All 6 Debates between Philip Davies and Sharon Hodgson

Tue 21st May 2024
Digital Markets, Competition and Consumers Bill
Commons Chamber

Consideration of Lords messageConsideration of Lords Message
Tue 21st Jan 2014

Digital Markets, Competition and Consumers Bill

Debate between Philip Davies and Sharon Hodgson
Philip Davies Portrait Sir Philip Davies
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I am very grateful. As the hon. Gentleman was struggling so much with the previous intervention, I thought I would intervene and give him a way out. If he gets his way, all that will happen is that all of these tickets sold on the secondary market will be sold by spivs outside the location of an event. Why does the hon. Gentleman think that consumers will be better protected by spivs selling these tickets outside the event than by their being sold on official secondary ticket markets?

Sharon Hodgson Portrait Mrs Hodgson
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Because of the scale!

Consumer Rights Bill

Debate between Philip Davies and Sharon Hodgson
Monday 9th March 2015

(9 years, 9 months ago)

Commons Chamber
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Philip Davies Portrait Philip Davies
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My right hon. Friend makes a good point. The Minister argued that two years was very short. In two years’ time, the whole industry could have upped sticks and gone abroad. It may well be that my two-year sunset clause is too long. I will happily be chastised for that, but I thought it was important that we put a line in the sand. I thought that two years would give us a reasonable time to see how the legislation worked with different tournaments and different music events. It is ample time for people to consider the effects. If those people who are in favour of the Lords amendments are so confident in their arguments, they have nothing to fear from a sunset clause. If everything is fine and dandy and none of my fears comes to fruition, the Government will happily reintroduce the legislation and it will sail through because it has been shown to have worked. They do not like the sunset clause because they know that the point I am making is the real agenda behind this Bill, and they do not want to be rumbled.

Once the Bill is on the statute book, the Government think that that will be it and nobody will bother or have the courage to revisit it, and I suspect that they are right. That is why I have tabled my amendment. I understand that there may be some difficulty in having a vote on it, even though it is sensible, and I am sorry that the Government have refused to accept it. This is an unfair and unnecessary intrusion into the free market. Who knows what consequences will flow from this legislation? I shall urge my colleagues to do what they have done twice in recent times already, and vote down the Lords amendment. I shall be interested to see how many of my colleagues vote for something that they have happily voted against in recent weeks and how, as a general election is coming, they will justify their action to their constituents. I shall happily be able to tell my constituents that I stuck to my guns, that I did not change my mind and that that is why I do not want to be in coalition with these wishy-washy Liberal Democrats any more.

Sharon Hodgson Portrait Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
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As many in the House are aware, I have been interested in the secondary ticketing market for many years now, and, alongside the hon. Member for Hove (Mike Weatherley), I have co-chaired the all-party parliamentary group on ticket abuse, the report of which spearheaded the former amendments to those we are debating today.

It is my long-standing belief that for a long time things have needed to change in the sector, as more and more fans are being ripped off and exploited by unscrupulous touts, and ordinary people are being priced out of seeing the artists, shows, or teams that they love. The full extent of the problem was clear last week when the Competition and Markets Authority, after consulting the major ticket re-sellers, published a new code of conduct—an agreement for which the CMA was happy to take all the credit, somewhat ignoring all the hard work and campaigning over many years of Members, peers and other industry bodies, and on which we are now legislating.

However, that small gripe aside, on the very same day that the new code of conduct was announced, a person could go on some of those companies’ websites and find tickets, guaranteed, for the upcoming boxing match between Floyd Mayweather and Manny Pacquiao in Las Vegas. On one site, the cheapest came in at just under £4,000, and the most expensive floor seats at more than £32,000. That was despite the fact that last week there were no official tickets yet on sale and original ticket prices had not even been agreed. That is a ludicrous situation which leaves the public totally misinformed about the marketplace and serves only further to inflate prices when the tickets become available.

Consumer Rights Bill

Debate between Philip Davies and Sharon Hodgson
Monday 12th January 2015

(9 years, 11 months ago)

Commons Chamber
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Sharon Hodgson Portrait Mrs Hodgson
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Amendment (a) was tabled by the hon. Member for Hove (Mike Weatherley) and me. It gives me great pleasure to speak in support of the new clause as inserted in the other place; it follows on from new clauses 18 to 21, which I, the hon. Member for Hove and others tried to add to the Bill on Report. Those new clauses were based on the report produced by the all-party group on ticket abuse after our inquiry into the secondary market and what needs to change within it.

It is worth pointing out that all these interventions—the all-party group’s report, the new clauses in the Commons and, latterly, the new clause passed in the other place—have been completely cross-party. I would like to place on the record my thanks not only to Opposition Members, but to other hon. Members—in particular the right hon. Member for Bath (Mr Foster) and the hon. Members for Hove, for Selby and Ainsty (Nigel Adams), for North West Leicestershire (Andrew Bridgen) and for North East Cambridgeshire (Stephen Barclay). They have been big supporters in the all-party group and in working on the Bill during its passage through the House.

In the other place, the push was very ably led by former sports Minister Lord Moynihan and by Baroness Heyhoe Flint, both Conservative Members, as well as by Lord Clement-Jones, the Minister’s party colleague, who has been one of Parliament’s foremost campaigners for our live music sector. It was also strongly supported by my noble Friend Lord Stevenson and by many others from all parties and none, including Baroness Grey-Thompson. It is safe to say that the Minister’s counterpart in the Lords had a pretty rough time in those debates. If the Government had any doubt in their mind that they were on the wrong side of the argument when they rejected these amendments in the Commons last summer, their defeat in the Lords should have confirmed that for them.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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Will the hon. Lady give way?

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Sharon Hodgson Portrait Mrs Hodgson
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I certainly will not give way to the hon. Gentleman at this stage. I am sure that he plans to speak, and we have debated this so often that I cannot think that there is anything he would add to the argument today that I have not heard already. He will get his chance and I will listen to him then.

Philip Davies Portrait Philip Davies
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This is supposed to be a debate.

Sharon Hodgson Portrait Mrs Hodgson
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The hon. Gentleman can debate when his time comes.

The concession that the Minister offered in this place—tweaking the guidance to a set of regulations to make it clear that secondary ticketing platforms should abide by them—has proved completely ineffective. Those regulations have been in place for more than six months, and the secondary websites have completely ignored them. It is time for real action, and that is what proposed new clause 33 would provide.

What we are asking for is not exactly radical. Any consumer in any market would expect to know who they were buying from, exactly what they were buying and whether a product came with a risk that they would not be able or allowed to enjoy it.

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Sharon Hodgson Portrait Mrs Hodgson
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My hon. Friend makes an excellent point. If the Minister does not want to listen to him, me, Members from both Houses or the creative industry, she should at the very least listen to the police.

