, was replayed. The way he spoke to her as a new female Member of Parliament was shocking to modern ears, and deserves to be. I am glad to say that much progress has been made in the intervening years.

As a public service broadcaster funded by licence fee payers, the BBC has a responsibility to set an example for others and lead the way in promoting equality in the workplace. The Government are disappointed to learn that the median gender pay gap at BBC Studios actually increased to 11.2% from 9% in the previous financial year. It is for the BBC to determine how to close its gender pay gap, and we expect to see improvement in next year’s disclosure. As in so many areas of national life, transparency is vital in this area, and the BBC’s pay disclosure shows that it still has work to do. It is vital that we continue to see these figures in future years, so that licence fee payers can monitor progress.

I agree with my noble friend Lord Vaizey, rather than my noble friend Lord Hannan, on the importance of local radio stations and local BBC work. Local and regional news coverage provide a vital service, providing information about local public affairs, holding local decision-makers to account and providing a forum for community decisions, as well as important information in relation to floods, as the noble Lord, Lord Liddle pointed out, or storms, such as Storm Arwen, which we discussed before this debate.

The Government ensured that, in its royal charter, the BBC has a duty to consider its market impact and to ensure that it seeks to avoid adverse impacts on competition. The noble Lord, Lord Inglewood, also pointed to the welcome and important work of the Local Democracy Reporting Service. Under the new regulatory system introduced by the Government in 2017, the BBC board must ensure that the BBC complies with its charter duties. Ofcom was established as the BBC regulator to ensure that the BBC is robustly held to account.

The BBC is a beacon for reporting and the arts around the world. It provides distinctive British programming, supports our creative industries at a domestic level, and delivers quality output and news on an international scale. It is a priceless national institution of which we should all be proud, and we are. It is because the Government support the BBC that we are focused on encouraging it to improve and reform. We want the BBC to continue to succeed, to meet the challenges of a fast-changing media environment and to continue the mission set by the late Lord Reith to inform, educate and entertain for many more generations to come.

Network and Information Systems (EU Exit) (Amendment) Regulations 2021

Lord Parkinson of Whitley Bay Excerpts

Tuesday 30th November 2021 Grand Committee

Moved by

[Lord Parkinson of Whitley Bay]

That the Grand Committee do consider the Network and Information Systems (EU Exit) (Amendment) Regulations 2021.

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

My Lords, these regulations were laid in draft before the House on 26 October. They will make important rectifications to the UK’s network and information systems legislation, which helps maintain the security of key digital services on which British people and businesses rely. Their purpose is to ensure that the Information Commissioner’s Office, in its role as competent authority for digital service providers, is kept informed of serious cyber events that affect digital service providers, comprising online marketplaces, online search engines and cloud computing services.

Before I turn to the provisions set out in this instrument, I will set the scene for the proposals it contains. The Network and Information Systems Regulations implemented the European Union’s security of network and information systems directive of 2016. As a result of our departure from the European Union, certain deficiencies have arisen in the relevant legislation retained under the provision of the European Union (Withdrawal) Act 2018, which this instrument seeks to rectify.

The purpose of the Network and Information Systems Regulations, or NIS regulations for short, is to improve and maintain the security and resilience of essential services, such as transport or energy, within the UK, as well as certain digital service providers. The NIS regulations work by compelling operators of essential services and digital service providers to undertake measures to protect the network and information systems on which their essential or digital services rely from failure through either cyberattack or physical faults.

The NIS regulations are overseen by 12 competent authorities, which act as regulators for essential and digital services across six sectors. Organisations in scope of the NIS regulations must fulfil certain duties, such as having appropriate measures to protect their services and, critically, reporting cybersecurity incidents that have a substantial impact on their services to their competent authority.

Digital service providers, which form one of these six sectors, are regulated by the Information Commissioner, who acts as the competent authority. In other sectors, the factors and incident reporting thresholds, which determine what constitutes a “substantial impact” for the purposes of reporting, are set out in guidance published by the relevant competent authority.

Under the original EU directive and the UK’s subsequent implementation, digital services are treated differently from essential services. They were regulated at an EU level, with one country taking responsibility for the activities of an individual digital service provider across the whole of the European Union. For this reason, the factors to be taken into account when determining whether an incident had a substantial impact for the purpose of reporting were not left to member states but set out in the Commission’s implementing regulation, which applied across the EU market. When an incident reaches this threshold, it must be reported to the relevant competent authority, which regulates that provider on behalf of the European Union.

When the UK left the EU, the Commission implementing regulation remained embedded in UK law by virtue of the European Union (Withdrawal) Act 2018. However, the parameters and thresholds for reporting incidents set by that Commission regulation are no longer appropriate for the UK as an independent state. The most significant issue relating to reporting thresholds is that they were set by reference to the number of users affected or user hours lost. As these had been set with the EU market in mind, they were set at a level that is too high for the smaller UK market. As a result, the Information Commissioner has received only one report of a cyber incident affecting digital service providers since our departure from the European Union.

Under the current scenario, an incident needs to have a noticeable impact on an economy the size of the EU to be reportable in the UK. If the Information Commissioner is not receiving reports of incidents within the UK because the thresholds are too high, they will not have an accurate picture of what is happening in their sector. They will be unable to identify the threat, provide guidance or take necessary enforcement action if the provider is found to have breached its duties to protect its services. It is important, if the legislation is to remain effective, that the Information Commissioner is afforded the ability to set the reporting thresholds at a level appropriate for the UK.

I will now set out in a little more detail how the instrument before us seeks to resolve this deficiency. The key proposed amendment will remove the defective reporting thresholds from the UK version of the Commission implementing regulation. The NIS regulations already allow the Information Commissioner to issue guidance and the Information Commissioner has already carried out a consultation on these thresholds in parallel to the instrument being developed.

