Football Governance Bill [HL] Debate

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Lord Parkinson of Whitley Bay

Main Page: Lord Parkinson of Whitley Bay (Conservative - Life peer)
Moved by
19: Clause 2, page 2, line 31, leave out subsection (3) and insert—
“(3) For the purposes of this Act a “specified competition” includes—(a) the Premier League,(b) the English Football League, and(c) the National League.(3A) The Secretary of State may by regulations made by statutory instrument amend the competitions specified in section (3).”
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, I rise in that spirit to move Amendment 19. In doing so, I thank the Committee for indulging my request not to take it at the end of business late in the evening on the previous day in Committee but to start with it today.

We began a very important debate on this matter on Monday evening, but it came well past 10 pm and got rather confused, so I thought it would be helpful if we return to this amendment to look at the issue again with cooler heads, particularly in the light of the letter which the Minister undertook to write and which she has very helpfully circulated to those of us who were in Committee on Monday. I thank her very much for doing that and for turning it around since the previous day of our debate.

I will not repeat the arguments that I made about the issue at hand in my Amendment 19, which is about including specific competitions in the Bill, but I will briefly remind the Committee—particularly for the benefit of those who were not here on Monday evening—that I was sceptical of the Government’s arguments for why the leagues in scope should not be put in primary legislation. The arguments that the Minister advanced on Monday, and in her letter this morning, related to the need for legislative agility and the requirement for the Government to retain the ability quickly to alter the relevant competitions should they change, or should the names of the leagues change slightly, as she set out on Monday.

As I said then, and as the Delegated Powers and Regulatory Reform Committee of your Lordships’ House has said in its report on this Bill, codifying the leagues in scope in the Bill does not preclude the possibility of making future alterations. The second part of my Amendment 19 would allow the Secretary of State to alter by statutory instrument the leagues in question, if they should change in future. That is the same method of alteration as currently set out in the Bill, so the pace at which those changes could be made, should the Government require them, is unchanged. What would be different is the starting point. My amendment would give competition organisers and football clubs the certainty they need, and surely deserve, to start planning their financial matters and regulatory compliance, since they would know from the outset whether they would be included in the scope of the Bill.

The other reason for returning to this matter today is so that we can talk properly about hybridity. This is fundamental to the Bill; it came very late in our debate on Monday, and the questions that it throws up require some answers. I do not think that the Committee was particularly satisfied with where we got to on Monday, so I hope we can make more progress today.

I have been advised by the Clerk of Legislation that my Amendment 19 could make this Bill hybrid. I believe the noble Lord, Lord Bassam of Brighton, and the noble Baroness, Lady Taylor of Bolton, have been similarly advised about their Amendment 21. However, this Bill is, to all intents and purposes, already doing hybrid things; it is just not doing them explicitly.

The Government are clear about who they want to target with this Bill, and have said so in their Explanatory Notes and in comments outside this Committee. However, they do not want to say so in the Bill because that would afford those clubs and leagues the opportunity to petition Parliament directly about this new law which directly affects their organisations. If putting the leagues that the Government have publicly stated that they wish to see regulated into the text of this Bill makes it hybrid, should we not confront that question and refer it to the Examiners?

As I have mentioned before, the Government did not previously use the possibility of hybridity as an argument against placing the leagues in scope in the Bill. That might have been because they were not aware that doing so would make the Bill hybrid. I was certainly not aware of that until I was alerted to it by the clerks after I tabled this amendment. I think that was also the case for the Minister, who said on Monday,

“in the explanation of this group of amendments that I received from officials earlier today, they made it clear that following the tabling of Amendments 19 and 21, issues have been raised about hybridity. That was the point at which hybridity was raised with me”.—[Official Report, 2/12/24; col. 1018.]

The Minister made it clear on Monday that that was the first time she was aware of the issue. I do not doubt her sincerity, but I was a little surprised when she said it, because the email I received from the Clerk of Legislation alerting me to it was copied to her noble friend the Government Chief Whip. He was certainly aware on 26 November—that is, last Tuesday—that this raised questions of hybridity. I do not know what discussions they had in the light of the email that he received, but it would be helpful to know.

That is rather incidental. The fact is that we are all now apprised of this issue and understand that the Bill is seeking, by not putting the leagues on the face of the Bill, to deny private businesses and much-loved organisations the right to petition Parliament about the impact this Bill has on their affairs—as is their right when a Bill is designed in a way that would affect certain groups more than others.

On Monday, I drew the Committee’s attention to Clause 91(5), which establishes that secondary legislation made under the Bill once it becomes an Act of Parliament to allow the Secretary of State to specify the leagues in scope is to be treated as if it is not hybrid. It is important to draw noble Lords’ attention to that again. It says:

“If a draft of an instrument containing regulations under this Act would … be treated for the purposes of the Standing Orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument”.


That appears to demonstrate that the Government were aware, in at least some regard, that there are hybrid implications to this Bill.

We have special provisions relating to hybrid legislation for a reason. They are intended to protect private interests from being unjustly affected by the laws that we pass here. It is disagreeable to skirt around these rules by pushing potentially hybrid provisions into secondary legislation, and to tuck away at the end of a Bill measures to do the same in relation to secondary legislation brought by it. On Monday, the noble Lord, Lord Goddard of Stockport, and others reminded us of the report of your Lordships’ Delegated Powers Committee entitled Democracy Denied? I raised concerns on Monday that this would be another instance of the democratic rights of those organisations being restricted, if we were to proceed in this way.

I was keen that we return to this matter at the start of today, our third day in Committee, because I want us to ensure that, when the Bill becomes law—as all parties want—it has been scrutinised as thoroughly as it should be. I am conscious that we can do our duty here as legislators to examine the consequences for football. But, with some honourable exceptions—such as my noble friend Lady Brady and the noble Lord, Lord Triesman, on the Benches opposite, to give just two examples from across the Committee—not many of us in your Lordships’ House know as much about the implications of the Bill for football as football organisations themselves would be able to say if they could petition Parliament.

I am grateful for the opportunity to return to this question of hybridity. I am grateful to the noble Baroness for her letter to us. I hope that she will respond to the concerns raised both today and on Monday, and I look forward to her response. I beg to move.

