Football Governance Bill [ Lords ] (Sixth sitting) Debate

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Department: Department for Digital, Culture, Media & Sport
Stephanie Peacock Portrait Stephanie Peacock
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Clause 23 already tightly constrains the regulator’s ability to set discretionary licence conditions, and the shadow Minister’s earlier amendment sought to tighten that further, but it would have left the regulator unable to act as necessary to ensure financially sustainable clubs. It would have been unable to manage unsustainable debt or spiralling spending.

The regulator must act in accordance with its objectives and duties at all times, which include transparency and consistency. It can tailor regulation to clubs that will not breach UEFA statutes. I draw hon. Members’ attentions to page 14 of the Bill, which outlines in detail the scope of the powers to attach or vary licence conditions. Of course, a discretionary licence condition relating to the financial resource threshold requirement may only, as I said earlier,

“relate to debt management…relate to liquidity requirements…restrict the club’s overall expenditure, or…restrict the club’s ability to accept or receive funding which the IFR reasonably suspects to be connected to serious criminal conduct.”

We expect the regulator to work with clubs. If they are acting in good faith, we have said all along that the regulator will work with them. I think that answers the shadow Minister’s points.

In my opening remarks on this clause, I outlined in detail that there is a process available to come to a football-led solution. If the regulator thinks that giving a club notice or allowing for representations would jeopardise or risk jeopardising one of its objectives, it can apply the licence condition immediately, without prior notice. However, there is scope within the Bill and the regulator’s powers to reach football-led solutions in which it works together with clubs.

Question put and agreed to.

Clause 23 accordingly ordered to stand part of the Bill.

Clause 24 ordered to stand part of the Bill.

Schedule 6 agreed to.

Clause 25 ordered to stand part of the Bill.

Clause 26

Part 4: overview and interpretation

Max Wilkinson Portrait Max Wilkinson (Cheltenham) (LD)
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I beg to move amendment 75, in clause 26, page 19, line 20, at end insert—

“(c) respects and promotes the protection of human rights and prevents modern slavery (as set out in section [Human rights and modern slavery considerations]).”

This amendment is linked to NC8.

None Portrait The Chair
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With this it will be convenient to discuss new clause 8—Human rights and modern slavery considerations

“(1) When considering whether a person (‘A’) satisfies the requirement in section 26(7)(c), the Regulator shall have regard to (among other things)—

(a) whether A has been complicit in any egregious or consistent violation(s) of international human rights law, whether of any international human rights treaty, customary law, or other instrument,

(b) whether A has been convicted, cautioned or reprimanded or complicit in any egregious or consistent violation(s) of domestic human rights legislation, including breaching provisions in the UK Modern Slavery Act 2015 or equivalent national legislation,

(c) whether A has been subject to a Slavery and Trafficking Prevention Order,

(d) whether A has been found liable in a civil claim relating to a human rights violation,

(e) whether A has been convicted of an offence, cautioned or reprimanded for failing to comply with their human rights and modern slavery reporting and due diligence obligations under applicable domestic legislation,

(f) any representations made by A or the club in accordance with the notice.

(2) In subsection (1)—

(a) where A is a body corporate or other non-corporeal entity (including a government or nation state), the Regulator shall consider the actions of anyone who controls that body corporate or entity (and “control” shall have the meaning given in section 255 of the Companies Act 2006). and

(b) the Regulator shall have absolute discretion to determine whether conduct falls within any of the categories in paragraphs (a) to (d).

(3) In respect of subsection (1)(c) and (d), a risk of disrepute shall not be valid grounds for disqualification of any person if such disrepute would, in the reasonable opinion of the Regulator, be unfounded.

(4) In accordance with Schedule 2, Part 2, paragraph 15, the Regulator may establish a committee or committees to discharge its functions under this Clause.”

This new clause would prohibit individuals with a record of human rights abuses from club ownership.

Max Wilkinson Portrait Max Wilkinson
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It is a pleasure to serve under your chairship, Mr Turner. The amendment would prohibit individuals with a record of human rights abuses from club ownership. Our national game is a source of huge pride to our country and everyone in this room. It should not be exploited by individuals and regimes that want to launder their reputations using some of our greatest cultural and sporting assets.

Strengthening the proprietary tests for prospective owners and directors, with clear tests about human rights, would enable UK football to promote and protect what we know is special about our game and would promote and protect the liberal and democratic western values that we all hold so dear. It is wrong that we allow football to roll out the red carpet for despots. Let us consider a future in which the owner or potential owner of a football club is also the head of a state or a Minister in the Government of a foreign state that suppresses its own people or is involved in illegal military action, perhaps in a failed state. That owner is also clearly financially linked to activities that involve the plunder of that failed state’s mineral wealth. If that person were to be linked directly to such action, which breaches international human rights laws, would this Government, football and this country accept it? We think that we should not, and that is why we have tabled the amendment and the new clause.

Louie French Portrait Mr French
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I thank the Liberal Democrat spokesperson for explaining the objectives behind the amendment, which is aimed at preventing individuals with a record of human rights abuses from owning a club. My question for the hon. Member is about new clause 8(2)(b), which states that

“the Regulator shall have absolute discretion to determine whether conduct falls within any of the categories in paragraphs (a) to (d).”

In other words, it will have discretion to determine whether such conduct constitutes human rights abuses. Given we are talking about a football regulator, the obvious question to ask is about what qualifications the regulator would need to make such a decision. What information could they rely on? Would we be looking for Government involvement in that, given that that would probably provide the intellectual experience required? Does the hon. Member for Cheltenham think it might improve the new clause to include a route of appeal against such a decision, as a matter of natural justice, so we are seen to give individuals the right of appeal if they believe that they have been wrongly classified?

--- Later in debate ---
Max Wilkinson Portrait Max Wilkinson
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I am reassured by what the Minister has said. The points raised by Conservative Members are all valid and we will take them on board.

On the point about honour and integrity, I suggest that the kind of people who commit these crimes will not admit to them readily. In cases that may arise, it may be obvious that something has happened only after some time, and individuals who we know have been doing something might end up owning football clubs. If that were to occur in the near future, we might reflect on today’s discussion and the powers that the regulator might have had.

We do not intend to press the amendment to a vote—we recognise the numbers in the room—but I am glad that we have put the debate on the record. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

None Portrait The Chair
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With this it will be convenient to discuss new clause 15.