HC Deb 01 July 1996 vol 280 cc681-8

'.—(1) The Secretary of State shall draw up and keep under review a list ("the secondary list") of sporting events of national interest other than events listed under section 91 ("secondary listed events") to which the provisions of this section and of section (Separation of highlights and live coverage of secondary listed events) are to apply.

(2) Subsections (2) to (5) of section (91) shall apply to the secondary list as they apply to the list drawn up by the Secretary of State under subsection (1) of that section, and any reference in that section to a list of sporting or other events of national interest, shall be construed also as a reference to a list drawn up under this section.

(3) For the purposes of the provisions of this Part relating to the secondary list, television programme services shall be divided into two categories as follows—

  1. (a) services falling within paragraph (a) of section 92(1), and Channel 5;
  2. (b) all television programme services not for the time being falling within paragraph (a) above.'—[Mr. Pendrv.]

Brought up, and read the First time.

Mr. Pendry

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker

With this, it will be convenient to discuss also new clause 14—Separation of highlights and live coverage of secondary listed events`.—(1) A person providing a service falling within either paragraph (3)(a) or (3)(b) of section (The secondary list of events) ("the first service") for reception in the United Kingdom or any area in the United Kingdom shall not, without the previous consent of the Commission, include in that service live coverage of the whole or any part of a secondary listed event ("the live coverage") unless—

  1. (a) another person, who is providing a service falling within the other paragraph of subsection (3) of that section ("the second service"), has acquired the right to include in that service televised highlights of that event or part of that event; and
  2. 682
  3. (b) the area of the United Kingdom for which the second service is provided consists of or includes the whole, or substantially the whole, of the area of the United Kingdom for which the first service is provided,
but nothing in this subsection shall be taken to prohibit the person providing the first service from including in that service the whole or any part of a recording of the live coverage. (2) Subsections (3) and (4) of section 95 shall have effect in relation to subsection (1) of this section as they have effect in relation to subsection (I) of that section. (3) If the Commission are satisfied that the holder of a licence under Part 1 of the 1990 Act or of a digital programme licence under Part 1 of this Act has unreasonably failed to comply with subsection (1), they may require him to pay, within a specified period, a financial penalty to the Commission. (4) The amount of any financial penalty imposed on any person under subsection (3) above shall not exceed the amount produced by multiplying the relevant consideration by the prescribed secondary multiplier. (5) In subsection (4)—
  1. (a) "the relevant consideration" has the same meaning as in section 96(4)(a); and
  2. (b) "the prescribed secondary multiplier" means such number as the Secretary of state may from time to time by order prescribe,
and any such order shall be subject to annulment in pursuance of a resolution of either House of Parliament (6) Subsections (6) and (7) of section (96) shall apply to any amount payable to the Commission by virtue of subsection (3) above as they apply to any amount so payable by virtue of subsection (1) or (2) of section (96). (7) If the Commission are satisfied that a broadcasting body has unreasonably failed to comply with subsection (1) above, they shall make a report to the Secretary of State. (8) In this section "broadcasting body" has the same meaning as in section (97). (9) For the purposes of this Part—
  1. (a) "highlights" of live coverage are recorded extracts of that coverage selected from the whole of the coverage by the person to whom the highlights rights are granted, and
  2. (b) references to the right to include highlights of live coverage of the whole or part of a secondary listed event in a television programme service shall be construed as references to the right to include such highlights in that service on each day upon which that event, or part fo that event, takes place and within a reasonable time of the conclusion of that event, or that part of that event, on that day.'.

Mr. Pendry

The new clauses relate to what is commonly called unbundling, which was considered in another place when an amendment was proposed by Lord Howell to compel all sports to be covered by unbundling, legislation. It was withdrawn because a voluntary code of practice was promised instead.

On Second Reading, my right hon. Friend the Member for Copeland (Dr. Cunningham) made it clear that if we felt that the code was unsatisfactory we would seek to reintroduce amendments on unbundling at this stage.

