Appendix: Government Response
I am writing with regard to your Committee's Report,
published on 14 May 2008, following the Committee's inquiry into
the European Commission's White Paper on Sport.
I have read your Report with interest and would like
to compliment you and your Committee colleagues for producing
what is a very useful summary of the key components of a weighty
document, covering a range of complex areas affecting sport.
As your Report states, the Government believes that
the White Paper provides a "valuable platform for exploring
some of the key issues facing sport at the European level".
I was therefore pleased that a number of major sports and sporting
organisations found time to provide evidence to the Committee
on this important development in the field of sport.
I have also sought the views of key stakeholders
since the publication of your Report and those views have helped
the Government formulate its response. Indeed, I believe that
proper consultation and consideration of national stakeholder
views is an important component of the Government's ongoing consideration
of the development of sport in the EU.
It is understandable that some sports have concerns
about how the White Paper proposals and the new competence for
sport, should the Lisbon Treaty be ratified, will progress. There
are clearly a number of challenges for sport in the modern environment,
notably from increased commercialisation, but conversely there
are also a number of opportunities.
Whilst recognising the need to remain vigilant regarding
the development of EU sports programmes, notably the principle
of subsidiarity, I believe that the interrelated issues of the
White Paper and the Lisbon Treaty represent a more positive view
of sport in the EU and reflects the important place sport has
in our society, both at national and European levels.
Your Report provides seven conclusions and recommendations
concerning the White Paper's proposals. I have provided the Government's
response to each of those as follows:
Conclusion/recommendation 1
1. We encourage Sport England and the Central
Council for Physical Recreation to prompt national governing bodies
to assess how they might make use of EU funding programmes targeted
at sectors other than sport. (Paragraph 11)
As the Report rightly summarises, the lack of competence
under existing Treaty provisions prevents the direct funding of
sports programmes, which are consequently progressed by incorporating
sports-related activities into programmes focused on areas such
as health and education. Where there are EU funding opportunities
available, the Government would strongly support governing bodies
making full use of those opportunities, regardless of any additional
direct benefits that may be provided should the new Treaty provisions
be ratified.
The Government therefore supports the Committee's
recommendation and additionally suggests that the sports councils
within the devolved administrations should also be invited to
participate in this exercise to facilitate a UK-wide exchange
of information and best practice. The collection of this information
should prove beneficial for those sporting organisations attempting
to access these EU funding streams in the future.
Conclusion/recommendation 2
2. We strongly welcome the acknowledgement by
the Commission of the essential part played in sport by volunteers,
and we support the proposals in the Action Plan to use programmes
such as Europe for Citizens or Youth in Action to encourage volunteering
in sport, particularly by young people. (Paragraph 13)
The Government agrees with the Committee and the
Commission in this area. As the Explanatory Memorandum states,
the Government "supports the principle of enhancing volunteering,
noting the societal benefits active citizenship offers" and
has been successful in establishing programmes aimed at involving
young people in sports leadership and volunteering, such as Step
into Sport, and to continue this activity into later life.
Sport England has recently launched a new strategy
to deliver a world leading community sport infrastructure to sustain
and increase participation in sport and allow everyone to develop
their sporting talent to the full. With annual investment of around
£250 million the new strategy will be delivered primarily
through the national governing bodies of sport, where the focus
will be on more and better qualified coaches, more modern sports
clubs and increased support for volunteers.
The Government will continue to support this important
sphere of activity both at a national level and through suitable
supplementary EU programmes. Indeed, the UK plays an active role
on the EU Working Group considering issues of interest to non-profit
sports organisations and looks forward to further exploration
of matters related to this area through that forum.
Conclusion/recommendation 3
3. We do believe that sport has distinctive characteristics
which need to be taken into account in the application of EU law.
The simplest way to achieve this would be to draw up a specific
exemption from the application of EU law. In the absence of this,
we believe that the White Paper should at least have provided
a stronger statement, based upon principles set out in the supporting
Working Document, on which types of general activity would and
would not be likely to be seen by the European Court of Justice
as being compliant with the Treaty. (Paragraph 28)
The Government agrees with the Committee's view that
sport has distinctive characteristics which need to be taken into
account in the application of EU law.
As the Committee's Report rightly points out, many
sports stakeholders have been disappointed by the absence of a
more definitive statement on specificity within the White Paper
and continue to argue that their ability to govern sport in an
effective manner is hampered by a lack of clarity around the relationship
between EU law and sport.
The Government has been clear that it will not support
block exemptions from EU law for sport. This would not be an appropriate
or proportionate response to the challenges facing the sector.
It is essential that sport continues to operate within the existing
legal framework, but that it does so with the confidence that
the Commission and the European Court of Justice fully recognise
and respect the autonomy and specificity of sport.
Requests from sporting organisations for more clarity
(rather than exemption) in this area are therefore understandable
and the Government recognises that uncertainty could potentially
have negative consequences for the development of sport in this
country. The Government therefore intends to continue to explore
this matter with interested parties and to press the Commission
to put in place effective mechanisms to "sports-proof"
future policy-making to ensure that its special nature is properly
considered.
The Commission's White Paper provides a useful starting
point, providing a welcome detailed breakdown of the case law
to date and an indication of the kind of sporting rules that are
likely to be found compatible with EU law. This provides valuable
clarification and guidance to sporting organisations, and an informative
platform from which to consider and explore these issues.
The Government also welcomes the Commission's on-going
commitment to dialogue and its constructive response in those
areas where sport has identified specific areas of concern, as
it has recently done surrounding home-grown players. For its part,
the Government will continue to work closely with interested parties
to identify areas requiring further clarification and to take
these issues forward, where it is necessary and appropriate to
do so.