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Lord Goddard of Stockport Portrait Lord Goddard of Stockport (LD)
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To be helpful to the Committee, could the noble Baroness, Lady Brady, give us the names of the seven clubs? That might shed some light on what is going on here. There seems to be an illusion that the Premier League was suddenly born out of the ether, and then provides for all. Players such as Ryan Giggs, Phil Foden and Alan Shearer do not just suddenly materialise; they come up from the other divisions. I get what the noble Baroness is trying to do, and I respect her position, but you have to look at this in a holistic way. This is about a regulator regulating for the five divisions, and if it is not blindingly obvious to anybody what those five divisions are, they may be sat in the wrong place.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, I am grateful to the noble Lords who have taken part in this debate. It has been worth while having it again, painful and irritating though it may be. I am sorry if that upset the Minister—it certainly was not my intention to do so. I did it because this issue matters.

By the Minister’s own admission on Monday, she did not know about the issue of hybridity until it was raised with her on Monday. Does she think that a few hours’ consideration, along with all the other matters we gave attention to in Committee on Monday, and a few minutes’ debate in Committee late on Monday evening, is sufficient to dispose of an issue as fundamental as this?

As I said in my opening remarks, the Government Chief Whip knew about this issue at the same time I was alerted by the clerks, on 26 November, almost a week earlier. I am grateful that he stayed to listen to our debate on this group. Maybe he, if not the noble Baroness, can tell us what discussions he had in light of that issue being raised with the usual channels on 26 November. This is about engagement with the people, organisations and businesses that this new law will profoundly affect. I was shocked to hear what my noble friend Lady Brady said about only seven hand-picked clubs being given just half an hour of—

Baroness Brady Portrait Baroness Brady (Con)
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As requested, I will clarify who the seven invited clubs were: West Ham, Crystal Palace, Brighton, Liverpool, Spurs, Everton and Brentford.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am grateful to my noble friend for providing that information to the Committee. As I am not the world’s greatest aficionado of football, I will leave it to others judge whether that is a representative spread of the beautiful game, but I am interested to hear from the Minister the rationale by which those clubs were selected. I would like to know whether she was present at the half-hour meeting with those clubs and, if she was not, how much time she has given to engaging with clubs before bringing this legislation before your Lordships’ House and asking us to pass it.

As my noble friend Lord Markham set out, the changes the Government have made to the Bill since the last Parliament—on backstops and parachute payments—make this a substantively different Bill. I disagree with the noble Baroness, Lady Taylor of Bolton: this is not a virtually identical Bill; there are some substantial differences in policy terms, to do with parachute payments and so on. I think she would agree that those affect certain leagues and clubs more than others, and engage the question of hybridity and to what extent this Bill is targeting certain groups differently from others.

As with the amendments of the noble Lord, Lord Bassam, and the noble Baroness, my Amendment 19 was a probing one to see whether we could provide clarity in the Bill for those whom it will regulate, so they know from the outset what they must do and that they must comply with it. Like the noble Baroness, the first I knew was when we received the advice from the Clerk of Legislation explaining that this would make the Bill a hybrid one.

It is worth saying that I agree with the noble Lord, Lord Goddard of Stockport, that the previous Bill, when it was in Committee in another place, was not a hybrid Bill and it was right to conclude that. The question is, if we give that explicit information to the English Football League, the Premier League and the National League, so they know that they are going to be covered by this law—which the Government, in their Explanatory Notes, say they will: something they are happy to say outside the House but are not happy to say in the Bill, because that would afford them the right to come and speak directly to Parliament—then it is a question well worth pausing on, and I make no apology for returning to it today.

I am proud of the way your Lordships’ House scrutinises legislation; we go through things sometimes slowly, more slowly than Governments would wish— I have stood on the other side of these Dispatch Boxes and share the pain the Government Chief Whip and the noble Baroness are feeling today. This is a shining example of the importance of your Lordships’ House and the excellent advice we receive from its clerks. Thanks to that advice, two successive Lords’ Ministers for this Bill have been alerted to the fact that it could become a hybrid Bill if it is said in it what it is trying to do. That is an important point to have returned to in Committee, and I would like to understand from the Minister why, when we pass this law, we should not tell the people it is going to affect that it is going to affect them.

Baroness Twycross Portrait Baroness Twycross (Lab)
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My Lords, I welcome the opportunity to respond to the debate. I have already outlined the Government’s position on an issue that the Committee clearly cares about. I can confirm to the noble Lord opposite that I am clear that this position is correct and, if the noble Lord is concerned that I am upset, then I am slightly surprised. I am more concerned that the noble Lord thinks we should still be confused about matters on which I have written an extensive letter to noble Lords earlier today. The House debated Amendment 19 at length on Monday evening and asked me to write on the points raised. I have done so, and a copy of the letter has been placed in the House Library. I do not really want to repeat my explanation of when a Minister might have to nod; however, I will do so if that is raised again.

I hope we can work through any residual concerns swiftly so that your Lordships’ House might be able to lend its scrutiny, which I agree is important, to the other very important parts of the Bill. I understand the noble Lord’s desire to have in the Bill upfront clarity as to which competitions will initially be in scope of the regulator’s regime. However, as I explained on Monday night, and in my letter, there is a sound policy rationale for the approach taken in Clause 2.

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A number of other noble Lords raised whether the scope should appear clearly in the Bill. We understand the importance of clarity and certainty for the industry. The football industry is unique in that the definition of the market in scope of regulation is not straightforward. This is why the regulated population must be defined by reference to the leagues in scope, which are subject to change. If there is a change in the market, as there was in 1992 when the First Division became the Premier League, the regime needs to be able to adjust so that its scope remains relevant. In such a scenario, failing to amend the scope in a timely fashion could result in the legislation becoming ineffectual and the regulator being undermined.
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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Does the Minister recognise that my Amendment 19 seeks to allow that to happen? In its second part, it keeps the provision for the Secretary of State to make, by regulation, amendments if the name changes. I take on board the point she made on Monday and that she repeated in her letter about the policy intent here, but my amendment, if she accepted it, would allow that to continue to happen. It would also give the clarity from the outset to the leagues that are going to be regulated.

Baroness Twycross Portrait Baroness Twycross (Lab)
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As I previously explained, I do not think that the leagues that are likely to be regulated by this legislation in the first instance are in any doubt, but I will answer the noble Lord’s point about why we are not going to put the top five leagues in the Bill and take a power to amend it. I believe I have set out very clear reasons for the approach taken on defining the scope of the regime. The Bill delivers the effect intended, closing any loopholes that would allow avoidance of the regime, while allowing for agility in responding to any potential changes in the structure of the football pyramid. This is a clear, simple procedure that can be consistently applied to the competitions initially designated as being in scope, as it can to any future competitions.

