Clause 5 - Pre-sale issue of shares, &c. to government Mr. Paice: I beg to move amendment No. 2, in
Horserace Betting and Olympic Lottery Bill
11:00 am
Mr Richard Caborn (Minister of State (Sport and Tourism), Department for Culture, Media & Sport; Sheffield Central, Labour)
The transfer of the board and the assets is a simple transfer of assets. In the sale of the Tote, we are dealing with the sale of a company to a new owner. They are different, as I am sure the hon. Gentleman will acknowledge.
Amendments Nos. 2 and 3 would ensure that the Secretary of State could not sell the Tote to anyone other than a racing trust or a similar body. Therefore, as the Minister, I cannot accept them, because that would tie the Government's hands.
As the Secretary of State and I have said on behalf of the Government on a number of occasions, we want to sell the Tote to a racing trust, but as I made clear on Second Reading, the Government have kept the other sale options open. We believe that that is right. We do not specify in the Bill the details of the purchaser, or the type of purchaser, because, if we did, in some unforeseen circumstances we would have to come back to the House of Commons for permission to sell the Tote in a different way. No one can give us a complete guarantee that racing will be in a position to buy it. There could be all sorts of reasons why not, none of which may be financial. In view of the assurances that we have given about an independent valuation, about what is already happening between the shadow trust and the Treasury and about the discussions that are taking place, it would be intolerable if the purchaser—a racing trust or similar body—were to restrict the Government's flexibility in the negotiations. The Government would then have Hobson's choice, because they would be limited by the amendments.
A more important point relates to the industry. As the hon. Member for Bath said, it is not just a sport; it is an industry, and many livelihoods depend on it.
Indeed, we have seen what has happened in recent months and years with the OFT and the like. I hope that the industry can come together in a racing trust and show unity of purpose on behalf of the sport and the industry, so that we can sell with confidence to a trust. That is our intention, but, as a Government, it would be irresponsible to tie ourselves down to the wording of the amendment in the Bill, because we would not be acting in the best interests of taxpayers and the country.
For those reasons I reject the amendments. As I said, we are not talking necessarily about financial issues, but about the possible inability of the sport and the industry to come together to develop a unity of purpose to create a trust. We need to be assured that we can put that trust into their hands.