Lotteries: Limits on Prize Values

Debate between Colin Clark and Jim Shannon

Tuesday 12th December 2017 Westminster Hall

[Jim Shannon]

I thank the hon. Gentleman for his intervention and that would be the thrust of my argument, as well; indeed, it is possible that many of us in this Chamber share his opinion. But how can we support such causes throughout the whole of the United Kingdom of Great Britain and Northern Ireland?

In my opinion, today the debate should focus on how we can better regulate these society lotteries to ensure that as much as possible of the profit that they make goes to charities and is not swallowed up in administration. The right hon. Member for Witham (Priti Patel) referred to the administrative aspect of charities, and we have to be very cognisant of that issue; we cannot ignore it.

I remember seeing an investigative report on TV about how some charities were run so that only 5% of the money they raised actually went to the cause, and the rest was lost. We are aware of difficulties in the past, and it is important that we ensure that that does not happen again. I remember being horrified by that report and from then on I checked with charities to ensure that the bulk of the money that I donated would go to the actual charity. I am sure there are many parts of the United Kingdom where charitable giving is excellent—I do not doubt that and I will not say anything different—but I know that in Northern Ireland we have some of the highest levels of charitable giving in the whole of the United Kingdom of Great Britain and Northern Ireland; my hon. Friend the Member for Belfast East (Gavin Robinson) can confirm that. We are that sort of people, we are that sort of a nation and we are that sort of a region, and I want to ensure that the bulk of the money that is donated goes to the actual charities.

Nobody expects volunteers in a charity shop to go without heating to keep costs down, but there is something to be said for ensuring good stewardship of money that people have donated. It is up to us to provide legislative protection to ensure that that is the case. There is also a need for charities’ staff to be paid, and they should always be paid a decent wage; that is not what we are trying to change when we talk about cutting administrative costs.

[Colin Clark (Gordon) (Con)]

I am equally concerned about charities’ costs; administrative and advertising costs can be as high as 49% in some of these society lotteries. Obviously Camelot, because of scale, has much lower costs. However, does the hon. Gentleman agree that by increasing turnover, smaller charities would probably decrease their administrative cost per pound, which would increase the percentage of the money that goes to deserving causes?

[Jim Shannon]

There is certainly an argument for that, and I think we are all committed to ensuring that the vast majority of the money that people give goes to the good causes that we wish to see receiving the money. If we can achieve that, I believe we will be on our way.