(2 days, 16 hours ago)
Public Bill CommitteesIt is a pleasure once again to serve under your chairmanship, Mr Turner. I thank the shadow Minister for the amendment and the chance to clarify the Government’s position on the redistribution of revenue. Let me be clear: the backstop process will apply only to revenue received by the leagues. That is already explicit in the definition of “relevant revenue” in clause 56. It does not allow the regulator to include individual club revenue that is not relevant for distribution agreements—for example, shirt sales. The amendment is not necessary to ensure that. It would call into question the regulator’s powers under the backstop process. Although that process is about resolving distribution disputes between the leagues, not individual teams, the money received by the leagues is ultimately distributed to their member teams.
I thank the Minister for seeking to provide clarification. Can she clarify what would happen in the scenario posed by the hon. Member for Cheltenham? If a club such as Manchester City were to negotiate a TV rights deal abroad, and it was a very good deal, should the football regulator have any role in seeking to redistribute that money in any circumstances?
The point in the intervention speaks contrary to the amendment that we are discussing. It is somewhat confusing—[Interruption.] It was a question, indeed, but it speaks contrary to the amendment in the shadow Minister’s name.
The amendment would cast doubt on the regulator’s ability to effectively deploy the backstop, even where requested to do so as a last resort by the leagues. For the reasons that I have set out, I am unable to accept it.
Question put, That the amendment be made.
Once again, I am going to refuse the temptation to make a political point about back-of-a-fag-packet calculations by the Liberal Democrats. This amendment does not provide a get-out for clubs to blame the regulator for putting their ticket prices up. They could do that anyway. Clubs can, if they want, try to blame the regulator, regardless of whether the regulator has a power or a compulsion to assess its own impact on ticket prices. What the amendment seeks to do is just add a layer of transparency. Of course, it is up to the regulator to make its own assessment of its impact on ticket prices, and it may be that its assessment is that it has had a negligible effect. However, it seems entirely reasonable, in the interests of transparency, to compel the regulator to nevertheless make this assessment. At the end of the day, we should all be here in the interests of one group of people only—the fans—and it would be a great shame, indeed worse than that, if the regulator were to increase the cost of match tickets, which are already very high.
The amendments from the hon. Member for Old Bexley and Sidcup regarding ticket pricing touch on an important issue that I recognise is very important to fans. I reassure fans that the Bill will increase clubs’ overall accountability, including on this important issue. However, the annual report is not an effective place to address ticket prices.
Ticket pricing is fundamentally a commercial decision, and it would not be appropriate for the regulator to interfere with the commercial decisions of a private company. That is why the regulator will not intervene on this issue, aside from ensuring that clubs consult their fans on ticket pricing. It may well be that the regulator chooses to look at ticket pricing as part of the state of the game report, but mandating that it reviews the effect of its regulatory activities on ticket pricing as part of the report would be unnecessarily prescriptive.
Ticket pricing is ultimately a matter for clubs and is driven by many factors, but we do think it vital that fans are consulted and can have their voices heard. That is exactly why this Government amended the previous Government’s Bill to add an explicit requirement that clubs must consult their fans on ticket pricing and take their views into account as part of fan engagement. That is the way to ensure that fans can have their voices heard on such an impactful issue.
The amendment seems to assume that the cost will be passed on to fans in the form of higher ticket pricing. I want to be clear, as I was on Second Reading, that that would not be a proportionate response by clubs. If clubs increase ticket pricing, it will not be because they cannot otherwise afford to pay the regulator’s levy. As mentioned before, the cost of the regulator will be tiny compared with the vast revenue of the game, and the cost of the levy will not be among any club’s top area of expenditure.
Every measure has been taken to ensure affordability. No club will be charged to the point of needing to increase ticket pricing, and no fan will be subject to price rises without having their voice heard—I associate myself with the comments of the Liberal Democrat spokesperson, the hon. Member for Cheltenham. For those reasons, I urge the hon. Member for Old Bexley and Sidcup to withdraw his amendment.
(2 days, 16 hours ago)
Public Bill CommitteesI appreciate that we have a situation where one of the Minister’s Back Benchers is seeking assurances in this Committee, but does she accept that is not the equivalent of having something written into the Bill? With the greatest respect, if it is not in the Bill, her assurances here on what she expects from the football regulator is only her expectation—it is nothing more certain.
I remind the hon. Gentleman that part of the purpose of a Bill Committee is to give our intention as Parliament. Yes, I can give those assurances and I have done so at every step of the way.
