Horse Racing (Funding)
Debate between Ian Swales and Graham StuartWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Ian Swales
That is absolutely true. My hon. Friend made the point earlier that independent bookmakers do not have the option to move offshore and, typically, they operate from fixed premises.
I support everything that has been said so far, and I welcome the Minister’s statement of 14 July. The suggestion that operators, wherever based, wishing to transact with UK customers would have to pay for a licence makes sense. I congratulate my hon. Friend the Member for Tewkesbury (Mr Robertson) on his hard work on behalf of the racing industry, and I agree that we have to think a bit bigger. It is high time that the levy system was scrapped; the tinkering that he mentioned will not provide a long-term solution. Commercial negotiations over the sale of the product, and a more entrepreneurial attitude from the industry, could have dramatic effects. We have seen what happens in other sports such as football, cricket and even darts when proper negotiations take place.
There is also sponsorship. Newcastle United has just decided, controversially, to rename its ground from St James’s Park, but that will net something like £10 million a year. What opportunities do race courses have in that regard?
Mr Graham Stuart (Beverley and Holderness) (Con)
I represent the most beautiful race course in the world, in Beverley. Does the hon. Gentleman agree that we need Government action to provide a new settlement that will get us over the endless grief caused to the former Minister and, I am sure, to Ministers in this Government? We can get the framework right, giving certainty for the future. We would send out a cross-party message that there will be no further legislative interventions, and then ask the commercial partners—bookmakers and race courses—to sit down together and sort out the differences, rather than looking constantly to us to provide a solution for them.
Ian Swales
I agree. I am not suggesting that the levy should be scrapped overnight, but we should have an eye to the future, beyond a system that will get us to the future.
I ask Members to think about the amounts of money that pour into sports such as football and Formula 1 from TV, and then think about how few hours those sports are shown on television compared with racing. Does racing even know what its product is worth? If people off the courses are generating £1.5 million every half an hour, what are the TV rights really worth?
I welcome the direction that the Minister is taking. I welcome the Tote deal, because it kept a large benefit for racing, although I reiterate the point made by my hon. Friend the Member for Hexham (Guy Opperman), which is that the most successful racing countries in the world typically do not have commercial bookmakers but a Tote-style system. I hope we never get there, but it is possibly a safety net.
It is vital to our communities that we reform the finances, because race courses play a crucial cultural, economic and environmental role. The Government must continue to set the framework for the industry.