British Racing Commission (Hansard, 24 January 1989)

§ Mr. Alan Meale (Mansfield)

I beg to move, That leave be given to bring in a Bill to establish a single national commission of control for the whole of the horse and dog racing industries, with overall responsibility for the bloodstock, thoroughbred breeding and betting industries, incorporating the control of the financial arrangements, rules and aims of current bodies, their other responsibilities and where applicable, the assets of all publicly funded or publicly supported organisations concerned or connected with these sports. I find it necessary to refer early in my speech to the horse and dog racing sectors as industries, as I believe it is central to both the Bill as proposed and my argument for such a body that recognition is given to the scale of industrial, commercial and financial involvement within these sports, which currently employ well over 100,000 people, involve billions of pounds of public and private assets, handle a current annual turnover of well over £3 billion in betting income and, last but not least, have the daily interest, support and following of millions of punters and racegoers.

I personally cannot claim the credit for arguing the need for such a body, for it has been called for from within all parts of racing for many years. Most notably, the Rothschild commission recommended in the Seventies that immediate steps be taken to establish a British Racing Authority involving all groups with interests in racing. The need for such a body is even more urgent now than it was then, as the lack of action since these recommendations has worsened the situation considerably, with dismay, disenchantment and disillusion being the order of the day among all but a select few groups and individuals in the industries.

Such dissatisfaction has been widely seen in recent times. For example, a public row has taken place between the Horserace Betting Levy Board, a body set up in 1961 by this House following the legislation of off-course betting, and the bookmakers, who cannot agree on the amount of money horse racing should receive from them—or, even worse, for dog racing, whether it should get any levy at all.

Next come the bookmakers' organisations themselves: first the National Association of Bookmakers, the body that represents primarily the small bookmaker both on and off course throughout Britain. It maintains that it is given only secondary consideration in matters of major concern to its predominantly small business members.

Then there is the Betting Office Licensees Association, set up by the big four bookmakers—Coral, William Hill, Ladbrokes and Mecca. This organisation is seen by many in the industry, rightly or wrongly, as at times receiving preferential consideration, against the long-term interests of the industry. In particular, a row continues over what many see as the unjust influence exerted by some members of this group in being allowed to continue to pocket levies from greyhound bets instead of ploughing them back into the sport itself.

There is argument within the industry as to whether a sound financial deal was reached over the Satellite Information Service agreement for the live screening of races off course, in betting shops, and there is disillusionment among owners, who not only have to meet rising costs for the training and care of their horses and

877 dogs but have to put up with extremely low prize money in most races. This is shown by the fact that, in dog racing, the average first prize is only £25, even though betting could amount to hundreds of thousands of pounds off course in betting shops, while in horse racing the vast majority of prize money is won by a tiny minority of owners, making it nearly impossible for them even to recoup their investment. Worse still, they have to pay for the privilege of providing their horse for racing, including entry, transport and veterinary costs.

The breeding industry is in dire need of support. Other nations, particularly Ireland, France, Germany and Italy, do much to help the small breeder. A British racing commission would greatly enhance the possibility of improvements in that area, particularly after 1992, with the single European market. Proof of that can be seen in the way in which Britain's main competitors in thoroughbred breeding in Europe receive distinct advantages over ours, especially on VAT rates. For example. VAT on horses in France is 5.5 per cent., in Germany, 7 per cent,. and in Italy, 9 per cent., while under annex 4F of the EEC directive, Ireland continues to enjoy complete exemption.

I welcome the work of the Horserace Betting Levy Board and the Jockey Club to enhance prize moneys in racing, but the long-term security of the British breeding industry would be better served if it were part of a larger umbrella management, which would have greater strength and be able to deal more directly with all matters, including thoroughbred breeding.

Race courses are causing great unrest within all aspects of the industry. For instance, the ownership of some horse and dog racing tracks and stadiums by bookmaking firms has caused the raising of more than one eyebrow, particularly since arrangements have been made for improvements in Bookmakers Afternoon Greyhound Services and SIS. Just as importantly, there is a growing trepidation in racing over the power of the large bookmakers, particularly Ladbrokes, which now not only owns greyhound stadiums and racecourses in Britian, but holds major portfolios of ownership of race courses abroad.

At home, the state of many of the current 59 horse racing courses have given rise to severe criticism about how the industry is allowed to be run. Many racing experts believe that it is a miracle that there has not yet been a major disaster at one of the 59 registered courses. Many course buildings are nothing more than outdated wooden mission huts, which on race days are severely overcrowded and could be a great danger to those using them.

A recent survey on seven race courses—Windsor, Wolverhampton, Salisbury, Newbury, Folkestone, Kempton Park and Ascot—gave harrowing details of the facilities available for those who work in the industry. With the exception of the Kempton and Ascot facilities, which were considered good, all were considered inadequate. For instance, Windsor was described as cold, crowded and badly designed. The women's hostel slept eight in bunks and the men's hostel was worse, sleeping 16 in bunk beds with only basic facilities. Toilets were visible from the outside, and could be clearly seen from the women's hostel.

At Wolverhampton, the women's hostel is an old detached building in a poor state of repair and decoration. It sleeps 11 with four bunk beds and three single beds with old mattresses. Bathroom facilities are appalling with only

878 one hand basin, one toilet and one shower. It had no curtains, and windows were nailed down. The accommodation was damp, with poor heating. The men's hostel consisted of a large dormitory, adjacent to the canteen, sleeping 28. It had no windows, and old ex-Army style beds with dirty mattresses which showed signs of bed wetting.

At Salisbury, the women's hostel has a public corridor, a dormitory with six single beds, one bathroom and no wardrobes or clothes-hanging facilities. The men's hostel is as bad, with eight rooms containing two or three beds and no privacy from outside. A narrow passageway to the showers is situated next to the women's accommodation.

At Newbury, the women's hostel consists of one room on the first floor adjacent to the stable manager's office. It has six beds in curtained cubicles, with no cupboards or wardrobes, and there is a crude toilet downstairs. The male hostel is worse, with 44 beds, no cupboards and a bathroom with only two showers and four hand basins.

Unless money is directly invested in those race courses, many will have to close. There is no evidence that the present racing management is responding to the needs.

The punters of the industry play little part in the decision-making process, yet they are the people who make possible the continuation of racing, whether in greyhound stadiums, race courses and betting shops or merely for viewing from the armchair at home. No real mechanism exists which guarantees their participation or, for that matter, their protection, which is surprising when one considers the fact that it is their money which enables the industry to flourish. That point was not lost on Anthony Fairbairn, chairman of the Racegoers Club, who recently said: It is the punter who pays the levy not the bookmaker … In addition to betting tax of £300 million he is already paying about £75 million each year in levy to the racecourses he visits. That point was not lost on Robert Fisher of the Punters Association, who has spoken against the sell-off of off-course tote betting shops to the combined forces of the Jockey Club and the Racecourse Association Ltd. He believes that it is an attempt to take over public assests for a peppercorn in order to benefit vested interest. Although hon. Members may have different opinions from those that I have previously promoted, no one can dispute that the representation of punters' views can and should be part of the legitimate decision-making process of management.

Those who work in these industries should be represented in the management structure. Currently, many thousands of people work as jockeys, stable staff, transporter drivers, betting shop and totalisator staff, starting stall attendants, kennel staff, catering staff and others without whom the industries would not be able to operate, who have representation only on the advisory body—the Horseracing Advisory Council—whose work. I greatly commend. Its structure, in part, mirrors a model on which could be built the type of body that I feel is necessary.