Horse Racing (Funding)

Sandra Osborne Excerpts

Tuesday 22nd November 2011 Westminster Hall

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

I congratulate the hon. Member for West Suffolk (Matthew Hancock) on securing this important debate. I have Ayr race course in my constituency and, as the only Scottish Member here today, I think that I can confidently speak on behalf of all Scottish Members with race courses in their constituencies.

I want to start by emphasising to the Minister the significant role that Ayr race course has in the Ayrshire economy. It is important because of local jobs—we have heard about the many people employed throughout the UK in racing in its many forms—and in relation to tourism. Ayrshire is a very beautiful tourist area and the race course contributes greatly to encouraging people to come to the area. Ayr race course is also an innovative and enthusiastic local business, with a strong community focus. It is the leading race course in Scotland, with the Ayr gold cup and the Scottish grand national among its annual fixtures. The race course does not just sit back and wait for funding in the form of a levy or anything else; it has built a business and has greatly diversified over the past few years, outwith race days. For example, it holds popular Christmas parties every year, which are a profitable enterprise. I have watched with great pleasure as Ayr race course has changed from a run-down facility, lacking investment and vitality, to one of our most popular local attractions. That is a credit to the management and the work force, and I wish to put on record my thanks for everything they contribute to our local area. The race course is well supported by local people.

Having said all that, since I have been a Member of the House, I cannot remember a time when levy negotiations have been anything other than a problem. Every year, with monotonous predictability, we can look forward to protracted, unsatisfactory, adversarial negotiations that go to the brink and do not achieve a positive outcome. It has been blindingly obvious for some time that the levy mechanism does not work, is outdated and no longer fit for purpose. I must be frank: despite the best efforts of the then Minister, my hon. Friend the Member for Bradford South (Mr Sutcliffe), who took a very keen interest in this matter and always tried to be helpful, I feel that the previous Government could have done more. They should have grasped the nettle. From the debate so far, it seems that more progress is being made. I hope I am right in saying that and look forward to the Minister confirming it.

I can assure the House that the lack of progress was not due to lack of trying on the part of every Member with a race course in their constituency. We set up Friends of Scottish Racing as a cross-party group, and we try to use every opportunity to highlight areas of concern alongside the UK Parliament’s all-party group on horse racing. It has already been mentioned that the levy is not the only area of concern, but it is of central importance because it undoubtedly puts race courses at serious risk. The fact that funding has reduced so drastically is rendering the sport uneconomic. We are reaching crisis point and something urgently needs to be done. I do not wish to be over-dramatic, and I am very aware that the racing community would prefer a more collaborative approach, with partnership working, but the current system militates against that and it is imperative that a new funding mechanism is found.

As a Scottish MP, I also wish to emphasise the difficulties faced by those in the north in attracting owners prepared to incur the extra costs and travelling time of bringing horses and jockeys further afield. We have already talked about attracting business to race courses, but in Scotland we have a particular problem because of the geography, and it is undermining if prize money does not reflect that effort. As the hon. Member for West Suffolk said, if people’s costs are not covered, they do not feel that it is worth the effort.

[Andrew Griffiths]

Does the hon. Lady share my concern and that of my hon. Friend the Member for West Suffolk (Matthew Hancock) about the fact that the UK has now dropped to 38th in the world rankings for prize money, and that prize money has halved in two years? That is of major concern to the industry and it calls for urgent action.

[Sandra Osborne]

I could not agree more; that is a major issue. Despite the wish to maintain a competitive prize regime for Scottish fixtures, to say nothing of our excellent facilities, the industry in Scotland cannot be sustained indefinitely in the face of massive cuts in income from the levy. The annual payment from betting to racing has fallen from an average of £106 million to £59 million in three years—a drop of almost 50%. One of the most important reasons for the fall in racing’s funding position, as Members have said, is the move offshore by bookmakers and betting exchanges. How can it be right for bookmakers to advertise and transact in the UK but not contribute to the levy or pay taxes? Of 19 listed bookmakers, only two are now onshore, as the hon. Member for West Suffolk said.

I am aware of the Minister’s July announcement in which he proposed to regulate remote gambling on a point-of-consumption basis. That would create a level playing field and it is long overdue. All operators based here or abroad would have to hold a Gambling Commission licence to transact with UK customers. I welcome that and any other idea that would deal with this urgent situation as the hon. Member for West Suffolk implored—as soon as possible.