Consumer Rights Bill

Debate between Philip Davies and Gordon Birtwistle

Monday 12th January 2015 Commons Chamber

[Philip Davies]

I have already taken an intervention from my hon. Friend. It was not a very good one, if I remember rightly.

Not only did the OFT make it clear that the current regime worked in the best interests of the customer, but we have practical arguments from the US showing that the kind of price cap the hon. Lady wants to introduce does not work. In fact, when America introduced the price cap, it led to higher prices on both the primary and secondary markets. A study by the university of California found that by focusing on penalties for those who engage in prohibited transactions, anti-ticket scalping —as they call it—regulations seemed to lead to higher prices in the resale market. If a seller is taking more of a risk, they will want to command a higher price—that is what happens with the free market, supply and demand and the rest of it. I am surprised my hon. Friend the Member for North East Cambridgeshire is not aware of that. The university of Texas found that such regulation increased prices not only in the secondary market, but in the primary market. The hon. Member for Washington and Sunderland West says she wants to stand up for consumers, but by rejecting the amendment, we will do just that.

If I buy a ticket to the opening day of the test match at Lords and walk into the pub and say, “I’ve got a ticket for the opening day of the test match at Lords”, and a chap comes up to me and says, “You know what? It’s my lifetime’s ambition to go to the opening day of the test match at Lords. It’s the one thing I’ve wanted to do all my life. I will give you £500 for that ticket”, and if I decide to sell him the ticket at that price, who loses out? I do not lose out—because I am happy to sell it at that price; the other person does not lose out—they have left absolutely delighted at having paid a price they are happy to pay to fulfil their lifetime’s dream; and Lords has not lost out—because it has already sold the ticket and the England and Wales Cricket Board has got the income it was hoping for when it put the ticket up for sale. Nobody loses out. Why on earth should the Government intervene to make that transaction illegal? It would be absolute nonsense if the Government were to make that transaction illegal.

[Gordon Birtwistle (Burnley) (LD)]

I agree with the hon. Gentleman. When he buys that ticket, he becomes the owner of that ticket, and it becomes his to do with as he wishes. He can sell it for £500 or give it away to the gentleman whose lifetime’s ambition it is to go to Lords. It is his ticket to do with as he pleases. It is called living in a free society.