National Lottery (Hansard, 27 February 1995)

§ 8. Mr. Duncan
To ask the Secretary of State for National Heritage what representations he has received from organisations which wish to relieve the Arts Council of its responsibilities for distributing funds from the national lottery.

§ Mr. Sproat
I have received no such representations.

§ Mr. Duncan
In view of some rather puzzling criticism that has appeared in the newspapers, notably the Evening Standard and The Independent, about the distribution of lottery funds by the Arts Council, will the Minister undertake to consult Lord Cowrie to satisfy himself that the procedures laid down by the Arts Council are set at the highest possible standard?

§ Mr. Sproat
Yes. My hon. Friend has made an important point. I also noticed the article in The Independent, which seemed to suggest that some members of advisory panels on the Arts Council, or their institutions, had been in receipt of funds from the Arts Council. Now that the national lottery is more than doubling—or is at least likely to do so—the amount of money that the Arts Council has to distribute, it is only right that the financial procedures should be absolutely above all suspicion. My hon. Friend will be interested to know that the National Audit Office expects shortly to announce its validation—or otherwise, I suppose—of the Arts Council's suggestions.

§ Ms Hoey
Does the Minister accept that the Arts Council would have more money to distribute from the national lottery if Camelot was not taking such huge profits, which were not taken into account when the regulations governing who should get the contract to start with were drawn up? It is about time that the Minister addressed that problem and forced Camelot to pay back its start-up costs immediately.

§ Mr. Sproat
No, I do not agree. Camelot agreed to bid and accept the franchise on the basis of a return of between 5 and 6 per cent. of the franchise. That was the risk that it took and that percentage is a perfectly fair return. In fact, it was the lowest return offered by any of the companies which bid for the franchise.