The instrument before the Committee strengthens the role of that guidance by adding a provision to the NIS regulations ensuring that digital service providers have regard to that guidance when considering whether an incident has substantial impact and is therefore reportable. The practice of setting these reporting thresholds in guidance is common among all other NIS competent authorities in the country; it is only by virtue of how digital services were supervised across the EU that their reporting requirements were set by an EU regulation.

The approach of using guidance to set the thresholds affords far greater agility to the regulator, allowing the Information Commissioner to respond to new developments and to set levels that are proportionate and not burdensome on the providers or, indeed, her own office. This amendment would bring digital service providers in line with operators of essential services in all other sectors across the NIS framework, ensuring that regulators are able to identify significant incidents affecting key services across the economy and act accordingly.

--- Later in debate ---

[Lord Bassam of Brighton (Lab)]

My Lords—well, my Lord—the Minister will be pleased to know that I do not have a lot that I want to say. As I understand it, this SI makes a couple of small changes, as the Minister has said, to retained EU law regulating the security of network and information systems of core UK service providers to reflect that fact that we are no longer part of the pan-EU regulatory regime.

I have just one or two questions. Why, given that the transition period ended almost a year ago, are we debating these changes only at the end of November 2021? While this may not have been day-one critical, one would have hoped that these kinds of cybersecurity issues would have been a priority for the DCMS.

The Government are lowering the reporting thresholds when relevant cyber incidents occur in an attempt to ensure that the Information Commissioner is sighted on them. Can the Minister confirm whether DCMS knows of any incidents occurring earlier in the year that did not meet the current threshold that would have met the revised one had it been in place?

When we discussed amendments to EU-derived regulations for video-on-demand providers in the past, the department conceded that our departure from the EU meant that we had no formal jurisdiction over most of the main players, which were generally registered on the continent. Is there a similar situation with some of the digital service providers or is this not a concern currently?

The Explanatory Memorandum, which I found very clear and helpful, shows that most of the costs associated with the change will fall on the Information Commissioner’s Office. Our understanding is that the Information Commissioner is working well as a regulator, but of course with expanded responsibilities comes the need for greater resourcing. Is DCMS comfortable that the commissioner has enough staff and wider resource to complete these duties?

I turn to my final point. Is alignment with EU practices an issue at all, and do we have a continuing relationship with the EU regulator and regulation? Do we have to work within a commonly accepted framework, even though we are now outside the EU and obviously have to have our own system for regulation, appropriate to the size of our market?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the noble Lord for his questions and helpful comments on the impact assessment. He asked why we are doing this now and not sooner. The issue that I outlined at the beginning was not identified as a deficiency until last year, when the Information Commissioner raised concerns over incident thresholds with DCMS—that is why we have brought forward the statutory instrument at her recommendation and in consultation with the ICO.

The noble Lord asked about the ICO’s resources. We are confident that it has the resources, but we will maintain close dialogue with her to keep that under review. We have a continuing relationship with the EU. The matters here obviously cross international boundaries and, despite leaving the European Union, we continue to work with our European neighbours and other international partners on issues such as this. But obviously we have no obligation to implement the new directive that the EU is bringing forward. We are monitoring developments in the EU to assess any impacts that those changes might have.

I am afraid I missed the noble Lord’s second question, but the note I have been handed reminds me that it was on digital service providers. There is now a requirement for non-UK digital service providers to register with the Information Commissioner. As I say, there will be a divergence from EU regulations, but we will continue to follow a similar approach. I hope that answers the questions that he outlined and, on that basis, I commend the regulations to the Committee.

Motion agreed.

Football Clubs: Ownership Test

Lord Parkinson of Whitley Bay Excerpts

Monday 29th November 2021 Lords Chamber

[Lord Bassam of Brighton]

To ask Her Majesty’s Government what plans they have, if any, to legislate to strengthen the “fit and proper person” test for the ownership of football clubs.

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

My Lords, the Government have published the final report setting out the independent fan-led review of football governance’s recommendations for the reform of English football. These include proposals for a new and more robust test for owners and directors, resulting in a unified system which would be created and overseen by a new independent regulator for English football. The Government welcome the work of the review and will consider its detailed recommendations ahead of providing a full government response in the new year.

[Lord Bassam of Brighton (Lab)]

My Lords, I thank the Minister for that helpful Answer, but the recent takeover of Newcastle has raised many questions about the suitability of the fit and proper persons test. To be honest, concerns have been around for years but neither the footballing authorities nor the Government have come up with satisfactory answers. Last week, the Premier League’s chief executive said that, while there were concerns about the relationship between Newcastle’s owners and the Saudi state, he

“can’t choose who is chairing a football club”

because:

“The owners test doesn’t let us take a view”.


Does the Minister believe that that is right, and can he tell us when, or if, the Government will legislate on the test?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the takeover of Newcastle United by PCP Capital Partners has always been a matter for the club and the Premier League, which undertook its own due diligence as part of the owners and directors test. My honourable friend Tracey Crouch looked into that with the fan-led review and, as I said, we welcome the report of that review and are looking at all its recommendations, including on the owners and directors test. We will come back with our response to those in full.

[Lord Addington (LD)]

My Lords, the Newcastle situation is rather different from others because part of a British city’s identity is effectively being taken over by a foreign power with a questionable reputation for human rights abuses. Are we going to take in special regulation that means that we actually look at that when we are considering football ownership—because we have such a profitable Premiership?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, a lot of Newcastle United fans would take exception with the way that the noble Lord characterises that. They certainly welcome the investment in the club and the opportunity for dialogue, which is such an important part of sporting endeavour.

