(9 months, 2 weeks ago)
Public Bill CommitteesI thank the hon. Gentleman for his amendment, but I am not sure that his remarks spoke much to the detail of it. I remind him that this part of the Bill has not been changed since its previous iteration under the last Government. He has once again made his well-rehearsed argument about UEFA, but there is no risk in that regard. We have been very clear. UEFA and FIFA are happy with the Bill as drafted, and the FA has made that clear to Members of both Houses.
The purpose of the clause is to allow the Secretary of State the power to prepare a football governance statement that sets out the Government’s policies on issues related to football governance, where these are consistent with the regulator’s statutory remit. We believe that this is an important tool that the Government can use to set out their priorities in football governance, similar to the way that the Government give a strategic steer to the Competition and Markets Authority and other regulators.
We drafted the provision with appropriate deference to Parliament. Any statement must be consistent with the purpose of the Bill and the regulator’s objectives as set out in the Bill. The Committee has already considered that purpose and those objectives and has approved them. Parliament has set out the statutory remit, but it is appropriate that the Government of the day are able to set out their policy priorities within that well-defined remit without requiring parliamentary approval each time. There are also restrictions on when statements can be made, to ensure that they are not overused. Any statement must be published and laid before Parliament, so Parliament can hold the Secretary of State accountable for its content. Requiring the Secretary of State to gain approval for this statement would add an extra burden to Parliament.
Lincoln Jopp (Spelthorne) (Con)
I struggle to understand what might be contained in the Government policy statements. The Minister is steeped in this legislation, so must have discussed this in the past. Can she give the Committee an indication of what sort of thing might be covered?
That is obviously not what this amendment is about. It is about transparency. It is not about the overall cost, but about the transparency of the cost. The hon. Gentleman asks about how things would have been funded before, but we have to accept that we are in different economic circumstances. A number of costs have impacted clubs already. I am talking about the cumulative impact of Government policy—the Minister has heard me say this in a number of debates, including in the debate on swimming yesterday—on clubs from the elite level all the way down to the grassroots level. The point is that there are now extra costs from the regulator, on top of the national insurance increase, which we think has probably been the biggest change, the changes to business rates calculations, which have negatively impacted a number of businesses, and wage increases. Hon. Members may or may not agree with those costs, but we are talking about their cumulative impact.
Because it is ultimately funded by the clubs, the regulator will increase those costs. The hon. Gentleman talks about how we perceived it would be paid for. The clubs will pay the costs of the regulator—that has not changed—but we are trying to get at the cumulative impact. We want transparency about that impact on clubs, including for Parliament, so that we, as hon. Members who represent constituencies around the country, can have informed debates about the impact on English football of the decisions that we make in this House. As Members of this House, it is not unreasonable to want to understand the impact of our and the regulator’s decisions. Whether or not hon. Members agree with the amendments, they make it quite clear that we are calling for transparency on the costs of the regulator.
Lincoln Jopp
It is important for the House to understand that once an organisation is in the hands of the regulator, it has no choice. I was a director of a company that was applying for an operating licence from a national regulator. It cost millions of pounds, and we never achieved it—we tried three times, and never got there. As long as the regulator is doing its regulatory work, that is okay as far as it is concerned. There can be circumstances in which regulators, as long as things are being done by the rulebook, do not care about the growth of their industry. The amendment is a reasonable counterbalance to that, and would ensure that the regulator understands the financial burden it is putting on teams.
I thank my hon. Friend for sharing his experience of regulation more generally. He highlights an important point about growth, which we were trying to get at with our earlier amendment and which we have discussed again this afternoon. Unless the regulator has a clear growth mandate—as I said in the previous debate, I understand that the Chancellor is consulting regulators for growth ideas—it may not seek to stick to it, and it could therefore become obsessed with other issues and regulations. This amendment is not trying to alter what the regulator does; it is just trying to ensure that we have information on costs so that Members of this House can understand the impact. Again, I believe that is a valuable tool for us to have.
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.
Lincoln Jopp
What makes the Minister think that clubs themselves would not, as a normal matter of course, be noting their compliance costs?
Clubs may well do that, absolutely, but the amendment goes further than is needed and I will continue to make the case as to why I simply do not think it is necessary. It could involve the lengthy and onerous process of identifying and separating compliance costs from their overall operational costs. Reporting on compliance costs would drive up those costs unnecessarily. The regulator and Department will already be required to undertake monitoring and evaluation of the impact of regulation; that includes the review of the Act by the Secretary of State as per clause 96. For those reasons, I cannot accept the amendment and I ask the hon. Member for Old Bexley and Sidcup to withdraw it.