Specificity will no doubt form a significant part
of the discussions at future meetings of EU Sports Ministers.
Indeed, there will a joint meeting between Ministers and sports
during the French Presidency, which should provide a useful opportunity
to consider what further practical steps might be taken to deliver
greater clarity in this area.
In addition, the revised Treaty provisions, if ratified,
which provides for a "supporting" competence in the
field of sport, commits the EU to taking into account sport's
special nature and this should give sport a much stronger voice
within the Commission's wider interests.
Conclusion/recommendation 4
4. Intellectual Property rights represent a large
and increasing proportion of the income generated by sport. We
share the view that it is disappointing that the White Paper does
not give greater recognition to this, and we believe that it is
therefore essential that sport has a seat at the table in all
consultations and policy making relating to intellectual property.
(Paragraph 34)
The Government is aware of the importance of intellectual
property rights to sport and that sport derives an increasing
amount of income from the exercise of those rights.
Although the Government notes the Committee's disappointment,
the Government is pleased that the European White Paper acknowledged
that the growth of the economic value of sport is linked to intellectual
property rights. It also welcomes the White Paper's commitment
to develop a statistical method for measuring the economic impact
of sport. We believe that the statistical methodology, to be meaningful,
must include consideration of the value of intellectual property
rights to sport. The Government is also encouraged by the European
Commission's development of the Sport Satellite Account and the
fact that the statistical mechanism for that Account will cover
some intellectual property rights.
The Government has regular contact with representatives
from sporting organisations to discuss the development and implementation
of intellectual property policy which impacts upon sport. In addition,
the UK Intellectual Property Office has recently initiated twice
yearly meetings with representatives from a wide range of sporting
groups to discuss the intellectual property challenges faced by
sport.
Conclusion/recommendation 5
5. We believe that governing bodies should be
free to decide whether or not to introduce quotas for locally-trained
players, and we regret that the White Paper, while making encouraging
and welcome sounds about the compatibility with EU law of quotas
for home trained players, did not propose action to ensure the
desired certainty, leaving only a precarious authority under ECJ
case law. (Paragraph 42)
The Committee's Report highlights the on-going concerns
of governing bodies around the development of domestic talent,
and the extent to which they are able to regulate effectively
in this area. Indeed, the issue of home-grown and locally-trained
players encapsulates the wider debate around the recognition of
the specificity of sport in the EU.
The Commission has recently provided a very useful
commentary on the application of FIFA and UEFA proposals to EU
law. However, it is clear from discussions with stakeholders that,
due to the diverse structures and competitions associated with
each sport, a "one size fits all" approach is unlikely
to provide a workable solution to this issue.
The Government has been clear that the introduction
of quotas must be a decision for national governing bodies, in
conjunction with their stakeholders, supporting the application
of autonomy and subsidiarity principles. However, the Government
will not support the introduction of regulations which breach
EU rules on free movement.
The Government will, however, continue to work closely
with governing bodies and the Commission to find practical and
effective solutions. This is an area where the Commission has
the scope to add real value, providing clarity in an area identified
by sport as one of significant concern.
It is also crucial that the on-going debate around
the future success of national teams focuses not just on the provision
of opportunity, but on development and coaching more widely. In
this regard, the Government welcomes The FA's recently published
National Game Strategy, which sets out a clear vision for the
game's grass roots through to 2012.
The FA's Strategy includes an important focus on
how we can better develop players from the grassroots, setting
out a commitment to support every player to achieve his or her
potential and developing techniques and embedding basic skills
within the 5-11 age group. This Strategy will be complemented
by the creation of The FA's Youth Management Group which will
oversee the development of players within Academies and Centres
of Excellence.
The Government very much welcomes these developments.
It is, after all, important that we recognise and encourage advances
in training and, whilst recognising the positive impact of foreign
players on our sporting competitions, that we also rightly acknowledge
the importance of producing players for our national teams and
of ensuring that proportionate measures are actively considered
in order to protect that significant aspect of our national sporting
heritage.
To that end, the Government encourages all sports
to properly consider and explore appropriate measures that can
best deliver that outcome. That is the challenge for sport.
For its part, the Government will support suitable measures that
achieve that position.
Conclusions/recommendations 6 and 7
6. The Government should hold the Commissioner
to his assurances that the White Paper proposes neither regulation,
harmonisation nor integration, and we believe that it is essential
that national governing bodies of sport continue to have the freedom
to decide for themselves how their sports should be run. (Paragraph
46)
7. If the EU is to have a role in sport, it should
be to identify possibilities for fruitful action by Member States,
to be taken at their discretion. The limitations of the role should
be acknowledged openly by Member States and EU institutions alike,
as a guard against any sign of creeping regulation by EU institutions
in the future. (Paragraph 47)
The Government has been clear that the White Paper's
proposals should be compatible with the requirements of subsidiarity;
a position which is fully respected by the Commission. The Committee's
support of the Government's statement in the Explanatory Memorandum
that "activity in this area must be underpinned by a clear
commitment to the autonomy of sport and to where it adds value
to existing national policy" is therefore welcomed. The Government
intends to continue to promote this approach and advance work
in this area accordingly. It is not for national governments or
the Commission to regulate or govern sport.
I would like to thank the Committee for its valuable
input into the discussion surrounding the development of sport
in the EU and I hope that you will find the Government's response
to the Committee's Report, notably the seven conclusions and recommendations,
helpful in that regard.
16 July 2008
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