Horse Racing (Funding)

Debate between Alan Meale and Laurence Robertson

Tuesday 22nd November 2011 Westminster Hall

[Mr Robertson]

I am grateful to the Member for the Cheltenham constituency but not for the racecourse for his intervention. He makes a fair point that needs to be considered. The workings of the Gambling Commission are being looked at, which is a welcome step. That may be a way of tying people in, so that all bookmakers are caught up in the agreement that is eventually reached between racing and bookmakers. I hope that that could be explored.

On the commercial solution, I mentioned media rights. I also mentioned sponsorship, which is rarely discussed, although many bookmakers voluntarily put money into it—not only bookmakers, but many other companies. I am reliably informed by many in racing who are involved to trying to fund the sport that racing does not pursue sponsors and sponsorship as much, as often or as deeply as it could. That certainly needs exploring. It might not necessarily be part of a system or structure, but that money is available. Companies often sponsor more than just one sport: they might sponsor cricket and football and racing. That has to be further looked into.

[Sir Alan Meale]

I agree with much of what the hon. Gentleman has just said, but we still need somehow to extract a price guarantee for the product. I find it difficult to accept that trainers, owners and jockeys will participate in a venture that produces a race for the industry to consume and make money from. Even at the minor level, £1.5 million is bet off-course on every single race, yet we have a scenario, which was referred to earlier, in which the owners and trainers of the race horses do not get enough money, even after winning the race, to provide the diesel and cover the transport costs of getting to the race course. That has to change and we must be given some access to a price guarantee for such people to make it worth doing at all.

[Mr Robertson]

I agree with the co-chairman of the all-party group on that matter. My only point is that the system should be guaranteed commercially and not necessarily underpinned by legislation or by the Government. I agree entirely with his point—I simply do not know how people continue to fund owning racehorses. If they cover their training fee for one month, they have done extremely well. That cannot be done every time—an owner will not win a race each month to cover the training fees, and indeed, they would still be no better off. In this country, the official figure for costs recovered is about 23%, which cannot be sustainable.

My final point on a commercial solution is that race courses, as well as bookmakers, are a big player. I agree with a lot of what has been said by other hon. Members in that there are too many other, bit-part players involved. It might be more polite to say that too many middlemen are involved, which clouds the issue and causes too many problems. Race courses and bookmakers are probably the main players in finding a solution, and we must find that solution. Horse racing is an outstanding sport that gives much pleasure, enjoyment, exercise and discipline to many people each and every day. We must find a way forward to maintain the very high level that horse racing has achieved over many years.

The Tote

Debate between Alan Meale and Laurence Robertson

Tuesday 1st March 2011 Commons Chamber

[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.

[Mr Alan Meale (Mansfield) (Lab)]

May I remind the hon. Gentleman of the contents of early-day motion 1516, which members of the all-party racing and bloodstock industries group tabled? It talks about who represents racing per se, and the answer is organisations such as the Jockey Club and the British Horseracing Board, the owners, trainers, jockeys, stable staff and their representative organisations. They all support the Tote’s foundation, as he has been describing. The Minister knows that the Government have never given a penny to the Tote, never even acted as guarantor to it, but have gleaned millions from it, so should he not at least listen to the people who have actually made a business out of it?

[Mr Robertson]

The hon. Gentleman, the joint chairman of the all-party group, makes an important point, which I was going to come on to but shall dwell on now for a moment. The people who run horse racing are well known for falling out over every issue that there is to fall out over. It is almost a standing joke in the racing industry that they cannot agree on anything, but the hon. Gentleman is absolutely right, because on this issue racing speaks with one voice, and it is crucial that the Government listen to it.

I do not remember racing being as united on any issue as it is on this one. The central point that it is making is that whoever ends up running the Tote in a few months’ time should not only be able to pay this contribution to racing every year but guarantee to do so. In other words, the purpose of the existence of the Tote must be to contribute to horse racing, because that is what it was set up to do. If other bidders are considered—of course, the Government have to follow due process and consider other bidders—would the industry be able to ask for guarantees from those bidders that the Tote would continue to look after horse racing? That would provide some difficulty for those bidders because it would reduce the value of the Tote as a business—I understand that—but how on earth would they be able to give that guarantee? I do not think that they could.

When the Chancellor and the Minister further considered the status of the Tote, they said that they would look after racing’s interests and also look after the interests of the taxpayer. I return to what the hon. Member for Mansfield said. The taxpayer has never put a single penny into the Tote, and so, in my view, the taxpayer does not deserve a return from any sale of the Tote. This is very different from the millions upon millions that the taxpayer used to have to put into the old nationalised state industries. I want to see more fairness for taxpayers, and lower taxes. I am always on the side of the taxpayer; I come to this House to represent them. However, on this occasion they do not need any representing.

[Mr Meale]

While I commend the hon. Gentleman’s words about what contribution is made, I refer back to what my hon. Friend the Member for Wigan (Lisa Nandy) said about the taxpayers of Wigan and the north-west and the contribution that they have made. The fact is that there would be no business whatever were it not for the people who work for the Tote in Wigan, in Lancashire, and up and down the length and breadth of Britain’s high streets where Tote bookmakers operate. These women, in the main, work for the Tote, travel to race courses throughout the UK, and glean the many hundreds of millions of pounds that turn the profit that we are talking about.

[Mr Robertson]

The hon. Gentleman is absolutely right. It is the efforts of the staff, who have contributed so much towards the Tote as an organisation, that have allowed it to contribute so much money to horse racing.