Oral Answers to Questions — Culture, Media and Sport – in the House of Commons at 2:30 pm on 25 June 2007.
Ben Wallace
Conservative, Lancaster and Wyre
2:30,
25 June 2007
What progress is being made on privatisation of the Tote.
Richard Caborn
Minister of State (Sport), Department for Culture, Media & Sport
The Government are currently at an advanced stage of the discussions on a possible sale of the Tote to a consortium of racing interests and the staff and management of the Tote. The Government hope soon to be able to announce their intentions on how to proceed.
Ben Wallace
Conservative, Lancaster and Wyre
Mr. Speaker, I do not have a registered interest to declare, but I think that it would be courteous to inform you that I may in the future. The privatisation of the Tote has been a long and drawn-out process that goes back many years to 2001. Will the Minister tell us why it is being held up in the Treasury, what he will do about it, and how he will ensure that the Tote is given back to racing?
Richard Caborn
Minister of State (Sport), Department for Culture, Media & Sport
The hon. Gentleman is absolutely right: we have said in two election manifestos that we will sell the Tote into racing. It is not the Treasury that has been the major problem, but Europe. [Interruption.] Perhaps the hon. Gentleman will listen. We were trying to sell the Tote at a fair price, but we were told very clearly that it had to be sold at a market price. We had a lot of wrangling with the European Commission and its competition directorate-general, but eventually we got an agreement and a market price. We had been in discussions with a consortium, but the consortium could not come up with the money in the first round. The Tote's staff and management got involved, and I believe that in the coming period we will come before the House and say how we intend to proceed. It has been a long, drawn-out process, but I can say to the hon. Gentleman that we will put the Tote into racing; we will secure the 600 jobs in the north-west, and about 2,000 jobs around the country; and we will make sure that the Tote's product is there for the punters, who believe that they have a safe bet with the Tote.
Neil Turner
PPS (Rt Hon Ian McCartney, Minister of State), Foreign & Commonwealth Office, PPS (Rt Hon Ian McCartney, Minister of State), Department of Trade and Industry
The Minister will be aware that the Tote headquarters is in the Constituency of Wigan. I pay tribute to him for the work that he has done in maintaining the independence of the Tote throughout the negotiations. Will he continue those negotiations to ensure that independence, so that the jobs are maintained in the constituency and the Tote has the opportunity of expanding so that more jobs can be taken on in the borough of Wigan?
Richard Caborn
Minister of State (Sport), Department for Culture, Media & Sport
I give that assurance. One of the things that has been at the centre of these discussions is to ensure that in bringing the Tote into the marketplace owned by racing we secure the 600 jobs in Wigan. Those staff are absolutely first class, and I know that when the sale goes through the management have plans considerably to expand the influence of the Tote in the United Kingdom and internationally. I wish them luck in that. I hope that we will secure not only those 600 jobs but many more in the north-west as well.
Anne Milton
Shadow Minister (Culture and Tourism)
We are all fed up with waiting. On
Richard Caborn
Minister of State (Sport), Department for Culture, Media & Sport
I am also frustrated, but I do not have a magic wand. When one enters into negotiations, one has to negotiate with a whole series of parties. We have had difficulties with the European Union, as I have admitted, but the parties have come together now. There is an agreement with all the constituent parts of the parties involved in racing. I hope that in the very near future, when that consortium— [ Interruption . ] It is not in the Government's hands but in those of the consortium. It has to raise some money in the marketplace, and as soon as it comes back with that we will make the announcement.
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