Clause 7 - National Lottery Distribution Fund: apportionment
National Lottery Bill
12:45 pm
Richard Caborn (Minister of State (Sport), Department for Culture, Media & Sport; Sheffield Central, Labour)
I think that I ought to continue and explain the other amendments, because that will probably answer the points that the hon. Gentleman has raised.
Amendments Nos. 28 and 38 are concerned with the Secretary of State's order-making powers, set out in new section 22(3A) and inserted by clause 14. The two amendments would add to the list of people the Secretary of State must consult before making such orders
''bodies (other than public or local authorities) whose activities are not carried on for profit''.
That is to say; the voluntary and community sector. Amendments Nos. 61, 62 and 63 would require statutory consultation with the sector and the public before directions about English devolved expenditure or financial directions are given under section 36E, inserted by clause 14.
We certainly expect to consult widely with representatives of the voluntary and community sector—and, indeed, with others with an interest, such as local authorities and social enterprises—before making any order. Of course, we are already obliged to comply with the Cabinet Office guidance on consultations and with the requirements of the Compact code of practice, which I referred to earlier. We have shown our good faith in that regard in consulting recently on the interim order for the New Opportunities Fund. Indeed, as I said earlier, we have been accused of creating consultation fatigue. However, we require a degree of flexibility in our approach. There is a statutory requirement to consult the Big Lottery Fund and the devolved Administrations because, unlike representatives of the voluntary and community sector, they are directly affected. Our actions and the safeguards in the Bill provide a compelling assurance that there will be ample opportunity to consider and comment on the Big Lottery Fund orders. I therefore ask the hon. Member for East Devon to withdraw his amendment.
New section 36C, which is inserted by clause 14, gives the Big Lottery Fund new powers to work as an agent distributing money for other public bodes, the Government or private foundations. There are a number of potential advantages of allowing the Big Lottery Fund to distribute non-lottery funds, consisting of both public and private charity money. It could streamline and simplify a range of funding, lead to further developments of specialisms, skills and knowledge, and reduce the costs of distribution and grant management because of economies of scale.
Amendment No. 42 would constrain those new powers so that money could be distributed only to non-governmental, non-profit organisations. It is not a major activity for the fund to distribute non-lottery money to local authorities, but I ask a simple question. Why ban it? We shall not ban local authorities after 11 years from applying for lottery money, so why ban the fund from distributing non-lottery money to them? The fund must have flexibility to get involved where it thinks that it can add value, and the amendment removes that degree of flexibility. With that explanation, I ask the hon. Gentleman to withdraw the amendment.