We have heard from numerous noble Lords opposite about their concerns over the number of delegated powers in the Bill, and I hear those. I have set out why specifying the leagues in scope in the Bill is a potentially flawed approach and open to avoidance. At best, this approach leads to superfluous or unnecessary provisions in drafting. At worst, it could undermine the entire regulatory regime. That is why the approach in the Bill that the Government have taken, and that the previous Government took, is the right one. For that reason, I am unable to accept the noble Lord’s amendment and hope he withdraws it.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am sorry to hear that from the Minister; it does not give us much more than we had in the debate on Monday. I thank her for restating it, but I do not think it has engaged with the point that my amendment seeks to provide, which is allowing that flexibility to answer all the policy questions that she has set out, but also giving the clarity in law to the leagues that will be regulated by the Bill. As far I can see, the only material difference between accepting my Amendment 19 and proceeding in the way she wants to is that it would allow those leagues to petition Parliament and make their voices heard more clearly. That would be a good way of hearing from those who will be affected by this law.

I was struck by the sage advice from the noble Lord, Lord Goddard, who is acting as referee on this matter. This is something we will have to return to, and I am grateful to the clerks who alerted me to it. We will have to think about the question of hybridity and the right of football clubs and leagues to make their views known on this legislation, as the Minister and I have both just come to understand. The Committee has, through the course of this and Monday night’s debate, been able to begin considering it, and we should continue to consider it between—

Lord Bassam of Brighton Portrait Lord Bassam of Brighton (Lab)
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If the noble Lord insisted on this being included in the Bill, what would his response then be to further proceedings on the Bill?

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am interested in making sure that the Bill passes. I have been very clear from Second Reading onwards that we want to see it pass, that we want a regulator to be set up and that we want football to be protected and well governed. However, we want it to be done in a way that is not unduly burdensome, is proportionate and genuinely protects what is a hugely enjoyed pastime, a vital export and a group of hugely successful businesses for this country.

Thanks to the noble Lord’s Amendment 21 and my Amendment 19, we are given the opportunity to pause and consider whether we can have deeper and more fruitful conversations with those leagues and clubs to make sure that we get this legislation right. That is a question worth pondering with greater patience than I think we have seen from the Government Benches so far. I will certainly continue to consider it, and I hope that other noble Lords will do so too. For today, and in the interest of making further progress with our Committee deliberations, I beg leave to withdraw.

Amendment 19 withdrawn.
Moved by
20: Clause 2, page 2, line 31, leave out from “competition;” to end of line 34
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, in moving Amendment 20, I will speak also to my Amendment 22. These amendments, while technical in nature, address some important issues underpinning the Bill: the preservation of integrity, clarity and fairness in football governance across the whole nation, alongside the safeguarding of competition and community interests.

My amendments are necessary on the basis that the English football pyramid is littered with examples of English teams playing in Welsh or Scottish league systems, or vice versa. I understand that Cardiff City FC has played in the English football pyramid for 104 years, famously winning the FA Cup in 1927, and, more recently, reaching the FA Cup final in 2008. Its participation in the English football pyramid does not make Cardiff an English club—at least, it would take a very bold person to say that to a group of Cardiff fans.

Similarly, in the case of Wrexham AFC, as I am sure that many noble Lords are aware and have been aware for longer than I have, Wrexham has been in the English football system even longer than Cardiff, having joined an early English football league known as the Combination as far back as 1890. It is, proudly, the third-oldest professional association football team in the world. Although the club has suffered from financial hardship down the years, Wrexham has recently had new life breathed into it by its purchase four years ago by the Canadian actor Ryan Reynolds and the American actor Rob McElhenney. The attendant publicity from the docuseries “Welcome to Wrexham” had a significant impact on the club’s renown, leading to it acquiring a new, global fanbase, without precedent for a team that was in the fifth division at that point. I had the pleasure of visiting its Racecourse Ground when the club was supporting Wrexham’s excellent bid to become the UK City of Culture for 2025. I saw how rooted the club was in its community and the great work it was doing on behalf of the whole wider area.

I hope that those two historical examples provide instructive and relevant information on the point that I intend to make. It is foreseeable that, if the Bill is read on its simple meaning, it could apply only to English clubs. That could lead to a grave lacuna whereby the regulator is instructed to regulate English clubs only but not all football clubs in the English football pyramid. I know that that is not the intention, but with my probing amendments, I hope to seek clarification on that point.

We do not want a case where Swansea AFC, Cardiff City, Wrexham AFC, Newport County, Llansantffraid and others could be in a unique position where they play football against regulated clubs but are themselves unregulated. I have added my name to the amendment tabled by my fellow Northumbrian, the noble Lord, Lord Beith—I believe he was born in Cheshire, but his 42 years representing Berwick-upon-Tweed makes him a Northumbrian in my eyes—who is seeking reassurances for a team closer to home for us both. I hope that the Minister will be able to allay the concerns that he has raised through his amendment as well and set our minds at rest on this important matter. I beg to move.

Lord Beith Portrait Lord Beith (LD)
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My Lords, I am grateful to the noble Lord for his introduction to what I am going to say about Berwick Rangers. I declare an interest as having for some years been the honorary president of Berwick Rangers Football Club, which has existed for 143 years. During virtually the whole of that time, it has played in Scottish leagues, despite its stadium being in England. My amendment is there simply to secure clarification, which I am confident the Minister can give—although clarification would not necessarily survive subsequent amendment of the parts of the Bill to which I shall refer.

It appears to me that none of the regulatory provisions applies to a team in a competition that has not been specified by the Secretary of State. Under Clause 2(3), the Secretary of State does not have power to specify a competition in which the majority of the teams are not English teams. Thus, the Secretary of State could not designate the Scottish League, or the Lowland League or the Scottish Cup, in all of which Berwick play or have played.

Furthermore, Clause 15 makes it clear that operating licences are required only for a club operating a relevant team, which is defined in Clause 2(1) as a team participating “in a specified competition”. That would not apply to Berwick Rangers, because competitions in which they play could not, under the Bill, be specified. However, references in the same clause to a club with a stadium in England does raise in people’s minds the question about whether the Bill could be extended to Berwick—which would not be the Government’s intention, I am quite sure. Not only do they not seek to extend the Bill to Berwick Rangers, I do not think they are trying to move into the world of Scottish football, which, as the noble Lord, Lord Reid is well aware, is quite distinct in many respects, some of them desirable, some of them perhaps less so.