[Lord Faulkner of Worcester (Lab)]

My Lords, I declare a slightly ancient interest: I was a vice-chair of the Football Task Force, whose report in 1999 was the last serious attempt to, in the words of the Independent, “deliver a fair deal” for fans. Our proposal for independent regulation was blocked by the Premier League, the Football League and the FA. Can the Minister assure me that Tracey Crouch’s excellent report will not go the same way as the Football Task Force’s final report? Has he seen these words in her fan-led review:

“The fit and proper persons test has failed to stop many owners who are not ‘fit and proper’. It’s a disaster of a system.”

[Lord Parkinson of Whitley Bay (Con)]

I know that the noble Lord is a committed fan and campaigner. My honourable friend Tracey Crouch will certainly not let the matter rest. She has led a very good review. She was in another place when it was debated last week, and I know that she will not let up on this important issue. It is also thanks to the contributions of many thousands of football fans, which have informed the review very well.

[Lord Holmes of Richmond (Con)]

My Lords, is my noble friend aware of the work that we did at UK Sport on good governance as part of the Mission 2012 and Road to Rio programmes, delivering benefits not just in the boardrooms of sport but in the pool, on the pitch and across the park? Would he agree that good governance is not a “nice to have” or a matter of compliance; it is essential for ethical and safe support and absolutely essential for sustainable and successful sport?

[Lord Parkinson of Whitley Bay (Con)]

I agree with my noble friend: Mission 2012 helped to identify athlete performance issues and challenges, enabling them to be dealt with quickly and efficiently in the run-up to the London Games in 2012. I am pleased to say that the process has been used in subsequent Olympic and Paralympic cycles. Since 2017, the Code for Sports Governance has set out the standards that all sporting organisations must meet in return for public funding, either from UK Sport or Sport England.

[Lord Londesborough (CB)]

My Lords, I should perhaps declare an interest as a supporter of West Ham United, which looks set to be owned by Czech billionaire Daniel Křetínský. But does the Minister agree that foreign ownership is not the core issue here—rather, it is the need for clearly defined integrity tests for all football club owners, whether British or foreign? Does he also agree that the fit and proper person test should include human rights, mindful of so-called “sportswashing”? On that basis, a club like Newcastle might not now be 80% owned by the Saudi Arabian Public Investment Fund.

[Lord Parkinson of Whitley Bay (Con)]

Tracey Crouch, in the fan-led review, makes the point about an integrity test. As I said, we welcome the report—we will look at all the recommendations and come forward with our response to them in due course.

[Lord Grantchester (Lab)]

I declare my interest as recorded in the register. Would the Minister agree that transparency is an important part of the fit and proper person test? Has the Premier League given an answer to the following question to its football clubs, the Government or the media: what are the governance differences from the previous position, which ruled out the Newcastle United purchase, to the position agreed by the Premier League on 7 October that the takeover is now acceptable, such that the assurances of no interference from the Kingdom of Saudi Arabia can be relied upon? Can the answer be given to assure all football fans concerned about the propriety of the game?

[Lord Parkinson of Whitley Bay (Con)]

I do not know if the Premier League has answered that, but I will certainly take the point away and ask on behalf of the noble Lord. But, as I say, the takeover of Newcastle United has been a matter for it and the Premier League, which undertook its own due diligence as part of the owners and directors test.

[Lord McNally (LD)]

My Lords, I do not think anybody doubts Tracey Crouch’s commitment to reform, but as the noble Lord, Lord Faulkner, reminded us, the Mellor-Faulkner report 20 years ago was equally determined to clean up football and was defeated by vested interests within the game. Can the Minister assure us that there will be backbone in No.10 as well as with Tracey Crouch in seeing these reforms through?

[Lord Parkinson of Whitley Bay (Con)]

Yes, and I would point to the Government’s manifesto, which committed to this fan-led review. Football is nothing without its fans. That is why we have taken action at every step to support them, both through the manifesto commitment but also during the pandemic by getting football back on television and using the events research programme to get fans back safely into stadia.

[Lord Mann (Non-Afl)]

I declare my interest as the fan-elected chair of the oldest fan group in world football, at Leeds United. Does the Minister agree that the Premier League is the biggest single success that this country has in terms of reputation across the world and is loved by people wanting to watch it well beyond this country? Does he further agree that there is a fundamental difference between the Premier League and those who have owned clubs such as Bury, Darlington and Chester who have managed to wreck and ruin them?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right about the great pride that fans across the country place in the national sport and its huge impact not just in this country but worldwide. That is why we welcome the fan-led review and committed to it in our manifesto. It is also why we will study it carefully and come back with our response.

[Baroness Brinton (LD) [V]]

My Lords, my noble friend Lord McNally reminded us of the fate of the report by the noble Lord, Lord Faulkner, two decades ago, and Tracey Crouch’s report must see the light of day. However, I ask again, as others have: what does “in due course” mean and what will happen to any other proposed changes of ownership between now and any future legislation?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, Tracey Crouch’s report saw the light of day on Thursday. It was published; it is 160 pages long. She makes 47 detailed recommendations. The Government are studying all those. We will do her and the 20,000 fans who took part in the review the respect of looking at it and will come forward with our response.

[Lord Lennie (Lab)]

I add my congratulations to those offered to Tracey Crouch and the team for producing the report with its 47 recommendations. It has the potential to become truly transformational, if and when it is implemented in full. But can I clarify one point? As a Newcastle United fan, under some pressure, I ask the Minister what the Government believe is meant by the term “good character” on page 69 of the report, and does he believe that the new owners of Newcastle United would pass that specific test?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, what Tracey Crouch meant in her report is a question for her, but, as I have said, we are studying the report and its recommendations and will take them forward. The takeover of Newcastle United has always been a matter for it and the Premier League. Without knowing the specifics, it is hard for me to say what impact such a recommendation would have. As the noble Lord will know as well as I do, Newcastle United fans have welcomed the new investment in the club, but have done so with open eyes and while engaging in the dialogue that is an important part of sport.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the time allowed for this Question has elapsed.

