Introduction
COMMONWEALTH GAMES
1. The Commonwealth Games is one of the largest multi-sport events in the world and has been held every four years since 1930, with a short intermission between 1938 and 1950. It involves elite athletes from around the Commonwealth drawn from the 71 different nations and territories who are members of the Commonwealth Games Federation.
2. The Commonwealth Games is the only multi-sport event in which Scotland competes separately from the United Kingdom and responsibility for organising our participation rests with the Commonwealth Games Council for Scotland ( CGCS). From our debut in the 1930 Games in Hamilton, Canada, where we were represented by 15 athletes, we have taken part and won medals in every Commonwealth Games. At the 2006 Games in Melbourne the Scottish Commonwealth Games team brought home a total of 29 medals, 11 of which were gold.
3. Glasgow is bidding against Abuja in Nigeria to host the Commonwealth Games in 2014. Hosting the Games will provide an opportunity for Scottish athletes to compete in front of a home crowd, to showcase modern Scotland to billions of people, to inspire young people to take up and excel at sport and leave a social and economic legacy that will bring great benefits to Glasgow and Scotland as a whole. The Games will also develop ties between Scotland and the Commonwealth. Glasgow will find out if its bid has been successful on 9 November 2007 when each of the 71 Commonwealth Games Associations will gather in Colombo, Sri Lanka to vote for their favoured city.
4. Should Scotland win its bid to host the 2014 Commonwealth Games, legislation will be required to support the delivery of the Games and to protect them from ambush marketing.
WHY LEGISLATE
5. As part of the bidding process, the Scottish government gave a commitment that, should Glasgow succeed, legislation necessary to prohibit ambush marketing, eliminate street vending and control advertising space during the period of the Games would be in place no later than 30 June 2010. Additional measures will also be needed to ensure the deliverability of the Games. For example, ensuring that a Games Transport Plan is developed and implemented, that land necessary to deliver the Games can be secured and that mechanisms are in place to fund the Organising Committee of the Games.
6. It is not unusual for major sporting events to require specific legislative protection. Such legislation has been or is being introduced in a number of countries, including:
- Australia for the 2000 Sydney Olympic Games and the 2006 Melbourne Commonwealth Games;
- China for the 2008 Beijing Olympic Games;
- New Zealand for the 2011 Rugby World Cup;
- Canada for the 2010 Vancouver Winter Olympic Games;
- South Africa for the 2010 FIFA World Cup; and
- The UK for the 2012 London Olympic & Paralympic Games
SUMMARY OF PROVISIONS
7. The draft Bill will, if enacted:
- Prohibit unauthorised advertising or outdoor trading within the vicinity of Games venues;
- Prohibit the unauthorised sale of Games tickets in excess of face value;
- Create Enforcement Officers empowered to enforce the advertising, street trading and ticket touting offences and make it an offence to obstruct them in their duties;
- Provide Local Authorities with the power to make Games Traffic Regulation Orders;
- Provide Ministers with the powers to direct Local Authorities to make, vary or revoke any instrument which regulates road use in relation to the Transport Plan for the Games;
- Provide Local Authorities with the power to issue a Compulsory Purchase Order for land within their area which they believe is required for Games purposes;
- Provide Ministers with powers to pay grants and provide other forms of assistance to the Organising Committee of the Games and set conditions on such assistance; and
- Provide Ministers with the power to repeal the Act from the statute book once the Games have ended.
AMBUSH MARKETING
8. Major events such as the Commonwealth Games attract large audiences and are therefore attractive to businesses seeking to promote their goods and services. These organisations pay significant sums to the organisers of such events to become official sponsors, thereby securing the right to promote themselves and their goods or services as associated with the event. The sale of sponsorship rights provides a significant revenue stream which reduces the costs of staging the event which would otherwise have to be borne by the public purse. Ensuring sponsor confidence is therefore crucial to financing the Games.
9. One of the biggest risks to sponsors is ambush marketing. Ambush marketing describes the actions of companies or advertisers who seek to capture these benefits for themselves without the authorisation of the event organisers. There are two principal types of ambush marketing. The first involves an advertiser creating an association through misleading the public into thinking that the ambush marketer is an authorised partner or otherwise officially connected with the event. This can be achieved in a number of subtle ways that do not necessarily use the name of the event or its protected symbols. We intend to tackle this through the creation of an association right, similar to the one found in Section 33 of the London Olympic Games & Paralympic Games Act 2006. But, as Intellectual Property is a reserved issue under the Scotland Act 1998, this will need to be delivered by the UK Government through Westminster. Any other legislation required to meet obligations given during the Bid phase which are not within the competence of the Scottish Parliament will also need to be passed by the UK Parliament. The UK Government has given an undertaking to take all necessary measures to ensure that such obligations are met. The second type of ambush marketing involves the creation of association though proximity to or intrusion into venues where the event is being held. This will be controlled through the advertising and street trading offences described below.
