Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 202-219)

LORD MOYNIHAN, MR SIMON CLEGG, MS SARA FRIEND AND MR MIKE BRACE OBE

1 NOVEMBER 2005

  Chairman: Good morning. I am sorry to have kept you waiting whilst we finished the previous session. Can I welcome our four witnesses for this second part of the inquiry: Lord Moynihan, who we should also congratulate on his election as the new Chairman of the British Olympic Association; Simon Clegg, the Chief Executive of the BOA; Sara Friend, the Director of Legal Services and Mike Brace who is Chairman of the British Paralympic Association. Welcome to you all. Can I invite Alan Keen to ask the first question.

  Q202 Alan Keen: Many people have contributed towards winning the Games that we are all so thrilled about, but we would not have got them had there not been a respected British Olympic Association there to start with so congratulations and congratulations to Colin as well. The Chairman of the BOA has a seat on the Olympic Board but the British Paralympic Association has not, is that something which should be addressed?

  Mr Brace: Certainly I think there need to be adequate links in there because I think the two Games will have a life of their own developing, and I think the closeness of the links would need to be developed but also the specific issues affecting the Paralympic Games would be strengthened by some form of either ex officio or linked representation on the ODA.

  Lord Moynihan: Chairman, firstly, thank you very much for your kind opening words. Mike and I have already been in discussion about the importance of very close co-operation with the British Olympic Association and the British Paralympic Association. We intend to strengthen that relationship. As structured currently certainly we see the Chairman of the British Olympic Association's role on the Olympic Board as one of working closely with Mike to represent the interests wherever we can of the paralympians. That is the result of a structure which I have inherited. Suffice it to say the close co-operation between the BPA and the BOA is something we value and treasure and regard as absolutely essential.

  Q203  Alan Keen: Has anyone been specifically given the role of letting the British people understand that there is a paralympic context going on as well? The way the public think about people with disabilities has advanced tremendously in the last few years, but there are still lots of problems obviously. Is there anyone with that specific role to involve the public and let them know it is a key part of the Olympics?

  Mr Brace: Not as yet. I think the development through LOCOG—I have a place on LOCOG from the Paralympic Association—as we put more of the structure in place, both within LOCOG in terms of the delivery of the Paralympic Games and obviously the linkage that Colin mentioned earlier on with BOA in terms of making sure that there is either a joint message or a specific message that is appropriate to the Olympics or the Paralympics I think will be quite an important aspect, especially with the extensive BBC coverage we have had and we will expect to have through Beijing and then on to 2012.

  Q204  Alan Keen: Jumping from the beginning of the Olympics right to after the Olympics, it is forecast that there will be a £100 million surplus of which 20% goes to the BOA, will some of that money be going to the Paralympic Association? I know we are projecting a long way ahead.

  Lord Moynihan: You are looking into a crystal ball with greater accuracy than we can at the present time, Alan. Suffice it to say that we will be working to ensure that there is an operating profit, as substantial an operating profit as possible. One of the reasons why we are represented on LOCOG is that at recent Olympic Games, for example Athens, they made an operating profit despite the very high costs that they faced. That split of the operating profit was a 20:20:60 split. 20% goes directly to the British Olympic Association, 20% goes to the International Olympic Committee and 60% on the advice of the British Olympic Association is spent on sports projects within the United Kingdom. Now it seems to me wholly sensible that as we move forward into the discussion over how that 60% is spent that the enormous contribution that paralympians and the British Paralympic Association make should be fully reflected in deciding the spend of that 60%.

  Q205  Alan Keen: You heard me ask a question earlier on about the future of the Olympics and I have asked you before. Are there talks in the IOC about looking differently at the bidding process rather than the bidding process directly going in to subsidise and help developing nations to host the Olympics? It will mean changes to the way the Games are run, of course. Are there are any talks going on and certainly, if there are not, will you be pushing this in the future?

  Mr Clegg: I have to say our plate is somewhat full at this moment in time in terms of concentrating on delivering Team GB in 2012. I think it is worth recognising, also, that the International Olympic Committee do make a major contribution through the Olympic Solidarity Programme to developing nations. What the IOC needs to protect, obviously, is the value of its brand because by being able to drive a major commercial sponsorship through the brand, through the sale of worldwide television and marketing rights, that provides them with the funding for Olympic Solidarity to run the thousands of programmes that they run each year across all 202 National Olympic Committees, particularly focused at developing nations. The IOC was in a very fortunate position of having five of the world's leading cities aspiring to host the 2012 Games and that is fantastic for their brand and for the future of their brand. There is undoubtedly a desire to take the Olympic movement into parts of the world which to date have not hosted Olympic Games, particularly into Africa and South America. I am sure there is a good chance that we will see strong candidate cities coming from those two continents in the future but I think it would be wrong at this moment in time for the IOC to insist that it should restrict its candidate cities in future bidding contests to a particular continent.

