Horserace Betting Right

Lord Collins of Highbury Excerpts

Wednesday 20th April 2016 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I hope that tonight, unlike in recent days, the Minister and I will be able to agree. I, too, thank the noble Viscount, Lord Astor, for initiating this debate. When the House debated the Gambling Bill two years ago, I was pleased to add my name to the noble Viscount’s amendment on the horserace betting levy. The debate reflected genuine cross-party support for the levy and the principles that underpin it. There might have been cross-party support, but there was some dissent within the party, and we have heard that tonight.

Our achievement was followed by consultation processes on extension, reform and the new right. The Chancellor announced in his March 2015 Budget that the Government would,

“support the British racing industry by introducing a new horse race betting right”.—[Official Report, Commons, 18/3/15; col. 776.]

While we have not received what we hoped for, the Opposition welcomed the Government’s announcement last month and the further detail published on 16 March to ensure that all betting operators contribute to racing. Labour has been calling for action for a number of years and I am pleased to see that the Government are finally acting. Despite the potential opposition from the betting industry, we believe that the Government should use this opportunity to consider a wider sport betting right to support the grass roots of sport to ensure that all sports are compensated by gambling for the use of their intellectual property.

What is often overlooked is the work on training, education and employment initiatives that the levy supports. Also overlooked is the broader picture of how the racing industry has a direct link into building sustainable rural economies, as we have heard in tonight’s debate. There are a number of brief points that I would like the Minister to address, particularly on the EU Commission clearance that is required. It is important that the racing industry is properly consulted during the notification process.

I also understand that the Government have commissioned Frontier Economics to undertake an independent analysis of the common interest costs between racing and betting. Does the Minister expect that report to be concluded by the end of this month? While I appreciate that the Government recognise the urgency with which a new funding model for the sport is required, there remains a significant amount of work in order to meet the April 2017 deadline. Like other noble Lords, I would welcome further information on the specifics within the timetable and on what contingencies will be in place should the timetable begin to slip.