Impact Assessment (IA)



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Title:

Impact Assessment (IA)

Regulations about advertising activity and trading in open public places during the Olympic and Paralympic Games 2012

IA No: DCMS011

Date: 26/01/2010

Lead department or agency:

Stage: Consultation

DCMS

Source of intervention: Domestic

Other departments or agencies:

Type of measure: Secondary legislation

Contact for enquiries: Helen Anderson


Summary: Intervention and Options

What is the problem under consideration? Why is government intervention necessary?

High profile events attract companies who want to associate themselves with the event or promote their products to the masses of people attending or watching the event on television. The Olympic and Paralympic Games are sponsored by companies who pay for that association right and therefore it is a requirement of the International Olympic Committee (IOC) that the Government put in place legislation to prevent other businesses promoting themselves within the proximity of Games venues without permission. Moreover we want to ensure spectators can get to events easily and that they enjoy their experience of a London Games. The London Olympic Games and Paralympic Games Act 2006 set out the broad framework for advertising and trading regulations. The detail of these have now been developed and is available for scrutiny.

What are the policy objectives and the intended effects?

The policy objectives are to:

  • To ensure all Olympic and Paralympic events have a consistent celebratory look and feel to them;

  • To prevent ambush marketing within the vicinity of venues1; and

  • To ensure people can easily access the venues.


1 Ambush marketing describes activities undertaken by businesses not sponsoring an event which nevertheless suggest they or their products are associated with the event or which seek to exploit the interest in the event by exposing their brands to spectators at the event and/or watching the event on TV around the world.


What policy options have been considered? Please justify preferred option (further details in Evidence Base)







Option 1: Do nothing and rely on existing legislation. Option 2: Do what is proportionate and limit the scope of the restrictions. Option 3: Gold plate our requirements to cover wide spaces for long periods.

Our preferred option is 2, to produce regulations which build on existing law to achieve our aims and to be reasonable and proportionate in line with the Host City Contract and commitments made in Parliament. We are consulting on our regulations to seek wider views on this approach
When will the policy be reviewed to establish its impact and the extent to which the policy objectives have been achieved?

It be reviewed 05/2011

Are there arrangements in place that will allow a systematic collection of monitoring information for future policy review?

Yes




I have read the Impact Assessment and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options.




Signed bythe responsible Minister: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date:
. . . . . . . . . . . . . . . . . . . . . .


Regulations on Advertising Activity and Trading around London 2012

Summary: Analysis and Evidence

Policy Option 1

Description:







Price Base Year

PV Base Year 2010

Time Period Years 1

Net Benefit (Present Value (PV)) (£k)

Low: Optional

High: Optional

Best Estimate:




COSTS (£k)

Total Transition (Constant Price) Years

Average Annual (excl. Transition) (Constant Price)

Total Cost (Present Value)

Low

£99.79




Optional

£92.8047

High

£332.65

Optional

£309.3645

Best Estimate

£216.23




£201.0939

Description and scale of key monetised costs by ‘main affected groups’ Traders prohibited by the regulations will be those who trade in open public places, who are not exempt or authorised. Loss of revenue has been estimated using earnings data (Annual Survey of Hourly Earnings) and turnover of business (National Associate of British Markets Authorities) data. For advertisers we can estimate the total revenue of sites within the area and the potential for losses. Restrictions will apply to different places for different periods, the longest period being 35 days, the shortest being one day.

Other key non-monetised costs by ‘main affected groups’

BENEFITS (£k)

Total Transition (Constant Price) Years

Average Annual (excl. Transition) (Constant Price)

Total Benefit (Present Value)

Low

Optional




Optional

Optional

High

Optional

Optional

Optional

Best Estimate










Description and scale of key monetised benefits by ‘main affected groups’

Other key non-monetised benefits by ‘main affected groups’ Putting in place reasonable restrictions on advertising and street trading will prevent us from failing to meet commitments given to the IOC (which could have financial consequences). Authorised street traders will be able to trade and should make significant revenue during a time of heightened visitors. Sellers of advertising space are likely to be able to sell all their space during the Games period.




Enforcement, Implementation and Wider Impacts
What is the geographic coverage of the policy/option?

Great Britain

From what date will the policy be implemented?




Which organisation(s) will enforce the policy?

the police and ODA

What is the annual change in enforcement cost (£k)?




Does enforcement comply with Hampton principles?

Yes

Does implementation go beyond minimum EU requirements?

N/A

What is the CO2 equivalent change in greenhouse gas emissions? (Million tonnes CO2 equivalent)

Traded:

Non-Traded:

Does the proposal have an impact on competition?

Yes

What proportion (%) of Total PV costs/benefits is directly attributable to primary legislation, if applicable?

Costs:

Benefits:

Annual cost (£k) per organisation (excl. Transition) (Constant Price)

Micro

< 20

Small

Medium

Large

Are any of these organisations exempt?

No

No

No

No

No



Specific Impact Tests: Checklist

Set out in the table below where information on any SITs undertaken as part of the analysis of the policy options can be found in the evidence base. For guidance on how to complete each test, double-click on the link for the guidance provided by the relevant department.

Please note this checklist is not intended to list each and every statutory consideration that departments should take into account when deciding which policy option to follow. It is the responsibility of departments to make sure that their duties are complied with.
Does your policy option/proposal have an impact on...?

Impact

Page ref within IA

Statutory equality duties2 Statutory Equality Duties Impact Test guidance

Yes






Economic impacts







Competition Competition Assessment Impact Test guidance

Yes




Small firms Small Firms Impact Test guidance

Yes







Environmental impacts







Greenhouse gas assessment Greenhouse Gas Assesment Impact Test guidance

No




Wider environmental issues Wider Environment Issues Impact Test guidance

No







Social impacts







Health and well-being Health and Well-being Impact Test guidance

No




Human rights Human Rights Impact Test guidance

Yes

Section 10 of the consultation

Justice system Justice Impact Test guidance

Yes




Rural proofing Rural Profing Impact Test guidance

No







Sustainable development

No




Sustainable Development Impact Test guidance








2 Race, disability and gender Impact assessments are statutory requirements for relevant policies. Equality statutory requirements will be expanded 2011, once the Equality Bill comes into force. Statutory equality duties part of the Equality Bill apply to GB only. The Toolkit provides advice on statutory equality duties for public authorities with a remit in Northern Ireland.



Evidence Base (for summary sheets) – Notes

References

Include the links to relevant legislation and publications, such as public impact assessment of earlier stages

(e.g. Consultation, Final, Enactment).
No.

Legislation or publication

1

http://www.statutelaw.gov.uk/content.aspx?activeTextDocId=2321128

2

ODA publication on Advertising and Street Trading June 2009 http://www.london2012.com/publications/advertising-and-street-trading-regulations-detailed-docu.php




Evidence Base

Annual profile of monetised costs and benefits* – (£m) constant prices



Y0

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Transition costs































Annual recurring cost































Total annual costs































Transition benefits































Annual recurring benefits































Total annual benefits






























*For non-monetised benefits please see summary pages and main evidence base section




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