Lincoln Jopp
It is a pleasure to serve under your chairmanship, Ms Butler. Subsection (3)(c) of clause 16 is an absolute Trojan horse; it gives carte blanche to the regulator to demand whatever it wants, regardless of whether a club produces such documents or information on a routine basis. Anyone who has worked with a regulator will know that means that clubs will have to employ lawyers, because they would never submit anything to their regulator unless it had been through lawyers first.
The shadow Minister used the phrase “blank cheque”, but it is almost a blank invoice to the poor clubs that will simply have to comply. When a regulator says, “Jump”, they do not say, “Why?”; they say, “How high?” However high the bar is set, they have to get over it. It is completely reasonable, at this stage of the regulator’s development, to seek limits so that it can take some very well-defined steps in regulating football, prior to giving it the carte blanche that subsection (3)(c) represents. As the shadow Minister said, I fear that the unintended consequences of subsection (3)(c) will be considerable.
James Naish
Does the hon. Gentleman accept that regulation evolves anyway? My brother runs a property business, and I can tell the hon. Gentleman that what he was first required to deliver to his regulator in 2012, when he set that business up, versus what he is required to deliver today has changed beyond imagination. Things move all the time, so it is appropriate for the regulator to be able to determine what it needs to perform the relevant functions.
Lincoln Jopp
Regulation does indeed evolve, but giving this football regulator carte blanche to evolve it without any recourse to Parliament is a key weakness of the Bill’s current drafting, which is why I support amendment 99.
Joe Robertson
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.
The hon. Gentleman can make that well-rehearsed comment, but I specifically said there are no changes to this part of the Bill. I am focused on what we are talking about, and the parts of the Bill that amendments 99 and 100 relate to have not been changed. He also said that he would not oppose just for the sake of it, but that does seem to be what he is doing.
Lincoln Jopp
My hon. Friend the Member for Isle of Wight East and I were not here in the last Parliament, so what went on and the provenance of the Bill are not really our concern. We are being asked to contribute to the discussion and the debate on the Bill that has been placed before us. Neither of us saw the last one, so these are genuine points.
I take that point, but both the hon. Gentlemen stood on a manifesto that committed to introducing the Bill.
Lincoln Jopp
The Minister just said something that I am not quite clear about; perhaps, given my hon. Friend’s experience, he could explain it to me. If a club gets promoted to the English Football League—the happiest day of the club’s history—it then has to apply to become regulated, but if it does not have that licence by the beginning of the next season, the Minister just said that it can play. Where should I look in the Bill to understand the latitude that clubs have to play in the English Football League without regulation?
The granting of a provisional operating licence will act as a first step towards a club gaining a full operating licence, and will allow the club to operate for a time-limited period. That will be up to three years initially, although it could be shortened or extended depending on the circumstances. This provisional period will allow the regulator time to assess the current standing of the club and determine what steps will need to be taken to attain a full operating licence, as well as giving the club the time to take those necessary steps. The club will provide a personnel statement and a strategic business plan as part of the application process, providing an overview of the club’s operations and financial information.
Once a club has a provisional licence, it will be required to meet basic requirements set out in the mandatory conditions, as well as to comply with the free-standing duties contained in the Bill. This will help to safeguard the club’s sustainability and heritage. There are three aspects to the test that the regulator will apply when deciding whether to grant a provisional operating licence. First, the club must operate a team in a specified competition, which effectively means that the club must be in scope of the regulator. Secondly, the club will comply with the mandatory licence conditions that will be attached to the licence by the regulator; full details of the mandatory licence conditions are in schedule 5. The third aspect is that the club will comply with the duties on clubs, as set out in part 5.
If the regulator is not satisfied that the club meets all the elements of the test, it must let the club know and give it an opportunity to engage with the regulator to rectify the issues identified before the regulator takes a decision. That collaborative approach will aim to ensure that clubs are given every opportunity to meet the requirements and gain a provisional operating licence.
The test for a provisional licence has been carefully designed to get clubs into the regulatory system as quickly as possible, and then to give them a transition period to raise standards, if necessary, and obtain a full licence.
Lincoln Jopp
The Minister said that clubs would still be allowed to play in the absence of a provisional operating licence. How long would they be allowed to play for before being granted such a licence?
We do not anticipate that happening. Enforcement would take place, but we do not want the regulator to stop clubs being able to play. I am outlining how the regulator will do everything it can. The information is fairly basic, and the aim is to move as quickly as possible, so we anticipate clubs being able to receive that provisional licence.
Clause 18 establishes the second step of a two-step licensing process designed to ensure a smooth transition to regulation. Being granted a full operating licence should be the aim of all clubs in scope of the regulator. The full licence means that the regulator is satisfied that the club meets all relevant requirements, including the threshold requirements. For a club to pass the test for a full licence, the regulator must be satisfied that the club
“meets the threshold requirements set out in Schedule 4”
and is complying with and
“would continue to comply with the mandatory licence conditions”
and the free-standing duties on clubs set out in part 5. Finally, the regulator must not have determined
“that any person who is an owner or officer of the club is not suitable”
for the position they hold.
