Horseracing and Bloodstock Industries

Baroness Twycross Excerpts

Monday 29th July 2024 Lords Chamber

[Lord Herbert of South Downs]

To ask His Majesty’s Government what steps they are taking to support the horseracing and bloodstock industries.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

The noble Lord has been a tireless champion for horseracing, which forms such a key part of our national sporting story. I am sure he is looking forward to the start of the Glorious Goodwood festival tomorrow and, like me, will have been thrilled to see Team GB’s first gold medal of the Paris Olympics in eventing this lunchtime. The Government recognise the significant contribution that racing makes to British culture and its particular importance to the British economy.

[Lord Herbert of South Downs (Con)]

My Lords, I welcome the Minister to her place. She may have anticipated my sporting plans for later this week. Racing is the country’s second biggest spectator sport; it is worth over £4 billion a year to the economy, and it contributes to the Exchequer, employing tens of thousands of people. Yet it is not a sport that is in as good a financial state as it should be. The reason is that it receives a far lower share of betting turnover than in any of our peer group countries. As a result, prize money is far lower than in other countries, which poses a threat to the UK’s racing industry, which is a world centre of excellence.

I encourage the Government not to repeat the mistakes made, regrettably, by the previous Government and to look again at the clumsily introduced affordability checks, which have cost the racing industry some £50 million a year in lost revenue. Also, will they return to the table with the betting industry and the racing industry to secure an increase in the levy, which is long overdue, and look at its reform, making it index-linked for the future? None of that would cost the Exchequer a penny, but it would be of immense importance to the industry.

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[Baroness Twycross (Lab)]

The Government entirely recognise the importance of the horseracing industry but also of the horserace betting levy to the industry and to the financial sustainability of the sport, which, as the noble Lord rightly states, contributes a considerable amount to the economy. I would be very happy to meet him to discuss the topic further and understand his views on the issue.

[Lord Addington (LD)]

My Lords, could the Government go a little further when it comes to things such as the levy, when remembering that the vast majority of people who work in racing are doing so on something like the living wage? They are undertaking an activity that is often physically dangerous. A half-tonne of fight-or-flight response animal can take a fairly heavy toll on the human body in many circumstances. Can the Government make sure that they look at something so that this workforce is properly protected and supported?

[Baroness Twycross (Lab)]

The Government are committed to making sure that the sector is sustainable, but I would be interested in discussing further with the noble Lord the issues that he raises. We are committed to making sure that the levy is administered efficiently to best support racing. It is too soon for me to commit to the shape of future policy.

[Baroness Harding of Winscombe (Con)]

My Lords, I remind the House of my entries in the register of interests—specifically, my role as senior steward of the Jockey Club—and welcome the Minister to her place. If someone in the UK places a bet on racing overseas—in Ireland, for example—Irish racing benefits. If someone in Ireland places a bet on UK racing, Ireland benefits. Does the Minister think that is unfair? If she does, as I do, will she commit to extending the horseracing levy to bets placed in the UK on international racing and, in doing so, level the competitiveness between British and international jurisdictions?

[Baroness Twycross (Lab)]

I thank the noble Baroness for her welcome. As she will be aware, the previous Government undertook a review that concluded in April. It is too soon for us to comment on the process or what might emerge from that, but we are keen to work with all parties and explore all the evidence before setting out next steps.

[Lord Bellingham (Con)]

My Lords, further to the two questions just asked by my noble friends, will the Minister reflect on the point regarding Ireland? The discrepancy in the prize money between the UK and Ireland has become very severe, with the result that a number of UK owners are now locating their horses in Ireland. What can be done specifically to address that problem?

[Baroness Twycross (Lab)]

I am aware of the difference between how different countries administer this. As I mentioned in my response to the noble Baroness, Lady Harding, the previous Government undertook a review that concluded only in April. It is too soon for us to comment on that process, but I am very keen to work with all parties and explore all the evidence before setting out next steps.

[Baroness Neville-Rolfe (Con)]

It is good to see a fair degree of agreement across the House that horseracing is very important. There are 4.8 million racegoers, and there is support right across the country, including from Her Majesty Queen Camilla and Lady Starmer. Does the Minister accept that the sport is disadvantaged? The competitiveness issue has been raised relative to France and Ireland on prize money, but it is also relative to Ireland in support for its bloodstock industry. How do the Government plan to remedy the situation, and is it possible for us to have a timetable?

[Baroness Twycross (Lab)]

As I have said to other questions from noble Lords, the previous Government undertook a review that concluded only in April. I am committed to working with noble Lords across the House to make sure that we get the right arrangements for the industry and the levy is administered efficiently to best support racing. It is too soon, however, for me to commit to the shape of future policy.