It has been the privilege of Berwick-upon-Tweed to play in Scottish football for almost the whole of its existence. Indeed, it has led to occasions on which we have played Glasgow Celtic, when I was able to welcome the noble Lord, Lord Reid, who came with the team for that fixture. We have played Glasgow Rangers on a number of occasions, defeating them in 1967 and holding them to a draw in the Scottish Cup on another occasion. To have a club playing such distinguished teams is obviously an asset to a town and, if there is any regulatory structure to be put in place, it should be the same one as for other teams in the Scottish league in which they play.

Berwick’s notable history is a very powerful case for making sure that any legislation deals properly with it. I am confident that the Government have no intention of causing us problems in this respect, but it would be helpful if the Minister could give us some clarification and would keep the matter in mind if there is any redrafting of this part of the Bill.

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Lord Harlech Portrait Lord Harlech (Con)
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My Lords, I support all the amendments in this group. I spoke at Second Reading on issues affecting Welsh clubs and it is a pleasure to speak to this group of amendments.

The New Saints perhaps offer a different Welsh perspective from those that we already have heard. TNS FC, known for a brief period as “Total Network Solutions” after a sponsorship from a local IT firm, are a Welsh professional football club that play in the Cymru Premier League but is based completely in England—in Oswestry, Shropshire. I declare an interest as that is where I was born. TNS are the most successful club in the Welsh league structure, with 16 league titles to their name. Recently, they became the first side playing in the Welsh system to qualify for the group or league stage of any European competition after reaching the league phase of the UEFA Conference League. They play in the Welsh league because the club was formed in the village of Llansantffraid, on the Welsh side of the border, in 1959, later merging with Oswestry Town, based in Shropshire, in 2003.

TNS FC sit at the pinnacle of Welsh domestic football, while occupying the peculiar position of being a club based in England. Does the Minister not agree that it would be unfair that TNS would be the only club playing in the Welsh top division to be regulated? Would it not create a difficult situation for Welsh football if a club with Welsh roots, playing in the Welsh league but geographically situated in England, had to comply with regulations that other teams in their league would not, perhaps creating a competitive disadvantage?

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I thank noble Lords for their support for this group and apologise to the noble Lord, Lord Watson of Invergowrie. “Littered” was probably not a well-chosen word. I meant it in the sense of an adorable litter of puppies that enhance the joy of all of us. I am grateful too to my noble friend for giving another example in the shape of TNS. They seem to be the football league equivalent of him—both a Shropshire lad and a man of Harlech. I am grateful to the noble Lord, Lord Beith, for setting out his Amendment 23 and hope that the Minister can allay the concerns that have been raised on behalf of all these clubs and others in similar situations.

Baroness Twycross Portrait Baroness Twycross (Lab)
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I thank the noble Lords, Lord Parkinson of Whitley Bay and Lord Beith, for their amendments to Clause 2 and the opportunity they present for me to clarify this matter.

Amendments 20 and 22 in the name of the noble Lord, Lord Parkinson, would allow the Secretary of State to include in the regulator’s scope competitions that are not exclusively or predominantly made up of English teams. This would mean the loss of an important protection that, as currently drafted, ensures Welsh football competitions could never be brought into scope. The noble Lord will be aware that sport is a devolved matter for Senedd Cymru, the Scottish Parliament and the Northern Ireland Assembly. Therefore, if intervention of this nature was deemed necessary within Welsh, Scottish or Northern Irish football, it would be for their respective legislatures to take forward.

While I am on the subject of Welsh football, I take this opportunity to congratulate the Welsh national team, who qualified for the Women’s Euros last night. It is the first time in their history they have qualified for a major tournament. This is a fantastic achievement and one I am sure your Lordships will want to join me in celebrating.

Baroness Twycross Portrait Baroness Twycross (Lab)
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On Amendment 23, I understand the aim of the noble Lord, Lord Beith, to ensure clubs are not inadvertently captured by the regulator’s regime or left out—for example, where they are based in England but compete in the Scottish league system. I reassure him that the Bill already sufficiently protects against this risk. Only clubs competing in competitions specified by the Secretary of State will be subject to regulation, and the Secretary of State can specify only English competitions. Therefore, clubs such as Berwick Rangers, which is part of the Scottish pyramid, cannot be subject to the scope of the regulator as long as they do not play in English competitions. Conversely, clubs playing in those specified English competitions, including Welsh clubs, will be regulated.

I am happy to meet noble Lords to discuss this further if that would be helpful but, for the reasons I have set out, I am unable to accept the noble Lords’ amendments. I hope that they will not press them.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am grateful to the noble Baroness. As she could hear from the cheer, I think we all associate ourselves with the congratulations that she offered to the Welsh women’s team. It is marvellous news. I thank her for the reassurances. As the noble Lord, Lord Addington, said, these are some of the quirks of our history that we celebrate through football, which we play across these islands. I am grateful to the noble Baroness for the clarification she has set out and I beg leave to withdraw my amendment.

Amendment 20 withdrawn.
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Lord Watson of Invergowrie Portrait Lord Watson of Invergowrie (Lab)
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My Lords, I support Amendments 182 to 184 in the names of my noble friends Lady Taylor and Lord Bassam. I do so, as my noble friend Lord Bassam said, specifically in relation to Wimbledon—not AFC Wimbledon, at which I happen to be a season ticket holder, but Wimbledon, the previous club, which has now been moved 60 miles up the M1 to Milton Keynes. I want to focus on the situation prior to that happening, and that is why these amendments are relevant.

Ironically, in one of the debates on the Bill last week I talked about state intervention and mentioned the Taylor report. It was that report, published in, I think, 1991, which said that our grounds at the top level must be all seated. Wimbledon’s ground was too small and too cramped, with houses round about it, for that to be done, so they moved from there to a ground share with Crystal Palace, ostensibly on a short-term basis—it turned out that they would be there for more than 10 years, but that is not really relevant to this. The point is that the owner eventually sold the ground from under the fans to a supermarket chain, and subsequently sold the club to Norwegian owners. The point is that the fans were nowhere consulted in any of this, although they made their views clear. But the point is that the home ground is key to any football club and there has to be the long-term commitment to that.

My noble friend Lord Bassam talked about going up to Milton Keynes. The previous owner of Wimbledon FC wanted to move it to Dublin. That was a serious proposal. Thankfully, it came to nothing, of course. On this issue of whether a club can move, that is why the regulator is important. It is maybe lost in the mists of time that, when Wimbledon FC were about to be moved, the FA and the Football League opposed it, and the FA, totally wrongly, set up a commission, which gave the club permission to move to Milton Keynes. It was famously said that retaining the club in Wimbledon would be

“not in the wider interests of football”.