  Q206  Alan Keen: We have got a new Chairman of the BOA, will he be looking at this in the future? We are preoccupied at the moment I know with our own preparation but if it is going to inspire young people in this country how much better will it be even to inspire young people in a developing nation?

  Lord Moynihan: There is no doubt that in the bidding process Seb Coe recognised that very strongly. It was one of the most attractive features of the presentation which focused on that, that this is a world movement, that the Olympic Games need to inspire the young people to be involved in sport across the globe. That was a very compelling message and one well delivered. I do endorse what Simon has said, that the IOC is very active on this front. Is there room for further work to be done? Yes, there is. Has it been on my agenda in the last three and a half weeks since I arrived in the job? It has not yet, Alan, but it is important it is not overlooked and certainly it will be something that Simon and I will look at closely in the future.

  Alan Keen: Please do not take this question as antagonism, I am as thrilled as a nine-year old in East London about the Olympics.

  Q207  Mr Evans: I would like to congratulate you too, Colin, on your new position but I would like to go, if I can, back to the structure of the BOA. The elections were about three weeks ago. Now the BOA, if I understand it rightly, are an independent body, a charity, no government funding?

  Ms Friend: No government funding, no National Lottery funding, but we are not a charity. We are a company limited by guarantee, a not-for-profit organisation.

  Q208  Mr Evans: During the elections which just took place, Simon, can I ask you whether you were surprised at reading some of the reports in newspapers about people being lobbied heavily during that period by Government?

  Mr Clegg: By Government?

  Q209  Mr Evans: Yes?

  Mr Clegg: It was a democratic election and everyone had the right to lobby the various candidates. I think we were in a privileged position of having two outstanding candidates for the post of Chairman. At the end of the day the individual voting members of our constituency, the National Olympic Committee members from the 35 Olympic sports, within the secret ballot elected Colin as our new Chairman. There were people out there lobbying for different candidates, and I do not have a problem with that as a matter of principle.

  Q210  Mr Evans: Do you think it is right that anybody should be acting on behalf of the Government to lobby anybody against one candidate or for another?

  Mr Clegg: I have no evidence to support that suggestion.

  Q211  Mr Evans: Can I ask you, therefore, have any of your voting members reported to you that any discussions took place between them and either the Government directly, ministers or, indeed, anybody acting on behalf of the Government?

  Mr Clegg: Some of the voting members had discussions with me relating to approaches made to them by members of the sports councils and members of the various institutes. Whether you class those quangos as being related to Government, I am not sure; by their Royal Charter they are independent of them.

  Q212  Mr Evans: Can you put a little more meat on the bones then and tell us which sporting bodies contacted your voting members and lobbied them?

  Mr Clegg: All I can tell you is discussions did take place between some of my voting members and representatives from UK Sport and the English Institute of Sport.

  Mr Evans: Do you think that is appropriate because you can argue that they are representative of the Government? These are bodies funded by the Government.

  Mr Hall: They do not represent the Government.

  Q213  Mr Evans: They are funded by Government.

  Mr Clegg: The sports councils were established to represent sport to the Government, and, therefore, it is entirely appropriate that those people with an interest in sport and ensuring that we succeed in this process have the opportunity to voice their views. Whether those were taken on board by the voting members or not, I am not sure.

  Q214  Mr Evans: Can I ask the Chairman, therefore, this question: what was the mood during the period when this election was going on? Did you have any evidence that there was any lobbying going on?

  Lord Moynihan: I read in the media that there was a quite a lot of activity going on in the wings, I was unaware of it personally. I take the view, Nigel, that the BOA is an independent body. It is not funded by Government. It has always been robust in maintaining and treasuring its independence back to the days in 1980 when Government sought to encourage it not to send a team to the Moscow Olympics. It was fiercely independent of its position then that it should consider that advice and then decide to leave the final decision to the governing bodies of sport. Its independence is well documented through history. On this occasion I do not think, if any of it was true, and I have no evidence to suggest that it was, it would have been a constructive way forward for a government to move in a direction you describe. If anything, it would probably have been counter-productive but, as I said, that is pure speculation.

