Live sector poised to spurn Whitehall plan: government's refusal to ban touts prompts industry bodies to consider rejecting government initiative.(Live)

The Government's live music ticketing strategy could end up in tatters, with two giants of the industry threatening to pull out of ongoing talks because of a failure to deal with ticket touts and the secondary market.

The bombshell has been dropped by the Concert Promoters Association and National Arenas Association, which are unhappy at the outcome of a touting summit staged last week by the Department of Culture, Media and Sport.

At the DCMS meeting, chaired by Secretary of State for Culture, Media and Sport Tessa Jowell and including delegates from companies such as Ticketmaster, DF Concerts, National Arenas Association, Clear Channel Entertainment, Concert Promoters Association, DF Concerts, Harvey Goldsmith and Mean Fiddler Music Group, Jowell asked agencies to sign up to a four-point plan (see box above).

The principles follow months of talks between the live music sector and Government and the establishment of a ticket touting strategy group at the end of last year.

Although the Government has made clear it will not make touts illegal, it will ask the secondary ticket agencies, such as internet auction sites, to provide better information such as the original price of the ticket, relevant terms and conditions and the seat block or location.

Jowell said, "This summer's pop concerts, sporting events and music festivals risk becoming the preserve of people with bulging wallets. I want to see ticket agencies squeezing ticket touts out of business to protect genuine fans from being frozen out of the market."

However, Rob Ballantine, director of SJM Concerts and a CPA representative, described himself as "very disappointed" with the four-point plan and the Government's inability or refusal to deal with the secondary market, including inviting organisations such as eBay and the recently established Association of Secondary Ticket Agents to the DCMS meeting.