Well, 25 years later, Wimbledon FC, now in Milton Keynes, gets crowds of about 6,000 and AFC Wimbledon, the new club, gets crowds of about 8,000—so noble Lords can work out what is in the wider interests of football from that.

My concern is about the commitment to the club’s ground. It is important that, unless we can get a long-term commitment for when ownership is going to change, there is no reason why any ground could not be sold off, with a new owner claiming, “Well, I’ve had such and such an offer from a supermarket chain, I can’t possibly turn it down. I’ll build a new ground some time in the future, but I don’t know when”. That is why the word “codified” in Amendment 182 is particularly important. It needs to be nailed down, because the importance of the home ground cannot be overstated in terms of the investment of fans into their football clubs.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, I am conscious that the noble Baroness, Lady Grey-Thompson, has not been able to be with us today to speak to her Amendments 187A and 187B; I know she has a commitment to chairing some Welsh sports bodies, which I know the Committee will understand and support. I just wanted to draw the Committee’s attention to the two amendments that she tabled, which have been grouped together with the others that we have debated here. As her explanatory statement sets out, they aim to provide a route for the regulator

“for other individuals and groups of people, who may have more inside knowledge than the average fan, to act as whistleblowers and raise any concerns they have about the suitability of an owner or officer”.

It is regrettable that the noble Baroness has not been able to be here to set out the case more fully, but I am sure that noble Lords will pay attention to that and consider those amendments as well.

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Baroness Taylor of Bolton Portrait Baroness Taylor of Bolton (Lab)
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I do not wish to move the amendment.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I think anyone in Committee anyone can move an amendment, so I am very happy to move Amendment 33. I am curious as to why the noble Baroness has not moved it and perhaps she can set out why, as it is a sensible one and I was intending to speak in support of it.

Amendments 32 and 33 sought to ensure that the chief executive of the new independent football regulator could be appointed by the whole board and not just by the chairman of the board. That would seem a sensible improvement in terms of collective decision-making and an additional safety valve to ensure that the appointment of the chief executive was not a politicised move. I know that a number of noble Lords have significant board experience and may have views on the merits of this.

I was also keen to come in because the amendment allows us to ask the Minister for an update on the appointments, because we are scrutinising this Bill not knowing who the chairman of the new regulator will be or the board. I understand that the deciding panel met to sift applications for the non-executive roles on Monday—I do not know whether she can confirm that—and that people who have applied have been asked to hold the 17, 19 and 20 December for interviews. Can she say now or in writing whether that is still the timetable on which the Government are operating? That would be helpful, because when we took the Online Safety Bill through, we knew who held the regulatory roles at Ofcom and could have some dialogue with them. Anything more that the Minister can say, now or in writing, about the timetable by which these important figures are appointed might aid the discussions that we are able to have in parallel to the scrutiny of the Bill about the people who will be taking forward these important roles.

I beg to move Amendment 33, so that the noble Baroness can have time to respond. I do not know whether the noble Baroness, Lady Taylor, wanted to say why she was no longer in favour.

Baroness Twycross Portrait Baroness Twycross (Lab)
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I thank the noble Lord, Lord Parkinson, for the opportunity to respond to the amendment. The Government recognise the intent behind it, which is to ensure that the decision on the appointment of the chief executive of the regulator has the appropriate input and scrutiny. I reassure my noble friends and others that the Bill already suitably achieves this.

As per paragraph 5 of Schedule 2, the chair must consult the other non-executive members of the board, as well as the Secretary of State, before appointing the chief executive. The chief executive will have the responsibility of appointing a portion of the board—namely, the executive members. For this reason, I am sure noble Lords can see that it would be circular and impractical for the entire board to collectively appoint the chief executive.

I am happy to discuss this at greater length but I hope this reassures the noble Lord. I would therefore be grateful if he could withdraw the amendment.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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Is the Minister able to say any more on the timing of appointments? If not, I would be very happy for her to write. The processes to appoint the chairman and the board members began before the election. As I understand it, that process has continued but the Government extended the window of applications for people applying to be the chairman. That closed. I believe the sift took place on Monday, and people are being asked to hold dates next week and beyond for interview. Is the intention to try to make an announcement while the Bill is before your Lordships? Might we know who the new chairman and board members are, or has the timeline slipped?

Baroness Twycross Portrait Baroness Twycross (Lab)
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Whether we get the result while your Lordships are debating the Bill is a moot point, given the length of time we are taking to get through Committee. The noble Lord is correct, though: the timetable for the interviews is the same, and they are intended to take place on 17, 19 and 20 December.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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In which case, I beg leave to withdraw the amendment.

Amendment 33 withdrawn.
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Lord Addington Portrait Lord Addington (LD)
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My Lords, these amendments seem quite reasonable. It would be interesting to see whether conflicts of interest at this level are addressed. I hope the Minister has a nice succinct answer that means we can all go away and move on to the next group. Having said that, I shall sit down and allow her to give it.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, again, there is good sense behind the amendments that the noble Lord and the noble Baroness have tabled in this group. They address a critical issue about ensuring transparency and fairness in the governance of our beloved game.

Amendment 34 seeks to introduce an objective test to determine whether a proposed director of the new independent football regulator has a conflict of interest. Under the previous framework, the decision was left in the hands of the appointing party, leaving the process vulnerable to subjective interpretations and, potentially, political interference or favouritism, which I am sure we all want to strive to avoid. By introducing an objective test, the amendment would remove that ambiguity and ensure that potential directors are rigorously vetted before they take office. That is an important suggestion that would uphold the values of fairness and accountability in football.

Amendment 35 would take that further by requiring all directors of the independent football regulator to not only undergo this rigorous vetting but publicly declare any potential conflicts of interest. This would be a vital step in increasing transparency and holding accountable those who wield the new powers the Bill brings about. We on these Benches all agree that the integrity of the sport must be upheld through adherence to ethical standards and think that the amendments are an important step in that direction. The chief executive officer of the independent football regulator will be given the task of maintaining a register of these declared interests, ensuring full transparency and accountability in football governance.

Similarly, Amendments 43 and 44 would extend this principle to members of the expert panel, ensuring that they too declare their interests. Again, the independent football regulator’s chief executive will be responsible for maintaining a register of interest for the expert panel, providing an additional layer of transparency. By implementing these measures, we would reinforce the importance of ethical conduct and accountability across the regulator’s board and its expert panel, both of which will be key to the fair and transparent governance of football under the new regulatory regime.