Independent Fan-led Review of Football Governance

Lord Parkinson of Whitley Bay Excerpts

Monday 29th November 2021 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, we strongly welcome the independent Crouch review, whose recommendations, I have to say, look suspiciously like the sports section of the Labour Party manifesto, going back several general elections. We have long called for fans to be placed at the centre of the game that they do so much to sustain and for stronger protections when they are mistreated or their beloved clubs mismanaged. The Government say they will respond to the review in spring 2022 but, let us be clear, there is much that can be done in the interim. Will they, for example, establish a shadow regulator ahead of the 2022-23 season? Can the Minister confirm that any enabling legislation for Tracey Crouch’s reform package will not only feature in the next Queen’s Speech but be made a genuine political priority?

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

My Lords, this is a matter that transcends party politics. Football clubs are at the heart of our communities and fans are at the heart of those clubs, and everybody with an interest wants to make sure that they are. I am very proud that our manifesto commitment to set up this review has led to it in swift time; Tracey Crouch has done very thorough work at good speed. We will give her report and the views of all the fans who contributed to it the respect that they deserve; the report deserves a substantive response from the Government and it will get one. But the noble Lord is right that there are things that can be done now, not least by football clubs themselves, with regard to heritage, financial flows and governance. They need not wait for us to go through the report and come forward with our response to start taking the action that people want to see.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I declare an interest as one of 8,800 owners of Heart of Midlothian Football Club, the largest fan-owned club in the whole of the United Kingdom. I also have the privilege of having prepared a report on football governance for the Parliamentary Assembly of the Council of Europe, which will be considered at a committee on Thursday and then at the plenary session in January. That report endorses what Tracey Crouch has said but goes even further. Can I have the Minister’s assurance that, when the Committee of Ministers approves my report, as I expect it will, it will then be considered in detail by Her Majesty’s Government?

[Lord Parkinson of Whitley Bay (Con)]

Yes, I am sure my honourable friend the Sports Minister will be delighted to receive a copy of the report when it is published and will of course look at it with the attention and respect it deserves.

[Baroness Verma (Con)]

My Lords, will my noble friend, in asking for better commitment towards fans, also recognise that, if fans were much more involved in the management of their clubs, we might be able to reduce the scale of racism that has come into football?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My noble friend makes a very good point. Fans have been aghast at some of the appalling things that we have seen in recent years directed at football players at every level. That is why we want to ensure that true fans of football have their voices heard at every level, not least in calling out the abhorrent racism that we sometimes see.

[Lord Addington (LD)]

My Lords, can the Minister give an assurance that, if we follow the lines of the report, the Government will take seriously the fact that the Premier League has got to pump more money into the lower professional leagues to keep them viable? Without this, we will see more and more of the fiascos that have happened with smaller football clubs such as Northampton, where something that is part of that town’s heritage is taken away, or threatened to be taken away, from it.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, yes, the Government were very clear that cash should flow through the football pyramid more fairly and called on clubs to do that during the pandemic. I am very glad to say that, in many cases, it was so, but that is one of the recommendations followed up by Tracey Crouch and her review and one that we will look at carefully.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, as a member of the north-east fanatical football supporters’ league—but not a Newcastle United fan—I was disappointed when the Minister said earlier on that, essentially, the way the Premier League assesses “fit and proper person” is none of the Government’s business. It should be. Some of us have been saying for 20 years—for a lot longer than that, actually—that too much of our football governance is not fit for purpose and that the drive of the Premier League for more and more money has undermined much of what football is meant to be about. It is tragic that we do not have more fans properly engaged in governance in this country. The Premier League—I challenge it on this—does not want that because it believes that it will put off money and monied people coming into the Premier League. Therefore, will the Government, in their review of the Tracey Crouch report and their thoughts about future governance, really think about the model that is spread throughout the UK that would involve fans much more centrally in direct governance of football?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, as I say, while we are considering the review’s recommendations, it is clear from Tracey Crouch’s report that there is a significant opportunity to tighten up and strengthen the current owners’ and directors’ test. We will look at that very seriously and come forward with our response to the report in due course.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend commend the report by our honourable friend Tracey Crouch for being so bold? I support the point made by the noble Lord, Lord Addington; 62 insolvencies of lower-league clubs have occurred. Will my noble friend’s department use every good office to ensure that—while not harming the Premier League in the long term—more money will filter down to the lower levels?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I join my noble friend in reiterating my thanks to our honourable friend Tracey Crouch for the work that she has done. Football has had many opportunities to get its house in order but has not taken them, and that is why this report is such an important and timely one. In the past, football’s failure to reform itself has had an injurious impact on many clubs, as we saw with the proposals to set up the closed shop of a European super league. That is why we have taken the action of commissioning this fan-led review and why we will respond to it thoroughly.

[Lord Austin of Dudley (Non-Afl)]

My Lords, there are not many things that England leads the world at, but the Premier League is one of them. One of the reasons for that is because it has attracted investment from right around the world. While I am no fan of the Saudi Arabian takeover of Newcastle, I think we have to be really cautious about anything which might undermine the Premier League’s success in future.

I want to ask the Minister a couple of specific questions. Can he explain how he thinks an independent regulator would, for example, have prevented the collapse of Bury? What happened there was that a guy came in, bought the club and eventually did not have the funds to sustain it, and the club went bust. Would an independent regulator have blocked his purchase of Bury? If it had done so, the club would have gone bust sooner and the independent regulator—and by extension the Government—would have got the blame. I think there is no possibility that an independent regulator would have done that. People talk about more money cascading down the pyramid. Is the Minister not aware that the Premier League gave £250 million to the Championship and millions more to the leagues below that? One of the reasons it was able to do that is because the league has been so successful, so let us be cautious about undermining that.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, Tracey Crouch’s review demonstrates that there are fundamental issues with our national sport and that there is a case for significant reform. We do not want to see any more of our historic clubs vanishing from the football leagues and football not doing enough to help itself. The scenarios the noble Lord outlines are the ones we will have in mind as we look at the recommendations she made and as we formulate our responses to them.

