Horse Racing Levy

Andrew Griffiths Excerpts

Thursday 20th January 2011 Commons Chamber

[Mr Sutcliffe]

The hon. Gentleman makes his point, but the gambling industry would say that it already makes a contribution. My Member of Parliament, the hon. Member for Shipley (Philip Davies), is an advocate of what the gambling industry has said about the rights it pays already—television rights, sponsorship and so on.

There has to be an adult relationship and a commercial coming-together. The Tote can help with the way forward. The previous Government made the decision to sell the Tote, and gave a manifesto commitment to give 50% of the money raised from its sale back to racing. I know that defining racing makes that difficult, but it could be a starting point.

[Andrew Griffiths (Burton) (Con)]

The Tote was enacted by a piece of legislation introduced by Winston Churchill. It is true that in their 2001 manifesto the Labour Government made a commitment to giving racing 50% of the proceeds from the sale of the Tote. Does the hon. Gentleman think that waiting nine years and failing to do that had a detrimental effect on the racing industry?

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[Mr Don Foster (Bath) (LD)]

I congratulate the hon. Member for West Suffolk (Matthew Hancock) on securing this really important debate. As we have heard, there are 60 racecourses in the United Kingdom. They provide 20,000 direct jobs and a further 80,000 indirect jobs. They provide about £330 million in tax income to the Exchequer. Racecourses provide a wonderful range of opportunities for events to be held, they are a significant boost to tourism and, of course, provide a product that is critically important to the gambling industry.

For some 50 years, there has been an interdependence between racing on the one hand and the gambling industry on the other. We know that the racing industry provides its share of the bargain by having a rule book, which is largely determined by the gambling industry. There are some 1,500 racing events every year and about 80% of them are dictated by the gambling industry. If that were not the case, who in their right mind would think of holding a race meeting on a cold, wet, winter’s evening if they were reliant only on attendance money to cover the costs? That is its side of the bargain. As we have already heard, to ensure that bets are fair and clean, a huge amount of money is spent on integrity and other such issues.

On the other side, as part of the independence deal, the gambling industry makes a contribution not only through the levy, but by sponsorship and other forms of support, although it is predominantly through the levy and through the increased money paid for television coverage. The levy provides funds to be used for prize money, which is critical—not least, as we have heard, for far-away courses in Scotland and elsewhere—but it also provides money for developments in veterinary science, for jockey training, education and much more.

[Andrew Griffiths]

I am lucky to have Uttoxeter racecourse in my constituency—a magnificent historical racecourse that is home to the west midlands grand national. My hon. Friend will know that when it comes to prize money and fees, we have seen a drop of some 38% across the industry. My own racecourse, however, has seen it drop by 61%, which is having an impact on owners and their ability to take part in the industry. Does he agree that, ultimately, that will lead to the racecourse’s demise unless we do something about it?

[Mr Foster]

I entirely agree, and it is borne out by evidence from the wonderful racecourse in my own constituency of Bath, as it doubtless is by Wincanton, which I was asked to mention by my hon. Friend the Deputy Leader of the House, and indeed by the wonderful course in the constituency of my hon. Friend the Member for Cheltenham (Martin Horwood). That is true because, as we have already heard, since 2003, when the levy brought £110 million into racing, it has fallen to about £65 million. Such a reduction has inevitably had an impact.