The Tote
Debate between Laurence Robertson and Ian Swales
Mr Robertson
My hon. Friend is absolutely right that that is the crucial element. If there is one message that I would like the Minister to receive tonight, it is that we have to be certain of the ongoing contribution. We cannot be certain of it if the highest bidder is simply accepted. Under certain circumstances, we would not even be sure that the Tote would continue to exist as an organisation, because bits of it could be sold off. It is only through this process that I have come to understand what is meant by embarrassment clauses. That is how the Government might ensure that once the Tote is sold or transferred to another organisation or company, it will not asset strip it, sell it the next day and make a massive profit, or cause it not to survive as an organisation.
Ian Swales (Redcar) (LD)
Does my hon. Friend agree that almost every country in the world that has a successful racing industry also has a state-owned pool betting system, and that in many cases that is the only form of legal betting?
Mr Robertson
My hon. Friend makes a good point. I do not want the Government to continue to own the Tote—not that they own it yet, but hon. Members know what I mean. I do not think that it is for Governments to own betting shops; that is not what they are there for. My hon. Friend is right that the model I am proposing, whereby racing gets all the benefit from the Tote, is not unusual, but exists in many parts of the world. Perhaps the system here differs because the Tote, if it continued as a foundation, would be competing with many other companies such as Ladbrokes, Coral and William Hill. However, his central point is absolutely right.
I am coming to the end of my speech, or certainly to the end of the time that I wanted to take, but I want to make one further point. In a debate two or three weeks ago initiated by my hon. Friend the Member for West Suffolk (Matthew Hancock), we discussed the future of the horserace betting levy. It was pretty well agreed that the present system is out of date and that it cannot carry on in its present form. It needs to be reformed or to be replaced completely. Racing will have to generate more commercial opportunities to get more money into horse racing, even if the levy continues as it is. If the Tote were transferred or sold to an organisation or foundation that was there purely to finance horse racing, it would be a move in that direction. Allowing the Tote foundation bid to succeed, for example, would be a step towards a solution with regard to the levy, and the two policies would go forward together.
I started by saying that the ownership of the Tote is uncertain, but one thing that is certain is that racing has a right to the money that comes from the Tote. I ask the Minister to ensure that that continues to be the case.