[Lord Holmes of Richmond (Con)]

My Lords, would my noble friend agree that, though football is the national game, it cannot in any sense be separate from the national culture and values? To this end, it has a way to go to be truly inclusive for all. Would he agree that the Crouch review makes many excellent recommendations to this effect and is well worth the Government considering extremely seriously?

[Lord Parkinson of Whitley Bay (Con)]

Yes, we are indeed considering it very seriously. My noble friend is right that the pride we invest in our national sport and demonstrate when it is watched and enjoyed by people all over the world is a demonstration of our values as a nation. That is why the international reach of football and the great interest it attracts—whether that is from fans or investors overseas—should be a source of pride as well, and our response to the fan-led review will aim to strengthen all of that.

Ofcom: Appointment of Chair

Lord Parkinson of Whitley Bay Excerpts

Wednesday 24th November 2021 Lords Chamber

[Baroness Bonham-Carter of Yarnbury]

To ask Her Majesty’s Government what are the criteria for the appointment of the next Chair of Ofcom; and what has been the impact of the withdrawal of Paul Dacre on the progress with that recruitment.

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

My Lords, the essential criteria for the role of chairman of Ofcom have been publicly available on the public appointments website since the process launched on 1 November. The panel, whose names have also been published, will be responsible for assessing candidates objectively against these criteria. The process is fair and open and the Secretary of State has been clear that she wants the best candidate for the role and to be presented with a choice of candidates from a broad and diverse field.

[Baroness Bonham-Carter of Yarnbury (LD)]

I thank the noble Lord for his Answer and say how pleased we are on these Benches that so many Conservative Ministers are celebrating the creative industries this week. Does the Minister agree that my Question would not have had to be asked if the Prime Minister had heeded warnings, including from Julian Knight MP, chair of the DCMS Select Committee, not to pursue bending the rules to suit the reapplication of the person of his choice? Going forward, will the Minister assure this House that choosing the next chair will be conducted in a way that ensures the integrity and independence of the process, as is fit for Ofcom’s global reputation as an independent regulator?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the original competition was rerun because of the disappointing number of candidates. As the previous commissioner, Peter Riddell, wrote, one of the reasons for that was no doubt a result of speculation in the press at the start of the process about candidates said to be preferred by Ministers. It is regrettable that that speculation may be putting people off. We want to see a broad and diverse range of people applying so that the right person can get this important job.

[Lord Bassam of Brighton (Lab)]

My Lords, I commend the Minister for his honesty but now that plan A is out of the way—with Paul Dacre having thought better of it and decided to continue with his senior editorial role at the Mail newspapers—can he update noble Lords on plan B? Would the Minister like to come clean and tell the House who the preferred candidate is? Can he also ensure that the noble Lord, Lord Vaizey, gets a set of application forms this time?

[Lord Parkinson of Whitley Bay (Con)]

I cannot be drawn on speculation about candidates, either in the first round or now. This has always been a fair and open competition, run in line with the governance code. It is ongoing and we want to see the best candidate appointed to the job.

[Lord Bellingham (Con)]

My Lords, whatever one’s view of Paul Dacre—I happen to regard him as a person of great integrity and ability who would have been a sensible choice to share Ofcom—surely what we should focus on now are his remarks about the Civil Service’s attitude to the private sector and wealth creation. Does the Minister agree with those remarks that Paul Dacre made and, if so, what does he plan to do about it?

[Lord Parkinson of Whitley Bay (Con)]

Again, I cannot be drawn into speculation on who may or may not have applied, but the general thrust of my noble friend’s remarks makes an important point. Civil servants do a brilliant job in delivering the laws that we enact in this place and in another place, but it is important that there is oversight not just from Ministers but from a broad range of people with experience in those fields. We want a broad range to apply to be the chairman of this important regulator.

[Lord McNally (LD)]

My Lords, is the Minister aware that, according to the Daily Telegraph, the term popular in the 1980s that “Every Prime Minister needs a Willie” is back in fashion? That of course referred to the late and much lamented Viscount Whitelaw being available to Mrs Thatcher to curb her exuberances. Does he think that the present Prime Minister needs a Willie and, if he does, could he not look to the Privy Council Benches for an ideal candidate?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

I think that the noble Lord may be ranging a little from the topic. Like me, he is a former political secretary to a Prime Minister; it is a pleasure to serve Prime Ministers in whatever capacity and they benefit from a range of experience, as do all Ministers.

[Lord Hamilton of Epsom (Con)]

My Lords, unlike the noble Baroness, Lady Bonham-Carter, I think that Paul Dacre would have been an excellent candidate to run Ofcom. When he stood down and withdrew his name, he said that the blob was in charge of the selection process and that it would never have shortlisted him for consideration by Ministers. Was he right?

[Lord Parkinson of Whitley Bay (Con)]

Again, I cannot be drawn on speculation about who may have applied, but the panel in the first round and the new panel both include civil servants and non-civil servants, in line with the governance code.

[Lord Liddle (Lab)]

My Lords, does the Minister agree that, while these appointments to key bodies should remain in the hands of Ministers, there have to be proper checks and balances and that the candidates put forward to the Minister have to satisfy clear criteria of competence? In this case, will he, first, clearly condemn the fact that someone in government, probably a special adviser, leaked the name that we are talking about to deter other good candidates from applying? That was the purpose. Secondly, will he criticise the Secretary of State for having failed to get Sir Paul Dacre on the list the first time round, then altering the criteria to make it easier for that to happen?