[Lord Soames of Fletching (Con)]

My Lords, I declare my interest as in the register. While we all want to tackle problem gambling, very wealthy punters who can comfortably sustain large losses really are not the issue. However, by driving them to the black market with poorly targeted affordability checks, the finances of racing have, as the Minister has heard, gravely damaged both a major national sport and an important rural industry. Will she make sure that any regulatory action proposed by the Gambling Commission is sensible and proportionate and, above all, avoids unintentional consequences?

[Baroness Twycross (Lab)]

Most people gamble without issue, but we recognise the huge impact that harmful gambling can have on individuals and their families. As the noble Lord states, however, there is a difference between those who can gamble without issue and those who come to serious harms, both in their lives and those of their families. As stated in the Government’s manifesto, we are absolutely committed to strengthening protections for those at risk. The Gambling Commission’s new survey which came out last week really helps to show the wider picture of gambling behaviour across Great Britain, and we will consider its findings very carefully.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I am mystified again. With all the knowledge on that side, with the former Member for the South Downs and the noble Baroness, Lady Harding, who is—what is she in the Jockey Club?

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[Baroness Twycross (Lab)]

With respect to the previous Government, they undertook a review of the levy, but it concluded only in April. If noble Lords bear with me, I will return to the matter as soon as is practical using a very evidence-based approach to make sure that we get the right arrangements in place for this important sector.

[Lord Trefgarne (Con)]

My Lords, following our departure from the European Union, the transportation of racehorses around Europe became much more difficult. What steps can be taken to assist that procedure?

[Baroness Twycross (Lab)]

Shall I just say yes? My understanding was that there were arrangements in place to facilitate the movement of racehorses around Europe. I will double check the facts on that and write to the noble Lord.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, considering the issues that have been raised today, would my noble friend—whom I welcome to the Front Bench—consider meeting her ministerial equivalent in the Irish Government? Would she also encourage the British Horseracing Authority and the Irish Horseracing Regulatory Board—which is all-Ireland—to meet to discuss the various industries? In my own area, we have a racecourse, and it is vital to the local economy and the tourism industry.

[Baroness Twycross (Lab)]

I would be delighted to meet my equivalent in the Irish Government, and I thank the noble Baroness for her question.

Global IT Outage

Baroness Twycross Excerpts

Thursday 25th July 2024 Lords Chamber

[Lord Harris of Haringey (Lab)]

My Lords, in begging leave to ask the Question standing in my name, I refer to my interests as an adviser to Performanta and as chair of the National Preparedness Commission.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

The CrowdStrike software update caused an IT outage affecting millions of devices around the world. In the UK, while government emergency and security systems remained operational, our retail, transport and healthcare sectors were disrupted. I have huge sympathy for all those affected. COBRA officials’ meetings were convened and officials from across government and the devolved Administrations met throughout to monitor impacts and recovery and to update Ministers as appropriate. UK sectors have now returned to normal operations, and the Cabinet Office will work with partners to review the lessons learned.

[Lord Harris of Haringey (Lab)]

My Lords, I am grateful to my noble friend for that reply. It highlights the vulnerability of all the systems on which the public and the private sectors rely, and how much they depend on the software and so on. Software manufacture is largely unregulated. Can the Government look at how they can strengthen the requirements for software providers to ensure the safety and security of what they supply to the public and private sectors? At the same time, will the Government remind all operators that they should plan for failure and for when something does not work? What are their back-up arrangements in the event of their software failing?

[Baroness Twycross (Lab)]

I thank my noble friend for that question and for his huge support for me in my previous role as chair of the London Resilience Forum. Although the outage is not assessed to be a security incident or cyberattack, the issues that he raises will be covered in the cybersecurity and resilience Bill included in the King’s Speech. This will strengthen our defences and ensure that more essential digital services than ever before are protected. For example, it will look at expanding the remit of the existing regulation, putting regulators on a stronger footing and increasing the reporting requirements to build a better picture in government of cyber threats.

[Lord Bellingham (Con)]

My Lords, among the companies most adversely affected in this country were airlines. Many thousands of passengers were hugely inconvenienced. How should they be compensated, and should CrowdStrike be held accountable?

[Baroness Twycross (Lab)]

I think we all have huge sympathy for those affected. As the noble Lord rightly says, thousands of people were affected on the day. However, compensation is a matter for the individual operators and subject to consumer rules, which would cover any entitlement to compensation or refunds.