The “Ticket Crime: Problem Profile” report by Operation Podium has, of course, been quoted in this place before—several times by me, in fact—but it bears repeating. This was, after all, the unit that was set up to tackle organised crime affecting the Olympic games, and it spent about seven years looking at the workings of the ticket market. In particular, it looked at the major ticket touts—the very people my hon. Friend the Member for Blaenau Gwent (Nick Smith) spoke about—because of the links that many of them have to serious and organised crime and money laundering, and because it was likely that the same people would try to tout Olympic tickets.

After spending so much time looking at the ecosystem that exists behind the veneer of legitimacy provided by the secondary platforms, the Metropolitan police’s Operation Podium unit produced a final report on ticket crime in February 2013. It found that:

“Due to the surreptitious way that large numbers of ‘primary’ tickets are diverted straight onto secondary ticket websites, members of the public have little choice but to try to source tickets on the secondary ticket market.”

It concluded that:

“The lack of legislation outlawing the unauthorised resale of tickets and the absence of regulation of the primary and secondary ticket market encourages unscrupulous practices, a lack of transparency and fraud.”

It made the following recommendations:

“Consideration must be given to introducing legislation to govern the unauthorised sale of event tickets. The lack of legislation in this area enables fraud and places the public at risk of economic crime.

The primary and secondary ticket market require regulation to ensure transparency, allowing consumers to understand who they are buying from and affording them better protection from ticket crime.”

Will the Government listen to the police, who have nothing to gain either way, or to those who have gained and continue to gain from the lack of the regulation that the police say is needed?

One public agency that might have something to gain from the change is Her Majesty’s Revenue and Customs. One effect of the new clause proposed in Lords amendment 12 is that it would be possible to see which individuals were reselling tickets as a commercial enterprise, and therefore who should be paying tax on the sales made through the websites.

At the moment, when somebody buys a ticket on such platforms, they are led to believe that they are buying from another fan, and the only VAT that they see on the final statement is the VAT on the service charge levied by the platform. If they are, in fact, buying from a third party business—or even from the event organiser, or, as in some cases, the performers themselves—VAT should be paid on the ticket price, as well as, obviously, on its profits as a company. That point was raised last weekend with the Secretary of State for Culture, Media and Sport in an e-mail from a live music agent that I was copied into. They made the point that PRS for Music, which collects royalties to distribute to artists and music publishers, is also being deprived of its lawful entitlement.

I wrote to HMRC following the “Dispatches” documentary, “The Great Ticket Scandal”, in 2012; I have also referred to that in the House countless times. That programme clearly showed how tickets were being bought up and resold in huge quantities—indeed, channelled directly but surreptitiously to the secondary market by promoters and managers. The response that I received from HMRC was that no investigation could be made unless there were specific questions about specific individuals or businesses. Of course, we did not have those then and we do not have them now, precisely because we cannot see which individuals or businesses are selling the tickets and in what quantities. If that transparency is brought into the market through the proposed new clause, perhaps the Treasury’s coffers will see a much bigger slice of a market that is estimated to be worth between £1 billion and £1.5 billion a year—that is the secondary market alone and does not include the primary market.

The same principle could be applied to the problem of botnets, which GET ME IN! has been saying is the biggest problem and should be the focus of any legislation. There is certainly a case for keeping the law on the misuse of computers under review. The hon. Member for Hove and I have met the Under-Secretary of State for the Home Department, the hon. Member for Staffordshire Moorlands (Karen Bradley), who has responsibility for organised crime, to discuss this matter.

It is welcome that primary ticketing companies, such as GET ME IN!’s parent company Ticketmaster, invest in their own software to try to stop people scooping up large quantities of tickets automatically. However, let us be clear that touts use botnets only because they know that they can shift all the tickets they manage to buy from the primary market through the secondary market with the benefit of complete anonymity, with no questions asked by the platforms about how they got them. The secondary platforms are best placed to detect ticket crime at the moment, but they do nothing, because that is to their benefit. If we make the market transparent, it will be clear for everyone to see who has an abnormally large number of tickets, and I bet that the use of botnets would drop off sharply as a result.

This entire debate boils down to a simple divide: it is about whose side we are on as legislators. Are we here to pass laws to protect and enhance the rights of ordinary consumers, or are we here to block laws that might make individuals and companies more open and accountable to those consumers? It is about whose interests we are here to serve. Are we here to serve those who elect us, or are we here to be spin doctors for those exploiting them and apologists for those who know full well that they are lucky to be getting away with what they are doing? It is about whose opinions we value most highly. Do we listen to our constituents, the police and those in the live events sector, who all tell us that there is a problem and a gap in the law that needs to be closed, or do we listen to the few who benefit from that gap in the law? I know whose side I would rather be on, whose interests I am here to serve and whose opinions I value most.

Nobody operating honestly in the secondary market has anything to fear from transparency, and no consumer will be left out of pocket. If anything, the secondary platforms should be embracing the opportunity to build confidence in their sector and limit their exposure to criminal activity. I hope that Members of all parties will think on those points when they go through the Division Lobby later tonight; I am minded that the amendment will have to be pressed to a Division. Let us finally do the right thing and put fans first.

Philip Davies Portrait Philip Davies
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It is always a pleasure to follow the hon. Member for Washington and Sunderland West (Mrs Hodgson). Her arguments have not got any better in all the years we have been going around the houses on this matter, but I admire her for persistence in flogging this particular dead horse.

There have been a number of reports on secondary ticketing, and the hon. Lady said that the Government have listened to no one apart from certain companies. Perhaps they have listened to the Select Committee on Culture, Media and Sport, on which I serve, which looked into the issue and came up with a report that was unanimous, including among Opposition Members, showing that the market was legitimate and worked in the best interests of consumers. When a former Labour Minister, the right hon. Member for Barking (Margaret Hodge), came to give evidence to the Committee, she made it abundantly clear that she believed that as well, so I will be interested to see how she votes on the amendment. When the Office of Fair Trading looked into the matter, it reached the same conclusion. I am afraid that when the hon. Member for Washington and Sunderland West says that only a few big companies say that the market works in the best interests of consumers, she knows full well that she is talking absolute cobblers.

Consumer Rights Bill

Debate between Philip Davies and Sharon Hodgson
Tuesday 13th May 2014

(10 years, 7 months ago)

Commons Chamber
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Philip Davies Portrait Philip Davies
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I have resolve, but I can seldom resist giving way to my right hon. Friend. Animal welfare is a big issue for lots of people, but it is not the only one. Many other faith groups are concerned about the blessing given to the meat before sale, and his proposal would not address their particular concerns. My new clause has been drafted with all such people in mind, because the issue is bigger than one only of animal welfare. Animal welfare is an important element, but not the only element. I will come on to that later.

I want to start, however, with new clause 12, which relates to ticketing. The hon. Member for Walthamstow said that my new clause had nothing to do with her new clauses, but nothing could be further from the truth—it very much has. We know what her long-term agenda is, because she let it slip in an intervention: ultimately, she wants to see the end of ticket touting and the secondary sale of tickets. I think that that would be a massive retrograde step. The Select Committee on Culture, Media and Sport, on which I serve, looked into the matter in the previous Parliament and found that such activities were a legitimate area of business. The Office of Fair Trading, as well as the Committee, found that it works in the consumer’s best interest.