[Lord Parkinson of Whitley Bay (Con)]

I will not join the noble Lord in speculating on the Kremlinology of how the name came out but I agree with the former Commissioner for Public Appointments that it is regrettable that it did. As he has said, this

“appeared to pre-empt the outcome of the competition”

and “risks undermining public confidence”. There is a governance code that governs these public appointments processes. This one has been run in line with it and continues to be so.

[Lord Lansley (Con)]

Does my noble friend agree that Ofcom is a statutory body with many, and increasing numbers of, serious statutory responsibilities? In that respect, what we are looking for in a chair is somebody who can bring a high calibre of judgment to those statutory responsibilities, not treat Ofcom as any kind of discretionary vehicle for their own prejudices. Does he therefore agree that we need somebody with that judgment, rather than prejudices, and that the same has to be true of the selection panel?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, this is an important job and my right honourable friend the Secretary of State wants to get a broad and diverse field of candidates to choose from, so that we can select the right person to chair this important regulator. That is why the governance code makes sure that the process for choosing that person is open and fair.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, regardless of his suitability for the job, Paul Dacre’s stinging critique of the blob rang true with many of us, especially as only yesterday Dame Kate Bingham accused the Civil Service of groupthink and risk aversion. Does the Minister agree that, whoever is recruited, they will need to be sufficiently independent of mind to face down the blob? They should break Ofcom out of any sort of groupthink—the sort that led one of the most powerful regulators in the land to so unwisely be captured by the gender ID lobbying group Stonewall, perilously threatening impartiality in the media in the coverage of women’s sex-based rights.

[Lord Parkinson of Whitley Bay (Con)]

On the first part of the noble Baroness’s question, yes, this underlines the importance of having independent people appointed to oversee such important regulators. It also underlines the need for boards with a broad and diverse range of views. All government departments and regulators such as Ofcom benefit from that breadth of experience and views.

[Lord Cormack (Con)]

Is it not vital that whoever is chosen is articulate, has a strong mind and, most of all, has the courage to stand up to the giants of social media?

[Lord Parkinson of Whitley Bay (Con)]

The criteria for this big and important job are published online and note the role that Ofcom has in regulating not just the traditional media but the social media too.

Charities and Civil Society: Ministerial Responsibility

Lord Parkinson of Whitley Bay Excerpts

Tuesday 23rd November 2021 Lords Chamber

[Baroness Pitkeathley (Lab)]

My Lords, I beg to ask the Question standing in my name on the Order Paper and declare an interest as president of the National Council for Voluntary Organisations.

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

My Lords, we greatly value the important role that charities and civil society groups play, and work across government to support them as they do so. This includes in the areas of sport and heritage where, as in so many others, charities and volunteers play a crucial part. Aligning those ministerial responsibilities creates a real opportunity for an innovative and collaborative approach to growing the sector’s contribution. My honourable friend is committed to his brief and will ensure that charities and civil society organisations benefit from significant attention.

[Baroness Pitkeathley (Lab)]

I thank the Minister for his reassurances, but research by the commission on civil society showed that ministerial engagement with the social sector is significantly lower than engagement with business, despite the huge contribution made by that sector in the Covid crisis, as the Minister acknowledged. In the absence of a dedicated Minister, will the Government consider returning to a system of having nominated civil servants in every government department, not just DCMS, responsible for engagement with civil society, as was the case some years ago, when I chaired the advisory body for the third sector set up by a previous Government?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, with 170,000 registered charities in England alone, it would of course be impossible for any or all Ministers to speak to every charitable organisation that does such important work. It is a duty for all Ministers in the roles they perform. In my portfolio, I have already in my weeks of office had the pleasure of working with the Music for Youth organisation and the Intermission Youth Theatre, and I know that ministerial colleagues across government take very seriously the role that civil society organisations play, not least my honourable friend, with his specific responsibilities.

[Lord Colgrain (Con)]

I declare my interests as set out in the register, with particular reference to the Harris (Belmont) Trust and Rochester Cathedral. Does my noble friend agree that within whichever department charities sit, the role of their volunteers is paramount? What measures can the Government take to facilitate their rapid return after the pandemic to both charities and those other organisations where volunteers fulfil a vital need, such as special constables in the police force? Will he also give an opinion on whether the position of volunteers could be included on future census forms?

[Lord Parkinson of Whitley Bay (Con)]

The Government recognise the vital importance of volunteering and its wide-ranging benefits, not just to the organisations for whom people volunteer but for individuals themselves. We know that, during the pandemic, volunteers have had to make adjustments or pause their volunteering and we are very grateful to them for adapting as they have. My honourable friend is seeking to learn from the new approaches developed in the pandemic. We have launched a new volunteering futures fund, through which £7 million will be made available to improve the accessibility of volunteering in the arts, culture, sport, civil society and many other sectors. On the point about the census, it was included in the 2018 White Paper published by the Minister for the Constitution. It was rejected by the Office for National Statistics, but DCMS’s community life survey captures people’s volunteering.

[Lord Crisp (CB)]

My Lords, as has been mentioned, voluntary and community associations have had an enormous impact on health and well-being during the Covid pandemic. There are several important organisations. I think of those such as C2, Connecting Communities, the Health Creation Alliance and others which support and develop those organisations. Will the department engage with the Department of Health and Social Care to support and develop those enabling organisations, as well as the sector more generally?

[Lord Parkinson of Whitley Bay (Con)]

My right honourable friend the Secretary of State is of course a former Health Minister, and the new Health Secretary is a former Culture Minister, so the insights that each have gained in their respective departments will, I know, be brought to their work. My honourable friend the Minister works with a range of groups—charities themselves but also sector representatives— including through round table meetings.