The clause also details the power that the regulator has to extend the provisional operating licence for a club. That will be done only if the regulator believes that the club does not meet the bar for a full licence at present, but will do if given more time. Clubs will have had time and support, while provisionally licensed, to ensure that they can meet the higher bar for a full licence. Once the club has a full licence, it will not have to be periodically reviewed. Instead, the regulator will continue to monitor and supervise the club. There will be an annual touchpoint in the form of an annual declaration, in which the club will notify the regulator of any relevant changes. That will minimise burdens while still ensuring that the club continues to adhere to the necessary requirements, including requirements that ensure that fans’ best interests are at the heart of the club’s decision-making process. I commend the clauses to the Committee.
(9 months, 2 weeks ago)
Public Bill Committees
Max Wilkinson (Cheltenham) (LD)
I am a member of the Robins Trust at Cheltenham Town.
It is a pleasure to serve under your chairmanship, Sir Jeremy. It is disappointing to see the return of amendments 132 and 74 after the extensive debate in the other place, where it was made very clear that they would likely make the Bill hybrid. I will respond to some of the points that Committee members have made but will outline the Government’s position first. Throughout the development of the policy, there have been countless opportunities for all affected and interested parties to make representations on scope. These wrecking amendments would serve no purpose other than to kick the legislation into the long grass.
The hon. Member for Isle of Wight East, a new Member, said that amendment 132 would be a simple addition. He should know that the addition of those competitions would indeed make the Bill hybrid. As I said, the issue was debated extensively in the House of Lords. The amendment would unnecessarily delay a Bill that was in both parties’ manifestos. This time last year, I spent many hours in a room on this corridor debating the previous Government’s version of the Bill; the hon. Gentleman, of course, stood on a manifesto that committed to it.
Lincoln Jopp
I regret that I have not spent as long as the Minister has in considering this issue. Could she point me to the clauses that make it absolutely clear that the English national team could not be taken within the scope of the regulator and that “a club” could not apply to the Football Association?
I thank the hon. Gentleman for his contribution; I will come to debate some of the points that he has made later in the Bill. We are very clear that UEFA and FIFA have no issue with the Bill and that the England national team do not fall foul in any way of this legislation.
I move on to the amendments. I understand the desire for up-front clarity in the Bill about which competitions will initially be in scope. There is a sound policy rationale for the approach that we have taken in clause 2. By delegating to secondary legislation, we are merely following the precedent established by other, similar, sport-related legislation, including the Safety of Sports Grounds Act 1975 and the Football Spectators Act 1989. The delegated power ensures that the competitions in scope can be amended in a timely manner and that the scope of the regime remains relevant. It future-proofs for future innovation and protects against circumvention by ensuring that clubs and competition organisers cannot simply reconstitute, rename or establish new competitions to avoid the regulator’s regime.
As mentioned, the intended scope of the regulator is well known and has involved extensive consultation with the clubs and leagues that will be in scope. Any changes in the future would again require consultation and would be subject to appropriate parliamentary scrutiny under the affirmative procedure.
Again, I think we are broadening what I am talking about to a slightly different point—[Interruption.] Hold on! The hon. Lady’s point is whether Select Committees have the right to disagree with the Government and vice versa. That is not the point I am making. My point is that members of the Select Committee should have the information to make their decisions. What I am talking about here is clear: I am trying to ensure that all Committee members, of all different parties, have the information that they require to make informed decisions as elected Members of this House.
Lincoln Jopp
I thank the shadow Minister for giving way. In essence, with this amendment, we are trying to set the regulator up for success. Presumably the question mark about whether someone appointed was the best person for the job—as opposed to any extraneous influence that donations might have had—should be the primary consideration.
I thank my hon. Friend for that contribution, because that is exactly the point I am trying to make. Now or in the future, we do not want the appointment of whoever is appointed as chair to be marred by perceived conflicts of interest. As I have said, that would undermine that crucial and important role of the regulator in the football pyramid. As the Minister has said—I agree fully—we hoped that clubs and leagues would have come to a consensus many years ago that would have solved many of the issues that still exist in football. The chair of the football all-party parliamentary group, the hon. Member for Sheffield South East, who sits on this Committee, has done more work on this issue than most people in the room—I thank him for that—but the fact is, we are here now to set up a regulator who is supposed to be independent of politics and of having any perceived bias for any league or club, and that is difficult.
I make this point again, without being unsympathetic to the situation for this or previous Governments: trying to find a person with the right skills and expertise to fulfil the role, without having any of those risks of bias, is very difficult. We have sought to find the right person, with the right blend of skills and experience, who would almost certainly have to come from within the football world or the regulatory world. Of course, if they come from the football world, there would always be issues of perceived bias.