Philip Davies Portrait Philip Davies
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I will stick to my resolve. The hon. Lady and I have locked horns on the issue over years. If anyone wants to look at our previous debates, they can go back to Hansard and see them all rehearsed there. I am sure that she will get the opportunity to have her say in a bit.

Fifty per cent. of tickets on viagogo are sold at a loss, so the idea that all people touting tickets are selling them at huge profits is simply not true; most are sold at a loss. The principle is this: if I buy a ticket, as far as I am concerned it belongs to me. I should be able to do with that ticket what I choose to do, including selling it on to someone else, as I can with any other commodity. Other products have limited editions, which are popular, such as designer handbags or Buzz Lightyear toys from years back, and people go in, buy the lot for a small amount and sell them on at an inflated price on eBay a few hours later. If the Labour party wants to ban that happening with tickets, presumably it will say that that kind of behaviour should be banned as well. That is complete nonsense.

Event organisers do not lose out at all, because all the tickets are sold at the price that they wanted to get for them—all the income that they wanted is delivered. The idea that real fans will be deprived of going to an event is complete nonsense. If someone is prepared to pay £1,500 for a ticket, you can bet your bottom dollar that they are a real fan. Not many people are prepared to pay £1,500 for a ticket for something that they do not really care about going to. It actually guarantees that real fans go.

Ticket Abuse

Debate between Philip Davies and Sharon Hodgson
Tuesday 21st January 2014

(10 years, 11 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Philip Davies Portrait Philip Davies
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I do not agree with the hon. Lady. For example, when a new designer handbag comes on to the market and gets a lot of hype, there are massive queues in department stores of people hoping to buy one of the first 25 to go on sale. When new gadgets come out at Christmas time, there are massive queues of people hoping to be one of the few to get the few in stock.

The same happens with toys. I remember that a few years ago there was a massive craving for Buzz Lightyear toys and people queued up to get one. We all knew that the first 20 or 30 people, or however many could buy one, would resell the toys at a massively inflated price, in much the same way as happens with tickets. That is exactly what happened. Is anyone suggesting that the Government should intervene in the law to stop people reselling their Buzz Lightyears or their designer handbags, or whatever goes on sale in department stores with a lot of hype, at a higher price? If they do not want the Government to intervene to stop that—Lord help us if people want us to intervene in the market in that way—I do not see why they would want the Government to intervene with tickets. I do not see how tickets are a different commodity from designer handbags, toys or anything else.

Sharon Hodgson Portrait Mrs Hodgson
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The difference is that these are tickets to an experience. To use the Buzz Lightyear example, the situation would be like someone buying all the toys from the shop’s stock room so that other people never even had the opportunity to buy them off the shelves. That is what is going on. Customers have not even got a chance to buy them, because they have been bought out of the stock room.

Philip Davies Portrait Philip Davies
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That might apply anyway. I do not know how shops operate, but it might well be that the shops say to staff, “If you want one, you can have one.” By the time any real punter gets in there, the items have all gone to members of staff. Does the hon. Lady really think that the Government should legislate to stop that from happening? That would be nonsensical. I do not see tickets as being different from anything else that people choose to buy and sell on at a higher price.

Sale of Tickets (Sporting and Cultural Events) Bill

Debate between Philip Davies and Sharon Hodgson
Friday 21st January 2011

(13 years, 11 months ago)

Commons Chamber
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Sharon Hodgson Portrait Mrs Hodgson
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Not at the moment. There will be plenty of chances for Government Members to speak. We have plenty of time, and I will give way when I have got further into the substance of my speech.

The story that stood out most prominently was that of a gentleman who used to work at a media event venue, which I will not name. He told me that it was common practice for the box office managers to cream off all the best seats to sell to touts at a mark-up of 50% before they even went on sale. Then, when the tills opened, they would simply put in the face value and issue a receipt for them all. I suspect security has improved since those days, but there is no doubt that the levels of reward on offer and the lack of regulation mean that many tickets never even reach the legitimate market at face value.

Even the big players in the secondary market recognise that, from the consumer’s perspective at least, there is a massive problem with this market. I quote Graham Burns, chairman of the Association of Secondary Ticket Agents, who said in a Sunday Times article in November:

“The ordinary fan is screwed. The decks are stacked against them. Try and buy a front-row seat at a bestselling concert at face value. It can’t be done.”

The aim of the Bill is to redress that balance—to give consumers back the power and to help event organisers choose how they want their tickets to be available and for how much.

While I initially approached the Bill from a fan’s perspective, I quickly got a better picture of the industry’s perspective as I met people who had got in touch about it, but I think the most strikingly unjustifiable part of the secondary market is the resale of charity tickets. Later in my speech I will go into some detail about the experience of the Teenage Cancer Trust, but I came across another, briefer example in The Sunday Times. Like the Minister’s boss, I too am a fan of some of Rupert Murdoch’s news output.

That example was the sale of Help for Heroes tickets. The gig was at Twickenham in September, and featured Robbie Williams, Gary Barlow and Tom Jones, who had freely given their time and names to support an incredibly worthy cause. Tickets for the event were being touted on secondary websites at an average of £106, despite the fact that the face value of an ordinary ticket was £46.75 and that the tickets clearly said on the back that they were not to be resold. The touts are earning more than the charity here, and if any hon. Member can convince me that that is right, I will happily withdraw my Bill and sit down.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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I wonder who the hon. Lady sees as the victim. If a charity wants to sell tickets at £46 each and someone pays £46 each, the charity gets all the money that it expected to get. The fact that someone is prepared to pay more to someone else for that ticket does not take any money away from the charity. It still gets exactly the same amount as it bargained for when it sold the tickets. It makes no difference to its income whether the person who paid £46 for the ticket uses it or sells it on to someone else.

Sharon Hodgson Portrait Mrs Hodgson
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The charity does not get the whole £46. On average, with overheads and so on, charities reckon that they get about half the ticket money. The tout or whoever sells on the ticket, which clearly states on the back that it must not be resold, makes six or eight times more than the charity. The artists, who have given their time freely, intend that any money that comes on the back of their time and from the ticket should go to the charity. I find it quite shameful that the hon. Gentleman can say that such a practice is fair when the charity intends to help teenage victims of cancer. [Interruption.]

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Sharon Hodgson Portrait Mrs Hodgson
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That is an interesting point. Government Members have a lot of good arguments on the free market, but with regard to charity tickets, none of those arguments hold up. They should want such access for all their constituents, not just the ones who can afford to pay premium prices.

Philip Davies Portrait Philip Davies
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Will the hon. Lady give way?

Sharon Hodgson Portrait Mrs Hodgson
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I would like to move on. I have a long speech, and I would like to get through the details.