We have now been able to see the code of practice drawn up by the major sports division of the Central Council of Physical Recreation, and to study it closely. On that committee, there are several vested interests, which would seek to protect their own negotiated settlements with broadcasters, ahead, we would argue, of national interests; but the House has a duty to consider wider issues than the narrow sectional ones of sports governing bodies. We recognise the interests of millions of people who enjoy watching sport on terrestrial television, who increasingly find that pleasure taken away from them.

11.30 pm

Although there are some improvements on the previous draft, the Opposition still have several reservations. That is why we tabled new clauses 13 and 14. They are not intended to undermine the voluntary code—quite the opposite. They are there to support the code and ensure that its provisions on unbundling are enforced. If broadcasters and governing bodies abide by the spirit and wording of the voluntary code, there will be no need to add any events to the secondary list; but there is a reserve power for the Secretary of State if need be.

We did welcome the code's publication and its recognition of the importance of sport to the social life of our country. It is encouraging that governing bodies of sport are coming together to draw up a code of this kind. We should note, however, that they did so following moves by a number of us in this and another place to introduce a statutory code.

On many issues, we have no problem with the code. We warmly welcome its call for moneys earned by the sale of broadcasting rights to be reinvested in the development of sport. There may be arguments about the percentage that should -go into that development, which stands at no less than 5 per cent. in the voluntary code, but we should all agree with the general principle. However, we still have several doubts about the code.

First, we are worried that not all major governing bodies have signed up to the code; at the moment, 11 bodies have done so. Secondly, we are worried that there has not been enough dialogue with broadcasters about the code. Initially there was no mention of news access, and that is why we tabled amendments in Committee on that important issue. We are pleased that the Government have accepted that principle by introducing new clause 27.

We have other concerns about what has been left out of the code, and especially about the fact that there is no indication of what will happen to governing bodies if they ignore it. There is no mention of any penalties or methods of enforcement for non-observance. As it is only a voluntary code, the governing bodies could simply ignore whatever penalties were imposed. Ultimately, they have the right to walk away. The code has no teeth and, as the hon. Member for Blackpool, South (Mr. Hawkins) said in Committee, a voluntary code is clearly not going to be effective."—[Official Report, Standing Committee D, 11 June 1996; c. 554.] I know that many other Conservative Members share his, and indeed our, view.

In Committee, the Minister called for a balanced approach. The interests of the general public, the overwhelming majority of whom do not have access to subscription services, must be considered, but the genuine interests of the sports must be taken into account.

It should be no surprise to the Minister to learn that I agree with him that a balance needs to be struck. Our point of difference is how we strike that balance. The Minister supports the voluntary code but, as I explained, it has deficiencies. We need a measure that will give adequate protection to all our major sporting events while meeting the reasonable needs of the sports-viewing public. That is precisely what we propose.

I commend these new clauses to the House.

Mr. Sproat

We oppose unbundling and intend to vote against it. The Government considered the issue of unbundling broadcast sports rights with great care and discussed it with all the relevant interests as part of our consultation earlier this year. The Government recognise the special importance of broadcast coverage of sporting events, but this new clause, even if limited in the way that the hon. Member for Stalybridge and Hyde (Mr. Pendry) explained, introduces an entirely new concept, unparalleled in any other aspect of broadcasting here or, to our knowledge, anywhere else in the world. No other product or commodity sold in a competitive market is subject to such a process.

The sports bodies have acted responsibly in agreeing a voluntary code on broadcasting rights. The hon. Member for Stalybridge and Hyde says that he supports it. He cannot support it and then say that he wants to impose a compulsory unbundling.

The Government's provisions on broadcast sport in the Bill are fully in line with the recommendations of the Select Committee. Unbundling is an unwarranted additional step. The ITV Association thinks it preferable that the market should take its course within existing competition rules and does not want unbundling.

The controls proposed by the hon. Gentleman would be complex, uncertain, arbitrary and bureaucratic. They would be subject to uncertainties of definition. Accordingly, I repeat that if the hon. Gentleman wants to carry the matter through to a vote, we will fight him in the Lobby.

Question put, That the clause be read a Second time:—

The House divided: Ayes 251, Noes 286.

