Birmingham Commonwealth Games Bill [HL]

Lord Rooker Excerpts

Tuesday 9th July 2019 Lords Chamber

Moved by

[Lord Rooker]

1: Clause 1, page 1, line 6, after “Games” insert “and their legacy”

[Lord Rooker (Lab)]

My Lords, Amendment 1 is the lead amendment to Amendment 5. Let me make it clear at the outset that the amendments I shall be moving today are the ideas and gifts of my noble friend Lord Hunt of Kings Heath, who, because of his duties on the General Medical Council, is unable to be here today. Furthermore, I took last week off on holiday and therefore I was not party to any of the discussions that took place on these amendments. However, I agree with them and that is why I am moving them.

It is important that there is a proper legacy from this massively exciting enterprise. I shall not go through the proposed new clause which Amendment 5 seeks to introduce in detail, but there are three essential parts to it. It seeks to place a duty on the Secretary of State, on the Government, that there should be a legacy plan, which is important. It contains a list of non-prescriptive issues which may be in such a legacy plan. However, it also contains a requirement that, if there is a legacy plan, it must include a budget and a funding plan. This is absolutely crucial, as I shall explain in more detail. Under subsection (6) of the proposed new clause, there is a firm commitment in the legacy plan in relation to housing.

Without a budget and a funding plan, the legacy plan would not be worth the paper it was written. Therefore, if the Secretary of State directs the Organising Committee to prepare such a legacy plan, it must include a budget and a funding plan. It is crucial for two reasons. First, it is accepted that the amount of time Birmingham and the Government have had for organising these Games is much shorter than normal, simply because we are taking over the Games that were planned for Durban. We must take account of that. Secondly, there is the question of Birmingham City Council’s finances. I am unfamiliar with the detail—I do not pay council tax in Birmingham and have not done so since 2002—but I am aware that there have been issues relating to the budget in recent years, which led to an improvement panel being imposed on the city by the Secretary of State for Communities.

The point that I am about to make is the only one that can be considered partisan. When the current administration in Birmingham took over the city council, it followed eight years of a Tory/Liberal coalition, which had built a fantastic library—a brilliant facility—with mega millions of capital expenditure. However, what did it leave in the revenue budget for running that library? Zero. It had a catastrophic effect on the finances of the city. I am not saying all the effects are down to the library, but it is an example of where a capital project had an effect on Birmingham’s finances. It was instituted and organised by the noble Lord, Lord Whitby, who is not in his place—I have not given him any warning about this because I have only just thought of raising it. As a result of the short time available before the Games and the fragility, if I can put that way, of Birmingham’s finances, it is important that there is a budget and a funding plan. These two reasons make it vital.

I have had no discussions with anybody in Birmingham about this because I have not had time. As I said at Second Reading, I went to the meeting at Alexander Stadium to discuss the plans for the stadium. That was about three weeks ago. I have no role in the city. I have been on a few things since I have been in your Lordships’ House—the governing body of Aston University, Castle Vale Neighbourhood Partnership Board and James Brindley hospital school—but none of them is current. However, I love the city and I visit it regularly as I have family there.

There is an issue linked to the paragraph about housing. I touched on this briefly at Second Reading. The games village will be homes for more than 6,000 athletes and officials. It is an exciting prospect for the location. I understand it will yield 1,400 new homes and kick off a wider regeneration plan to deliver up to 5,000 homes in that location. It is a very good location. Some things are going to change in the road network, but the location is sitting on top of a suburban railway station—and there are not that many in Birmingham—and it is very close to the M6/M5 junction at Great Barr, so it is an excellent location. It is a prime site.

The planning for that housing must create a community, not a commuter village. If there are no restrictions or plans, the temptation is that it will be a commuter village for the city or for access outside it simply because of its location. I will not go into detail about where it is, but anybody who looks at the plans can see that there will be 1,400 to 5,000 dwellings in this location. We have got to create a community; otherwise, the temptation, if it is left to the private sector, is that it will be a commuter village. A community needs well-designed, sustainable homes of mixed sizes and mixed tenure and the infrastructure that goes with up to 5,000 dwellings, which includes at least one or two primary schools. We must be realistic about this. This needs a plan and, therefore, the housing aspect is important for the legacy plan.

