Birmingham Commonwealth Games Bill [HL]

Debate between Lord Snape and Lord Foster of Bath

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 25th February 2020 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I will speak to Amendment 1, standing in my name and that of my noble friend Lord Addington. Before I begin, I congratulate the Minister on her prescience in predicting that before this stage of our Committee deliberations, the Commonwealth Games Federation would have found a solution to the issues of shooting and archery. I note that our second group of amendments will give us ample opportunity to hear more details about that.

This group deals predominantly with financial matters, in particular financial reporting, and provides an opportunity for the Minister to update us on the finances of the Games and to address some of the lingering problems. Amendment 1 proposes simply that any government grant, loan, guarantee or indemnity must be subject to the condition that the recipients provide financial reports, which seems eminently sensible.

Amendment 5, in my name and the names of the noble Lords, Lord Bilimoria and Lord Moynihan, specifies that the first such report from the organising committee should be completed within six months of the coming into force of this provision, although I note that the reference to shooting and archery in that amendment may no longer be relevant in light of the CGF’s decision.

Amendment 11, from my noble friend Lord Addington, requires in the same six-month period a report from the Secretary of State to be laid before both Houses. It too covers financial provision alongside consideration of other funding mechanisms such as a local lottery or local tax. This issue is picked up in Amendment 3, tabled by the noble Lord, Lord Hunt of Kings Heath, and other noble Lords. Quite sensibly, this too looks for a wider report by the Secretary of State—this time within 12 months—covering not only the issues covered in other reports but how to help raise additional funds, and government support for minimising the impact of the Games on local services and maximising various legacy projects—an issue we will discuss in more detail later.

Reference continues to be made to a hotel tax. I am well aware of Core Cities UK’s enthusiasm for this. As I said in a previous discussion, before we introduce such a thing, we should reduce the VAT on accommodation and attractions, as the vast majority of other EU countries have done. However, I note that this amendment has changed from an earlier version and now refers to such a tax applying only during the Games. That is a period of just 12 days. Given that we were previously told that the estimated income for such a tax over a three-year period would be £15 million, a simple calculation suggests that a hotel tax levied solely during the period of the Games would raise just £160,000. I will leave it to the movers of that amendment to explain the benefits of such an approach.

[Lord Snape (Lab)]

Is it not a fact that in previous debates, the noble Lord endorsed a hotel tax—a view shared by many of us—quite enthusiastically, whereas his noble friend Lord Addington denounced the whole idea on principle? It is very unusual for Liberal Democrats to disagree on such matters, but for clarification, could he let us know where his party stands on this important issue?

[Lord Foster of Bath]

I am enormously grateful to the noble Lord. The entire House is looking forward to a later debate on future signage arrangements around Birmingham New Street station, which he is the world’s expert on. I hope that, before our Committee deliberations are finished, he will offer to lead a team of Games volunteers at the station to guide people, since he knows his way around there better than most.

However, the noble Lord’s suggestion is wrong: at no point have I been a clear enthusiast for a hotel tax. He will note that in many debates in the other place, I expressed on the record grave reservations about such an approach until the issue of VAT had been addressed. There is commonality of agreement with my noble friend on the Front Bench on this issue, but there are a range of views, which we will have an opportunity to hear when his noble friend introduces his amendment.

My final two amendments, 19 and 20, look at the wider reporting mechanism. Amendment 20 calls for an earlier report than the Bill currently provides for. I hope the Minister agrees that on financial and other vital issues, we need early reporting. Amendment 19, from the noble Lord, Lord Moynihan, calls for not only earlier reports but far more frequent reports than is currently proposed. That way, your Lordships and the other House can keep abreast of what is happening and hold people to account. The more reports that we have as the Games develop, the better, and it is important that we use them to keep a tight grip on expenditure.

Let me give an example of why there are continuing concerns, and why there is a need to keep a grip and to understand what is meant by the Government’s plans for underwriting the Games. We know from newspaper reports that removing the National Express bus depot in order to create the Games village and subsequently providing 1,400 much-needed homes in the area was initially estimated to cost £2 million. Reports now suggest that the cost will be a staggering eight times higher, at £15.5 million. Will the money that has to be found be additional to the £185 million that Birmingham City Council must find, or will it be covered by the Government’s underwriting agreement with the council? It is important that we find out such details now. We need early and regular financial reports on what is taking place, and that is why I have tabled my amendment. I support nearly all the other amendments, albeit that one needs a slight tweak. I beg to move.