Division No. 163] [11.33 pm
AYES
Abbott Ms Diane Campbell, Menzies (Fife NE)
Adams, Mrs Irene Campbell, Ronnie (Blyth V)
Ainger, Nick Campbell-Savours, D N
Allen, Graham Canavan, Dennis
Alton, David Cann, Jamie
Armstrong, Hilary Chidgey, David
Ashton, Joe Chisholm, Malcolm
Austin-Walker, John Church, Judith
Banks, Tony (Newham NW) Clapham, Michael
Barnes, Harry Clark, Dr David (South Shields)
Barron, Kevin Clarke, Eric (Midlothian)
Battle, John Clarke, Tom (Monklands W)
Bayley, Hugh Clelland, David
Beckett, Rt Hon Margaret Clwyd, Mrs Ann
Bell, Stuart Coffey, Ann
Benn, Rt Hon Tony Cohen, Harry
Bennett, Andrew F Connarty, Michael
Benton, Joe Cook, Frank (Stockton N)
Bermingham, Gerald Cook, Robin (Livingston)
Berry, Roger Corbett, Robin
Betts, Clive Corbyn, Jeremy
Blunkett, David Corston, Jean
Boateng, Paul Cousins, Jim
Bradley, Keith Cox, Tom
Brown, N (N'c'tle upon Tyne E) Cummings, John
Byers, Stephen Cunliffe, Lawrence
Caborn, Richard Cunningham, Jim (Covy SE)
Callaghan, Jim Cunningham, Rt Hon Dr John
Campbell, Mrs Anne (C'bridge) Cunningham, Roseanna
Dafis, Cynog Jowell, Tessa
Dalyell, Tam Kaufman, Rt Hon Gerald
Darling, Alistair Keen, Alan
Davidson, Ian Kennedy, Charles (Ross, C&S)
Davies, Bryan (Oldham C'tral) Kennedy, Jane (L'pool Br'dg'n)
Davies, Chris (L'Boro & S'worth) Khabra, Piara S
Davies, Rt Hon Denzil (Llanelli) Kirkwood, Archy
Davies, Ron (Caerphilly) Lestor, Joan (Eccles)
Davis, Terry (B'ham, H'dge H'l) Lewis, Terry
Denham, John Liddell, Mrs Helen
Dewar, Donald Litherland, Robert
Dixon, Don Livingstone, Ken
Dobson, Frank Lloyd, Tony (Stretford)
Donohoe, Brian H Llwyd, Elfyn
Dowd, Jim Lynne, Ms Liz
Eagle, Ms Angela McAllion, John
Eastham, Ken McCartney, Ian
Etherington, Bill Macdonald, Calum
Evans, John (St Helens N) McFall, John
Ewing, Mrs Margaret McKelvey, William
Fatchett, Derek Mackinlay, Andrew
Faulds, Andrew McLeish, Henry
Flynn, Paul Maclennan, Robert
Foster, Rt Hon Derek McNamara, Kevin
Foster, Don (Bath) MacShane, Denis
Foulkes, George McWilliam, John
Fyfe, Maria Madden, Max
Galbraith, Sam Maddock, Diana
Galloway, George Mahon, Alice
Gapes, Mike Mandelson, Peter
Garrett, John Marek, Dr John
George, Bruce Marshall, David (Shettleston)
Gerrard, Neil Marshall, Jim (Leicester, S)
Gilbert, Rt Hon Dr John Martin, Michael J (Springburn)
Godman, Dr Norman A Martlew, Eric
Godsiff, Roger Maxton, John
Golding, Mrs Llin Meacher, Michael
Graham, Thomas Meale, Alan
Griffiths, Nigel (Edinburgh S) Michael, Alun
Griffiths, Win (Bridgend) Michie, Bill (Sheffield Heeley)
Grocott, Bruce Michie, Mrs Ray (Argyll & Bute)
Gunnell, John Miller, Andrew
Hall, Mike Mitchell, Austin (Gt Grimsby)
Hanson, David Moonie, Dr Lewis
Hardy, Peter Morgan, Rhodri
Harman, Ms Harriet Morley, Elliot