[Baroness Merron (Lab)]

My Lords, the voluntary and community sector deservedly gained a high profile during the pandemic, particularly as so many people responded to the call to volunteer at a time of national need. What assessment has the Minister made of the effectiveness of government machinery in harnessing that activity to support the sector? With all due respect to existing ministerial efforts and responsibilities, does he feel that there is a case to be made for a full-time Minister who will work across Whitehall and beyond to ensure focus on this?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is absolutely right to point to the fantastic work that volunteers did during the pandemic. The Government stood by them with support, including an unprecedented £750 million package specifically for charities, social enterprises and the voluntary sector, and my honourable friend, with his responsibilities, is the champion for the sector in government.

[Lord Addington (LD)]

My Lords, I must remember to declare my interests. Does the Minister agree that having one Minister in the smallest department in government, who is covering dozens of other subjects, does not exactly instil confidence? Also, if they are not going to have a powerful enough Minister, when will we get an idea about a coherent strategy throughout government for dealing with the charitable and voluntary sector, which is simply too big to ignore?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, it is not being ignored. Ministers in every department, big and small, work with a range of charitable and civil society organisations and greatly value the work that they do. This is not something just for DCMS, but my honourable friend, with his responsibilities, is the Minister with specific focus on championing them and ensuring that across government we are giving the sector the support it needs, such as I have mentioned.

[Lord Holmes of Richmond (Con)]

My Lords, I declare my interests as set out in the register. Does my noble friend agree that there is some sense in combining these responsibilities, as, for example, in the case of the British Paralympic Association, an excellent sport organisation and an excellent charity? Does he also agree that in our honourable friend Nigel Huddleston we have a Minister with the talent and tenacity to make a stunning success of his new portfolio?

[Lord Parkinson of Whitley Bay (Con)]

I certainly agree with my noble friend and thank him for that. He is right to point out that the briefs of civil society and sport have been combined before to great effect, and right to point to the fantastic organisations that work at increasing people’s participation in sport and physical activity through charitable and civil society groups.

[Baroness Prashar (CB)]

My Lords, I declare my interest as a trustee of Beacon Collaborative, a charity dedicated to promoting philanthropy. As has been said, Covid highlighted not only the importance of civil society but how fragile its sustainability and financial resilience are. Does the Minister agree that the growth of philanthropy is very desirable to increase support for civil society and, if so, can he tell us what the Government are doing to enable greater giving and philanthropy? Is he confident that the current ministerial arrangements are sufficient to support civil society and the growth of philanthropy, and to gain insights into the needs and values of the sector?

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[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is right to point to the huge importance of philanthropy in supporting the groups, and to the fantastic work that they do across the country. In addition to the support that the Government gave from the taxpayer, we are keeping a close eye on the health of the sector as it emerges from the pandemic. I am glad to say that the work of the Charity Commission shows that only 1% of charities foresee a critical threat to their survival in the next 12 months. However, we continue to keep a close eye on them.

[Lord Roberts of Llandudno (LD)]

My Lords, what worries me is the way we are trying to overload the responsibilities of one particular Minister. I think of the Minister for Intergovernmental Relations. I think it should be the Minister for Inter-Gove-rnmental Relations, because he already looks after housing, communities and levelling up. Let us give him Scotland, Wales and England. It is nonsense. Is it not only overworking somebody who does a good job in many ways but denying the younger and newer generation experience at that level to take over major government responsibilities at some time? What are the Minister and the Government thinking about in this sort of situation?

[Lord Parkinson of Whitley Bay (Con)]

The Minister with responsibility for civil society is my honourable friend Nigel Huddleston, not my right honourable friend Michael Gove, though, as I say, all Ministers across government work with the third sector in the important work they do. I also point out that responsibility for the voluntary sector and volunteering in the Welsh Government is held by two people who combine that with responsibilities for welfare reform, fuel poverty, fire and rescue services, domestic abuse, youth justice, community safety and much else.

[Baroness Sater (Con)]

My Lords, I declare my interests as set out in the register. As has been said, volunteers have always played an incredible role in British life. I think of the Olympics, the Paralympics, the ongoing Covid pandemic and the tireless efforts of millions of everyday people across the country. Does my noble friend agree that more can be done to harness and galvanise the spirit of volunteering by introducing a framework that links a volunteer’s voice within and across national and local government, and a volunteer champion to protect and recognise achievements, to stand up for their views and interests, and to help order the future functioning of volunteering? Will my noble friend therefore consider appointing a commissioner for volunteering to support the sector and give it the status that it so richly deserves?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the Government highly value the contribution of volunteers across the whole of society. We witnessed the huge difference they can make during the pandemic, as well as in the examples my noble friend raised. Volunteers are represented in discussions with government by a variety of sector representatives and bodies, but I will take her interesting suggestion back to my honourable friend the Minister and discuss it. I have also pointed to the volunteering futures fund, which the Government have announced to support more people to volunteer and play their important role.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the time allowed for this Question has elapsed.

Dormant Assets Bill [HL]

Lord Parkinson of Whitley Bay Excerpts

3rd reading
Tuesday 23rd November 2021 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the Bill do now pass.

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

My Lords, I beg to move that this Bill do now pass and, in doing so, take the opportunity to thank noble Lords from all sides of your Lordships’ House for their interest and contributions to the progress of the Bill so far. I am grateful for the scrutiny that they have brought, and the co-operative and constructive spirit in which the debates have taken place. I am also grateful for the broad cross-party support that the Bill has received so far. It is clear that all corners of your Lordships’ House share the same ambition to ensure the scheme’s continued success in unlocking dormant assets for public good.