I am, of course, aware that the issue has been considered on a number of occasions over the past five years. To be honest, the fact that it has been revisited so many times is testament to the fact that those who look at it keep coming to the wrong conclusions. Although I have read some of the contributions to the Culture, Media and Sport Committee’s inquiry, I still cannot understand how it arrived at its conclusion. The Select Committee and the then Government both concluded that fans wanted a forum in which they could buy tickets closer to the date of an event or sell them if they could not make it. I absolutely agree with that statement, but I disagree that that conclusion should allow the secondary market to carry on unregulated.

The key thing that both the Government and the Select Committee missed is that consumers also want a fair chance to get tickets at face value, and they do not want to be ripped off. I have a quote from a letter that my right hon. Friend the Member for St Helens South and Whiston (Mr Woodward) sent in his capacity as the then Minister with responsibility for the creative industries in response to my hon. Friend the Member for Glasgow North West (John Robertson), who is not in his place today, when he was campaigning on the issue way back in 2007. My right hon. Friend said:

“While consumers want a secondary market, they do not want to be exploited by individuals or businesses at their personal expense.”

But he then suggested that it was not in the public interest to legislate. I know my right hon. Friend the Member for St Helens South and Whiston; he is an intelligent man, so I can only think that once one becomes a Minister, there is sometimes a tendency to trust what the civil servants are saying a little too much.

Philip Davies Portrait Philip Davies
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Will the hon. Lady give way?

Sharon Hodgson Portrait Mrs Hodgson
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No, I will not, if the hon. Gentleman does not mind.

Will the Minister tell us what his civil servants advised him ahead of this debate? I know my office provided them with advance sight of the Bill, so I hope they had enough time to come to a considered view. I look forward to hearing the Minister’s response—if his colleagues allow him to get in.

Coming back to the point, the Bill does not aim to do away with the secondary market. It aims to make the secondary market work in the interests of genuine fans, by forcing out the people who are there simply to profit from the hard work, investment and creative talent of the live entertainment industry, a sector that I am sure the Minister will agree has become extremely valuable to the UK’s economic vitality.

The role of the Government and of the House is to legislate in the public interest. The public interest does not lie in a few touts and the channels they sell through continuing to make obscene profits at the expense of the general event-going public and of the live entertainment industry. The public interest lies in the Government providing a statutory framework for the industry to use in the interests of fans where needed. That is exactly what the Bill provides for.

Before I come to the substance of the Bill and go through its various clauses, I take this opportunity to thank my fantastic and hard-working team who have helped me on my route to introducing the Bill to the House. In particular, I thank two people: Mike Forster, my researcher, who only started in August, so the Bill has been a huge part of his job; and David Hopper, previously my intern but now studying to be a solicitor, who did a lot of the groundwork behind the scenes on legislation around the world.

The Bill addresses the problem I laid out. It creates two new offences, but that is not the starting point. The starting point is the creation of a voluntary designation scheme under which those involved in putting on live entertainment events can apply for protection from the unauthorised resale of their tickets. If they apply for protection, it would be an offence for an unauthorised individual to be concerned in the sale of a ticket for that event at a price greater than 10% above face value. For such purposes, face value is the printed value plus any service charges levied by the appointed ticket agent.

Such an approach broadly follows that set out in the Queensland solution, of which hon. Members on the Select Committee on Culture, Media and Sport will be aware. In Queensland, tickets for any event held at certain major venues are subject to price caps on unauthorised resale. I want to broaden that provision out, because it would not touch a large part of the market, such as theatre or mid-sized and small gigs, which are just as lucrative for touts as stadium events—if not more so, because they occur on almost every night of the year in towns and cities throughout the country.

Clause 1 sets out how that system of designation could work. I am open to its refinement or to alternative suggestions from the Government or other hon. Members in Committee should the Bill be successfully voted through today.

Clause 2 sets out the offences, the first of which I have already mentioned. The second offence is the advertisement for sale and taking of payment for tickets that have not yet been released by the primary retailer. The issue is separate from that of the secondary market, coming as it does before even the primary market. Websites spring up offering concert tickets—a recent example is the Take That tour—that the person running the site obviously does not even have. It is a risk-free business, because the person gets a lump sum of cash to buy as many tickets as possible to satisfy the orders, and simply refunds any orders that cannot be satisfied. In some cases, such sites have simply not delivered the tickets and done a bunk with the money. Other laws cover such activities, but why is it still legal for those sites to offer tickets that they do not have, at the risk of many consumers being left short-changed and without tickets?

Clause 2 sets out the sanctions for the offences, which include a fine up to the level 5 limit on the standard scale. There was a case for going higher than that, as for many major operators, £5,000 represents a drop in the ocean of their business.

Sharon Hodgson Portrait Mrs Hodgson
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I certainly do, and I shall come on to the Olympic games shortly. One of my suggestions is that we work with the Metropolitan police unit set up to tackle the issue. I am sure that my hon. Friend will meet it in the course of her work as a local MP. That unit also feels that £5,000 is nowhere near a big enough deterrent. There are measures in place, which I will come to in due course, but perhaps my hon. Friend will intervene on me again if I do not cover her point in detail.

I want to state explicitly that for the worst cases, the confiscation, under section 70 of the Proceeds of Crime Act 2002, of assets and cash thought to have been garnered through this activity should be considered. Clause 3 assumes an exemption from the limitations where the proceeds of an auctioned ticket are to be used for, or donated to, charitable purposes. Any exploitation of that assumption would obviously be investigable under the Charities Act 1993.

Philip Davies Portrait Philip Davies
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The hon. Lady talks about her constituents and mine being exploited by ticket touts, but does she not accept that one of the worst exploitations in the whole ticketing market is carried out by promoters who sell tickets and then refuse to exchange them or give refunds? Somebody who buys a ticket and then finds that they cannot go to the event may not get a refund. In the secondary market, viagogo has a viagogo guarantee; if anything goes wrong, it guarantees people their money back. Surely that is giving people a better service than the primary ticket market does.

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Sharon Hodgson Portrait Mrs Hodgson
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I shall come to that point, too; I shall mention that I encourage primary sellers to offer a refund service within a certain period—a cooling-off period, as it were. A lot of other online purchases are covered by these periods—a certain amount of time in which purchases can be returned. I met Rugby Football Union representatives, and that body accepts returns of all its tickets; the same is true of most tickets from the All England Lawn Tennis Club for Wimbledon finals. Most of these places will happily accept the tickets back and give a full refund, because they know that the tickets are highly sought after. [Interruption.] Not all are, but some key tickets are accepted back; the Minister is nodding.

Sharon Hodgson Portrait Mrs Hodgson
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Some are, and later in my speech I shall say that as part of the legislation, there could be discussions with primary ticket sellers and event organisers about ensuring that they offer a refund facility.