  Q215  Mr Evans: Can I ask you, finally, on looking towards the Olympics, is it part of your role as Chairman to look at some of these sporting bodies as well and to make recommendations about the way that they are organised in order that they may perform better themselves in the run up to the Olympics?

  Lord Moynihan: Anything that can improve the delivery of services and funding to the sports men and women in this country, particularly as far as the British Olympic Association is concerned, is a matter of concern and interest to the British Olympic Association. Yes, as part of the wider legacy of ensuring the passion and the tremendous support for a host nation which the Olympic Games delivers, then it is important that we make sure we have a fit-for-purpose sports policy throughout the United Kingdom which matches the tremendous achievement the Prime Minister and Lord Coe and his team put in in Singapore. A fit-for-purpose sports policy has to match the great challenges we have ahead of us now to deliver success in 2012 but also to benefit from the wider legacy of ensuring that the quality of sports provision in the United Kingdom and the importance given to sports policy in the United Kingdom is significantly increased.

  Q216  Mr Evans: We can expect some recommendations then to the Secretary of State?

  Lord Moynihan: We are always open to have constructive discussions with secretaries of state of any party, whoever is in government at the time. I should add the relationship with Tessa in the last three and a half, nearly four weeks now, is strong. I think we all recognise that to have a successful Olympics we should stand aside from party politics and put the interests of the sports men and women first. That remains my very clear objective and I am working well with Ken Livingstone, Tessa and, of course, Seb Coe.

  Q217  Paul Farrelly: I am very glad we have now started to use the precious time that we have got to move on to look at the future success of the Olympics rather than score historic political points. Can I ask Mike, I have just been reading your CV, it is phenomenal and it strikes a chord with me because my son is seven and he is growing up and going to a Hackney school, and we are trying to improve the facilities there so all the children can look forward to the Olympics with as much excitement as my friend Alan here and every nine-year old boy and girl in the country and the capital. You have done phenomenally well in Paralympics in the past, it is outstanding what disabled sports people have achieved in the Paralympics. What is your goal in terms of not just medals and numbers of entrants but the legacy for disabled sports and the Paralympics in this country at these Olympics that are going to happen in London?

  Mr Brace: I think there are probably three key ones. The first is the inspiring images that paralympic sport can give both to people who themselves have a disability and then can aspire to achieve things which they had not thought of but also the major changes in the barriers and the equality issues. Many of the barriers are placed in people's minds against opening their perceptions of disability and looking at ability. The social model of disability is someone who is blind, they have an impairment but it is society that disables. I do think the Paralympics have a massive power to challenge that thinking. I think the second area of a major challenge is the inclusion of people with a disability in pathways to sport and recreation. As a ten-year old the thought of not being able to do sport was more important to me than almost my blindness. It was so important that I wanted to do the things that everyone else was doing and have those opportunities. It is access, it is all the issues to do with facilities, but it is the pathways for inclusive education. We do not have the pathways to get the other disabled people into active sport within the schools very often and then through sports colleges or external events programmes into league programmes and on to the Paralympics. The legacy for me would be a pathway where if you are a seven-year old youngster in a wheelchair in Hackney, you should have a very clear opportunity at some stage when you find the sport that you are interested in into some sort of programme that eventually will allow them to be in the wheelchair basketball team or a track athlete; that would be the second one. The third thing is the whole structure. There are 10 million people with a disability in the UK, you are looking at 15% of the population who have some form of disability, why is sport not a major opportunity for most of those, and that is around the opportunity and infrastructure.

  Q218  Mr Hall: Lord Moynihan, congratulations on being appointed Chairman of the British Olympic Association. I listened to your statement on the radio and if I recall your words you said one of the challenges would be to move ourselves from being tenth in the medal place to fourth. If I have worked this out correctly, that means that we have to field more athletes if we are going to compete in the 700 sports which are available, an extra 429 athletes will have to be found if we are going to reach the goal of fielding 700 Olympians. Have you worked out how much it is going to cost to get us to fourth in the medal table?