Lincoln Jopp
Another counterpoint to the whataboutery argument is that this proposal will cut through massively with the British public and the football-supporting public. We had the appointment of the director general of the Department for Science, Innovation and Technology, who was a Labour donor, and the director of investment at the Treasury, who was a Labour donor. Those things matter to us here, but they do not cut through to the public in the same way that the football regulator will. It has to be cleaner than clean to instil the confidence of the footballing public.
I thank my hon. Friend for his intervention. I will not get into what the public are more interested in or not, as that is dangerous ground for a shadow Minister for Culture, Media and Sport to get into—obviously, I have to meet a lot of different bodies, and people have different interests. My hon. Friend’s point about the independence of sport and why it is so important has not been missed. I am sure that as the Bill progresses we will debate the question of why independence is so important.
We have spoken about public perceptions, and about the political process in this House, but what we have not spoken about yet so far is the role of international regulators, including UEFA and FIFA. We will make the point, as I said on Second Reading, that independence is crucial to that. For English clubs to continue playing in European competitions, the regulator must be independent. That is very clear.
We have urged the Government on multiple occasions to publish discussions with UEFA—again, I am happy for it to be on a private basis—so that all Members of this House can make informed decisions about the risk to English football if an independent regulator either expands its scope, through scope creep of the Bill, or is perceived by international bodies to not be independent. That is so important, because the international football community has made it increasingly clear that it will not accept Government interference with the running of the sport.
(9 months, 2 weeks ago)
Public Bill Committees
Lincoln Jopp (Spelthorne) (Con)
It is dangerous to indulge in hypotheticals, but if an applicant for the football regulator chair role had been integral to the negotiation of broadcasting rights for the Premier League, would they not be conflicted in their duties under the Bill? They would have done something in their former life that could disadvantage certain leagues and certain divisions of the league, and they would be seeking to protect that legacy.
I thank my hon. Friend for that interesting and important intervention. I touched on this concern briefly before lunch. The perception of such a conflict of interest is a particular problem in the choice of chair. I appreciate your comments, Sir Jeremy, about sticking to the scope of the Bill, but there is a broader point here about how the Bill is drafted to ensure that such conflicts of interest do not arise.
As our amendments on this issue make clear, we are talking about people who are currently holding jobs, but we would expect that the interests of any person appointed to a board such as this would not conflict with their ability to make independent decisions. My concern is that that perception, rightly or wrongly—I genuinely mean that—will be applied to future decisions because of the chair who has been chosen and his experience. That is not personal; I am just concerned that that will be a problem for any future decisions.
Joe Robertson
Amendment 117 would mandate that a candidate for chair of an independent regulator must declare all their political donations. It would not be merely a voluntary process. I back that, and in the absence of any good reason not to, I urge Government Members to do the same.
Lincoln Jopp
Does my hon. Friend remember the case of a referee whose footballing allegiance became public a couple of seasons ago? It caused a huge ruckus because it generated a suspicion that he had been, in some way, partial in the way he had conducted his independent role as a referee, which is not unlike that of the regulator. For football affiliation, read political affiliation. There will be semi-political decisions. Does that not also make the point that the regulator should not be politically aligned?
Amanda Martin
I will, Sir Jeremy. It is about precedent. Does the shadow Minister think that this is an issue only for football governance and only for this appointment? As my hon. Friend the Member for High Peak noted, current practice for appointments to regulatory bodies and public bodies has been in place a long time. Paragraph 6 of schedule 2 strengthens that process and gives clear details of what it looks like. I guess this is a case of “do as I say and not as I did”.
Lincoln Jopp
It is a pleasure to serve under your chairmanship, Sir Jeremy. I wish the Committee to entertain a semi-hypothetical set of circumstances. I have spent many minutes googling in order to find the only club in the Football League represented by a Conservative Member of Parliament—the mighty Bromley, as I am reminded constantly by my good and hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune). I think he said in the Chamber that visiting supporters have started chanting, “You’ve got the only Tory.”
This is a very particular set of circumstances—there is only one. Bromley has done jolly well this season. Let us just hypothetically suggest that they caught the eye of a very wealthy potential new owner, which would bring riches beyond belief. That would come under the strictures of this Bill in terms of change of ownership. Let us suggest that, in carrying out its normal duties, the football regulator questioned, delayed and, finally, denied that change of ownership.
If the football regulator was a paid-up member of another political party and a donor to that other party, does the Committee not understand that the perception would be that part of the reason the regulator had come to the conclusions that it had was political? That is what we are trying to avoid with the amendments. I ask Committee members to reconsider, in order to give the regulator the best possible chance of success.
Mr Dillon
Seb Coe is a successful leader of sports bodies in this country and of our 2012 Olympics. He is a former Conservative MP and peer. I saw him act with integrity and did not question his political past. Why can people not act with integrity and be members of political parties? This is looking to spin a political angle when there might not be one at play.
