Sale of Tickets (Sporting and Cultural Events) Bill

Christopher Chope Excerpts

Friday 21st January 2011 Commons Chamber

[Philip Davies]

My hon. Friend makes a tempting offer and it would be churlish of me to turn it down, so I look forward to receiving that invitation. I am encouraged: the longer I speak, the better the invitations I get. That encourages me to keep going a little while longer. I do not mind the free market—if anyone has a better offer, I would be prepared to hear it. I can assure my hon. Friend that I have already heard these arguments, as the Select Committee heard the views of promoters. I suspect that even the mere mention of my name to a certain Harvey Goldsmith is likely to give him a near-heart attack. Some of the spats that he and I had—not just in the Select Committee, but on radio interviews afterwards on the issue—seem to have done his health more harm than good. I am certainly aware of the arguments, but I was not persuaded by them.

My hon. Friend the Member for Bury North made a good point about who the real fans are in this case. Who are we trying to protect? Who are the people who are losing out as result of ticket touting? I have never worked out who the losers are, but they are certainly not the promoters. They do not lose out in any shape or form from ticket touting and nor do the artists.

[Mr Christopher Chope (Christchurch) (Con)]

Is my hon. Friend sure that the promoters are not losing out? They could be selling their tickets at a higher price, and if they are worth more on the open market than the promoters are selling them for, then they are losing out.

[Philip Davies]

If my hon. Friend does not mind my saying so, he states the obvious. Obviously, if the market would guarantee a higher price for the tickets and the promoters were to sell them at a higher price, they would make more money. My point, however, is that that is their choice. If a promoter has 50,000 tickets to an event and chooses for one reason or another to sell them at £20 per ticket, their ambition is to bring in £1 million from the sale of those tickets. Rather than ticket touts causing a problem for the promoters, I assert that they are helping, because the more tickets they buy, the more likely the promoters are to sell the amount of tickets required for them to raise the sum of money for which they have budgeted. The ticket tout is therefore helping the promoters reach their targets. If there is no ticket touting, the promoter is not going to bring in more than £1 million; the tickets will still all be sold for £20 each. That is the only income the promoters are going to get, so they are certainly not losing out.

--- Later in debate ---

[Philip Davies]

I am grateful, Mr Deputy Speaker, and I am glad that you think that the points that I have made are relevant to the Bill. I am genuinely disappointed that Opposition Members do not wish to engage in a debate. I thought that that was the whole point of Bills going through Parliament—that we debated them. When I have finished making the points I have to make I will, in customary fashion, sit down. I always thought that that was the way that debates worked in this place—that people spoke until they had finished and then they stopped.

[Mr Chope]

Does my hon. Friend accept that if there was a secondary market in the ability to have a private Member’s Bill first on the Order Paper on any day, the hon. Member for Washington and Sunderland West (Mrs Hodgson) would not be so frustrated?

[Philip Davies]

My hon. Friend is ingenious as ever. That might be something that the Procedure Committee will want to consider. I suggest that my hon. Friend mentions it to our right hon. Friend the Member for East Yorkshire (Mr Knight). I shall look forward to that system being introduced.

I do not think that things work against the interests of the promoter. The promoter gets all the income that they were ever going to get in the first place, so the promoter is looked after. The issue is then whether things work in favour of the consumer. As I hope I have argued, the fact that the consumer can buy tickets right up to the end means that it works in their best interests, too. I must say in passing that if ticket touting is such a big issue for concert promoters and sporting promoters—if it is the be all and end all and the biggest single threat to their business—it is a wonder that they do not do more imaginative things to try to stop the antics of ticket touts. My hon. Friend the Member for Hove said that it should be up to them what they do, and it is. Perhaps, rather than selling all the tickets in one go right at the start so that they are sold out in five minutes flat, which provides a perfect market for the ticket tout because no tickets are on open sale, why not sell tickets gradually week by week, so that there are still some tickets on open sale right up to the day before the concert? There would therefore be no market for the ticket touts.

I do not think that the solutions to the problems lie with more legislation, but of course that is what the Labour party always reaches for. If Labour Members perceive a problem—for the avoidance of doubt, I am not saying that there is a problem—they think the only solution is more Government legislation, more Government interference and more of a nanny state. The solutions to these things are often in the hands of the promoters and I want to see an explanation of why more promoters do not sell tickets bit by bit, week by week and day by day, so that tickets are still available on the open market the day before. There would then be no market. Perhaps the hon. Member for Dudley North could explain what is wrong with that solution. I see that he does not want me to give way, so perhaps I have talked him round. Perhaps this is a triumph that I did not anticipate. He appears not to disagree with me, so I shall leave it at that.

I want to refer to the Office of Fair Trading. People seem to think that not allowing the person who owns the property to set the price will make the price more expensive for the consumer. I take issue with that, because when I had the pleasure of working for Asda, it challenged the net book agreement. I do not know whether hon. Members remember the net book agreement, which allowed publishers to set the price of books and which prevented anyone else from selling the book at a different price.

I presume that my hon. Friend the Member for Hove supports the net book agreement, because the book belongs to the publishers, who should therefore be able to force everybody to sell it at a particular price. At Asda, we thought that that was against the interest of the consumer, that it was a protection racket and that it flew in the face of the free market. We took our case to court to argue that we should be able to sell books at the price that we wanted to sell them at and that there should be a free market. After a lot of to-ing and fro-ing and a lot of expense, I am delighted to say that Asda won its case and the net book agreement was broken.

What has been the upshot of the end of the net book agreement? If the argument advanced by the hon. Member for Washington and Sunderland West holds, prices would have risen: people would have abused the system by charging all sorts of prices. The nice, kind publisher would have wanted as many people as possible to read the book, and would have sold at the cheapest possible price, while the nasty retailers would have hiked up the price to increase their profits. The exact opposite actually ensued. Since the net book agreement ended, book prices have decreased, so breaking that restriction worked in the best interest of consumers. I do not see the difference between books and tickets, because the principle is the same. The free market won out in the courts, and I hope that it will continue to do so.

--- Later in debate ---

[Philip Davies]

I am grateful to my hon. Friend for his mathematical genius.

[Mr Chope]

Will my hon. Friend confirm that if this debate is not concluded today, it is open to the hon. Lady to put the debate over to another day for continuation?

[Philip Davies]

My hon. Friend is, with good reason, considered to be the expert on Friday rules, if I can put it like that. I am sure that the hon. Member for Washington and Sunderland West is grateful that he has not charged for his advice on getting her Bill through in future weeks. I commend his advice to her.

When the chief executive of the Office of Fair Trading gave evidence to the Select Committee, he did not just say that the secondary market was working in the best interests of the consumer, although he did say that. I add that the right hon. Member for Barking (Margaret Hodge) also said that when she gave evidence as a member of the Labour Government; she was a passionate supporter of the secondary market. The chief executive also made it clear that he considered that the secondary market also worked in the interests of promoters. Let me quote what he said—