Horse Racing Levy
Debate between Lord Foster of Bath and Matt Hancock(13 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Foster
I am grateful to the hon. Gentleman for reminding me of why I raised the point. There has to be clarification. Personally, having studied the various issues in some detail, I do not accept the definition that we just heard from him. Incidentally, even if he is right, which I do not believe he is, it would not threaten the levy as it was already in existence way before the establishment of those rules. There would not be a problem.
Matthew Hancock
My hon. Friend the Member for Shipley (Philip Davies) mentioned the European Commission’s view of the French system, but would it not be better to look at the view of the British system? The levy board does not define the levy as state aid precisely because it is a transfer between two industries. Moreover, a racing right would establish a property right on which our whole constitution is based.
Mr Foster
Since we are getting into this topic, I shall go into a little more detail and omit some other parts of my speech. Having looked at the issue, it is clear to me that levy grants and loans are not paid by the state; by definition, therefore, they are not state aid and they are not provided through state resources. They do not impose a selective advantage; they do not distort or threaten to distort competition; and they do not affect trade between EU member states. On all criteria, this does not amount to state aid.
I hope that we can sort out three things when we come to finding a sustainable future. The first is the offshore issue. I have long argued that we have to do something about that and I was delighted that the hon. Member for Bradford South (Mr Sutcliffe), when he was the excellent Minister with that responsibility, instituted consultation on the issue. I want to see a situation where any firms or organisations regulated offshore—whether they be in the European economic area or are white listed—that want to advertise within the UK must have a secondary licence, which would require them in turn to contribute to the levy and to research, education and treatment for gambling addiction. I hope that we can resolve that issue.
Secondly, we need to resolve the issue of betting exchanges. They cannot be allowed to get away with having no involvement in the levy. As other hon. Members have said, however, I welcome it when some of those organisations make voluntary contributions.
Thirdly—a totally separate issue that is also important—I believe that we need to support our bookmaking industry, particularly the small independent firms that are losing out. I believe that the current charging regime of the Gambling Commission penalises them unfairly. I am worried that the current threshold, which was designed to help them, does not in fact do so, because each individual shop within a large chain reaps the benefit, rather than the small independent bookmakers. The levy board has proposed that we should remove the threshold, but I hope that we will not remove it, but reform it to provide more benefit to the small independent bookmakers.
We need to move forward rapidly, but the deal must be done between the two mutually related independent bodies—the racing industry and the gambling industry.