I will take a further intervention, but I have not actually answered the hon. Gentleman’s substantive point. I want to answer it, if he gives me the chance.
It is a fundamental principle of lawmaking that, when interpreting the law, judges or anyone else do not go and look at what a Minister might have said in Hansard. I appreciate that she may have a long career, but the Minister will change at some point, and the law has to stand, potentially, for a very long time.
The hon. Gentleman shouts his CV from a sedentary position.
It is a pleasure to serve with you in the Chair, Ms Butler.
The shadow Minister, as ever, is a strong advocate for the fans and has set out a compelling case for supporting the amendment. I will not rehash all the arguments, but it is about transparency and reporting—indeed, the clause that the amendment seeks to change is about reporting. Clearly, the Government believe that an annual report should be made or that would not be provided for in the Bill. The report must include a “summary of the activities” undertaken by the regulator, with reference to a financial year, and yet there is nothing about that report’s including the financial impact, which would be fairly usual in a report by any organisation compelled to do one year on year in the interests of transparency.
We debated amendment 122 earlier, and that was more specifically about the impact of the regulator’s activity on match ticket prices. I recall that one of the Liberal Democrat Members did not support that on the basis that the cost of administering the regulator would, if divided up as on his fag packet between match tickets and clubs, add up to a small amount. Amendment 134 is much more compelling because it is about the cumulative impact of the costs of complying with the regulatory regime. It could be the case that the actual budget of the regulator remained reasonably contained, while the regulation that the regulator creates and its obligations on football clubs could balloon.
In my view, that is why the regulator should be compelled each year to include in the report the financial impact of its regulation and the full range of its activities, in so far as they have an implication for football clubs. If it creates a regulatory burden and hence a cost burden on clubs, there will always be the worry that that will be passed on to fans. Whether an individual member of the Committee believes that the regulator is a good thing, or that the cost is bearable, and whatever their view on how much cost is bearable, at the very least the regulator should be reporting this each year, so that the public and Members in this place in the future can form their views. This is a basic argument about transparency, and no one should seek to assist the regulator in not being transparent in financial matters. For that reason, I will back the amendment.
I thank the shadow Minister for his amendment. He gave a wide-ranging speech, and I will focus my remarks on the amendment itself, but I will first respond to a couple of points that were made. Towards the end of his speech, he commented that regulation has not been done well for the past 20 years—perhaps I should remind him of who was in government for most of that time. [Interruption.] Indeed, the past 20 years. The hon. Member for Isle of Wight East said that some members of the Committee may or may not think that the regulator is a good thing. But of course we all stood on a manifesto that included it, so I hope that most Members here think it a good idea; fans up and down the country certainly agree that it is.
In speaking to the amendment, I again remind the Committee that no changes have been made since the previous Bill. The Government agree that it is vital that the cost of regulation should not place an undue burden on clubs. That is why we have designed an agile and light-touch regulator that takes a collaborative approach with those it regulates. Unfortunately, the amendment could do the exact opposite of what I think it intends. If the regulator were to track and publish compliance costs every year, it would need all clubs to measure and report on that on an ongoing basis.
The shadow Minister has already set out in great but necessary detail the reasons why amendments 99 and 100 have been tabled and should be supported. The issue is that subsections (3)(c) and (5)(b) of clause 16 provide a catch-all that allows the regulator to include such other information and documentation as it may specify when a club applies for a provisional operating licence. I support these amendments because I think those two provisions open the floodgates unnecessarily, and clause 16 already sets out the things that the regulator wants to see football clubs submit. To have that completely open floodgate is a problem for the reasons given.
If the Government were keen to have some flexibility here, they could have allowed the Secretary of State to specify any other such information in the future. At least there would then be some accountability via the Secretary of State’s being an elected person and ultimately accountable to Parliament. The particular issue here is that the regulator, once set up, does not have direct accountability, and therefore it would be easy for it to start stipulating all sorts of things. I support the amendments and I think that it should be tight, but the Government could have steered a halfway course here by retaining some powers for the Secretary of State, rather than the unelected regulator.
I thank the shadow Minister for tabling amendments 99 and 100, which are very similar in effect. The Opposition do seem to be getting carried away this afternoon. I noted down some of the phrases he used: “Politically led”; “unlimited power”; “a regulatory land grab”; and “dangerous for sport”. Then he asked whether the Government had written a blank cheque. Well, I do not think that is the case, but if they did, it was his Government, because there have been no changes to this part of the Bill since its previous iteration.