Harvey, Nick Morris, Rt Hon Alfred (Wy'nshawe)
Henderson, Doug Morris, Estelle (B'ham Yardley)
Heppell, John Mowlam, Marjorie
Hill, Keith (Streatham) Mudie, George
Hinchliffe, David Mullin, Chris
Hodge, Margaret O'Hara, Edward
Hoey, Kate O'Brien, William (Normanton)
Hogg, Norman (Cumbernauld) Olner, Bill
Home Robertson, John O'Neill, Martin
Hood, Jimmy Orme, Rt Hon Stanley
Hoon, Geoffrey Pearson, Ian
Howarth, Alan (Strat'rd-on-A) Pendry, Tom
Howarth, George (Knowsley North) Pickthall, Colin
Howells, Dr Kim (Pontypridd) Pike, Peter L
Hoyle, Doug Pope, Greg
Hughes, Kevin (Doncaster N) Prentice, Bridget (Lew'm E)
Hughes, Robert (Aberdeen N) Prentice, Gordon (Pendle)
Hughes, Simon (Southwark) Primarolo, Dawn
Hutton, John Purchase, Ken
Illsley, Eric Quin, Ms Joyce
Ingram, Adam Radice, Giles
Jackson, Glenda (H'stead) Randall, Stuart
Jackson, Helen (Shef'ld, H) Raynsford, Nick
Jamieson, David Rendel, David
Jenkins, Brian (SE Staff) Robertson, George (Hamilton)
Jones, Barry (Alyn and D'side) Robinson, Geoffrey (Co'try NW)
Jones, Jon Owen (Cardiff C) Roche, Mrs Barbara
Jones, Lynne (B'ham S O) Rogers, Allan
Jones, Martyn (Clwyd, SW) Rooker, Jeff
Jones, Nigel (Cheltenham) Rooney, Terry
Ross, Ernie (Dundee W) Taylor, Matthew (Truro)
Rowlands, Ted Thompson, Jack (Wansbeck)
Salmond, Alex Timms, Stephen
Sedgemore, Brian Touhig, Don
Sheerman, Barry Trickett, Jon
Sheldon, Rt Hon Robert Turner, Dennis
Shore, Rt Hon Peter Tyler, Paul
Short, Clare Wallace, James
Simpson, Alan Walley, Joan
Skinner, Dennis Wardell, Gareth (Gower)
Smith, Andrew (Oxford E) Wareing, Robert N
Wicks, Malcolm
Smith, Chris (Isl'ton S & F'sbury) Williams Rt Hon Alan (Sw'n W)
Smith, Llew (Blaenau Gwent) Wlliams, Alan W (Carmarthen)
Snape, Peter Wilson, Brian
Spearing, Nigel Worthington, Tony
Spellar, John Wray, Jimmy
Steinberg, Gerry Wright, Dr Tony
Stevenson, George Young, David (Bolton SE)
Strang, Dr. Gavin
Straw, Jack Tellers for the Ayes:
Sutcliffe, Gerry Mr. Peter Hain and Mr. Robert Ainsworth.
Taylor, Mrs Ann (Dewsbury)
NOES
Ainsworth, Peter (East Surrey) Clarke, Rt Hon Kenneth (Ru'clif)
Aitken, Rt Hon Jonathan Clifton-Brown, Geoffrey
Alexander, Richard Coe, Sebastian
Alison, Rt Hon Michael (Selby) Colvin, Michael
Allason, Rupert (Torbay) Congdon, David
Amess, David Conway, Derek
Arbuthnot, James Coombs, Anthony (Wyre For'st)
Arnold, Jacques (Gravesham) Coombs, Simon (Swindon)
Ashby, David Cope, Rt Hon Sir John
Atkins, Rt Hon Robert Couchman, James
Atkinson, David (Bour'mouth E) Cran, James
Atkinson, Peter (Hexham) Currie, Mrs Edwina (S D'by'ire)
Baker, Rt Hon Kenneth (Mole V) Curry, David (Skipton & Ripon)
Baker, Nicholas (North Dorset) Davies, Quentin (Stamford)
Banks, Matthew (Southport) Day, Stephen