Lincoln Jopp
If people appointed to regulators and quangos have fully declared what they have done, ab initio, that does a lot to dampen down concern about partiality. It would be nice to see the Government select someone for one of these appointments who was not a donor at the last election.
Before 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 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.
Lincoln Jopp
I completely take the Minister’s point about the unanimity of the Select Committee. In that same spirit, it is worth quoting the Chair of that Committee, my hon. Friend the Member for Gosport (Dame Caroline Dinenage), who said:
“While Mr Kogan’s background and experience make him well-suited for the role, his past donations to the Labour Party will inevitably leave him open to charges of political bias in a job where independence is paramount.
We want to see the new Independent Football Regulator succeed, so it’s crucial that nothing undermines the regulator as it gets up and running. Mr Kogan must give 110% when it comes to reassuring everyone in the game that he is his own man. The Committee looks forward to working with him constructively and holding him to account.”
Imagine how much simpler life would be if someone who did not have that perceived conflict of interest—
Max Wilkinson
It is a pleasure to serve under your chairship, Sir Jeremy. I want to make two quick points. First, it seems to me that the previous Government were going to impose extra regulation, and there would have been a regulator that probably would not have been run by volunteers. By the logic we have heard today, the Conservatives previously proposed some kind of increase that they worried would put up ticket prices. I do not agree that that is necessarily going to happen.
Secondly, one of the first things that my local club, Cheltenham Town, said to me after I was elected, was, “Please support the Football Governance Bill, because that will make our club more sustainable.” Then I spoke to the Robins Trust, of which I am a member, and it said, “Please support the Football Governance Bill.” If the club and the fans are both saying, “Please support the Football Governance Bill,” it is my duty as their local Member of Parliament to take their word for it that they think things will get better as a result of the Bill.
Cheltenham Town is a League Two club; sometimes, in a good period, they are in League One, but these are not people who are burdened by the concerns of billions of pounds, as at Manchester United. Ticket prices at Cheltenhm are about £20—I think I might be able to get in for £20 for some games. Price sensitivity is probably an issue for Cheltenham Town fans and the club, and they tell me I should back this legislation, so I do not know why, based on that and having heard the arguments made by the shadow Minister, I should change my mind, because there is nothing to suggest that anything has changed between the previous regulator and the newly proposed regulator. The opinions of the club that I serve are entirely clear.
Lincoln Jopp
The hon. Member says that both his club and the fans support the football regulator, but they do not know how much it is going to cost or how big it is going to be. They like the purpose of the regulator, but they do not yet know the cost. Is it unfair to set a boundary on some of those aspects in the Bill, so that it does not grow arms and legs and put regulatory burdens on his club outwith their ability to meet them?
Max Wilkinson
We have a fundamental disagreement here on the Bill and the need for regulation. It is clear that the Conservatives have decided that they will now not support the concept of a football regulator. That is a perfectly legitimate political decision. It is also legitimate to point out that that was not their view until a few short weeks ago. It is also legitimate for me to point out that both the club I represent and the fans are telling me that I should support the Bill.
I hate to make a point about political ideology, but sometimes I do. This perhaps is one of those instances when we just have to let organisations decide for themselves. My understanding is that traditionally that has been a Conservative thing. Someone sets up something or there is an existing business, and the Conservatives might say that that organisation can make decisions for itself. The next amendment is about salaries, and I will probably make the same point. Sometimes we just have to let organisations make their own decisions and let the market decide.
Joe Robertson
It is rather tempting to make a gibe about Liberal Democrats and back-of-a-fag-packet economic comments, but I will not. If it is as simple as the hon. Gentleman says, then let us hear that from the Minister. Let us hear assurances and guarantees that we are talking about pence, because frankly any inflation of ticket prices beyond pence is unacceptable, given the current prices and the legitimate views of fans about them.
Lincoln Jopp
The hon. Member for Rushcliffe made the very powerful observation that, in identifying a target operating model, form should follow function. The function has been pretty well defined in the Bill, which rather prompts the question why the Government do not have some idea of the form that the regulator should follow. Without any cap whatever, we would simply be inviting untrammelled mission creep and cost growth. Perhaps the hon. Member disagrees with where the cap has been put and with the methodology approaching it, but I would be interested to know whether he agrees with the principle that he and other hon. Members should have an opportunity for scrutiny if there is a proposal to grow the budget, the wages or the number of people in the regulator.
It is interesting to note the varied approach across the regulatory network. Do we think that the football regulator will be like the Drinking Water Inspectorate, which is pretty important—we all drink water—and does its work with 55 people? Coming in next is the Office of Rail and Road, which has up to 370 people. The Information Commissioner’s Office has 500-plus; information is all around us, so that is pretty important. Not quite topping the tree, but coming pretty close, is the Pensions Regulator, with 900 people.
