The Tote
Debate between Lord Watts and Laurence Robertson
Mr Robertson
I certainly do share the hon. Lady’s concerns. I shall come to that issue in a moment, but she makes a very important point.
Mr Dave Watts (St Helens North) (Lab)
Does the hon. Gentleman agree that, if the Government are going to assess any bids for the Tote, they should use only two criteria: first, the retention of jobs in the north-west; and secondly, the contribution to racing? Does he not think that those are the two overriding decisions that should determine who gets the Tote?
Mr Robertson
The hon. Gentleman makes a very good point. I have already mentioned the money going to racing, and the issue of jobs is important not just to the Tote. Many people are employed in racing, and, if it loses the Tote’s contribution, those jobs will be adversely affected, so he is absolutely right.
The Chancellor, in his Budget speech, mentioned the intention of moving the Tote on and changing its status, and more recently the Minister here tonight said that, when that happens, 50% of the proceeds of the sale will be returned to racing. That statement is generally welcome, and from a racing perspective it has to be good news, but it is not enough. There are various questions about that 50% figure. How much would it be worth after pension and debt liabilities have been taken into account? Who in racing would get the money? How much would it amount to? Would that 50% satisfy European Union state aid rules? Those questions need to be answered.
My central point—the most important point, which the hon. Gentleman touched on—is that the money that the Tote puts into racing each and every year is more important than 50% of the proceeds of any sale going to racing. As I have frequently said, that could turn out to be like selling one’s house and living off the proceeds: it is okay to do so for a while, perhaps five years, but at the end of that period the proceeds are all gone and then one is left without an asset. More important than that 50% is therefore the Tote’s year-on-year contribution to racing, and I cannot stress that enough.