Finally, Amendment 331, which would expand the nature and definition of a conflict to include a situation where the perception of a conflict may arise, also has some merit. Perception is often just as important as reality in maintaining trust. By introducing non-exhaustive examples, the amendment would ensure that we address conflicts of interest in a comprehensive and forward-thinking manner.

I am grateful to the noble Baroness and the noble Lord for tabling the amendments, which represent a robust and progressive framework for managing conflicts of interest in the governance of the sport. They would introduce clear, objective tests, require declarations of interest and ensure transparency through the form of the public registers, all of which are important. I look forward to hearing what the Minister has to say.

Baroness Twycross Portrait Baroness Twycross (Lab)
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I thank my noble friends Lord Bassam of Brighton and Lady Taylor of Bolton for tabling these amendments. The Government acknowledge the intent behind them, which is to fortify the Bill’s provisions for dealing with conflicts of interest. It is essential that the regulator can deliver its regime, free from undue influence and vested interests.

I reassure my noble friends that the Bill already sufficiently makes certain that the regulator will be free from conflicts of interest. This is supported by public law principles and non-legislative measures that are already in place. As with all public bodies, members of the regulator’s board will be subject to the Cabinet Office’s code of conduct for board members of public bodies, which sets out clear requirements regarding the appropriate disclosure and management of conflicts of interest. It includes a responsibility on board members to openly and honestly declare any interests that could give rise to actual or perceived conflicts. Any breach of these requirements would be a breach of the member’s terms of appointment.

The Bill also places an additional onus on the appointer to check for conflicts that have not otherwise been declared, both at the point of making the appointment and on an ongoing basis from time to time. In addition, paragraph 16 of Schedule 2 requires members of the board to declare their interests in any matters which fall for consideration by the board, and for this declaration to be recorded.

On Amendment 331 in the name of my noble friend Lord Bassam, the Government are confident that the existing definition of conflict of interest is appropriate and will capture the correct issues. The expansion of the definition proposed by my noble friend would also see perceived conflicts explicitly forbidden. We believe this is disproportionate and goes beyond the normal interpretation of conflict of interest. For example, almost all noble Lords here support a football club. In an extreme interpretation, that alone could be a perceived conflict. All in all, we are confident that the Bill, supplemented by public law principles and non-legislative measures already in place, provides comprehensive safeguards to identify and manage conflicts of interest appropriately. For these reasons, I am unable to accept my noble friends’ amendments and ask my noble friend to withdraw her amendment.

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Moved by
36: Schedule 2, page 85, line 37, at end insert—
“6A No person may be appointed to the Board if that person currently has any broadcast or media interests or any role in a television or media broadcast which relates to football.”Member's explanatory statement
This amendment prohibits any person who currently has any interests or roles in a television or media broadcast that relates to football from being appointed to the Board.
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, I will also speak to my Amendment 40. This flows from the discussion we have just had about financial conflicts of interest but looks at the broader issues of a person who has a current broadcast or media interest, or any role in a television or media broadcast relating to football, being appointed to the board of the independent football regulator. It seeks to prevent conflicts of interest relating to those who take part in television, radio and podcasts that are linked to football.

The concern here is that any person with that sort of involvement in such media or broadcasts would have, by the very way that they carry it out, publicly held opinions about the game that they would be expressing frequently and sometimes in a live environment where questions could be put to them. We would not want to see people with vested interests that might conflict with the proportionate and reasonable exercise of the regulator’s functions put in a position where their thinking about how they carry out their duty is scrutinised in that forum and in that way.

As my noble friend Lord Markham pointed out on a previous group, this is a new regulator that will have enormous power to determine the specifics of the rules and regulations that football clubs will have to abide by. That includes the levy rules set out in Clause 53, which states that the amount the regulator will be able to charge clubs is to be determined in rules established by the regulator. Again, the details are not set out in the Bill but are to follow. There are some limits on what that levy could be, but the exact amount that will be charged and how that levy will be scaled to take account of the different financial situations of clubs are to be established and amended by the future board of the new regulator.

So the level of intrusion into the affairs of clubs is not entirely settled by this Bill. It will be decided by the people who are appointed to run and oversee this regulator. That is why we will be interested to know who these people are in due course. We wish all those who have applied to take on these important roles good luck in their efforts to be the inaugural holders of their posts. However, it is very clear that the board and, specifically, its chief executive will in very large part set the direction of the regulator, its tone and the means by which it goes about its work.

That is why it is important that we make sure that nobody can be appointed to the board, particularly in the first cohort, who has any conflicts of interest or who might be swayed once in office. Of course, in doing that we do not want to preclude anybody who has experience of the operation of football clubs or great knowledge of the game being appointed to the board. Those sorts of skill sets will clearly be needed. If we have people who have been involved in the running of football clubs, they may be quite powerful and important people to speak out against excessive regulation and mission creep. I hope that through this amendment we can have a debate about the public-facing elements of their role and the way they go about it.

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Baroness Taylor of Bolton Portrait Baroness Taylor of Bolton (Lab)
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I am not sure the noble Lord has made his case for why somebody who has an interest or a role in television should not be a member of the board. I am sure that there are commentators who may say things from time to time with which the noble Lord may disagree, but that is irrelevant. We are talking about people who have a degree of expertise about the game, and I cannot see why somebody whose job it is to comment on the game of football cannot have a role in this.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am happy to say a bit more. This is a probing amendment, and I am keen to hear the views of others. My concern is about how public facing a figure this new regulator is to be. I am mindful of comparisons with debates on legislation that I have taken through. We benefited in the scrutiny of the work of Ofcom and the new online safety regulatory regime from having the noble Lord, Lord Grade of Yarmouth, here in your Lordships’ House. He attended and sat through all our debates in Committee and on Report but did not speak because he felt that it was important that he heard the views of Parliament but did not actively participate in the debate about the regulatory regime that Ofcom would be following once Parliament had given it its instructions. The self-denying ordinance that he applied and the rules of debate in your Lordships’ House made it easier for him than it might have been had he been a commentator on television or frequently appearing on television and in media interviews and being asked about the work.

I am sure we want to see the regulator held accountable publicly as well as to Parliament, and I look forward to our debates on later groups about how we ensure greater accountability to Parliament for the work that it does. I am sure that fans will have strong views about the work of the regulator, just as they do about how referees conduct their duties during matches. However, I wonder whether somebody who is taking on this role, potentially one with a large and unlimited salary, should be combining that with ongoing media interests in which they have a commercial interest in adding to the drama and to public debate about the game. I will be grateful for the Committee’s views on that matter.

