HC Deb 12 December 1994 vol 251 c606
16. Mr. Gunnell

To ask the Secretary of State for National Heritage what plans he has to meet the revenue consequences of capital projects funded through the income from the national lottery.

Mr. Dorrell

It will be for applicants for lottery funds to demonstrate that they will be able to secure on-going revenue funding for their capital projects. It is important that projects can show that they are financially viable and that they command wide support. However, in exceptional circumstances, distributing bodies do have the power to give revenue grants to lottery funded capital projects. This will ensure that good projects do not founder for lack of funding.

Mr. Gunnell

The Minister's answer is not quite satisfactory. Many projects will be started as a result of the funds available through the national lottery. When they get going, some will meet consequences that were not foreseen and were not in their business plans. The need for revenue funding will be much greater than the right hon. Gentleman suggested. Should not some lottery money be put into a trust to generate revenue funding? Many organisations working in the national heritage area are already short of revenue.

Mr. Dorrell

We have said that, in exceptional cases, the model which the hon. Gentleman anticipates—a fund-generating revenue to look after the capital asset—can be envisaged. It would not be right for us to create a fund at large to cover the generality of risk in the projects that are being backed because the responsibility for covering that risk and making viable business plans, with an element of flexibility to cover the unknown, rests on the people who sponsor the projects. I would not wish to do anything that would create among them the impression that events that were unforeseeable when the project started would be covered by an emergency fund of the kind anticipated by the hon. Gentleman. That would not be a sensible way forward. The responsibility for managing flexibility within the future life of a project must rest unambiguously on the project's sponsor.

18. Mr. Jenkin

To ask the Secretary of State for National Heritage if it is Government policy to use proceeds from the national lottery to support opera in its London centres as well as in the regions; and if he will make a statement.

Mr. Dorrell

Decisions on the allocation of lottery funds will be entirely for distributing bodies to make, within the framework of the directions issued to them under the National Lottery etc. Act 1993. The Arts Council will make the funding decisions in response to the applications it receives. It has recently issued guidelines for applicants which give details of its funding strategy.

Mr. Jenkin

Does my right hon. Friend agree that our opera centres in London provide extremely good value for money compared with national centres in other major countries? Would it not therefore be worth while to tip the Arts Council the wink and encourage it to push some money in that direction?

Mr. Dorrell

I do not engage in tipping winks. I engage in giving policy guidelines, which I have done.