New Clause 1 - GUIDANCE TO DISTRIBUTING BODIES

Part of National Lottery Bill – in a Public Bill Committee at 1:00 pm on 3rd November 2005.

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Photo of Richard Caborn Richard Caborn Minister of State (Sport), Department for Culture, Media & Sport 1:00 pm, 3rd November 2005

As always, I shall comply with your sound and perceptive directions, Mr. Gale. As we know, this is what we have had to deal with throughout the Committee. I will now revert to the discussion of new clause 1.

New clause 1 seeks to insert a requirement for the Government to provide legislative guidance to distributors on the extent of their independence from the Government, what constitutes additional funding and how that should be reported. It seeks to ensure that the guidance should be drafted only after further consultation with a number of bodies, including as provided for in the 1998 compact between the Government and the voluntary and community sector. The new clause seeks to ensure that the guidance should be subject to approval by a resolution of both Houses of Parliament.

I think that I understand what is behind the new clause. Lottery money is special and should add to, not substitute for, Government expenditure. That bears out what we know from wide consultation: people see lottery money as public money and as different from money raised through taxation. They see it as money that should be spent on different things—things that taxes cannot fund. That makes it even more important that lottery funds be used effectively, reflect public priorities and enhance spending in key areas, whether the source is the private or public sector.

There was an implication that quite a lot of the investment in sport had gone through local education authorities or local authorities. I do not think that there is anything wrong with that. It does not mean that the investment cannot be additional. Many local authorities are incredibly creative, not only in providing facilities themselves but in getting into key partnerships with the private sector. I want to encourage that. That was borne out by the results of the consultation.