Banks, Robert (Harrogate) Deva, Nirj Joseph
Bates, Michael Dorrell, Rt Hon Stephen
Batiste, Spencer Douglas-Hamilton, Lord James
Beggs, Roy Dover, Den
Bellingham, Henry Duncan, Alan
Bendall, Vivian Duncan Smith, Iain
Beresford, Sir Paul Dunn, Bob
Biffen, Rt Hon John Durant, Sir Anthony
Bonsor, Sir Nicholas Dykes, Hugh
Booth, Hartley Eggar, Rt Hon Tim
Boswell, Tim Elletson, Harold
Bottomley, Peter (Eltham) Emery, Ftt Hon Sir Peter
Bottomley, Fit Hon Virginia Evans, David (Welwyn Hatfield)
Bowden, Sir Andrew Evans, Jonathan (Brecon)
Bowis, John Evans, Nigel (Ribble Valley)
Boyson, Rt Hon Sir Rhodes Evans, Roger (Monmouth)
Brazier, Julian Evennett, David
Bright, Sir Graham Faber, David
Brooke, Rt Hon Peter Fabricant, Michael
Brown, M (Brigg & Cl'thorpes) Fishburn, Dudley
Browning, Mrs Angela Forman, Nigel
Bruce, Ian (South Dorset) Forsythe, Clifford (S Antrim)
Budgen, Nicholas Forth, Eric
Burns, Simon Fox, Rt Hon Sir Marcus (Shipley)
Burt, Alistair Freeman, Rt Hon Roger
Butcher, John French, Douglas
Butler, Peter Fry, Sir Peter
Butterfill, John Gale, Roger
Carlisle, John (Luton North) Gallie, Phil
Carlisle, Sir Kenneth (Lincoln) Gardiner, Sir George
Cash, William Garel-Jones, Rt Hon Tristan
Channon, Rt Hon Paul Garnier, Edward
Chapman, Sir Sydney Gill, Christopher
Churchill, Mr Gillan, Cheryl
Clappison, James Goodlad, Rt Hon Alastair
Clark, Dr Michael (Rochford) Goodson-Wickes, Dr Charles
Gorman, Mrs Teresa Marland, Paul
Gorst, Sir John Marlow, Tony
Grant Sir A (SW Cambs) Marshall, John (Hendon S)
Greenway, Harry (Ealing N) Marshall, Sir Michael (Arundel)
Greenway, John (Ryedale) Martin, David (Portsmouth S)
Griffiths, Peter (Portsmouth, N) Mates, Michael
Grylls, Sir Michael Mawhinney, Rt Hon Dr Brian
Gummer, Rt Hon John Selwyn Mayhew, Rt Hon Sir Patrick
Hague, Rt Hon William Merchant, Piers
Hamilton, Rt Hon Sir Archibald Mills, Iain
Hamilton, Neil (Tatton) Mitchell, Andrew (Gedling)
Hampson, Dr Keith Mitchell, Sir David (NW Hants)
Hanley, Rt Hon Jeremy Molyneaux, Rt Hon Sir James
Hannam, Sir John Monro, Rt Hon Sir Hector
Haselhurst, Sir Alan Montgomery, Sir Fergus
Hawkins, Nick Needham, Rt Hon Richard
Hawksley, Warren Nelson, Anthony
Hayes, Jerry Neubert, Sir Michael
Heald, Oliver Newton, Rt Hon Tony
Heathcoat-Amory, Rt Hon David Nicholls, Patrick
Hendry, Charles Nicholson, David (Taunton)
Hicks, Sir Robert Norris, Steve
Higgins, Rt Hon Sir Terence Oppenheim, Phillip
Hill, Sir James (Southampton Test) Ottaway, Richard
Hogg, Rt Hon Douglas (G'tham) Page, Richard
Horam, John Paice, James
Hordern, Rt Hon Sir Peter Patrick, Sir Irvine
Howard, Rt Hon Michael Patten, Rt Hon John
Howell, Rt Hon David (G'dford) Pattie, Rt Hon Sir Geoffrey
Howell, Sir Ralph (N Norfolk) Pawsey, James
