London Olympic Games and Paralympic Games (Amendment) Bill

My Lords, this amendment provides for the option of a custodial sentence where organised criminal activity is involved in ticket touting. The Bill already provides for the maximum penalty to be increased from £5,000 to £20,000. I am aware that when an assistant commissioner of the Metropolitan Police service gave evidence last May to the Committee considering this Bill in the other place he said: "““The reason why I think I am here today is to support the proposed increase in the fine for ticket touting from £5,000 to £20,000””." Despite the curious terminology, I assume that he agreed with the increase rather than being told that he was required to support it. On being asked whether the figure should be raised further to £50,000 he said: "““I think it is inappropriate and disproportionate … On the briefing that I have had, moving it to £50,000 brings with it other challenges, because it potentially moves the matter out of the magistrates court and up to the Crown court. There might be challenges around that, and I am satisfied that for the purposes for which I think it is required, the £20,000 fine is sufficient to act as a deterrent””.—[Official Report, Commons, London Olympic Games and Paralympic Games (Amendment) Bill Committee, 17/5/11; cols. 44-53.]" That answer raises the issue of what are the purposes to which the assistant commissioner referred, for which the maximum £20,000 fine is required and whether those purposes cover all relevant purposes that might arise in connection with ticket touting during and around the Olympic and Paralympic Games. Interestingly, the Minister in the other place said, during the Committee stage debate on the £20,000 fine, that the assistant commissioner to whom he had spoken after the evidence session, "““was keen that we should stick to £20,000, given that a higher fine would lead to extra complications””." The Minister went on to say: "““I do not have a doctrinaire position one way or another; this was driven by the operational requirements of the Metropolitan police. That is why we have gone for £20,000””." So we have an assistant commissioner who ““thinks”” that he is appearing before the Committee in the other place to support the proposed increase, and does not want it increased to £50,000 because it potentially moves the matter up to the Crown Court, while the Minister says that the Government have gone for £20,000 because it was, "““driven by the operational requirements of the Metropolitan police””.—[Official Report, Commons, London Olympic Games and Paralympic Games (Amendment) Bill Committee, 19/5/11; col. 67.]" I hope that the Minister will be able to clarify for us why the proposed increase in the fine is to a figure of £20,000, because at the moment there appear to have been different reasons given, depending on who is speaking. The main point of the amendment is to find out whether we are talking about a maximum penalty that is a financial one or whether some of those involved in ticket touting could well face other charges which could result in a custodial sentence. On the face of it, that might appear appropriate, based on statements made by the police and by the Government. In his evidence to the committee in the other place, the assistant commissioner said that, "““There is a significant link between ticket touting, serious organised crime, ticket fraud and counterfeit tickets””." I am not sure for how many offences involving, to use the assistant commissioner’s words, ““serious organised crime”” the maximum penalty that can be imposed is a fine. He went on to say that, as there would be a massive demand for tickets, "““there is a lot of money to be made by those who want to do so. Serious and organised crime are already talking about it””." The assistant commissioner also drew a distinction between the, "““opportunists looking to make a quick buck who will manage to get two or three tickets for themselves””," and that: "““Our bigger worry and what we will certainly see with the Olympics is the organised criminal networks working this””." Yet when it comes to punishment, the only distinction between the two appears to be the size of the fine. That is despite the fact that the assistant commissioner told the Committee in the other place: "““Certainly, the people who are making large amounts of money off the back of events up and down the country … are involved in serious and organised criminality. Some organised criminal networks dabble in a number of things. It is not just touting; they are also involved in counterfeiting wherever they can””." He went on to say: "““There is lots of money to be made by these organised criminal networks. They recognise the demand for tickets … As a result, ticket touts will look to make many, many thousands of pounds on each ticket if they possibly can. There will be a network behind them””." Finally, there are these words from the assistant commissioner: "““I see the major threat from serious and organised criminality, because such people see that they are easily into seven figures and it is money that they will then use for other illegal acts””." It may be that the assistant commissioner thought he was appearing before the Committee in the other place to support the increase in the maximum fine from £5,000 to £20,000, but some might feel that he was rather more effective in supporting an increase in the level of punishment to something rather more substantial than a fine. Note some of the words that the assistant commissioner said of those involved: "““There will be a network behind them … such people see that they are easily into seven figures and it is money that they will then use for other illegal acts””. " There may be a very simple explanation for this, but I am not sure that it has emerged so far. It may be that the fines up to a maximum of £20,000 are largely intended to be used on the opportunists and small-time criminals who are engaged in trying to sell a small number of tickets, acting on their own and not as part of an organised racket. Of course, they can still potentially make a lot of money, as I understand the face value of top tickets for the opening ceremony is just over £2,000. If that is the case, perhaps the Minister could indicate that and say what kind of maximum penalties would apply to the powerful organisers behind the scenes of criminal networks involved in ticket touting.