  Lord Moynihan: Again, thank you for your kind opening words. The answer to your question is we are in the process of finalising the budget and, it may be helpful to the Committee if I run through that process, where we are at the present time and the timing of our budgetary process. The Olympic Board have requested the British Olympic Association to take a presentation on a costed programme to support Team 2012 to the December Board meeting, which is scheduled for 15 December. That paper entitled Clearing the Bar will be finished in advance of that date in order to have the support of the Executive Committee of the British Olympic Association which will meet on 7 December. To get from where we are now to there, we need firstly to sit down with all the governing bodies, the Olympic summer governing bodies, to assess their requirements. When I say "assess their requirements" I am talking about the staffing, the coaching—the coaches are the centres of excellence—the management, the administration, the medical, the scientific support behind that, the international training in competition, the athletes' personal awards, UK high performance centre usage, in other words the comprehensive package that is required in order to support the team in 2012. Yes, we will need to move significantly forward from the 270 athletes that we fielded in Athens to, as you rightly point out, a figure closer to 700. In fact, it will be above 700 in our current calculations, 720. It is not quantity that matters, it is quality that matters, so those athletes would need to qualify in order to participate in the Games in 2012. To reach the figure that we will need to conclude our work in the next four weeks and, we will continue to work very closely indeed with UK Sport. UK Sport has been very active in working with the British Olympic Association, going round to see the governing bodies, using a performance-based model which has been a very constructive and critical model in the context of working out the funding requirements. I think it is best summarised as work in progress. We are about three-quarters of the way through the discussions with the governing bodies; we have more to complete. Clearly within each governing body, Olympic governing body, there is an elite performance cell. That elite performance cell has a performance director associated with it and the performance director is critical to this process, as are the coaches. It is essential as far as the British Olympic Association is concerned that when Clearing the Bar is presented to the Olympic Board and subsequently presented to Government that it is agreed by all the summer Olympic governing bodies. There will be no point in coming to a figure that says collectively we can achieve fourth place in the Olympic medal table in 2012, if suddenly hockey or athletics, for the sake of argument, woke up the following morning and said "Hang on a second, we are not going to be able to contribute in the way you would like us to do on that budget". It would need to be robust, it would need to be capable of detailed analysis by this Committee and other committees in Parliament. It requires a significant amount of work which is underway at the moment. I emphasise that it is being undertaken in partnership with UK Sport, that is right and proper as they have significant expertise which has been very helpful to us in this process. We are on target to complete that work, Chairman, and we intend to make sure that it is presented on time. It is a budget, as I say, that must be robust and bought into by the Olympic governing bodies which ultimately will be responsible for performance on the day. The final point I would make in answer to your question, Mike, is that consistent funding is essential. We cannot have the situation whereby a governing body receives funding one year and maybe gets what they are expecting in year two but then loses out in funding in year three. If we are going to compete to come fourth, and we believe that is a realistic target to achieve, it is a tough stretch but it is realistic—it should be a tough stretch but it must be realistic—then we need consistent funding over the next six years. That is absolutely essential. If we are going to contract with the best coaches in the world, if we are going to provide the best sport facilities, that base line budget must be agreed and the governing bodies must be confident that there will not be a move away from that base line budget in recruiting the staff necessary to move from tenth to fourth in the medal table. That is the current position. We are working hard both within the BOA as well as with UK Sport and with outside experts to make sure that model is robust and that Clearing the Bar will achieve not only what it says but be widely accepted by your Committee and the sporting world in this country.

  Q219  Mr Hall: You do not receive any Government funding nor commercial funding, licence fees, various other means of income. There is going to be clearly a substantial increase in expenditure on getting our Olympic team ready for 2012. Are you expecting DCMS to come up with that money or are you expecting the Lottery to come up with the money or are you expecting these income sources to come from elsewhere? Have you looked at trying to engage in more sponsorship on the back of the Olympic bid?

  Lord Moynihan: I described the funding that is required in Clearing the Bar as base line funding. It is expected that that baseline funding will be a combination of Lottery funding and Treasury funding. However, it is critically important that we continue to access sponsorship opportunities within the constraints of the agreement that the BOA has reached with LOCOG. It is important that we make sure that the governing bodies maximise the funding they can generate both from private sources and from sponsorship, again within the very clear constraints that the Mayor outlined just now in terms of the contract. Clearing the Bar has the baseline figure which is expected to come from Lottery funding and Treasury funding, it is clearly a matter for Government to determine the allocation of those resources. That is one of the reasons why it is so important for us to work in close collaboration both with UK Sport and the DCMS, which we are doing.


 
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