The legacy is for the West Midlands. There are major capital projects, and success afterwards will be in the working of the five pillars of the Games’ mission: to bring people together; to improve health and well-being; to help regional growth to succeed—my view and that of others from the region is that it has always punched below its weight; to be a catalyst for change—this is a golden opportunity because it is a massive budget; and to put the West Midlands on the map. It is quite clear from the evidence that previous Commonwealth Games have delivered significant benefits. Not all of them did, but the Commonwealth Games in Glasgow in 2014 made a significant contribution of almost £1 billion to the Scottish economy, and the Commonwealth Games on the Gold Coast in 2018 gave an almost £1.5 billion boost to Queensland. However, that does not happen unless it is managed, and you cannot manage it unless you have a plan. This is why the Government ought to be seriously thinking about embracing the fact that the Games need a legacy plan in the way set out in the amendment. I beg to move.

[Lord Addington (LD)]

My Lords, I have a small amendment in this group which is an amendment to the amendment tabled by the noble Lord, Lord Griffiths, and others. When we started this process and everybody looked at the Bill, they all said the same thing: that there is stuff here we do not know and there is information that we would expect to have but have not got. We then discovered that this is not the normal process. We came in quickly at the end to make sure that the Games continue, which is a good thing. Basically, we are trying to find out information in order to assist the city of Birmingham and the Government to do a good thing—that is, to keep the Commonwealth Games going. If we are to build a legacy, we need more information, and most of the amendments in this group are about trying to get that information into the public arena as soon as possible.

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Finally, I shall address the technicalities of the provision in Clause 1. I do not agree that an explicit reference to legacy should be added to the financial assistance provision in Clause 1. In my opinion it is unnecessary, because Clause 1 already provides that the Government can fund the organising committee in relation to legacy activities under the spending power. The language of the provision—“arising from”—is intended to capture just this: the activity that continues after the last medal has been won. The Bill is not explicit about every activity or work stream the organising committee will undertake, but it does not follow that those activities will not be taken forward, so I beg to move that noble Lords withdraw their amendments to Clause 1.

[Lord Rooker]

My Lords, I am incredibly grateful to the Minister for his comprehensive reply; I agree with most of it. Indeed, the only point I make before I withdraw is the point that the noble Lord, Lord Coe, made: the central, key issue is the Games. Nothing must interfere with the planning and organising. I have no doubt that, when he is among us again, we will take further particulars from my noble friend Lord Hunt. In the meantime, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

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Moved by

[Lord Rooker]

4: Clause 1, page 1, line 11, at end insert—
“( ) The Secretary of State may provide by regulations for Birmingham City Council to raise a hotel occupancy levy and to provide financial assistance equivalent to the proceeds of the levy, after costs of administration, to the Organising Committee as part of the local contribution for the purpose of delivering the Games.”

[Lord Rooker]

My Lords, I beg to move the revised Amendment 4, which, as the Chairman has said, is on a separate sheet. There is a modest change from the original draft, plus my name is now against this amendment because of my noble friend Lord Hunt’s absence.

The amendment raises the issue of a levy or bedroom tax. I am not sure that I would call it a probing amendment; I do not understand why we have never done this before. The fact is that, the broader the tax base right across the piece, the less high taxes have to be. It seems a common-sense arrangement. With this Bill and the Commonwealth Games, there is an opportunity for the Government to do something that Governments—including the one I was a member of—do not do enough, and that is to pilot schemes. From the briefing I have been given, I understand that most members of Core Cities in England and Wales are lobbying the Government for a hotel occupancy tax. This is a devolved matter in Scotland and there is an expectation that Edinburgh will soon introduce such a tax. In some ways, this puts pressure on what I might call the English Government to do the same.

In a way, it is a golden opportunity. We could use this Bill to ring-fence a tax for Birmingham and Solihull, as the local authorities that will be most affected, although there are hotels in Sandwell as well. If the Government used this Bill to pilot a hotel occupancy tax for ring-fenced money for the Commonwealth Games and put a time limit on it, after the Games we could look at how it worked and review the impact and effectiveness of the tax. I know people will argue that we do not want more new taxes, but the broader our tax base is, the less high taxes have to be—that does not mean we have to tax everything.