I first thank my noble friend Lady Barran, who expertly led the Bill through Second Reading and Committee. I am very grateful for the opportunity to follow in her capable footsteps. I pay tribute also to the Front Benches opposite. The noble Lord, Lord Bassam of Brighton, and the noble Baroness, Lady Merron, have helpfully challenged the Government’s approach, and I thank them for the collaborative way in which they have done so. I also thank the noble Baronesses, Lady Barker and Lady Kramer, from the Liberal Democrat Benches, for all their invaluable contributions, which have been detailed and thoughtful. Noble Lords from across your Lordships’ House have contributed to a rich discussion on the Bill, and I am very grateful for all the points which have been raised.

As ever, I am grateful to the House authorities and parliamentary staff for their hard work behind the scenes. I acknowledge the extraordinary work of the officials who have worked so hard on the Bill for many months: the Bill team, the policy teams at DCMS and at Her Majesty’s Treasury, the lawyers in both departments, my own private office, the Office of the Parliamentary Counsel and the clerks in this place.

I take this opportunity to clarify aspects of the debate on Report regarding the additionality principle, an issue I discussed with the noble Baronesses, Lady Barker and Lady Kramer. Section 24 of the 2008 Act empowers the Secretary of State to add or remove named distributors of dormant assets funding. Currently, the only named distributor is the National Lottery Community Fund, and all funds, including those distributed through the four independent spend organisations in England, flow through it. Section 24 also provides for making consequential amendments, including to Schedule 3, where responsibility for reporting on the additionality principle is set out.

The Government consider additionality to be critical to the scheme’s success, and we have reiterated this position throughout our debates on the Bill. Indeed, we are clear that the voluntary participation of the industry is dependent on it. While we emphasise that there are no plans to change or add new distributors, I can reassure noble Lords that it is the Government’s policy that any new distributor added should be required to report on this principle in the same way that the fund is required to do so now.

The dormant assets scheme has spent the last decade working to tackle systemic social and environmental challenges and to level up communities which need it most. This Bill is set to unlock almost £1 billion of additional funding to ensure that the scheme continues to support innovative, long-term initiatives that seek to address some of the UK’s most important challenges.

[Lord Bassam of Brighton (Lab)]

My Lords, the Minister will be pleased to hear that I will be brief, but some thanks are worth echoing. I thank the Minister; it is never easy taking up another person’s Bill halfway through. I have had to do it myself and, at times, I lurched from being completely out of my depth to being a total shambles, so I know how it feels. The noble Lord was neither of those things; he was courteous and considerate of the points that we made and the amendments we moved.

Like the noble Lord I am delighted that we are moving to unlock previously untapped assets. I hope that the next iteration of this legislation—this is, after all, the second Bill on dormant assets—will bring forward even more dormancy and unlock it, so that communities can benefit.

I also thank the Minister’s predecessor, the noble Baroness, Lady Barran, for her time spent on the Bill. She was, like him, very courteous and open-minded about ways in which we can forge improvements. She was also willing to meet and discuss aspects of the legislation. I echo his thanks to my noble friend Lady Merron—my good friend—for her part in this. It is always a pleasure to work with her. I also thank the noble Baronesses, Lady Kramer and Lady Barker, on the Lib Dem Benches, who also played an active and energetic part.

Of course, the noble Lord, Lord Hodgson, played a decisive role on Report in helping to support the amendment that we sponsored on the community wealth fund, for which there was all-party support. Before the Commons is invited to reject that amendment, I suggest to the Minister that it might be an idea to sponsor some discussion between his ministerial colleagues and other Benches in your Lordships’ House to see if there is a way in which we can find some common ground on this—because I am very persuaded, as I know others are, of the benefit of the community wealth fund as a way forward. As he said, these resources can do a lot to take forward the shared agenda of levelling up and bring additional resources to bear in hard-pressed communities. We for our part would be very happy to meet and discuss this to see what common ground we can secure, because this is an important opportunity for us all, if we want to make it stick.

We wish the Bill well. It has been improved by your Lordships’ House, not just by the amendment on the community wealth fund but in other aspects as well. I thank the Minister for his comments on additionality, which will be very helpful. I am happy to support the Bill as it goes on its way.

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[Baroness Barker (LD)]

My Lords, I also thank very much the Minister, his predecessor—the noble Baroness, Lady Barran—and the team. As is always the case with a Bill that is very technical and arcane, they had to display endless patience with the opposition as we painstakingly made our way to the place that they were already at. I also thank my noble friends Lady Bowles and Lady Kramer, who brought to the Bill a completely fresh eye from the financial sector and who set a very high standard of scrutiny for a Bill that is normally given over to those of us interested in the world of charity.

We achieved three things during the passage of the Bill. First, we made it clear that this is not simply an exercise in spending dormant money because it is there. We made sure that the scheme is about achieving impacts on financial inclusion in areas of deprivation. Secondly, we enabled it to be run using far more difficult asset classes than just bank accounts, and we made sure that the reporting systems for that were fit for purpose. Thirdly, we made sure that everyone involved in the scheme is under a duty to report—this is about additionality, not giving the Government a fund that they can dip into in difficult times.

In years to come, we will have reports from the disbursing body and the Secretary of State that I hope will show the impact of this, particularly in one respect: the endeavour to get rid of moneylenders in poor communities. If we achieve that, we will together have achieved something good and which we can be proud to support.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the noble Lord and the noble Baroness for their comments, and I echo the tributes that they paid to the noble Baroness, Lady Bowles of Berkhamsted, my noble friend Lord Hodgson of Astley Abbotts and many others who contributed to the debates on this.

I will certainly discuss the point that the noble Lord raised with my honourable friend Nigel Huddleston, the Minister with responsibility for the Bill, in his capacity as Minister for Charities and Civil Society, as we just heard in Questions. I am sure that he will want to continue the discussions that we have had on community wealth funds as the Bill goes to another place but, as I say, I am very grateful that it does so with genuine cross-party support and a fair wind behind it. I grateful to all noble Lords who have ensured that this is so.