(4 days, 16 hours ago)
Public Bill CommitteesI am grateful to the hon. Member for Old Bexley and Sidcup, who makes some valid points. We will talk about owners and directors when we come to part 4. Competition and conflict of interest are not in scope of the Bill and are for UEFA, but I am happy to debate this with him further down the line.
The hon. Member for Isle of Wight East made an extensive and technical speech. For transparency purposes, the ultimate owner or owners will be publicly identified in clubs’ personal statements, and this will help fans to hold the most powerful owners to account, as my hon. Friend the Member for High Peak said. Anyone who exercises significant influence or control will be defined as an owner and can be subject to an ODT, but I am happy to write to the hon. Member for Isle of Wight East on some of the technical points that he made, as he asked.
I thank the Minister for that. She has already given some better words by talking about “significant” control. That is not the wording in clause 3, but I prefer it, to be honest. Will she go away and look at that? It is probably a drafting issue.
Thank you for that guidance, Sir Jeremy. I can see what the hon. Gentleman is inviting me to do, and I have sympathy with his general point about the independence of chairs of bodies, but I will stick to this Bill and this independent regulator for two reasons. The first is that we are in this Bill Committee today to talk about football governance. Secondly, the point I was making is that because this is a new departure—to have a regulator in a sport that does not have a regulator—particular regard needs to be paid to political independence. We have a candidate who has made a political donation to the Prime Minister and the Secretary of State. Therefore, the Government have an unexpected relationship with the preferred chair of the regulator.
I urge the Minister to address at some point today how the independence of the football regulator will be protected. Even putting to one side the preferred candidate, the fact is that the appointment will always be made by a Secretary of State, so how will we avoid the criticism that the hon. Member for Cheltenham identified? If it is a political appointment, there are always going to be accusations—in this case, fair—around an elected politician appointing a regulator over English football. I know that that is inherently unattractive to fans, who should be our priority.
I will deal with the comments specifically on the chair in the next group—I am not avoiding the question, but I think we are going to have a more substantial debate on the next group. Let me answer some of the other specific points that Members have made. The shadow Minister asked about finance, and the levy will be proportionate to the size and level of the club. We absolutely value the independence of the regulator. That means all sorts of different things in terms of leagues, Governments, clubs and so on.
On how the independent regulator operates and what will guide them, I draw Members’ attention to clause 8 in part 2 on the regulatory principles. We will go through those later so I will not go into any detail now, but they are a useful guide to help the independent regulator in their functions and in carrying them out. I will pause there, because I think we will have a more substantial debate in a moment.
Question put and agreed to.
Clause 5 accordingly ordered to stand part of the Bill.
Schedule 2
The Independent Football Regulator
(4 days, 16 hours ago)
Public Bill CommitteesBefore speaking directly to these amendments, I want to address the comments made about the chair appointment. I am very aware of the direction that you have given, Sir Jeremy, so I will focus my remarks on the comments made by the shadow Minister and Opposition Members.
David Kogan brings with him a wealth of expertise from the sport and media industries. The shadow Minister’s speech had three parts, so I forget when he said this, but he made the point more than once that it is about attracting the right candidate with the right experience, and how that is a challenge. We are confident that David Kogan is the right person. He was found appointable for the role by a panel that included a senior independent panel member who was agreed by the Commissioner for Public Appointments.
David Kogan declared his political activity to the DCMS Committee, as the shadow Minister has stated, which endorsed his appointment, adding a further layer of robustness to the appointment process. The donations were declared during the Committee session, as the shadow Minister also stated, and the Committee was sufficiently aware when it published its report endorsing him.
I know we know this, but the Select Committee is dominated by Labour MPs—I want to make that clear. I did not follow the process within it, but a Committee dominated by Labour MPs approved a Labour donor as the independent regulator.
I know the hon. Gentleman is new to the House, and I will stand corrected if I am wrong, but I believe that it was a unanimous decision by the cross-party Select Committee. There will have been similar instances in the previous Parliament, so I think his point is somewhat unfair, but it may be a reflection of the fact that he is new to this place.
Reference was made to the fact that we have received a letter from the Commissioner for Public Appointments, and we will of course co-operate fully with his office. No conclusions have been reached at this stage, and we will completely co-operate. Some points were made about what was said on Second Reading and to the Select Committee. The governance code already sets out the requirements for political donations. Donations in scope of the governance code were provided to the Select Committee in advance of the hearing. The leadership campaign donations fall outside the reporting window and the threshold for declaration; however, they were disclosed to the Select Committee in the interests of transparency, which endorsed the appointment on a cross-party basis.