Let me come back to the clauses of the Bill. Clause 4 relates to the sale of tickets on the internet by touts. It is not my intention to require the active monitoring of adverts placed on websites by sites’ administrators; after all, the practicalities involved would be prohibitive. However, where that monitoring is done, either by the event organisers or the police, the Bill places a duty on the administrators of those websites to take down in a timely manner any adverts thought to be in contravention of clause 1—that is what will happen with regard to Olympic tickets—and to co-operate with any investigations of touts who have been using their services. Again, failure to comply would incur a fine up to the level 5 maximum.

Clause 5 places a duty on the Secretary of State to consult the industry on two things. The first is the establishment of a voluntary code, under which primary ticket agents would offer refunds on tickets within a certain time frame, just as other internet retailers are subject to distance-selling regulations; that exactly covers the point mentioned by the hon. Member for Shipley (Philip Davies), who is now not listening to the debate. Secondly, the Secretary of State should consult the industry on whether the creation of an official ticket exchange facility would be beneficial for consumers—both those who have spare tickets to sell, and those who want them. Primary agents and sites through which the secondary market operates would be happy to engage in that process and work towards creating a fairer marketplace for fans. The remaining clauses relate to interpretation provisions and the commencement and jurisdiction of the Bill, and require no explanation.

The House will be interested to learn that, in drafting the Bill, I consulted officers from Operation Podium extensively, and I thank them for their input. Members with an interest in preparations for the Olympic games—my hon. Friend the Member for West Ham (Lyn Brown) has such an interest as a constituency MP—may be aware that Operation Podium is being carried out by a team in the Metropolitan police dedicated to tackling crime associated with the games. Half of that taskforce is concerned primarily with working with Olympic organisers and the industry to tackle touting of Olympics tickets under the powers set out in section 31 of the London Olympic Games and Paralympic Games Act 2006, which builds on provisions relating to football tickets in section 166 of the Criminal Justice and Public Order Act 1994. The 2006 Act decrees that no reselling may take place by unauthorised retailers, and sets up a ticket exchange facility whereby genuine fans can sell tickets on to other fans at face value. That is the ideal model, and could easily be replicated if the political will was there.

Officers from Operation Podium told me that the secondary market is estimated to be worth up to £1 billion a year—money that is not being used to support grass-roots sports, artists or investors in live entertainment. Much of it will not go to the Treasury, save for a bit of VAT on charges levied by the websites that the touts use. They also told me that as the previous Government and the then Select Committee on Culture, Media and Sport had effectively given the measure the green light, it has been increasingly exploited by organised criminal networks, both UK-based and international, as a result of the vast sums of money on offer. The implication is that a large portion of that estimated £1 billion is being used to bankroll other crimes, such as drugs, trafficking, money laundering and so on. Tackling touting would therefore choke off a stream of income for those networks, which is just one reason for the measure that has been suggested to me since I began work on it.

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Sharon Hodgson Portrait Mrs Hodgson
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It could be higher, but a level 5 offence is laid down in the Olympics legislation, which I have used as the basis for the legislative framework of the Bill. It was deemed an appropriate level. However, as I said, officers at Operation Podium have said they do not consider that strong enough. They would like to talk to Ministers about the current legislation and the possibility of extending it to other entertainment industries, such as those I am speaking about.

Officers have also pointed out that the mainstream secondary marketplace—the websites that consumers tend to trust, such as viagogo, Get Me In! and eBay, as we have just heard—do not prevent professional touts from selling on their websites. A member of the public contacted me on Twitter when they heard about the Bill to say that they had once received an e-mail which was obviously intended for regular sellers on one of those sites, recommending that they buy tickets for certain events from the primary retailer purely in order to sell them on through such a site.

Whether that is true I cannot be certain, but there seems no reason for that person to lie to me. If it is true, it shows that at least one of those websites actively encourages touting and sees itself more as a broker than as a fan-to-fan exchange. Many of these organisations now call themselves ticket brokers. viagogo is the only one of those sites to get in touch with me about the Bill. Unfortunately I was not able to meet its representatives, but a member of my office, Mike Forster, did. They told him that a majority of their sellers sell fewer than six tickets a year so could not be considered big operators.

That is fair enough, but I still question whether a person selling tickets to six events a year is doing so as a genuine fan who cannot go to those events. Perhaps some of them might have been unlucky, and things seem to crop up whenever they buy tickets for a gig, but I would hazard that many of them are simply amateur touts without the time and infrastructure enjoyed by some of the bigger operators. That leaves the rest of the traders who are selling tickets to more than six events a year—there can be little doubt that those people are doing it as a deliberate money-making exercise, rather than just disposing of surplus tickets.

The police officers I met also raised the issue of how some of the big operators acquire so many tickets. What they said echoed some of the reading that I have done on the subject. The more IT-literate Members among us will know what I mean by a botnet. For those who do not, it is a network of computers—maybe the ones that we all have at home—which have been infected by a virus that allows the originator of that virus to control the terminal. It is a valuable commodity for hackers. Sometimes they are hired to carry out denial of service attacks on websites, and direct so much traffic to a particular website that it buckles under the strain. Members may remember that an anonymous group used this tactic to bring down sites such as PayPal and MasterCard after these withdrew their services to the WikiLeaks website just before Christmas.

The same method can be used in conjunction with numerous credit cards and bank accounts to evade the systems that primary retailers have put in place to stop one person buying up lots of tickets. I read an article on the technology news website The Register in November, which chronicled the case of a gang of touts in the US using Bulgarian hackers to buy scores of tickets automatically to gigs such as Bruce Springsteen, as well as Broadway musicals and major league baseball games. They were eventually indicted on charges of hacking, but by that time they had been operating for seven years, selling an estimated 1.5 million tickets, earning them $25 million. That is not small change.

This practice is of course illegal, but the vast profits to be made mean that it is an attractive and simple way for professional touts to do business, and it is very difficult to detect amid the usual high levels of traffic that a primary ticketing website gets when it first releases tickets for a major event. That illustrates that fans and touts are not competing on a level playing field when buying tickets, which is why such large numbers of tickets reappear almost instantly on the secondary market. That also illustrates why it is difficult for primary ticketers to take the lead in preventing touting. They already do a lot that they should not have to do, such as limiting the number of tickets that can be bought in one go and using word-recognition software, but the problem keeps getting worse. If computer whizz kids can hack into the Pentagon and GCHQ, finding a way around security on a ticket website is child’s play.

Those involved in Operation Podium have welcomed the Bill and see it as a necessary measure to tackle the criminal and organised elements that dominate the secondary market. They know that it can be policed—a point that I am sure Government Members are ready to bring up—because they are policing it now in preparation for Olympics tickets going on sale. They know that they can police it across borders because they are doing so now. The Olympics legislation does not limit jurisdiction to processes that happen solely on British soil, because the internet allows people to get around that easily. The Bill will follow that precedent. Those working in Operation Podium know that this is the right way to go, and I hope that their professional judgement will be taken into account by the Members.

