Baroness Taylor of Bolton:

Moved by Baroness Taylor of Bolton

34: Schedule 2, page 85, line 27, leave out from “unless” to end of line 28 and insert “they do not have a conflict of interest.”Member’s explanatory statementThis Amendment creates an objective test for whether a proposed IFR director has a conflict of interest, rather than leaving it for the person appointing that director to determine whether the director being appointed has a conflict of interest.

My Lords, this Amendment tries to probe what might happen and what protections there may be in cases of conflicts of interest in respect of members of either the board or the expert panel. My noble friend Lord Bassam and I have tried to be somewhat specific in our amendments about where conflicts of interest might apply. We have talked about consultants and organisations that might derive half of their income from one of the organisations that might be involved in a competition.

I hope that that can lead the Minister to talk about some of the difficulties that might arise if we do not get the right people in these positions working with the regulator. It is extremely important that anybody in this capacity is independent. We do not expect them not to have any interest in football but we do expect them not to have any financial interest that might at some stage create a conflict. If anybody is employed by a club or an organisation that is dependent on money from one of the leagues then difficulties could arise. Given the framework that has been established, which could be very robust and could help the regulator very clearly, we need to make sure that there are not conflicts of interest that could cut across this new regime.

My Lords, these amendments seem quite reasonable. It would be interesting to see whether conflicts of interest at this level are addressed. I hope the Minister has a nice succinct answer that means we can all go away and move on to the next group. Having said that, I shall sit down and allow her to give it.

My Lords, again, there is good sense behind the amendments that the noble Lord and the noble Baroness have tabled in this group. They address a critical issue about ensuring transparency and fairness in the governance of our beloved game.

Amendment 34 seeks to introduce an objective test to determine whether a proposed director of the new independent football regulator has a conflict of interest. Under the previous framework, the decision was left in the hands of the appointing party, leaving the process vulnerable to subjective interpretations and, potentially, political interference or favouritism, which I am sure we all want to strive to avoid. By introducing an objective test, the amendment would remove that ambiguity and ensure that potential directors are rigorously vetted before they take office. That is an important suggestion that would uphold the values of fairness and accountability in football.

Amendment 35 would take that further by requiring all directors of the independent football regulator to not only undergo this rigorous vetting but publicly declare any potential conflicts of interest. This would be a vital step in increasing transparency and holding accountable those who wield the new powers the Bill brings about. We on these Benches all agree that the integrity of the sport must be upheld through adherence to ethical standards and think that the amendments are an important step in that direction. The chief executive officer of the independent football regulator will be given the task of maintaining a register of these declared interests, ensuring full transparency and accountability in football governance.

Similarly, Amendments 43 and 44 would extend this principle to members of the expert panel, ensuring that they too declare their interests. Again, the independent football regulator’s chief executive will be responsible for maintaining a register of interest for the expert panel, providing an additional layer of transparency. By implementing these measures, we would reinforce the importance of ethical conduct and accountability across the regulator’s board and its expert panel, both of which will be key to the fair and transparent governance of football under the new regulatory regime.

Finally, Amendment 331, which would expand the nature and definition of a conflict to include a situation where the perception of a conflict may arise, also has some merit. Perception is often just as important as reality in maintaining trust. By introducing non-exhaustive examples, the amendment would ensure that we address conflicts of interest in a comprehensive and forward-thinking manner.

I am grateful to the noble Baroness and the noble Lord for tabling the amendments, which represent a robust and progressive framework for managing conflicts of interest in the governance of the sport. They would introduce clear, objective tests, require declarations of interest and ensure transparency through the form of the public registers, all of which are important. I look forward to hearing what the Minister has to say.

I thank my noble friends Lord Bassam of Brighton and Lady Taylor of Bolton for tabling these amendments. The Government acknowledge the intent behind them, which is to fortify the Bill’s provisions for dealing with conflicts of interest. It is essential that the regulator can deliver its regime, free from undue influence and vested interests.

I reassure my noble friends that the Bill already sufficiently makes certain that the regulator will be free from conflicts of interest. This is supported by public law principles and non-legislative measures that are already in place. As with all public bodies, members of the regulator’s board will be subject to the Cabinet Office’s code of conduct for board members of public bodies, which sets out clear requirements regarding the appropriate disclosure and management of conflicts of interest. It includes a responsibility on board members to openly and honestly declare any interests that could give rise to actual or perceived conflicts. Any breach of these requirements would be a breach of the member’s terms of appointment.

The Bill also places an additional onus on the appointer to check for conflicts that have not otherwise been declared, both at the point of making the appointment and on an ongoing basis from time to time. In addition, paragraph 16 of Schedule 2 requires members of the board to declare their interests in any matters which fall for consideration by the board, and for this declaration to be recorded.

On Amendment 331 in the name of my noble friend Lord Bassam, the Government are confident that the existing definition of conflict of interest is appropriate and will capture the correct issues. The expansion of the definition proposed by my noble friend would also see perceived conflicts explicitly forbidden. We believe this is disproportionate and goes beyond the normal interpretation of conflict of interest. For example, almost all noble Lords here support a football club. In an extreme interpretation, that alone could be a perceived conflict. All in all, we are confident that the Bill, supplemented by public law principles and non-legislative measures already in place, provides comprehensive safeguards to identify and manage conflicts of interest appropriately. For these reasons, I am unable to accept my noble friends’ amendments and ask my noble friend to withdraw her amendment.

I am grateful to the Minister for emphasising that the potential for a conflict of interest is there and potentially quite significant. I accept that we all have an interest. If an interest in football was a perceived conflict then we would all be in great difficulty, but I think it is important to emphasise that we are talking about potential financial conflicts of interest. I am grateful to the Minister for putting that on the record. I beg leave to withdraw the Amendment.

Amendment 34 withdrawn.

Amendment 35 not moved.