We are not reinventing the wheel here: this is done around the world. We all travel and we do not think twice about it. The tax might be lost in the hotel bill—it is always incredibly modest—but it usually goes locally and helps local authorities with all the extra costs and issues they have as a result of being a tourist attraction. I would have thought that this was a golden opportunity for someone in the Government to make a name for themselves by piloting this scheme, which will be a good idea, and see how it goes just for the Games.

[The Lord Bishop of Birmingham]

My Lords, I support the spirit of partnership between local and national fundraising for this specific, ring-fenced purpose, as described by the noble Lord, Lord Rooker.

The numbers are quite interesting: it is estimated that £1 a night for the three-year period from 2020 to 2022 might bring in £4.5 million to £5 million per year, which could possibly amount to £15 million of local contributions being raised—the gap is probably £40 million. At least 8% of what is required locally by these boroughs could be raised in this way.

I know that the proposal is unpopular in certain spheres, particularly among those who count tourism and visitor numbers as vital to their economy—as we do in Birmingham and Solihull, which are popular conference and holiday venues, and we want to develop that. However, in deciding where to stay, a hotel price can vary from £20 to £25, depending on the day of the week, so £1 a night does not seem too burdensome. A small charge could also help motivate people to supporting a national and an international Games, which could make them feel good and even make them want to come back and attend the Games themselves.

I ask the Government to give this serious consideration as a partnership between local commitment and national taxation.

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[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.

[Lord Rooker]

When my noble friend on the Front Bench invited the Minister to make a name for himself, I was reminded of an occasion in early 2002, when I was young in this House and the Home Office Minister. At the Dispatch Box in a debate, I was challenged by someone on the opposition side. My answer was that, in my short, five-year experience as a Minister the Treasury had wrecked every good idea I had come across. An exchange took place between my boss—now my noble friend Lord Blunkett—and the Chancellor. I survived another six years as a Minister, but I was never invited to join the Treasury team. When these things get discussed we are always told, “It’s the Treasury; you cannot touch it”. Then, on Budget Day, the Chancellor stands up and says something that the department had no idea was coming. It is a good idea, so it is for the Chancellor to own. In this case, we are out of scope for the Budget, but this gives an opportunity. If it is a bad idea, you do not do it: that is the idea of a pilot and the opportunity for a pilot in taxation does not come along very often.

I do not want to set hares running, but I have a feeling that this would not go amiss in a couple of the national parks. There are sometimes complaints that there is no gateway or passport for visitors to them; hotels are the means of extra revenue. As I say, the broader the tax base, the less high taxes have to be. This is an opportunity for a pilot. We will obviously seek further and better particulars and come back on Report, when this might be worth looking at further. In the meantime, I beg leave to withdraw the amendment.

Amendment 4 withdrawn.

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Moved by

[Lord Rooker]

9: After Clause 1, insert the following new Clause—
“Organising Committee reports
(1) The Organising Committee must publish a report on its activities within a year of this section coming into force and annually thereafter.(2) The Organising Committee or, if the Committee is wound up, its successor body or another appropriate body nominated by the Secretary of State, must publish a post-Games report 2 years after the end of the Games.(3) The Organising Committee must publish within 3 months of this section coming into force its policy for communicating with relevant third parties, including—(a) businesses;(b) residents;(c) environmental groups; and(d) local authorities.”

[Lord Rooker]

On the basis of the Minister’s reply to our first group of amendments, this is purely a probing amendment. All I want him to do—because I do not propose to delay the Committee unnecessarily—is to address the idea that the organising committee should publish reports. It is self-evident that it is well chaired and managed, from what I have heard others who have had direct contact with it say, and therefore it would want to report on what it is doing. It cannot do much about the end of the Games, which is another issue, in subsection (2), but it,

“must publish within 3 months of this section coming into force its policy for communicating with relevant third parties”.

As far as I can tell from the Minister’s answer to the first debate, by and large it is doing it, or has done it or has it planned. Therefore, I do not propose to say anything else but will await the Minister’s response and hope that he confirms the sorts of things he said on the first group. I beg to move.

[Lord Addington]

My Lords, at this point it might be convenient if I speak to Amendment 10, which could probably have been grouped with Amendment 9, since it deals with very similar issues. It concerns what happens afterwards and requires a report on the success of the Games.

