Clause 5 - Pre-sale issue of shares, &c. to government Amendment proposed [this day]: No. 33, in clause 5, page 4, line 3, leave out from 'without' to end of line 3 and insert
Horserace Betting and Olympic Lottery Bill
2:30 pm
Mr Richard Caborn (Minister of State (Sport and Tourism), Department for Culture, Media & Sport; Sheffield Central, Labour)
The clause allows shares in the successor company to be issued to the Secretary of State in anticipation of the company's onward sale to the racing trust. It provides the mechanism by which the Tote will be transferred into private ownership. The clause is therefore fundamental to the policy aims of the Bill. Without it, the Secretary of State would have no means by which to sell the Tote. The basic premise of the clause is clear, but it may help if I outline the way in which it will be used.
The expectation is that the Secretary of State will request the successor company to issue securities to her on the appointed day. That will enable her to sell the successor company on to the proposed purchaser—the racing trust—in the way that we intend. The company will be valued, and the racing trust will pay the Government a price reflecting the stake that racing currently has in the whole Tote business.
There is no plan for the Secretary of State to retain shares in the successor company longer than is necessary to facilitate the sale. However, I reiterate that further details on the mechanics of the sale and, in particular, the identity of the purchaser cannot be provided in the Bill. Parliament is asked to support the Bill on that basis, and the clause must be considered against that background.