It is not for us to say. It is an independent regulator. The hon. Gentleman outlined how different regulators have wildly different numbers of staff. We do not think that we should set a cap.
Can the Minister give any indication of the sort of headcount she expects of this regulator?
I am not going to be drawn on figures. I will say that we think that the regulator should be as light touch and slim as possible. We do not think that it should be unwieldy and we do not think there should be staff for staff’s sake. It is not for me as the Minister to prescribe a specific number. I do not agree with that. For those reasons, the hon. Member for Old Bexley and Sidcup should withdraw his amendment.
I will not repeat what the shadow Minister has very ably said, but clearly the amendment goes back to the issue of costs spiralling out of control. Let us remember that the concern is about the pay levels for those appointed. The role has already been advertised, as I understand it, on the Government website at £130,000 for a three day part-time role, which means that pro rata they will be paid more than the Prime Minister. I have a serious problem with that, and I suspect that most fans have a serious problem with this so-called slimline light touch regulator being headed up by somebody who is paid more than the Prime Minister of the United Kingdom. That is why my hon. Friend is trying to bring in some level of cap on pay.
We were not successful in bringing in a cap on headcount, but the Minister could not give us any indication of how many people she expects to be employed by the regulator. The Government are prepared to say that 73,000 people should serve in the armed forces, so it is not unprecedented to give an indication of the number of employees in organisations, which is all this amendment is trying to do. If Government Members are happy for the regulator to be paid more pro rata than the Prime Minister of the United Kingdom, so be it—they will have to vote in that way. I am not happy, and that is why I support the amendment.
I thank the shadow Minister for his amendment, and I appreciate the intent to ensure that the regulator offers value for money. That is precisely why the regulator has a regulatory principle encouraging it to be as cost-efficient as possible. There are also countless other safeguards in place to ensure value for money, and we referred to those in earlier debates. For example, the regulator will be required to lay its annual accounts before Parliament, and the Comptroller and Auditor General, for scrutiny.
The regulator will also be subject to pay remit guidance, in the same way as central Government Departments are, to ensure that pay rises are justifiable. That will ensure value for money without sacrificing important operational flexibility for the regulator. On the other hand, a maximum salary for the CEO, fixed in legislation, would leave the regulator unable to adapt to market changes and could leave it unable to recruit and retain the expertise that it needs to effectively regulate.
I understand that the amendment seeks to limit the CEO’s salary to no more than the current salary of the Prime Minister. There would be no way to update that if the salary changed in the future, or even with inflation. It is not a practical constraint to impose.
(2 weeks, 2 days ago)
Commons ChamberMy hon. Friend is a passionate advocate for his constituency, and it is great to see the passion of the leading players. I wish them all success in their upcoming events, and I am personally very excited to see the return of women’s tennis to Queen’s—the Queen’s Club championships—after 50 years. All future decisions on facilities will, of course, be considered in the spending review, but I am very happy to meet my hon. Friend to discuss that further.
Together with the LTA, the previous Conservative Government invested £30 million in park tennis courts—2,500 of them all over the country, including in and around Hartlepool. That is to the benefit of local communities, so why are this Government not continuing that investment?
As I said, all future decisions are for the spending review. We are a very big supporter of the LTA’s work and are really pleased to see it, and would be happy to meet LTA to discuss it.
(2 months ago)
Commons ChamberOf course, I agree with my hon. Friend that it is important that a successful games supports lasting benefits for the city and the region. As I said, I met with the CEO and chair two weeks ago. I was in Edinburgh to meet with my counterpart in the Scottish Government to discuss the games. My team is in close contact with the Scottish Government, the Scotland Office and other delivery partners to understand the games’ ambitions for these wider benefits. The organising company has already confirmed that the games will include £6 million of investment in existing sporting venues, as well as 3,000 trained volunteers and a cultural programme.
The Minister will know the springboard that hosting international events is for the economy, grassroots participation and sporting facilities in the UK. Under the last Government, we secured and hosted a number of major events, with a pipeline of events. What steps are this Government taking to ensure we have that pipeline of major events in the future?
The hon. Member is right to pay tribute to the economic contribution and the huge inspiration of these events. We have a number of exciting events coming up, whether that be rugby or cricket, and the Government are hugely supportive of major events.