Hughes, Robert G (Harrow W) Peacock, Mrs Elizabeth
Hunt, Rt Hon David (Wirral W) Pickles, Eric
Hunt, Sir John (Ravensbourne) Porter, Barry (Wirral S)
Hunter, Andrew Porter, David (Waveney)
Hurd, Rt Hon Douglas Portillo, Rt Hon Michael
Jack, Michael Powell, William (Corby)
Jackson, Robert (Wantage) Rathbone, Tim
Jenkin, Bernard Redwood, Rt Hon John
Jessel, Toby Renton, Rt Hon Tim
Johnson Smith, Sir Geoffrey Richards, Rod
Jones, Gwilym (Cardiff N) Riddick, Graham
Jones, Robert B (W Hertfdshr) Robathan, Andrew
Jopling, Rt Hon Michael Roberts, Rt Hon Sir Wyn
Kellett-Bowman, Dame Elaine Robertson, Raymond (Ab'd'n S)
Key, Robert Robinson, Mark (Somerton)
King, Rt Hon Tom Roe, Mrs Marion (Broxbourne)
Kirkhope, Timothy Ross, William (E Londonderry)
Knapman, Roger Rowe, Andrew (Mid Kent)
Knight, Mrs Angela (Erewash) Rumbold, Rt Hon Dame Angela
Knight, Rt Hon Greg (Derby N) Sackville, Tom
Knight, Dame Jill (Bir'm E'st'n) Sainsbury, Rt Hon Sir Timothy
Knox, Sir David Scott, Rt Hon Sir Nicholas
Kynoch, George (Kincardine) Shaw, David (Dover)
Lait, Mrs Jacqui Shephard, Rt Hon Gillian
Lamont, Rt Hon Norman Shepherd, Sir Colin (Hereford)
Lang, Rt Hon Ian Shepherd, Richard (Aldridge)
Lawrence, Sir Ivan Shersby, Sir Michael
Legg, Barry Sims, Sir Roger
Leigh, Edward Skeet, Sir Trevor
Lennox-Boyd, Sir Mark Smith, Sir Dudley (Warwick)
Lester, Sir James (Broxtowe) Soames, Nicholas
Lidington, David Spencer, Sir Derek
Lilley, Rt Hon Peter Spicer, Sir James (W Dorset)
Lloyd, Rt Hon Sir Peter (Fareham) Spicer, Sir Michael (S Worcs)
Lord, Michael Spink, Dr Robert
Luff, Peter Sproat, Iain
Lyell, Rt Hon Sir Nicholas Squire, Robin (Hornchurch)
MacGregor, Rt Hon John Stanley, Rt Hon Sir John
MacKay, Andrew Stephen, Michael
Maclean, Rt Hon David Stewart, Allan
McLoughlin, Patrick Streeter, Gary
McNair-Wilson, Sir Patrick Sumberg, David
Madel, Sir David Sweeney, Walter
Maitland, Lady Olga Sykes, John
Malone, Gerald Tapsell, Sir Peter
Mans, Keith Taylor, Ian (Esher)
Taylor, John M (Solihull) Ward, John
Taylor, Sir Teddy (Southend, E) Waterson, Nigel
Thomason, Roy Watts, John
Thompson, Sir Donald (Calder V) Wells, Bowen
Thompson, Patrick (Nonwich N) Wheeler, Rt Hon Sir John
Thornton, Sir Malcolm Whitney, Ray
Townend, John (Bridlington) Whittingdale, John
Townsend, Cyril D (Bexl'yh'th) Widdecombe, Ann
Tracey, Richard Wiggin, Sir Jerry
Tredinnick, David Wilkinson, John
Trend, Michael Willetts, David
Trotter, Neville Winterton, Mrs Ann (Congleton)
Twinn, Dr Ian Wood, Timothy
Viggers, Peter Young, Rt Hon Sir George
Waldegrave, Rt Hon William
Walden, George Tellers for the Noes:
Walker, Bill (N Tayside) Dr. Liam Fox and Mr. Gyles Brandreth.
Waller, Gary

Question accordingly negatived.

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