10. Both forms of ambush marketing can frustrate an events ability to attract private investment and undermine its revenue base. Many sponsors now insist that protection against such tactics is in place before they commit, therefore major event organisers - including the Commonwealth Games Federation - now impose a requirement on the Host Country to put legislative protection in place.
11. The Town and Country Planning (Scotland) Act 1997, the Trade Marks Act 1994, the Trade Descriptions Act 1968, the Control of Misleading Advertising Regulations 1988 and the common law of "passing off" already provide some protection against these activities. Nonetheless the short-term, high-profile nature of these Games leaves it vulnerable to ambush marketing strategies which could successfully operate within the law. The Bill seeks to fill the gaps in the current legal framework to allow the Games to take place free of ambush marketing and unregulated commercialisation.
OUTLINE OF PROVISIONS
Advertising
12. The draft Bill will make it a criminal offence to advertise within the vicinity of a Games event during the Games period without authorisation. This will be a summary offence punishable by a fine up to a maximum of £20,000. Following consultation with the Organising Committee, Ministers will designate in secondary legislation the areas and periods during which the restrictions will apply.
Outdoor Vending
13. The draft Bill will also make it a criminal offence to trade within the vicinity of a Games event during the Games period without authorisation. Where trade takes place within a building this will be exempt unless that building is a car park. Again this will be a summary offence punishable by a fine up to a maximum of £20,000. Following consultation with the Organising Committee, Ministers will again designate in secondary legislation the areas and periods during which the restrictions will apply.
Ticketing
14. Ticketing will be the first interaction between the public with the Commonwealth Games. As such Ministers are keen to ensure that there will be fair and equal access to tickets for all Games events. Ticket touting could undermine this principle and public confidence in the Games.
15. The draft Bill will make it a criminal offence for an unauthorised person to sell, offer, or expose for sale a ticket for the Games or any associated official event at above face value. The penalty on conviction will be a fine not exceeding level 5 on the standard scale.
Enforcement
16. This Bill will allow the Organising Committee to appoint Enforcement Officers who will be empowered to enforce the Advertising, Outdoor Vending and Ticketing offences outlined above. It is intended that the Enforcement Officers will operate under the aegis of the Organising Committee and are likely to be Local Authority employees. It will be an offence to obstruct Enforcement Officers in the conduct of their duties. This will be prosecuted summarily with the maximum penalty being a fine not exceeding level 3 on the standard scale.
17. The Enforcement Officers will be empowered to:
- Seize offending material (for example flags or T-shirts being sold outside a Games event without authorisation);
- Cover offending material (for example billboards or signs outside a Games event);
- Enter and search any place where they believe an offence is being committed, or is being used in connection with an offence.
Transport
18. The Organising Committee will develop a transport plan for the Games in consultation with the relevant Local Authorities and the Scottish government. Local Authorities will be given the power to make Games Traffic Regulation Orders to create Games Lanes as outlined in the Candidate City File.
19. It is expected that the consultation process will lead to the agreement of the relevant Local Authorities to keep the sections of the Games Route Network that are within their area open and free from obstructions and to institute the necessary Games Traffic Regulation Orders. The draft Bill will, however, provide a reserve power for Scottish Ministers that will allow them to direct a Local Authority to make, vary or revoke any instrument which regulates road use to ensure the functionality of the Games Route Network.
Compulsory Purchase Powers
20. The draft Bill also provides Local Authorities with the power to issue Compulsory Purchase Orders for land which they consider necessary for Games purposes. The power will be subject to the standard procedural requirements for conformation of orders by Scottish Ministers.
Grant Making Powers
21. Provision is also made for Ministers to pay grants and provide other forms of assistance to the Organising Committee of the Games and set such conditions as they see fit. The Organising Committee will be responsible for delivering the Games and ensuring that the commitments given in the Candidate City File are met.
Sunset Clause
22. This Bill is designed to ensure the effective running of the Games, therefore, the provisions contained within it will not be required once those Games have been completed. This section will ensure that the Act expires a reasonable period after Games activity has ended.