Birmingham Commonwealth Games Bill [HL]

Lord Griffiths of Burry Port Excerpts

Tuesday 9th July 2019 Lords Chamber

[Lord Campbell of Pittenweem]

My Lords, I may be hypersensitive, but I inferred from something that the noble Baroness said that she might have understood me to suggest that I was in some way opposed to the principles that the noble Lord, Lord Moynihan, set out. I am of course not opposed to those: there is no more enthusiastic supporter of the obligation of human rights in the Chamber than myself, I venture to suggest. All I was at pains to do was to point out, as I think has already been agreed, that these are rather demanding obligations and I am anxious to ensure that there are the necessary resources to ensure that they will be met.

[Lord Griffiths of Burry Port (Lab)]

My Lords, this has been a most instructive debate right at the outset of our consideration of the Bill. It might well be worth while for all of us to read in Hansard the many detailed, specific and informed remarks that have been made from varying angles. I thank all who have taken part thus far and I invoke the name of my noble friend Lord Hunt, simply because his absence today really was unavoidable and he will certainly want to take part in the future evolution of this debate. I thought if I mentioned that right now, noble Lords could take that into account. Much of the thinking, as my noble friend Lord Rooker said, was initiated by him.

These amendments, in their totality, ask us to look at a number of things. It is true, as has been said, that the wish list on the legacy amendment is long and, as the noble Lord, Lord Addington, said, could be longer. I will concentrate on two things my noble friend highlighted: the question of housing and the alchemy—if that is what it is—that turns houses into communities. A proper legacy would not only build a certain number of houses and have a certain percentage of them for this, that or the other category of use, but would leave us with schools that children could go to and places where they could play. Some of the very desirable things mentioned by the noble Lord, Lord Moynihan—activity, sport and so on—could be done within the community thus created. It seems to make a lot of sense. Various percentages are mentioned in the amendments: 50% for social housing, for example. The right reverend Prelate suggested that from the Birmingham end it is 35%; well, there is room for debate there. The facts have been laid before us, the options are there and I am sure we will have some keen and passionate debates in due course.

The noble Lord, Lord Addington, talked about the importance of the flow of information, and he was echoed by others. The noble Lord, Lord Coe, or perhaps it was the noble Lord, Lord Moynihan—I tend to get them mixed up; since I first met them both on television, I cannot tell them apart in the flesh—emphasised information flow and the prime need for transparency. It does us well as we debate this issue to remember that we are not the only stakeholders, or prime actors in this drama. In terms of local government, it is not just the City of Birmingham but other local authorities which differentiate this initiative from Glasgow and London and make it a bit more complex and needful of a good deal more thought. There is local government; DCMS and our own Government; our own organising committee, which has been amply referred to, with the owners’ responsibilities weighing upon it; the Commonwealth Games Federation itself, of course; and all those beholden to all of them. Very complex organisation of bureaucracy is involved here, and the need for a flow of information is paramount.

Such awareness as I have of the work being done in other places in this process leaves me really rather heartened. In Birmingham, the strands of community cohesion, civic pride, culture, tourism, trade, investment, jobs and skills, education, infrastructure, sustainability, accessibility, physical activity and well-being are being looked at already. Areas of collaboration between the private and public sectors, and local and national government, are already being identified, and schemes and projects are already being worked on. In a sense, we are behind the curve compared with what is happening elsewhere. We must take heart from that. The flow of information seems very important.

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[Lord Addington]

My Lords, before the Minister launches off to fight with his own Treasury bat, I just want to say that amendments such as this are very attractive, especially for a party that looks to local government being slightly more independent and having more power. The question here would be about the limitation of the charge. Have the Government done any research on this, or anything that would tell us what it would cost to get it? What would the benefit be at a given rate? This is a genuine argument and there are examples of doing this in the UK. If it can be done and set at a rate that makes a real benefit but does not affect the actual uptake of rooms, there is a very good argument for it.

[Lord Griffiths of Burry Port]

My Lords, I will say a quick word because my noble friend Lord Snape has said what I wanted to say, and it is a rule of mine that I do not say something again if it has been said. However, the logic seems to be with this proposal. It seems to need a bit of imagination to implement something that has not yet been done. There may be a struggle with the Treasury and others, as it may cut across normal conventions, but it would help to raise a significant proportion of the funding shortfall. I therefore challenge the Minister, when he rises to reply to this debate, that if he is going to pour cold water on the proposal—

[Noble Lords]

Oh!

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[Lord Griffiths of Burry Port]

That is the opposite stage instruction from:

“Exit, pursued by a bear”.


Never mind; that was too complicated.

To put it simply, if the Minister pours cold water on this, would he like to come up with one or two other proposals for how the local people can raise this £40 million?

[Lord Ashton of Hyde]

My Lords, I am grateful for those contributions. The noble Lord, Lord Rooker, and the right reverend Prelate are a difficult combination to face. The noble Lord was asking me to make a name for myself by opposing the Treasury and announcing a new tax from the Dispatch Box, while the right reverend Prelate said, “It’s only £1—that’s very little”. This is really a question of “Lead me not into temptation”, but I wonder how long that £1 would stay as £1.