The point is that untrammelled bureaucracies have a tendency simply to grow. There is no limit on the amount of fan consultation that could be done. A member of the football regulator could be sent down to every fan meeting if it really wanted to convince itself that the club was engaging with the fan base. All the amendment seeks is some measure of control, to give Parliament the opportunity once again to stop this thing growing arms and legs and moving way beyond its intended purpose.
James Naish
The hon. Gentleman has made the point clearly: he has named a number of organisations that are significantly bigger than the random figure in the amendment. I am not disputing what he says, but the bottom line is that it makes no sense to include an arbitrary figure in formal legislation.
I am sorry to jump in—I am a bit keen. The point that the hon. Member for Rushcliffe makes supports the point that we have made throughout. The political argument that the Government have made is that the objective is to have a light-touch regulator. Does my hon. Friend agree that by trying to limit its size, in principle, we are helping the Government to do exactly what they are promising?
Lincoln Jopp
We do not know yet what the target operating model will be. I think the Government can do that work, as they have a pretty clear picture of the functions of the regulator that are envisaged in the Bill. The shadow Minister asked the Minister to give some indication of the limits on money and structure, because we have the powers and the functions. I, for one, welcome the opportunity to hear the Minister’s answers.
I thank the hon. Member for Old Bexley and Sidcup for his amendment. I note the irony of him saying he does not want to oppose the Bill for the sake of it, given our discussion today and the fact that the Bill began its life under his Government. I completely understand the intent to ensure that we do not end up with an overstaffed regulator that is not delivering value for money. That is exactly why there are appropriate controls over the regulator’s expenditure.
Proportionality is key to the point about costs. We will have a further debate today or on Thursday about the regulatory principles, which are really important, but the operational cost estimate is between £77.4 million and £106.8 million over 10 years. That was based on the impact assessment signed off by the previous sports Minister, the right hon. Member for Daventry. Those costs have not changed—with the caveat, of course, that that is an estimate.
We do not believe that the changes are significant enough to lead to a significant increase in costs.
Lincoln Jopp
Quoting those figures is very helpful. Can the Minister tell us what personnel assumptions those figures were based on?
I am happy to provide the Committee with a copy of the impact assessment. I will address the point on staffing in a moment, if the hon. Gentleman will allow me.
Lincoln Jopp
On that principle, does the Minister agree with the Secretary of State for Defence, who said yesterday that the number of people in the Army would be 73,000?
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.
I have listened very carefully to contributions from hon. Members on both sides of the Committee and to the answers provided by the Minister. I am concerned that the Government will not publish a refreshed impact assessment because, as I have highlighted, the costs to businesses and football clubs around the country have increased since the impact assessment was published. The regulator designed by the current Government also differs from the previous Government’s. We believe that it is bad practice for Members not to have all the information to hand for a live discussion about the expected costs of the regulator or concise information about what the size of the regulator may be.
Lincoln Jopp
Does my hon. Friend share my frustration? The Minister said that some indicative numbers for the costs came from the impact assessment for the previous version of the Bill. I asked her what personnel numbers that was based on, because if such assumptions do not underpin the budget, that is as random a number as any.
My hon. Friend makes a pertinent point. The amendment is about the headcount, and he asked the Government, who oppose the amendment, what assumptions they have made for the headcount in their financial calculations. That is a completely fair question for Committee members to ask in this debate. I am not satisfied with the Minister’s answer, and I do not believe my hon. Friend is either, based on his intervention. Members should have the information on the impact of staff costs. I have set out some of my concerns about what it may mean for fans down the line. I am afraid we have not had assurances that give us any confidence that the Government will seek to cap the size of the regulator. We want to get a vote on the record, because we believe there should be a cap on the size of the independent regulator.
Question put, That the amendment be made.
I will address some points on amendment 121 and then respond to the hon. Gentleman’s questions. The Government recognise it is vital that the regulator is transparent and able to be held accountable by Parliament and others. That is why, for the expert panel, the legislation already sets out a number of requirements to publish decisions and give reasons for them.
Transparency in decision making is important, but it is also important that individual panel members can act without fear or favour and that ultimately the regulator as a whole stands behind the decisions it makes. It will also be necessary in some instances for details to remain private for commercial, personal or other sensitive reasons. We absolutely agree that transparency around the regulator’s processes and decisions is important, particularly in football, where fans often complain of being out of the loop. That is exactly why the Bill already contains extensive publication and consultation requirements and the regulatory principle encouraging the regulator to be transparent. However, the amendment goes further and risks undermining the operation of the expert panel. Some details may be commercially sensitive, as I have outlined. Equally, individual panel members should not necessarily be singled out for their contributions to decisions; the panel as a whole makes decisions and is held accountable as a whole.