Lord Berkeley of Knighton Portrait Lord Berkeley of Knighton (CB)
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I imagine that this could be a rather tricky area, for the reasons we have just heard. I can see that someone who has great expertise —an ex-international, for example—would be useful on a board and may be asked occasionally to comment, which would not mean a great deal of compensation or money. I am sure the noble Lord does not want to see those sorts of people excluded.

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Baroness Twycross Portrait Baroness Twycross (Lab)
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I thank the noble Lord, Lord Parkinson, for tabling these amendments and thank all noble Lords who have contributed to what I thought was a very thoughtful discussion. As with the previous discussion on this matter, the Government would like to reassure noble Lords that the Bill already sufficiently makes certain that the regulator will be free from conflicts of interest, irrespective of sector. This is supported by public law principles and non-legislative measures already in place. As I said previously, the Bill requires members of the board to declare their interests, and this declaration is to be recorded.

Taking Amendment 36 first, we are confident that there are comprehensive safeguards to root out and manage conflicts of interest appropriately. For example, a board member would not be permitted to take part in any discussion relating to a matter if they had a significant direct or indirect interest in it. Failure to declare an interest would also be a breach of the board member’s terms of appointment. In response to noble Lords who asked me for a definitive view, my view is that beyond these comprehensive existing provisions we do not think it is necessary or appropriate arbitrarily to rule out specific sectors or sector interests such as television, broadcast or media.

On Amendment 40, we acknowledge the importance of the regulator offering value for money. It 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 central government departments are to ensure pay rises are justifiable. This will ensure value for money for taxpayers. However, having a maximum salary in legislation risks the regulator being unable to attract the right talent, potentially leaving it without the skills and expertise it needs to deliver its objectives—a point the noble Lord, Lord Londesborough, made very succinctly. We agree with the point around the need to control costs. A fixed salary in legislation is also inflexible to inflation and market changes, and it could become rapidly outdated, as the noble Lord, Lord Hayward, pointed out. For these reasons, I am unable to accept the noble Lord’s amendments and ask that he withdraw or not press them.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am very grateful to the noble Baroness for that response and to noble Lords who took part in the debate. This is a strength of the Committee stage—I can see the furrowed brows with the opinions being weighed up and I am grateful to noble Lords who have engaged with the probing amendment I tabled in this way. I hope, if nothing else, it has been useful to the Secretary of State who, as we know from the Minister’s responses in the previous group, is soon to make her decision about who ought to chair this new regulator and who should be on the board. I hope that the points that noble Lords across the Committee have made will be taken back and inform her deliberations.

I take on board what the noble Baroness said and indeed the point that the noble Lord, Lord Londesborough, raised about the need to make sure we are paying enough to attract the calibre of person that is going to rise to the task ahead of them. On pay and salary, I am grateful as well to the Minister for what she said and was struck particularly by what she said about pay restraint. I know from my ministerial experience that, when public bodies want to push for pay rises above what would be normal in the private sector or across the economy more generally, then that comes to Ministers. If there is that sort of oversight and check and balance in the system to ensure that the regulator’s salary costs are not spiralling as quickly as we feared, then that would be a good thing. With gratitude to the Minister and to all who took part, I beg leave to withdraw my amendment.

Amendment 36 withdrawn.
Moved by
37: Schedule 2, page 85, line 37, at end insert—
“6A “(1) Any person appointed to the Board must agree to appear before any relevant Parliamentary Committee.(2) A relevant Parliamentary Committee is any Committee of the House of Commons, or House of Lords, or of both Houses, which has notified the Secretary of State, in writing, that they have assumed the function of scrutiny of football regulation.(3) Any person appointed to the Board may not take their position unless they have been approved by a resolution of each relevant Parliamentary Committee.”
Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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My Lords, as well as moving my Amendment 37, I will speak to my further amendments in this group, Amendments 38 and 123. In the letter which she kindly sent to the Committee earlier today, the Minister displayed her familiarity with and affinity for Erskine May and, even if I did not have unbridled delight as to the contents of the letter, I was pleased to see this reference to one of our great constitutional experts and authorities on legislative procedure.

In that spirit, I would like to quote another revered expert on constitution matters, the great AV Dicey, who expounded that:

“The principle of Parliamentary Sovereignty means neither more nor less than this, namely, that Parliament … has, under the English constitution, the right to make or unmake any law whatever; and further, that no person or body is recognised by the law of England as having a right to override or set aside the legislation of Parliament”.


In more recent times, the Constitution Unit at University College London has set out particularly relevant arguments for the importance of parliamentary accountability. In its 2023 briefing Parliamentary Scrutiny: What is it and why does it matter? the unit rightly said that:

“Government accountability to parliament is central to our democratic system”.


I think this all demonstrates that the right of Parliament to oversee and hold public bodies to account must be upheld dearly as well.

This new regulator, which we are bringing about through this Bill, will at the start of its existence have recourse to public funds. It is crucial that any body which has funding streams derived from the taxpayer at any point should be accountable to and scrutinised by Parliament. That is what Amendment 123 requires.

Amendment 37 seeks to ensure that any person who is appointed to the board of the regulator must be approved by a parliamentary committee, and Amendment 38 requires the chief executive to appear before a parliamentary committee at least once a year if they have been so invited. This ensures that anyone who is going to be holding any formal position in this new regulator can be scrutinised by parliamentarians before they can be appointed.

Following on from the debates in the two groups that we have just had about conflicts of interest, it may be that rather than setting it out in the Bill, as the probing amendments sought to do, the parliamentary oversight that we could bring about this way might be able to give us the reassurances we seek that the people who are given these awesome new responsibilities are doing so without conflicts of interest or the pressures on them that we wish to resist. I beg to move.

Baroness Brady Portrait Baroness Brady (Con)
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My Lords, I support this group of amendments, which I think are very helpful because they will help to tease out one of the real challenges at the heart of this Bill—how to achieve the right balance of proper oversight with the absolute necessity of delivering regulatory independence. We should, of course, acknowledge the natural instinct to ensure democratic accountability of any new regulator. Given the cultural and economic importance of football to our nation, Parliament should rightly maintain some oversight of how this new body exercises its considerable powers.

