§ 2.50 p.m.
§ Lord Renton of Mount Harryasked Her Majesty's Government:
Whether they are planning to introduce substantial changes in the National Lottery, and in the way in which the proceeds are distributed, when the lottery licence is next renewed.
§ Lord McIntosh of HaringeyMy Lords, the next licence to operate the National Lottery will be awarded by the National Lottery Commission and will, other things being equal, go to the bidder likely to raise most money for the good causes. The Invitation to Apply published by the commission includes changes to remove obstacles to competition including possible additional contributions to the good ca uses from profits and the extent to which bidders have transparent remuneration arrangements and the highest standards of corporate governance.
§ Lord Renton of Mount HarryMy Lords, I thank the Minister for that Answer. Can the noble Lord confirm that the licence was awarded to Camelot for the sole reason that it offered to give a higher proportion of the funds to good causes than any of the other bidders, including the consortium which included Richard Branson?
The second half of my question relates to distribution of National Lottery funds. It comes somewhat appropriately after the comments of the noble and learned Lord, Lord Falconer of Thoroton, that £399 million of lottery money went into the Millennium Dome. Is there not an increasing danger that Ministers see the lottery as a new pot of money for them? If they cannot get their project past the Chief Secretary will they not try to dip their fingers into the lottery pool? Does that not go totally against the principle which we as a Conservative government established that the allocation of the lottery money for good causes should go directly to independent expert bodies like the Charities Board and National Heritage? The decision as to where it was then spent would be up to those bodies. Does not that principle have to be revived and maintained if the lottery is to continue to be the success that it has been?
§ Lord McIntosh of HaringeyMy Lords, in response to the noble Lord's first question, for reasons he will understand, the thinking behind the previous government's conclusion in favour of Camelot has not been made available to Ministers of this Government, although I understand that they claim that Camelot produced the best result for the good causes.
In response to the noble Lord's second question, there is a danger of confusion. I think that he is really saying that somehow expenditure on heritage, arts, sport and charities is inherently independent of government sticky fingers (as he puts. it) whereas the New Opportunities Fund is not. I can assure him that the arm's length principles which apply to the original 625 good causes apply equally to the New Opportunities Fund, given the provision in the National Lottery Act 1998 that the Government shall prescribe in broad terms the direction into which moneys from the National Lottery shall be used.
§ Lord Phillips of SudburyMy Lords, none the less, will the Minister assure the House that the present 4.7 per cent going to the good causes bodies will not be diminished?
§ Lord McIntosh of HaringeyMy Lords, the Government have given assurances about the percentages up to and including the end of the present Camelot concession. Decisions about future allocation of lottery funds will be made public in due course and of course will be subject to public consultation.
§ Lord Cocks of HartcliffeMy Lords, is the Minister aware that, having said in a debate in this House in which he also took part that the lottery is basically a tax on the working classes, I was bombarded with literature by Camelot? However, the one thing it would not tell me was how much was contributed by each of the registrar general's socio- economic groups.
§ Lord McIntosh of HaringeyMy Lords, I am not aware of the literature with which my noble friend was bombarded by Camelot. It did not have the courtesy to tell me about it. However, I sympathise with him in his frustration at not getting the information he requires. Perhaps if he receives it he will inform the House of what he has learnt.