Clause 15 — Abolition of levy

Part of Horserace Betting and Olympic Lottery Bill – in the House of Commons at 6:30 pm on 2 February 2004.

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Photo of Richard Caborn Richard Caborn Minister of State (Sport and Tourism), Department for Culture, Media & Sport 6:30, 2 February 2004

I resist amendments Nos. 3 and 4, and I want to give the reasons why.

I preface my remarks by saying that racing is a growing industry. Several figures have been quoted on Report and in Committee: the number of supporters of racing has grown from 5 million to 6 million people, and the profitability of the industry is growing. In addition, there is now a recognition of the need to try to bring order to the governing bodies of the sport. I am pleased about the discussions with the British Horseracing Board and its constituent members to try to make sure that we remove from the sport and the industry some of the disarray and unfortunate infighting that has existed. I remind the House that it was the BHB that requested that the levy be removed, and that it believes that it can do a proper commercial deal within the industry. There is no argument about that, and as far as the industry is concerned, it was one of the founding objectives of the BHB. We are therefore talking about an industry that is growing and that still has tremendous potential, and I hope that the decisions on the Tote will make sure that that element of the industry flourishes, too.

On amendment No. 3, which seeks to ensure that the levy board cannot be closed down until provision is made for a transfer scheme to provide for the transfer of the levy board's assets to the new owners, it is unclear why hon. Members feel that the amendment is necessary. For real, practical reasons, we cannot envisage a scenario in which the levy board would close down, or be close to closing down, if we had not already found a home for its assets. That would be ludicrous, and we cannot find any reasons for doing it.

On the more substantive amendment No. 4, on which most of the debate has centred, as I explained in Committee and again this evening, the levy board should be closed and its assets transferred when my right hon. Friend the Secretary of State is satisfied that the time is right. As many Members on both sides of the House have said, this is enabling legislation.

Again, Members have referred to their concerns about the OFT, and I have made clear my concerns in public statements. I have indicated to the House that my right hon. Friend the Secretary of State has written to the OFT, and there has been an exchange of correspondence, which, unfortunately, cannot be put into the public domain. Nevertheless, we can reassure hon. Members that we have responded to the concerns of the House by saying that any settlement should be for the betterment of the industry. My hon. Friend Mr. Meale spoke about how many people are employed in the industry, and we certainly need to factor that in.

I had a meeting with the industry a few weeks ago. I am optimistic that we are moving towards an acceptable compromise. To try to give the industry some stability, I have already announced an extension of the levy to 2006. However, I cannot accept that there is any benefit in the Secretary of State being required to publish a report on the OFT's inquiry before the levy scheme ends.

The specific point raised by the amendment relates not to the inquiry as a whole but to that part concerning the sale of the BHB's data and media rights. My understanding is that the media rights belong predominantly to the race courses and are not part of the inquiry. The OFT's final ruling will clearly not be the responsibility of the Secretary of State or the Government. It will be a matter for the OFT and the BHB. The Secretary of State will probably not even be party to the information, and it is doubtful that we would have access to enough information to produce a meaningful report, even if we wanted to.

It is safe to assume, I believe, that the ruling is of such importance to the racing industry that there will be no shortage of debate when it comes out. We will take into account all relevant circumstances before the Secretary of State exercises her powers in clauses 15 and 16. Our position is known to the OFT and to the industry. We believe that there is now enough common ground to find a solution to the problem. I say that very genuinely. I can give a reassurance that, although clauses 15 and 16 give powers to the Secretary of State, she has no need to exercise them until she is satisfied that it will be for the betterment of the industry and the sport.