I am at risk of comparing apples with oranges, but we spoke earlier about the Select Committee. In this place, we will have minorities on Select Committees, and I do not believe that those Members who do not agree have their names published. I acknowledge that I am not comparing like with like, but I make a gentle point about how members should be able to make decisions without fear or favour.
The hon. Member asked some specific questions about the expert panel. For the panel to take a decision, it must form a committee of at least three members. If that decision is appealed, three new members will be needed to form a committee to take a new decision, so the minimum number of members required for the expert panel is six. There is no cap on the maximum number of members as the regulator should have flexibility to react in the event of a high workload. Obviously, different panels may be required for different issues. For those reasons, I ask the hon. Member to withdraw his amendment.
Lincoln Jopp
I am grateful to the shadow Minister for giving way. The Minister admitted that with Select Committees she was not comparing like with like. Would not a better comparison be another big regulator, the Bank of England, where the Monetary Policy Committee in setting interest rates does indeed allow for minority reports, which are helpful to the market in understanding the logic behind those who want rates to go up, go down or stay the same?
The hon. Gentleman is making a passionate speech about the heritage elements of cup competitions, and a genuinely important point about fixture scheduling and how the international teams impact that. We are talking about Club World cups and tours of Asia—we have just seen Man United go straight to Asia. However, to try and spin a positive on the situation—I am not defending certain clubs—would the hon. Member agree with me that it is a good thing that this year the underdogs have won those cups? There is value again in those cup competitions, whether that is Crystal Palace winning a tournament—the hon. Member for Dartford is nodding at that—or Newcastle winning.
(10 months, 2 weeks ago)
Commons Chamber
Max Wilkinson
Bromley—there we go. I think that has rather proved my point for me. The Conservatives’ reference to the risk of increased ticket prices suggests that they are either uninformed about or wilfully ignorant of the existing problems that football fans suffer every week with ticket price inflation, as tens of thousands of fans will confirm. Unaccountable football club owners are not forced to engage with football fans on the issue of ticket pricing.
In my reflections on how to improve the Bill, I will begin with financial fairness. According to Simon Perruzza, the chief executive of the Cheltenham Town Community Trust, the Bill is needed
“to ensure clubs like ours continue to make a valuable contribution to supporters and the community, the game’s fractured governance model and inequitable distribution of finance need to be urgently addressed”.
The Premier League generates more than £3 billion each year from media rights alone, yet the share reaching clubs further down the pyramid is dwindling; it keeps 84% of the revenue now, up from 74% in 2007. Any suggestion that the Premier League is a golden goose that will be killed by the Bill somewhat misunderstands the problem in our game. The campaign group Fair Game warns that the balance of funding between the top division and lower leagues in this country stands in stark contrast to that in other major leagues. The fact is that the money simply is not trickling down here as it does in other European leagues.
Lincoln Jopp
Given that the person who negotiated that rights deal is going to be the regulator, how confident is the hon. Member that they will change the process that he criticises?
Max Wilkinson
Well, that person will be working within the boundaries of the regulator, and he is obviously very good at striking deals, is he not? If the hon. Gentleman’s contention is that he did a good job in his old job, we can be confident that he will do a good job in his new role.
The Liberal Democrats think that the redistributive mechanisms ought to go even further to promote financial sustainability, including by taking account of the restricted resources in the fifth tier, and redistribution beyond that level to cover more grassroots clubs in the national leagues north and south and beyond. Then, there is social responsibility. Football clubs are not just businesses; they are also civic institutions. They are often the most visible and well-loved organisations in any community.
Liberal Democrats in the House of Lords pushed for clubs to be mandated to report on their community work, so I welcome the new clause requiring clubs to do so. In my constituency, the Cheltenham Town Community Trust delivered £5.4 million-worth of social value work with young people and older people, and to reduce antisocial behaviour, in its last reporting year. What gets measured gets done. Clubs want to continue doing such work, but they cannot keep doing it if they cannot afford to because the Premier League is hoarding all the money. We need to go further to support clubs in that, particularly by providing help for smaller clubs that may struggle to fulfil reporting requirements. I agree with the Members who have made similar comments.
We believe that the Bill must go further on problem gambling. Nearly 30,000 gambling messages were posted across the premier league’s opening weekend this season. That represents a tripling of ads compared with the almost 11,000 recorded over the opening weekend of the season before. Such ads are normalising a dangerous relationship between football and gambling that is destroying lives. Football should not be a gateway drug to problem gambling. It cannot be right that, whether watching on television or in the stands, we are bombarded with gambling adverts to the extent that the enjoyment of the game is now, for so many people, culturally intertwined with placing bets. It cannot be right that broadcasters can launch their own gambling platforms, and use advert breaks to promote those platforms, using the pundits who describe the games as mouthpieces for gambling. That merger of journalism and advertising should give us all pause for thought.