Philip Davies Portrait Philip Davies
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Does the hon. Lady not see that there is a potential problem with restricting the resale value to just 10% of the original ticket price? It is much easier to manage that on the internet than to do so for touts standing outside stadiums. There is no way to tell how much people in a local pub might have sold a ticket on for, so that the safeguards of the secondary market on the internet would be lost as the tickets were resold. We are not going to get rid of the secondary market—like prostitution, it will always be there—but it will just shift from the internet to the street, where there will be fewer safeguards for the purchaser.

Sharon Hodgson Portrait Mrs Hodgson
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As the hon. Gentleman says, we cannot get rid of the secondary market, just as we cannot stop people selling stolen goods, but because legislation says that receiving stolen goods is illegal, the vast majority of the general public do not participate in such activity. Once legislation makes it clear what is allowed and what is an underground activity, public opinion and hearts and minds will change. That will happen with the Olympics tickets and the Bill.

The hon. Gentleman suggested that 10% is not fair, but the tickets for the Olympics will have no mark-up at all. They can be refunded through the Olympics authorities, in which case they will go to a fan on a waiting list and no mark-up will be allowed at all. The Bill recognises that there are sometimes other associated costs, such as postage or credit card fees, which is why it would allow the 10% level, which is what Queensland permits, too. If we were right to do that for the Olympics tickets, I cannot see why it is not the right thing to do for other ticketed events.

Sharon Hodgson Portrait Mrs Hodgson
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We had a long debate about that, and 10% was deemed to be sufficiently small that there would be no profit. The people we are talking about buy huge numbers of tickets, and I am sure that the hon. Gentleman can work out that the bigger the percentage, the more lucrative it is for the number of tickets they buy up. Keeping the percentage small restricts the amount of extra money they can make on top and so removes the incentive for touts to participate in that activity.

I must return to the substance of my speech, if hon. Members will allow me. The Bill also has wide-ranging support from the live entertainment industry. The hon. Member for Hove (Mike Weatherley) and I met several people involved in the business last night. In particular, I spoke to Ron Smallwood—the manger of Iron Maiden, no less—who has been trying to push the matter up the agenda for many years. He said:

“When Iron Maiden tickets went on sale late last year for an extensive arena tour of the UK this coming summer, thousands upon thousands of tickets at much higher average price than face value appeared across these secondary sites within days… Do they really expect us to believe that even a small number of these were bought by people who suddenly—the day after they bought the ticket—found they couldn’t go to a concert some 9 months away?... This is one story of many…it is sheer piracy and must be stopped to protect the real fans and the performers.”

Last night I also met the manager of the Arctic Monkeys, Ian McAndrew—

Philip Davies Portrait Philip Davies
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Name-dropper!

Sharon Hodgson Portrait Mrs Hodgson
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I know. It was very enjoyable, and Mr McAndrew, who welcomed the Bill, summed up the situation succinctly, saying:

“Ticket touting is a substantial and thriving parasitical economy, which exploits both music fans and those stakeholders who are investing in putting on live entertainment.”

I could not have come up with a better soundbite myself, and I like to think that I am a fully fledged politician.

I have also been working extensively with the Sport and Recreation Alliance, formerly known as the Central Council for Physical Recreation, because the issue affects sport as much as, if not more than, musicians and other artistes, and I thank Dom Goggins and James MacDougall for their help in putting the Bill together. For those Members who do not know, the Sport and Recreation Alliance is the umbrella organisation representing the national governing and representative bodies of sports in the UK, including the Football Association, the Rugby Football Union, UK Athletics, the Ramblers and the Royal Academy of Dance.

Touting mainly affects the big sporting showpieces, such as international games and tournament finals, which national governing bodies run, investing any surplus they make in promoting grass-roots and associated programmes that are aimed, in particular, at increasing participation and instilling healthy lifestyles among school-age children. Such bodies want those children to be able to experience top-class sport, like most live events, with their families, and that is why—to respond again to the hon. Member for North East Somerset (Jacob Rees-Mogg) and his point about the market price—they set the majority of their ticket prices artificially low.

Philip Davies Portrait Philip Davies
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I am very interested to hear the hon. Lady say that sporting bodies set their tickets at ordinary prices that fans can afford. Does she not accept, as it emerged a couple of years ago, that the Rugby Football Union did not put any tickets at all on sale to the general public for the Six Nations matches? For someone who was not part of a local rugby club or one of the sponsors, there were no tickets available. There were no tickets for ordinary rugby fans to buy on the open market. That is hardly delivering much of a service to genuine fans.

Sharon Hodgson Portrait Mrs Hodgson
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I contest that point, because the reverse is true. That body would have released tickets to clubs throughout the country, and they are full of genuine fans—and full of genuine fans who participate in the sport. So that does give people the chance to access tickets and gives kids who play the sport the chance to watch their heroes, without the tickets going on to the open market, where the touts buy them up and sell them on to the highest bidder.

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Sharon Hodgson Portrait Mrs Hodgson
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Definitely; I certainly agree. I am so grateful for that intervention. If the hon. Lady wants to make any further interventions, so that it is not just my voice that everybody hears today, I would be grateful.

Faced with this situation, it would be no surprise if sports simply put up their prices to squeeze the touts out, but they do not want to do that—and as we have heard, we do not want them to do that and teenagers do not want them to do that. Sports need to create a sustainable level of interest, and pricing the vast majority of families out of top events would certainly negate that ambition.

What sports want is to be protected by a regulatory scheme such as the one set out in the Bill. Only the sports that experience problems with touts would opt in to be covered. That would mean that it would not be the overarching, top-down imposition on the industry that some Government Members may try to argue it is. It would mean the Government doing what the Government should do: stepping into the market when they are needed to ensure that it operates in the best interests of the majority, especially of young people.

Tim Lamb, chief executive of the Sport and Recreation Alliance, summed up the position from the perspective of the sports that he represents. He said:

“Ticket touts are simply exploiting sport and their gain is everyone else’s loss.”

He could not be more right. I have also had positive feedback from Festival Republic, best known for putting on the Reading and Leeds festivals every August, which has been campaigning prominently on this issue for years, and from See Tickets, a major primary ticket agent. See has worked with the organisers of the Glastonbury festival to ensure that passes for the festival are impossible to sell on, by requiring pre-registration and photographs of the ticket holder to be printed on the ticket. That is effective, but completely impractical for the vast majority of live events and not something that organisers should have to invest in.

The interesting thing about See is that it has nothing to gain from the Bill. It gets paid for selling tickets, whether to touts or genuine fans, yet it still sees the huge unfairness in how the secondary market has developed. Rob Wilmshurst, See’s chief executive, said:

“The live entertainment industry provides cultural and economic benefit to the UK and needs support. Ignoring this issue again will further diminish customer trust in the market and therefore the contribution the industry makes in general to the country.”

Again, that is an insightful comment from someone who knows the industry better than any of us in the Chamber, as has been the case with all the feedback that I have relayed to hon. Members today. If those figures and their peers support the Bill or any action to make the situation fairer, it is incumbent on the Government to listen to those calls and at least re-examine the impact that the secondary market is having on live entertainment.

