Clause 15 — Abolition of levy

Part of Horserace Betting and Olympic Lottery Bill – in the House of Commons at 6:45 pm on 2 February 2004.

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Photo of James Paice James Paice Shadow Secretary of State (Home Office) 6:45, 2 February 2004

I suggest that the Minister reads his own comments. He specifically said—it will be in Hansard—that the House is instructing the Government to sell the Tote, yet now he says that the Bill does not instruct the Government to abolish the levy but merely enables the Secretary of State to do so. The OFT investigation is not relevant in that context.

To reply to the hon. Member for Mansfield (Mr. Healel) on amendment No. 3, I certainly do not want more proliferation of organisations. We are at one on that, and that is not the intention behind the amendment. The intention—I find it difficult to see why the Minister cannot bring himself to accept this—is simply that the transfer scheme should be part of the order abolishing the levy board. It is a tiny issue, and for him to resist it seems to me to be obstinacy ruling reason.

Several hon. Members have talked about the value of small courses. I represent a large course, one of the two at Newmarket, and I clearly do not envisage that Newmarket is under threat from whatever the OFT may decide, but we must consider the small courses. We are not talking about the closure of one or two courses—nobody could reasonably argue that that would have a devastating effect on the industry as a whole, although it would on the locality—because all the commentators believe that if the rule 14 order stands, it could lead to the closure of tens of courses, if not more, and that would certainly have a catastrophic impact, not least because, as Mr. Heath said, there is a structure of courses. He referred to Desert Orchid, but many horses never make it to the very famous courses but spend all their lives racing on smaller courses. Others start on the smaller courses and progress to the household names. All courses are important in the interdependent structure of racing, and many hon. Members have pointed out that the OFT seems completely to have failed to understand that.

The commercial approach to producing an income stream for racing, through the sale of data and media rights, must be the right one, and there is nothing between the Government and us in that objective, but it is unrealistic for the BHB, the race courses or any other grouping to start commercial negotiations to generate income to replace the levy until they know what the commercial legislative parameters of those negotiations are to be, as laid down by the OFT.

I welcome the Minister's fond beliefs that the negotiations with the OFT and the industry are going well and that a solution will be found. I very much hope that he is right. All I am suggesting through the amendments is that, in the absence of any conclusion to those negotiations, it would be premature to give the Government carte blanche to abolish the levy board. Amendment No. 3 is the barest minimum step away from that, and amendment No. 4 goes a little further in requiring a report from the Secretary of State. I was surprised when the Minister suggested that the outcome of those negotiations would be confidential. I cannot see how they can be confidential if they are to meet the requirement that everybody understands the marketing structure that could be adopted for the sale of data and media rights. Amendment No. 4 would require that a report be made, and that the House consider it and take a final decision.

It is clear that the Minister is determined to press on and to resist what are minor and reasonable amendments. In the light of his resistance, I shall press them to a vote.