Max Wilkinson
The football regulator would have a wider role than currently envisaged in the Bill if the Liberal Democrats were in charge.
When the Lords tried to tackle the proliferation of gambling ads, the Government committed a professional foul. As the Bill makes its way through this House, we hope that MPs will show gambling companies a yellow card—yellow cards on this matter are very Liberal—not a red card; we do not propose the banning of gambling, shadow Ministers will be pleased to hear.
Max Wilkinson
I will not be placing any bets from this Chamber today—not to the benefit of myself anyway.
On ownership, this Bill provides a stronger defence against owners who might have a dodgy track record, but there are still gaps at the back. The new owners and directors test still makes no explicit mention of human rights. That is a glaring miss. Sportswashing is an all-too-common tactic used by oppressive regimes to launder their reputations through our national game. As the historic home of the global game, we have a moral duty to seek to use the soft power of football. Those who want to run a football club in this country should not be able to do so while running roughshod over human dignity elsewhere in the world. Liberal Democrats will continue to push the Government to replace the red carpet for dodgy foreign owners with a red card.
On broadcasting, not a single premier league match this season has been shown on free-to-air television. All 380 matches in the premier league now lie behind a paywall, while matchday tickets are increasingly expensive. The latest deals will see Sky Sports and TNT Sports have the rights to show premier league matches for a four-year period. That means that those without a subscription will have no opportunity to watch a live match on television until the 2030s at the earliest.
Spain’s la liga has one free-to-air game per week, as does England’s women’s super league. We will continue to champion expanded access to free live sport broadcasting in this Bill. We will also call for the strengthening of the Bill to ban domestic games being played abroad. The thought of Manchester City playing Arsenal in Dubai should leave us all reaching for the sick bucket.
We can go further to build a game that is open, accountable and properly rooted in its communities. Every good manager knows when to switch to a 4-3-3 and bring on the super-sub. It could be Steve Howard—I understand that the Minister, the hon. Member for Barnsley South (Stephanie Peacock), is a Birmingham City fan. Now is the time for Ministers to embrace that principle of bringing on substitutes, changing the formation and being even more ambitious about this Bill; after all, they have more than enough players sitting on the Government Benches to be more ambitious. They should do that because football is not just a business. It is part of who we are as a nation, so let us treat it that way.
(1 year, 3 months ago)
Commons ChamberI thank my hon. Friend for being such an outstanding champion of his community, and I extend my warmest congratulations to Newton Aycliffe. He is right to highlight the invaluable contribution that families make to the success of young people. They often pitch in as volunteers and coaches, and take children and young people to matches come rain or shine—I imagine that in his neck of the woods, like mine, it is more often rain than shine. I am really glad that they have such a good champion.
Lincoln Jopp (Spelthorne) (Con)
The Minister with responsibility for sport graciously met me to discuss the future of London Irish in my Spelthorne constituency, and she undertook to ensure that the club would get the meeting with Sport England that it so desperately desired. Can the Minister give us an update?
I was grateful to the hon. Gentleman for coming to speak to me about this issue. I will speak to my officials and make sure that we approach Sport England very speedily.
(1 year, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Lincoln Jopp (Spelthorne) (Con)
It is a pleasure to serve under your chairmanship, Sir Edward. I pay tribute to my hon. Friend the Member for West Suffolk (Nick Timothy) for securing this important debate. I declare an interest: just 12 miles or so from here, and just round the corner from where I live in Sunbury in my Spelthorne constituency, is Kempton Park racecourse, where I enjoyed Jump Sunday as a guest of the Jockey Club last Sunday. It was a glorious and memorable day, and all my family will be back on Boxing day to enjoy the King George VI and Kauto Star Novices chases.
To the people of Spelthorne, the all-weather flat and turfed jumps courses are much more than that. The racecourse plays host to the weekly market and to the fortnightly international antiques market, now in its 40th year, where the buyers from the nearby Shepperton studios create the sets for the around 31 soundstages there. The annual total attendance for the racing is 20,000, multiplied many times by the global television audience, and for the antiques market it is 80,000. The course regularly hosts school visits and police training, and has a sell-out fireworks display in early November.
At its heart, Kempton Park is about the racing and the 70 or so meetings held there every year, and it is every bit as important to our national fabric as Formula 1, our world-leading track cyclists and the premier league. But, as my hon. Friend described, British horseracing, having led the world from its inception, is in danger of falling behind the leading group internationally. Where horseracing fails, it fails fast, and the Government want no piece of that.
Enough of the stick—what about a bit of carrot? The Minister has a huge opportunity to be the jockey who rides in a winner, generating growth and prosperity for our nation. With a swift and judicious settlement of the levy and protection from egregious taxation and regulation, the Minister will lead a late run on the stand rail. Glory awaits; I hope she achieves it.