[Lord Clement-Jones (LD)]

My Lords, in the light of recent events, we are clearly talking not just about bad actors. Does the Minister agree that there needs to be a rethink about critical national infrastructure and our dependence on a few overly dominant major tech companies for cloud services and software, which are now effectively essential public utilities? Will the Government reconsider how we are wholesale replacing reliable analogue communications with digital systems without any back-up?

[Baroness Twycross (Lab)]

The noble Lord raises critical issues, a number of which will be covered by the cybersecurity and resilience Bill. I would welcome the opportunity to discuss these issues with him further.

[Baroness Neville-Rolfe (Con)]

I warmly welcome the noble Baroness to her new role and look forward to working with her on the Bill she mentioned. This serious incident affected operations not only in the UK but right around the world. It appears that the system we had set up—co-ordination, monitoring, business continuity and back-up, which we heard about from the noble Lord, Lord Harris—worked well. Does the Minister agree that this area is about defending national assets and is likely to be increasingly important as the cyber and tech threat grows? Should it not therefore be a government priority?

[Baroness Twycross (Lab)]

I thank the noble Baroness for her question and her openness and engagement with me when she was a Minister. Her passion for improving resilience was clear in how she carried out the role. This is definitely a central concern of the incoming Government, which is why we introduced the cybersecurity and resilience Bill in the King’s Speech. I look forward to discussing that further with her and other noble Lords from around the House as it progresses through the legislative process.

[Viscount Stansgate (Lab)]

My Lords, as the Government continue to consider the issues arising from this serious outage, I invite my noble friend the Minister to consider seriously the reports issued by the Joint Committee on the National Security Strategy, of which I have been a member, which deal with issues such as ransomware, against which the software was designed to protect us. These issues will only become more important in the years ahead.

[Baroness Twycross (Lab)]

My noble friend raises similar points to other noble Lords; Members across the House are quite rightly concerned about this. As part of the process of developing and taking the cybersecurity and resilience Bill through this House and the other place, all learning from a range of reviews, including some of the public inquiries that have reported and are yet to report, will be key to improving our country’s resilience.

[Lord Moylan (Con)]

My Lords, I welcome the noble Baroness to her place and will pick up on a point made by the noble Lord, Lord Clement-Jones. The noble Baroness is right to say that millions of devices throughout the country were affected, but they were, as I understand it, all devices using the Microsoft operating system. Is it not the case that the dominance that the Microsoft operating system has achieved in this country, reinforced by cautious corporate IT managers who always recommend it, has potentially become a threat to our security? I hope the Government are able to recommend that the Competition Commission or some other competent authority should look at this, with a view to reducing the dominance of Microsoft and increasing our resilience.

[Baroness Twycross (Lab)]

I thank the noble Lord for his question, which packed a lot in. I agree that the dominance of any particular software company or IT system is a risk to resilience, as government has known for some time. But we need to look at this as a whole and—I do not want to sound like a broken record—this will be covered by the cybersecurity and resilience Bill as it proceeds through the House.

[Lord Scriven (LD)]

My Lords, one of the public services specifically hit was the NHS, so why are systematic back-up systems not in place in the NHS for primary care and pharmacy? Who has been asked to take this forward to ensure that such systems are in place as a matter of urgency for those who are ill?

[Baroness Twycross (Lab)]

All relevant departments will take part in the review, and I will feed back the specific points made to the Cabinet Office and colleagues in the Department of Health. Going back to the previous point about the widespread use of specific software systems, this needs to be taken seriously as we move forward with the proposed legislation.

[Lord West of Spithead (Lab)]

My Lords, one area of weakness is PNT, so how will we ensure that we still have traditional navigational and time signals of the correct type to enable all our systems to work? Will we maintain a task group to work in this area to try to resolve it by next year?

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[Baroness Twycross (Lab)]

I will discuss my noble friend’s point with colleagues and will write back to him as soon as possible.

[Lord Kirkhope of Harrogate (Con)]

My Lords, a member of my family returning to the United States in the last few days has been very inconvenienced by what occurred. I ask the Minister to adequately look at the question of redress in any legislation that we now pursue in relation to data protection generally, and to AI for that matter. It is a vital component of the GDPR. I therefore ask her to look carefully at this and make sure that adequate redress is available across all these matters.

[Baroness Twycross (Lab)]

The Government are reviewing what happened and will implement any lessons learned as a matter of urgency. We appreciate the significant inconvenience caused to those affected, but it is a matter for individual operators. The consumer rules cover specific compensation entitlement. From my view, the essential point arising from the issues caused by CrowdStrike is the need to strengthen our resilience, which is what this Government intend to do.