Simon Davies, chief executive of the Teenage Cancer Trust, was also at the meeting that I had last night. I also met him and his team late last year to discuss the Bill. I put on the record my sincere thanks to them for their support and input into the process. For those Members who are unaware of the work done by the Teenage Cancer Trust or who think that it is fair for touts to take money away from such work, I shall explain. The trust funds and builds specialist units in the NHS that cater for the specific needs of young people and teenagers who suffer from cancer, bringing them together so that they can socialise with and support each other through the most difficult time that one could ever imagine. On top of that, the trust funds a network of teenage cancer specialists and nurse consultants, to pool knowledge and expertise and provide tailored support to the young people. I am sure that all hon. Members would agree that it is an exceptionally worthy cause.

Philip Davies Portrait Philip Davies
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May I intervene on that very point?

Sharon Hodgson Portrait Mrs Hodgson
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I shall be interested to see how the hon. Gentleman is going to explain his opposition to that.

Philip Davies Portrait Philip Davies
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The hon. Lady talks about the Teenage Cancer Trust, but as she is probably aware from her research, where tickets are sold for a charity event and the charity contacts a company such as eBay to point out how much money is going to the charity, it can request that eBay insists that the seller passes at least 20% of the profit back to the charity. The Teenage Cancer Trust is one charity that has done that with eBay, gaining a kick-back and an increase in its income from the secondary market—more than it would have done if the tickets had simply been sold on the primary market.

Sharon Hodgson Portrait Mrs Hodgson
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They should not necessarily have to raise that issue with eBay to get the money back. What is more, the charity told me last night that it does not want venues to be full of people who can afford to pay the prices that the touts charge for tickets. That is not the purpose. It wants genuine fans to come along—not venues full of elites, paying hundreds and hundreds of pounds.

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Sharon Hodgson Portrait Mrs Hodgson
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No, I am going to carry on.

Assuming that about half the face value of the ticket represents the profit that the Teenage Cancer Trust makes on these events—by profit, I mean, of course, the money that goes to help young cancer sufferers—we can conclude that a tout selling for double the face value is making double the amount that the charity is making. Double face value, of course, is a conservative estimate. That price might be got by buying from a tout outside, part way through the gig, but anyone buying through internet channels either just after the tickets go on sale or just before the gig would be extremely lucky to get one for just double the price. Simon Davies said last night that some of the premium tickets went for four times their face value, meaning that the tout got six times the amount raised by the charity.

Do hon. Members really think that a situation in which private touts can earn more than the charity is satisfactory? Do they really think it right for individuals to be able to exploit the demand created by freely given hard work, the good will of a charity and the selfless giving of artists? I do not, and I would be interested to learn whether any hon. Members can intervene to explain why that is right, other than by just repeating what they have already said, which is, “It’s the free market.”

On that basis alone, I ask any hon. Members who have turned up to talk out the Bill with frivolous and self-indulgent speeches to think again.

Philip Davies Portrait Philip Davies
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Speak for yourself!

Sharon Hodgson Portrait Mrs Hodgson
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I do not think that I am making a frivolous or a self-indulgent speech.

I ask such Members whether any of them have talked to their constituents about their intention to block this Bill. If they have, I would be interested to know what they heard. If they spent their Fridays out and about meeting their constituents, rather than habitually causing parliamentary mischief, they might have a better idea of what their constituents sent them to Parliament to do.

Philip Davies Portrait Philip Davies
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I commend the hon. Lady for leading with her chin on that particular point, because all the surveys carried out on this issue fly in the face of what she thinks. I do not know whether her constituents are a rare breed compared with the rest of the country, but in an ICM poll of 1,000 people, 86% agreed that if they have a ticket to a sporting event, concert or other event, then they should be allowed to resell it. It is therefore the hon. Lady who is flying in the face of public opinion, not me.

Sharon Hodgson Portrait Mrs Hodgson
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My Bill would not stop them from being able to resell a ticket. My Bill would allow them to resell that ticket if they have genuinely bought it and genuinely cannot go to that gig or other event, and it would even allow them to resell it with a 10% mark-up for their trouble.

To bring my speech to a conclusion, my Bill sets out a blueprint for addressing the pernicious issue of ticket resale.

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Sharon Hodgson Portrait Mrs Hodgson
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As far as I am aware, tickets for the major charity events all have on them “not to be resold” or “not for resale”. Some will say that they are non-transferable. Yes, such people probably are breaking the law—certainly in the case of charity tickets—but there is no mechanism for bringing them to book.

Philip Davies Portrait Philip Davies
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Will the hon. Lady give way for a helpful point?

Sharon Hodgson Portrait Mrs Hodgson
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Oh, a helpful point.

Philip Davies Portrait Philip Davies
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The hon. Member for Hyndburn (Graham Jones) has made a fair point. Some tickets do say that they are non-transferable and it is for those promoters, if they wish, to take to court anybody who they find in breach of that to enforce the non-transferable status. The hon. Lady and the hon. Gentleman might want to reflect on the reluctance of promoters to do so. They might discover that that reluctance is born out of the fact that a court would probably find such an approach to be a restriction in trade and that the term “non-transferable” was not enforceable.

Sharon Hodgson Portrait Mrs Hodgson
- Hansard - - - Excerpts

That would be because there is no legislation on the statute book to say that that is a criminal offence. That is why people feel that they are powerless, and they are looking to us to do something about it.

Of course, I would prefer a blanket ban, like the one for Olympics tickets, but having consulted as widely as possible, I accept that it should be for individual stakeholders in the sector to decide how they want their tickets to be sold. I accept that there is a role for a secondary market, but that secondary market must operate in the interests of fans, not touts. Should the Bill go into Committee, I would be more than happy to talk to the Government about whether a different approach might work better. After all, the Minister has vast resources and scores of able minds, including his own, at his disposal. I am certainly open to working with him and his officials on a way forward, provided that the outcome is fairer to fans, artists and everyone else who invests in the live entertainment industry. I hope that he will not reject their concerns out of hand today.

If the Minister does reject those concerns, and if this Bill is not successful, the bad feeling about the secondary market, which is damaging the reputation of the entire sector, will not go away. The situation will not get better without Government intervention—and that of the Minister, I hope. I know that because I have seen how far the situation has developed since the Labour Government and the Select Committee last considered it and effectively, as I have said before, gave the touts a green light to continue by doing nothing to stop them. The Government and Parliament were wrong to come to that view, and I hope that a fresh set of Ministers will come to a different conclusion.

As touts got that green light, the primary market has naturally adapted to step in to the secondary marketplace —and why should it not do so? I do not condone the practices of Get Me In and Ticketmaster, if they are true, and I do not like the fact that artists such as Madonna auction premium seats or that some sports give their premium seats directly to secondary retailers, but one cannot blame them given the situation. If a tout can make that money, why should it not go to the people who put on the event? Indeed, it would be preferable to have it that way, particularly in the sporting world, where extra money means extra grass-roots investment. That is not an abstract hypothesis about how the primary market will go. That is what is happening right now, with many events at the O2 arena selling premium tickets at much higher prices than regular tickets.

