---

Mr. Alan W. Williams (East Carmarthen and Dinefwr): What is our European partners' view of Britain's membership of the single currency? Are they enthusiastic, or even impatient, that we join? Does my right hon. Friend agree that once we are well in line with the convergence criteria, there will still be interest rate and exchange rate problems that rule out early entry? Although the euro has strengthened by 10 per cent. against the pound in recent weeks, do we not need a similar strengthening in the next year or two? In a sense, would not the general election, and the referendum, be better later rather than sooner?

The Prime Minister: The point that my hon. Friend makes is of course right, and shows why it is important that the economic tests are met. There is a convergence in long-term interest rates between us and the eurozone--between the United Kingdom and continental Europe. I

21 Jun 2000 : Column 352

think that this is the first time in my lifetime that that has happened. It has happened as a result specifically of the monetary and fiscal policy and measures that have put our country's economy on the strongest footing that we have had for several decades. However, there is still a short-term interest rate differential, and there are also the issues that my hon. Friend has raised. That is why, as I said, it is important that whatever the position in principle, in practice the economic tests have to be met.

Sir Geoffrey Johnson Smith (Wealden): The right hon. Gentleman seems to think that once the economic standards are met and we join the euro, that will be the end of the matter. In his mind, other tests--such as the political one, and, some would say, the constitutional one--do not seem to be a problem. Can he correct any false impression that he has given today that he does not realise that joining would entail such implications?

The Prime Minister: Yes, I think that I can correct any false impressions. I am not saying that there are not political or constitutional issues. I am saying that as far as we are concerned as a Government and as a political party, we have resolved the constitutional issue in this way: we do not believe that there is a constitutional barrier to a single currency. If one believes that there is a constitutional barrier to a single currency, one's policy on joining should be "never". What is absolutely absurd is for Conservative Members to say, "Never--for five years."

I do not doubt that there will be a big debate, politically and constitutionally, on the single currency; of course there will. That is the very reason why, on an issue of this importance, we have said that there has to be a referendum. Therefore, if we recommend to people, should we be re-elected, that we should join the single currency in the next Parliament, there will be a referendum on that subject. I have no doubt that people will make their political and their constitutional points. All I am saying is that, as far as we are concerned, the key test is the economic one of whether joining is good for British jobs, British industry and British investment.

As I said, in my view, for any United Kingdom Government to rule out membership of a single currency would have a devastating effect on this country's power and influence and on jobs and industry within the European single market.

Several hon. Members rose--

Madam Speaker: Thank you, Prime Minister. We are going to move on now.

21 Jun 2000 : Column 351

21 Jun 2000 : Column 353

Community and Amateur Sports Clubs (National Standards)

4.19 pm

Mr. Andrew Reed (Loughborough): I beg to move,

That leave be given to bring in a Bill to establish national standards for community and amateur sports clubs; and for connected purposes.

First, I must declare an interest. I am a member of Birstall rugby football club and an honorary president of Loughborough Athletic football club, as well as a member of Leicester Tigers rugby club. However, my Bill is about helping our sporting tradition across the whole country.

My Bill is simple in its purpose, yet its benefits to sport could be enormous, because it will tightly define community and amateur sports clubs in law. Setting out that definition in the Bill will allow such clubs to be recognised by bodies such as, for example, the Charity Commission, the Inland Revenue, the Treasury and local authorities, for the purpose of deciding matters such as rate relief.

All hon. Members know--or we think we know--what we mean by the term "sports club". I am sure that all Members present today recognise the enormous benefits that such clubs bring to their constituencies. However, the Bill defines community and amateur sports clubs clearly so that in future we will all know exactly what we mean when we use the term "amateur sports club". I should like to pay tribute to Lord Phillips, who has done a tremendous amount of work in another place to develop a legal definition.

Sport is an integral part of British life. It provides enjoyment for millions of participants and spectators, and it can unite the whole country behind our top competitors and teams. Events in Belgium and on the cricket field over the past week or so have done nothing to dampen that enthusiasm, but sport is more than simply entertaining--it is hugely important too. It can play a key role in tackling social exclusion, stimulating economic regeneration and giving young people the best possible start in life through better health and education.

In the past, unfortunately, the value of sport has been overlooked. Many people have seen how it benefits individuals, without realizing how it helps society as a whole. Spending on sport has tended to be seen as an avoidable cost, not a necessary investment. As a result, other services have fared much better in the allocation of finite public resources.

Now is the time to act. Each of the main political parties has accepted sport's economic, social and educational benefits. It is one of the issues that crosses party lines in this House. Many progressive local authorities have set excellent examples for others to follow, and the Government have emphasized the importance of joined-up thinking, encouraging people to tackle multi-dimensional problems in new, integrated and imaginative ways. This is an area that needs genuine joined-up thinking across Government Departments, and I make no apology for using that overused phrase.

This Bill is not about Manchester United, Leicester Tigers, or Tim Henman at Wimbledon. It is about the local community clubs struggling to afford new nets, a kit or new balls for their youth section. It is about clubs that cater for sport for people with a disability, for increased

21 Jun 2000 : Column 354

participation among ethnic minorities and for women's sport. Their work is just as important, but is never properly funded.

The hon. Members who took part in yesterday's match against Wimbledon football club's disabled section at the millennium dome know only too well how hard it is to beat such players, and how important the game was for them. For the record, the House of Commons won 9-7.