The question “Who regulates the regulator?” is beginning to be asked more and more often, not least in relation to the many clear failings of UK regulators, and rightly so. However, I believe we must also tread with real care here. Football’s international governing bodies, UEFA and FIFA, have clear provisions against state interference in the game. While their primary concern has historically been direct government control of national associations, they could well choose to interpret these provisions more broadly. We have already seen their willingness to act even in response to the mere creation of this regulator, and we have seen the Government’s instant removal of a clause in this Bill relating to foreign and trade policy. This tension means we must achieve a delicate balancing act: too little accountability and we clearly risk regulatory overreach; too much involvement of the state and our democratic institutions and we risk creating leverage that could be used against English football’s interest.

I have already spoken about some of the risks here. If Select Committee oversight and IFR responsibility to both bodies was seen as political interference, it could feasibly create that leverage we have warned about whereby clubs participating in European competition, or even England’s tournament participation, is put in jeopardy. We have already seen concerning signs of how these tensions might play out. In just a short time since this Bill’s introduction, we have witnessed numerous attempts to expand the regulator’s scope from environmental sustainability to ticketing prices and kick-off times to corporate responsibility requirements. I am concerned about how this pressure might intensify with direct parliamentary oversight.

Members of the other place, responding quite correctly to constituents’ concerns, might press the regulator to intervene in broadcast arrangements or ticket allocations, or elements that go to the heart of competition tools that should be reserved for the leagues. Select Committees could demand action on issues far beyond the regulator’s core financial sustainability purpose. Each intervention, however well intentioned, risks creating exactly the kind of state interference that could threaten English football’s international position.

We have seen this pattern in other sectors: regulatory mission creep that is driven by political pressure and external events. Football’s unique international framework makes this dynamic particularly dangerous. Every expansion of scope and political intervention creates new vulnerability to UEFA and FIFA leverage. I would be grateful if the Minister, when she responds, could explain how the Government intend to manage these competing demands. How will they maintain appropriate accountability while preventing political pressure from expanding the regulator’s remit? How will they ensure that parliamentary oversight does not become a backdoor for state intervention in football’s affairs? What safeguards will protect against the regulator being drawn into issues that should remain matters for the football authorities only?

Finally, I would be grateful if the Minister could confirm whether this issue has been directly discussed with UEFA and, if so, what its view is on how the IFR’s independence should be preserved in this respect. It seems clear that without comprehensive assurances on every single aspect of the IFR and how it will operate, we risk inadvertently subjecting English football to permanent external control. The irony of creating this leverage will be quite incredible. In seeking to protect our game through regulation, we must not end up permanently compromising its independence and losing control of English football for ever.

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Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I will briefly encapsulate some of what we have heard and respond to the point of the noble Baroness, Lady Fox of Buckley. She is right: it was a chastening experience to stand at the Dispatch Box as a Minister and repeatedly have to say that something was a matter for the independent Ofcom, the independent Arts Council, the independent board of the BBC, or the Betting and Gaming Council. There are good reasons why many of those organisations are independent of government, and that independence should be carefully guarded. However, given the additional role that Ministers in this House have, and in providing parliamentary scrutiny, the distinction that the noble Baroness, Lady Taylor, makes between the Executive and the legislature comes to the heart of it.

I am grateful to my noble friends on these Benches for expressing some of the concerns that they would raise if they were on a parliamentary committee overseeing the work of this regulator. As the noble Baroness, Lady Fox, reminded us, the concerns could go in all directions, and that is the beauty and importance of parliamentary accountability. This is an important regulator doing hotly anticipated and important work, and I am grateful for the consensus, which my noble friend Lord Markham points out, on the need to find a way to make sure that it can continue to be accountable to both Houses of Parliament.

Baroness Twycross Portrait Baroness Twycross (Lab)
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I thank the noble Lord, Lord Parkinson of Whitley Bay, for tabling these amendments, which relate to the transparency and accountability of the regulator. The discussion was interesting, and I found my noble friend Lady Taylor’s expertise on this matter particularly helpful to our debate. I look forward to discussing this further with her.

The noble Lord, Lord Goddard of Stockport, raised some interesting points. I stress that the Government recognise that it is vital that the regulator is transparent and able to be held accountable by Parliament and others. A number of provisions in the Bill already ensure this. The exercise of the regulator’s functions will be reviewed in the regulator’s annual report. The Secretary of State and Parliament will be able to scrutinise these reports, which will be laid before Parliament. The regulator’s chair and non-executive directors will be required to go through the public appointments process, as is appropriate given the weight of the role and responsibility for other appointments to the regulator. The chair of the regulator will already be subject to pre-appointment scrutiny with the relevant parliamentary Select Committee. However, as far as I am aware, there is no precedent for board members to be expected to go through such an extensive process as the chair is expected to, and neither has the relevant parliamentary Select Committee sought this. We therefore do not think that such a requirement is proportionate or necessary.

The regulator will be expected to work alongside the parliamentary process, which already allows committees to compel witnesses to attend. If a committee wished to invite a relevant member or the chief executive to appear before it, the Government would certainly expect them to fulfil this. These amendments would set an unprecedented and rigid approach to committee invitations that we do not feel is appropriate to place on the regulator. It would also not be appropriate for the Government to dictate to parliamentary committees who should appear before them—that is surely a matter for committee members themselves to determine.

Almost all of Amendment 123 dictates various actions in relation to parliamentary committees: who should appear before them, what they should scrutinise and when they should do so. I am sure the noble Lord agrees that parliamentary committees are quite able to take these decisions themselves and do not need the help of any legislation to do so. On the expert panel, the legislation already sets out a number of requirements to publish decisions and reasons for them. For these reasons, I am unable to accept the noble Lord’s amendments and ask that he withdraws Amendment 37.

Lord Parkinson of Whitley Bay Portrait Lord Parkinson of Whitley Bay (Con)
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I am grateful to the Minister for that response. I recognise many of the lines she uttered; I have uttered those and similar on previous Bills. For me, the most important contribution was that of the noble Baroness, Lady Taylor, who has given greater thought to this over a long time.

The Minister is right: it is not for the Government to tell parliamentary committees whom to call as a witness and how to do it. But there is a growing concern that there are so many ways in which the Government have devolved power to powerful regulators that can accrue—in the way that the Bill achieves—new powers or go in new directions through secondary legislation that does not get the sort of scrutiny that we are giving the Bill at the moment. Perhaps some broader mechanism needs to be found for looking at the work of not just this regulator but regulators in general. As I say, that was a feeling that gnawed at me when I stood at the Dispatch Box opposite. We will probably not crack the answer as we look forward to a well-earned dinner break, so, with gratitude to the Minister, I beg leave to withdraw the amendment.

Amendment 37 withdrawn.