We have enough information in this country now to be able to produce very definitive documents, because in fewer than 20 years we have had three Commonwealth Games and the Olympics, as well as numerous other championships and activities. We have a great pool of knowledge that could be used. Amendment 9 talks about another type of report: this will be something that goes on to look at future strategy and it will be able to be referred to. I know we will have most of this information in other places, and the Minister may be going to say that, but if you bring it into one central point it is much more likely to be used and used easily—assumptions and discussions become easier. That is all this is about, and I am interested to hear the Government’s thinking about this idea.

[Viscount Younger of Leckie (Con)]

My Lords, if I may be excused the pun, the baton in this relay has been passed to me, although I note that we are not half way around the track yet. I was happy that the noble Lord, Lord Addington, addressed Amendment 10, although I hope he will forgive me if I wait to see who else might speak to that amendment and reply accordingly. I shall keep my remarks on Amendment 9 relatively brief, picking up on the spirit of the noble Lord, Lord Rooker.

Amendment 9 seeks to introduce a number of requirements for the organising committee to report on its activities. I would argue that it is not necessary to list such requirements in the Bill—a point I picked up from the mood of the Committee this afternoon anyway. Unlike the London 2012 or Glasgow 2014 Organising Committees, the Birmingham 2022 Organising Committee is a non-departmental public body and is already subject to a number of controls and transparency requirements. In an earlier debate my noble friend Lord Moynihan mentioned the importance of transparency and of course he is absolutely right. To illustrate the point, the organising committee has entered into a management agreement with the department. This sets out the organising committee’s governance structure and, in section 4, the reporting schedule and information which must be sent to DCMS on a regular basis. By regular, I mean monthly, bi-monthly, quarterly and biannual reports or face-to-face meetings between senior figures. A copy of the management agreement is available on GOV.UK. The organising committee must publish an annual report of its activities, together with its audited resource accounts, after the end of each financial year. These must be laid in Parliament and made available online, in accordance with public body guidance. The first report will be published this September, and annually thereafter.

To ensure delivery against these requirements, the organising committee has a dedicated compliance manager and chief legal officer. In addition, DCMS has an official responsible for sponsorship of the OC, to ensure that it meets its assurance and accountability obligations. The Games is also part of the Government’s major projects portfolio and is subject to scrutiny by the Infrastructure and Projects Authority, which publishes annually on all such projects. The Commonwealth Games will be included in the next annual report, due this month, and a copy will be placed in the Library of both Houses. I remind noble Lords, as was said earlier, that come 27 July 2022 the Games will have been delivered within a four-and-a-half-year window, rather than the typical seven years.

As was mentioned earlier, there is a balance to be struck: we must ensure both that we have transparency and scrutiny of public money and that the organising committee can move at the pace required to deliver a project of this scale to this immovable deadline. I hope I have reassured noble Lords that we already have the right governance, reporting and scrutiny in place to oversee and assure the successful delivery of the Games and to deal effectively with any issues that arise, without further requirements being added to the Bill.

On the question of public engagement, the OC and Birmingham City Council are committed to regular resident and business engagement. Public consultation drop-ins were hosted last month for the Alexander Stadium redevelopment, which I think the noble Lord, Lord Rooker, alluded to—it may have been one of those events that he attended—and there is a programme of ongoing monthly Perry Barr resident meetings. The OC has hosted eight regional business briefings, with more than 1,000 representatives attending. Games partners, by which I mean all stakeholders with responsibility for delivering the Games, have also met environmental groups to inform the development of the OC’s Games-wide sustainability plans.

Games partners are already engaging with relevant local authorities on Games plans and the leader of Birmingham City Council and the Mayor of the West Midlands both sit on the strategic board, the most senior decision-making body for the Games. A lead officer group has also been established, bringing together officials from local authorities across the West Midlands. The group will support co-ordination, communication and decision-making in relation to the Games. Further to this, I reassure noble Lords that the Government will carefully consider who will be best placed and how to report on the impact of the Games following the 11 days of sport. It is the Government’s ambition that the positive effects of the Games will be lasting ones for Birmingham and the West Midlands region. I hope that, with that rather detailed response, the noble Lord will withdraw his amendment.

[Lord Rooker]

A perfect response: I beg leave to withdraw the amendment.

Amendment 9 withdrawn.