Horse Racing Levy

Charlie Elphicke Excerpts

Thursday 20th January 2011 Commons Chamber

[Matthew Hancock]

Job losses in the racing industry, if it does not have a secure future, would far outweigh job losses that my hon. Friend mentions. What is more, large corporate betting shops are often split up to have two shops below the levy. It was introduced to protect independent bookies, and we would all welcome it if they were to be protected under a future scheme. But protecting small shops that are owned by large corporates was not the intention.

The charter proposes payments for customers in Britain who place bets on overseas racing. That hole costs some £13 million, and the independent members of the levy board say that that should be closed—I hope that the Minister agrees.

What should we do? In the short term, the Government can keep the ecosystem of racing alive by plugging the holes in the levy, by finding this year in favour of racing in the determination of the levy, and by fulfilling their promise to resolve the future of the Tote in a way that recognises its support for racing. But all sides agree that the levy is broken and needs radical reform. The bookies think that the levy is broken, racing thinks it is broken, the Secretary of State thinks that it is broken, and Members on both sides of the House seem to think that it is broken. No one wants the annual spectacle of ministerial decision about the funding of racing, not least because it unnecessarily antagonises relationships, wastes time and money and prevents a proper commercial relationship between racing and betting. Anyone who has witnessed the ugly and inaccurate adverts in past weeks can see the waste of money.

We need a system that leaves racing and betting to their commercial future and ensures that racing’s product is appropriately financed and protected. Some say that the levy should be abolished and nothing put in its place. They are saying that gambling should get something for nothing. Racing is clearly an input into betting, so of course betting should contribute to the costs of putting on a race. Everyone would like something for nothing, but no one would say that it is the basis for a commercial relationship, which is what the bookies say they are looking for. So let us have that commercial relationship. Let us formalise what it is that racing sells. If someone invented a new cancer drug, would someone else be allowed to replicate it without paying them for the research that went into developing the drug? We have all seen the scary warnings at the start of rented films saying that piracy is a crime. If hon. Members made a film, would they let someone else print off copies of it without contributing to the cost? Of course not.

[Charlie Elphicke (Dover) (Con)]

We do not have any racecourses in my constituency, but I have many constituents who like to gamble. If they were listening to my hon. Friend’s powerful argument, they would be deeply distressed that the betting industry does not pay its fair share and agree that it should do so.

[Matthew Hancock]

My hon. Friend is a very wise man.

Racing is no different from other intellectual property. We need a new, fair structure that keeps British racing the best in the world and ensures that those who profit from racing help to pay for racing, so I support a racing right.