The issue here relates to the actual amount of the budget for the Games and how it can be paid for. As we now know, there will be a £778 million investment, to be split approximately 75:25 between central government and Birmingham City Council and a number of its key partners. I was not quite clear what the noble Lord, Lord Griffiths, meant about the funding shortfall; I understand that the city council’s contribution to the Games budget was considered by a meeting of the full council earlier this year. The spending based on that budget will be tightly monitored across all the Games partners to ensure control—an issue which I know the noble Lord, Lord Rooker, talked about at Second Reading. We are confident that the budget announced is sufficient to deliver a strong Games for the city but I absolutely agree with the points raised at Second Reading, and earlier this afternoon by the noble Lord, Lord Rooker, saying that Parliament should be provided with more information regarding the Games budget. This will be forthcoming.

[Lord Griffiths of Burry Port]

I am grateful for this opportunity. I mentioned £40 million, as did my noble friend Lord Snape; the briefing papers that we received from Birmingham mentioned £40 million. It seems that when the local authorities calculate their 25%, they will be £40 million short of that. This provision is intended to bridge that gap.

[Lord Ashton of Hyde]

I understand now. The 25% comes from Birmingham City Council and its partners; it also involves revenue raising in various ways so none of it is certain. However, my point remains that the city council is looking at different ways to do that and I will come on to that in a moment.

This is not a completely uncontroversial proposal. I do not want to go into the detailed arguments about the hotel levy today, but it is not quite as straightforward as some people may think. Tourism in this country pays a much higher rate of VAT than our competitors in Europe. In May, a report on tourism tariffs by the All-Party Parliamentary Group for Hospitality expressed reservations about the likelihood of tourism levies having a long-term, positive benefit on tourism infrastructure. The report concluded that:

“Further studies need to be commissioned on the economic impact and viability of a tourist tax”.


The noble Lord, Lord Rooker, suggested that this should be a pilot, which goes some way to answering that although it would be limited in scope. The noble Lord also mentioned the Scottish Government, who will consult this year on the principles of a locally determined tourist tax, prior to introducing legislation which would allow local authorities to apply such a tax. We will certainly be looking at the benefits of that.

I have to say that matters of taxation are for the Treasury to consider. Treasury Ministers have been in correspondence with Birmingham City Council regarding its options for meeting its required contribution to the Games. That is the right place for those discussions, not this Bill, which provides the framework for the successful operational delivery of the Games. The Government are aware that the city council is actively considering a number of options for local revenue raising, including within existing powers, and stand ready to look at the details of any proposals that the city council wishes to put forward.

I hope that is not cold water, though it may be lukewarm. I hope that noble Lords are reassured that the Government remain committed to working with the city council on its plans for delivering its required financial contribution to the Games. I would therefore be grateful if the noble Lord felt able to withdraw his amendment.

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Moved by

[Lord Griffiths of Burry Port]

25: Clause 30, page 19, line 3, leave out subsection (3) and insert—
“(3) A statutory instrument containing regulations under—(a) section 12,(b) section 15, or(c) paragraph 16 of Schedule 2,may not be made unless a draft has been laid before and approved by a resolution of each House of Parliament.(4) Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.”

[Lord Griffiths of Burry Port]

My Lords, I have been most interested in hearing “person” taken to mean “body corporate”. I have long experience of textual criticism and exegesis, and that would be a long stretch. There is a shaking of the head; it will have to be explained to me.

In respect of this proposal, we are in the other three parts of the Delegated Powers and Regulatory Reform Committee’s report, not the part already discussed. All I really need to say is that if it was “person” and “body corporate” in the part we have already discussed, it is “in the vicinity of” that is contentious here. I think I know what “in the vicinity of” means, but I can see that two people might have quite different understandings of what constituted “vicinity”, so it has been decided that the powers recommended are too broad. The report states that,

“we recommend that any exercise of powers under clause 12 should be subject to the affirmative procedure, unless the Secretary of State certifies that by reason of urgency the negative procedure should apply instead”.

The same goes for Clause 15, only this time it is “Games location trading”. Again, I think I know what “location” means, but that may not be what other people think it means; consequently, a similar conclusion is reached.

Finally, on paragraph 16 of Schedule 2, the committee’s report states:

“Given the wide scope of the powers, and the fact that they affect the determination of the rights of individuals to compensation”.


All I am doing is reading what other people have thought over and digested well. In line with all that thinking, I shall move the amendment and invite the consideration recommended in the wording of the proposal. I beg to move.

[Lord Addington]

My Lords, this is a case of great minds thinking a somebody-else thought. I have an amendment in this group to which the noble Lord, Lord Moynihan, has added his name and it was inspired by exactly the same desire for information and reports. Primarily, there is a need for regulations to be approved by the affirmative procedure. We have done something similar before, so why do we not do it now? If a precedent has been set, we should follow it. We are all in favour of this legislation going through and going through well, and I refer back to the arguments about making sure that people know what is going on. The affirmative procedure was appropriate when something very similar was done in the past, so let us use it again. The hour is getting late. The noble Lord, Lord Moynihan—my noble friend in sport—wants to contribute. As he was on the committee, he might have more insight into this matter but, as far as I can see, there is an open and shut case here.

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[Lord Griffiths of Burry Port]

My Lords, the Minister knows that that is precisely what I shall do. However, I will not do so without saying that, on this occasion, I have put forward an argument that was not dependent only on whatever degree of wisdom I might have attained; it posited itself on the brains and care of the extraordinary bunch of people who make up this Committee. I look forward to seeing the argument in writing; I have heard a compelling case made verbally. At this stage, I am happy to withdraw the amendment and look forward to the next instalment of this thrilling piece of drama.

Amendment 25 withdrawn.