In every community there are people--volunteers--who give their time and effort to make sport happen. Their efforts should be rewarded, not penalised. As the Rugby Football Union said on behalf of its volunteers:

Finance is a key issue . . . we share the frustration that the extra funding they attract through fetes, car boot sales, and raffles is then decimated by government taxes.

Most importantly, for many people, sport counts. The 1996 general household survey found that 46 per cent. of the population participate regularly in sport and recreation, and that 71 per cent. had participated in the past four weeks. As a country, we spend more than £11 billion a year on sports goods. The leisure industry is one of the fastest growth sectors in the economy, accounting for 2.6 per cent. of total consumer spending. However, at the same time Britain is increasingly described as a nation of couch potatoes, and a wide range of studies confirms that trend. Evidence is growing that many local sports clubs are closing, and participation rates are falling.

Last year, the Select Committee on Culture, Media and Sport concluded that active participation in sport

complements academic elements of education; and

it encourages social skills. Authoritative research indicates that exercise and participation in sport help combat social exclusion and improve health. There is proven research to show that participation in sport has a positive impact on crime, particularly among young people. The new sports action zones could make a real difference in tackling social exclusion in some of the most deprived areas in our country. I hope that the health benefits of a nation taking regular exercise are self-evident.

The Government are committed to the principle of volunteers helping to rebuild communities, and earlier this year called for a step change in volunteer action. I recognize that volunteering at a local sports club may not be the first thing that springs to mind when we talk about the giving age, but what could be more giving than the referee who gives up his or her weekend to make sure that competitive games are taking place all over the country? What could be more giving than to run around and be abused and unloved? Right hon. and hon. Members should know all about that.

Unpaid members of sports clubs and volunteers provide the bedrock of competitive and recreational sport in the United Kingdom. In 1995 it was estimated that 1.5 million people freely gave of their time to help provide sporting opportunities. That volunteer investment is estimated to be worth £1.5 billion per annum.

The Government's sports strategy, "A Sporting Future for All", recognises that, and places heavy emphasis on the role of sports clubs in delivering a better sporting chance for future generations. It says that people need

the amateur sports club with well trained adult volunteers to make sport and healthy exercise a life long habit.

21 Jun 2000 : Column 355

It also rightly recognises that sports clubs offer the only chance of keeping young people participating in sports after they have left school or college. For many, including myself, they offer sport at a suitable level. I still compete week in, week out, albeit at a very low level. They are also the grounding base for our future elite athletes--although I fear that it is too late for me.

At present, many sports clubs are treated as businesses in terms of taxation and local authority rates. Although it is obvious that the richest football clubs have great wealth, we all know that the fact that there is big money in football--for example, the £1.1 billion deal for the television rights to the premiership--does not mean that every football club is rich. Indeed, some would argue that money is disappearing from the grass roots as fast as it comes in at the top. Because all sports clubs are treated in the same way, many are heavily penalised, and my Bill would make a difference

The Bill has received widespread support from the sporting community, including the Football Association, the England and Wales Cricket Board, the Rugby Football League, the Amateur Swimming Association, the Rugby Football Union, the Lawn Tennis Association, UK Athletics, Sport England and the Central Council of Physical Recreation, as well as many local clubs throughout the country, such as the Lincoln Canoe Club, the Heather Sparkenhoe Cricket Club, York District Sports Council and--an excellent example of a community and amateur sports club--the Liverpool Harriers and Athletic Club.

There will be increased rate bills for many sports clubs arising from the revaluation of properties this year. Most importantly, many sports clubs do not receive rate relief because many local authorities find it difficult to afford the 25 per cent. that is required after offsetting from the national non-domestic pool. Rate relief also varies too much between different parts of the country. Some local authorities are very good and give 100 per cent. rate relief despite only getting 75 per cent. back from central Government. The CCPR estimates that rate relief for sports clubs would cost the Treasury just £35 million per annum, which is not too high a price to pay.

It seems clear to me that a legally defined status for community and amateur sports clubs would clear up that sorry mess. As it stands, the law stops short of recognising the promotion of any particular sport as a charitable purpose per se. I understand that the issues are complex, and that there has been consultation about the status of community and amateur sports clubs following the test case of North Tawton rugby club in Devon in 1995.

21 Jun 2000 : Column 356

I know that the Charity Commission has been looking at the matter closely, and I hope that it can see the massive discrepancies caused by the current definition.

We are not asking a great deal--simply for clubs to be put on the same footing as arts organisations. My Bill would define the status of clubs that would qualify under the Recreational Charities Act 1958. The Government's social exclusion report, PAT 10, recognised the need for the charitable status route in the case study of community work carried out at Leyton Orient community sports programme.

Sport is most effective when delivered in partnership with local authorities, central Government and sports governing bodies and their member clubs. Sports clubs offer a focal point for local communities and are one of the key links in the chain of talent identification and development.

This short Bill would simply define the legal status of community and amateur sports clubs. Its scope is limited and I commend it to the House.

Question put and agreed to.

Bill ordered to be brought in by Mr. Andrew Reed, Mr. Gareth R. Thomas, Mr. Ian Pearson, Mr. David Drew, Mr. Andrew George, Mr. Alan Simpson, Miss Anne McIntosh, Mr. Bob Blizzard, Mr. Crispin Blunt, Mr. David Taylor, Mr. Bob Russell and Gillian Merron.

---