HL Deb 06 November 1986 vol 481 cc1183-6

3.18 p.m.

Lord Mackie of Benshie

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they accept any responsibility for the events contributing to the large financial loss incurred by the Commonwealth Games.

The Earl of Dundee

My Lords, the Government have at no stage accepted responsibility for the finances of mounting the Thirteenth Commonwealth Games and do not do so now.

Lord Mackie of Benshie

My Lords, I congratulate the Minister on the admirable way in which he gave that appalling Answer. May I say, in the light of the previous Question, that the antics which have been seen all around in trying to pay off this debt are quite extraordinary and most undignified? There was the appeal to a Japanese philanthropist and all sorts of other manoeuvres. However, everyone appreciates—I am coming to it!—does the Minister realise that it is quite obvious to the ordinary citizen that the failure of the Government and the Prime Minister to convince our Commonwealth partners that we dislike apartheid was the main reason for the departure from the games of so many countries which did such enormous harm? Surely the Government must accept responsibility for that. Does he agree that they should pay at least a part of the debt?

The Earl of Dundee

My Lords. first I should like to thank the noble Lord for his kind remarks. But I do not think that I agree with what he says. The organisers were aware that political boycotts were one of the risks they had to face. The Government did everything in their power to prevent the boycott of the games from spreading. Her Majesty's Government are not responsible for the consequences to third parties of the actions of overseas governments who seek to change the will of Her Majesty's Government by boycotting international events. The overseas governments concerned are responsible for their own actions.

Lord Taylor of Gryfe

My Lords, is the Minister aware that there is considerable resentment in Scotland over the fact that the Government are doing nothing in this case, although they agreed to underwrite Birmingham's bid for the Olympic Games?

The Earl of Dundee

My Lords, had Edinburgh been bidding for the Olympic Games and Birmingham for the Commonwealth Games, government policy towards both events would have been the same. Both the Commonwealth Games Company and the organisers of the Birmingham bid understood that funds from central government were not available. Neither was offered support for an operating deficit or help with capital expenditure. A so-called Doomsday guarantee was given to Birmingham to cover any loss in excess of £100 million caused by the last minute cancellation of the games for reasons beyond the organisers' control. That was a requirement of the Olympic Committee to cover the possibility of cancellation. A similar guarantee was not required for the Commonwealth Games.

Lord Carmichael of Kelvingrove

My Lords, I also congratulate the noble Earl on his first appearance at the Dispatch Box and on the way he has so quickly fallen into the negative attitude of the replies that we normally receive. Surely the Government's lukewarm attitude towards sanctions and apartheid, as seen by many Commonwealth countries, affected support for the games. He spoke about Doomsday support for Birmingham, had the games been affected by some outside force. Surely what happened over the Commonwealth Games was not caused by an outside force. It was a direct result of the Government's attitude and the feeling of African and coloured countries about the working of sanctions and apartheid. Has the Minister made any summation about the shortfall of money required to pay those involved—the local authorities and the many small traders, as well as the large? Would it not be a good gesture for the Government to clear the debt once and for all?

The Earl of Dundee

My Lords, the aim of the proposed settlement by the Commonwealth Games Company is, as I understand it, that all small creditors will be paid 100p in the pound. Major creditors are being asked to make substantial donations to help organisers bridge their deficit, towards which a charitable donation of £2 million is already available from the Japanese philanthropist. Mr. Sasakawa, who has provided £1.3 million, and Mr. Robert Maxwell, the company chairman, who has given £700,000. I am sure that your Lordships will join me in paying tribute to those who have contributed to the costs of mounting the games, including those who donated to the earlier public appeal which raised £l.5 million.

Lord Underhill

My Lords, do the Government appreciate that the public were delighted that the games proceeded? They were a good sporting spectacle. Will it not be harmful to the general atmosphere of the Commonwealth if the Government do not give some assistance?

The Earl of Dundee

My Lords, the Government's position has been clear from the start. No government guarantees or contributions were to be available. Creditors should therefore address themselves to the games organisers, who fully understood the position and who knew that they would have to mount the games within the resources they could raise. I am sure that noble Lords will share my confidence that the Government's policy will be vindicated by events.

Lord Paget of Northampton

My Lords, is it Her Majesty's Government's intention to continue payments of aid to countries which flagrantly repudiate their contracts here?

The Earl of Dundee

My Lords, I think that that is slightly outside the Question.

Lord Rodney

My Lords, is my noble friend aware that the so-called Japanese philanthropist is a close friend and colleague of the Reverend Moon, who is head of the Moonies?

The Earl of Dundee

My Lords, that is perhaps also outside the Question.

Lord Underhill

My Lords, did the Minister say that the Government's policy would be vindicated by events? If so, to what was he referring? Was he referring to the financial loss on the games, or what? It is the loss on the games and this country's attitude about which we are concerned.

The Earl of Dundee

My Lords, the signs are that satisfactory arrangements are being made between the games company and the creditors.

Lord Mackie of Benshie

My Lords, would the noble Earl not feel happier if the Government had contributed even a little?

The Earl of Dundee

My Lords, if the Government had contributed only a little, that would still have been inconsistent with the premise and the starting point.