My Bill seeks to limit the involvement of touts in the ticket market, which will provide less of a reason for anyone in the industry to feel that they must resort to such practices, thereby increasing the likelihood of a genuine fan being able to buy a ticket at face value with their saved-up pocket money. The only people who benefit from the current situation are a few professional touts. Whether they are linked to other crimes, and whether they use hacked computers or other underhand methods to buy their tickets, is beside the point. However they do it, they are manipulating the supply of tickets to exploit demand created by the talent, hard work, good will and investment of everyone involved in putting on live entertainment. Despite contributing nothing, they reap vast sums. As the manager of the Arctic Monkeys has said, it is “a parasitical economy”. It is the most distasteful expression of free market capitalism, because it creates a few big winners and countless big losers. If enacted, the provisions would be popular, because they are a proportionate attempt to redress that imbalance. I commend the Bill to the House.

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Philip Davies Portrait Philip Davies (Shipley) (Con)
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I congratulate the hon. Member for Washington and Sunderland West (Mrs Hodgson) on bringing forward the Bill. I think we ought to be aware that ticket touts can lose money—on many occasions they do—as well as earn it. I will give an illustration: if a ticket tout had decided to buy up tickets for the Labour Benches today, hoping to sell them on at a profit to the supporters of the Bill, they would be badly out of pocket. What surprised me from the outset is that the hon. Lady, despite making such a passionate speech on how annoyed her constituents are about ticket touting and how passing the Bill was the most important thing anyone could do, has spectacularly failed to persuade any of her colleagues to attend. Had they considered it at all important, there would be at least 100 of them here to support a closure motion and guarantee that the Bill went into Committee, which the hon. Member for Dudley North (Ian Austin) is so anxious to see happen. I am afraid to say that I will not take any lectures on how important the Bill is to people across the country when the hon. Lady cannot even persuade her colleagues of its benefits.

I agree with my hon. Friend the Member for Bromsgrove (Sajid Javid): it struck me that the hon. Lady’s speech was more against capitalism per se than against any kind of ticket touting. She seemed to indicate—she will no doubt correct me if I am wrong—that to sell a ticket at a profit of more than 10% was verging on criminality and that it was completely unacceptable and outrageous. If it is the view of the Labour party that anyone who happens to sell a product at a profit of more than 10% is verging on criminality and is totally undesirable, it seems to me that many people will be interested to know that.

If the hon. Lady goes to any clothes shop and asks for the profit margin on the clothes being sold, she will find it is considerably more than 10%. In fact, she will find that the profit margin on anything in any shop will be considerably more than 10%. She seems to be saying she does not believe in the business world or capitalism at all, and the hon. Member for Dudley North, who is pushing for the Bill to go into Committee, seems to be endorsing that approach. I knew that new Labour was dead, but I had not realised it was dead to that extent. This really is old Labour with bells on.

Sharon Hodgson Portrait Mrs Hodgson
- Hansard - - - Excerpts

I know that the hon. Gentleman is having sport with me, because he knows I am not saying that people should not be able to charge a mark-up of whatever percentage they choose in shops. That is not what I am saying at all. The principle would apply specifically to tickets for events whose organisers would choose to opt into the Bill. It would not cover every event, as the promoter would have to choose to opt in to be covered under the Bill’s proposals and so control the amount of money that those tickets are sold on for. That would mean that there would be more chance of genuine fans buying them at source. It would not stop genuine fans buying tickets at the last minute either, because genuine fans would still be able to get them through a resale, but there would not be the huge market that encourages tickets to be bought up at source within minutes of their going on sale.

Philip Davies Portrait Philip Davies
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I heard the hon. Lady’s argument the first time around; I was not persuaded by it then and I am not persuaded by it now.

Before anybody suggests that I am going to talk out this Bill, I should say that it is absolutely my intention—in fact, it is a guarantee—to speak for less time than the hon. Lady did when proposing it. So I hope there will be no arguments about that.

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Philip Davies Portrait Philip Davies
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I am not aware that the hon. Gentleman in his speech or the hon. Member for Washington and Sunderland West (Mrs Hodgson) in her Bill advocate that these provisions should be limited to people who buy huge quantities of tickets over a website. This is a principled point about people selling tickets at more than a 10% mark-up, however they come by them.

I always thought that the Labour party believed in the redistribution of wealth from rich people to poor people. I thought that was the way they wanted to go. I am therefore a bit flummoxed by what has been said. A constituent of mine who has not got a great deal of money but is a great fan of cricket might buy a ticket to the cricket world cup final for, let us say, £25. They then go to the pub where a fellow says, “Do you know what? My lifetime ambition is to go to the cricket world cup final but I cannot get a ticket as they have sold out. I am so keen, I would give £3,000 to get a ticket.” My constituent might then think, “£3,000 for this ticket! All my Christmases have come at once. This fellow has obviously got far more money than he knows what to do with if he is prepared to pay £3,000 for my ticket.” That would be an example of great redistribution of wealth from rich people to poor people. The richer people are giving the money to the poorer people for a commodity that they want to sell. I would have thought that Labour Members would be all for that kind of redistribution of wealth. What on earth has happened to them? They have given up being new Labour, and now they have given up being old Labour.

Sharon Hodgson Portrait Mrs Hodgson
- Hansard - - - Excerpts

The hon. Gentleman is making a flamboyant and interesting speech in his usual manner, and he may have made some valid points. I suggest that he allows this Bill to go into Committee and perhaps allows the Minister to speak in the last 10 minutes available. I am sure that the Minister has prepared something and has some pearls of wisdom to offer that I really want to hear and that should be on the record. Will the hon. Gentleman allow the Minister to speak so that the Bill can pass to Committee?

Philip Davies Portrait Philip Davies
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It was the hon. Lady who spoke for an hour, not me. If she had shown some discipline during her speech, we might well have got on to the Minister. We might yet. However, the more interventions she makes the less chance I have of getting beyond my opening remarks.

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Philip Davies Portrait Philip Davies
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Indeed. My hon. Friend has made some perfectly reasonable points, but I happen to disagree with them. Most of the problems that he has identified can be solved by the industry itself, and I have made some imaginative suggestions. If ticket touting is such a big issue, tickets should be sold on the open market by auction, as my hon. Friend the Member for Christchurch has suggested, which would maximise income and get rid of ticket touts, who would have no business.

Sharon Hodgson Portrait Mrs Hodgson
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In the two minutes remaining, I wonder whether the hon. Gentleman will allow the Minister to say a few words.

Philip Davies Portrait Philip Davies
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As I made clear at the start of my speech—I hope that I am considered to be someone who sticks to their word—I will speak for less time than the hon. Lady, and I intend to keep that promise.