British Grand Prix (Hansard, 21 October 2004)

§ Lord Astor of Hever
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as president of the Motorsport Industry Association.
The Question was as follows:
What action Her Majesty's Government intend to take to ensure that the British Grand Prix is secured for the future.

§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)
My Lords, the Government support and desire a British Grand Prix at Silverstone. We understand that commercial negotiations are continuing between the British Racing Drivers' Club and Formula One Management to reach an agreement to secure the British Grand Prix on the 2005 Formula 1 calendar. Discussion on behalf of government about the future of the British Grand Prix at Silverstone continues to be facilitated, where appropriate, by Derek Mapp, chairman of the East Midlands Development Agency.

§ Lord Astor of Hever
My Lords, the ongoing negotiations that the Minister mentioned, taking place rather publicly, are damaging to the reputation of the British motorsport industry, which will be further damaged by the possible loss of 1,000 highly skilled jobs at Jaguar Racing and Cosworth. Is it not now time for Her Majesty's Government to take a more direct role to limit any further damage and demonstrate that this country is committed to and capable of hosting world-class sporting events, such as the British Grand Prix?

§ Lord McIntosh of Haringey
My Lords, I certainly agree that the negotiations have been taking place rather publicly. I have been reading the press coverage for some time and the situation is not very satisfactory. However, despite reports of their death yesterday, they are ongoing. This morning, Sir Jackie Stewart is reported as saying that the fat lady has not sung yet. As to whether the Government should take a more direct role, I hope that the noble Lord, Lord Astor, is not suggesting that we should be a party to commercial negotiations between Formula One Management and the British Racing Drivers' Club. That would not be appropriate or legitimate. We are helping to secure the interest, which he rightly points out, of the importance of motor racing to our economy.

§ Lord Barnett
My Lords, if the noble Lord is asking the Government to put money into the sport, I hope that my noble friend will resist and give an assurance that no such money will be forthcoming.

§ Lord McIntosh of Haringey
My Lords, motor racing is a comparatively rich sport and it would not be appropriate for Sport England to put money directly into motor racing at the expense of grass roots sport, for example.

§ Viscount Falkland
My Lords, although it is sad and rather puzzling that Mr Ecclestone and Mr Mosley have not concluded an agreement for the continuation of the Grand Prix with the BRDC, that, as the Minister said, is a commercial negotiation that he cannot enter into. However, are there not two other matters that must concern us? Those are, first, the amount of public money that has been given to the BRDC, which, I think noble Lords will agree, is being sensibly used to improve access to Silverstone; and the second, as the noble Lord, Lord Astor, said, is engineering excellence, which goes beyond Jaguar and which has developed in and around Silverstone over many years. That is internationally renowned and employs many expert people, but could be in jeopardy if the Grand Prix was removed from Silverstone, even to another part of the United Kingdom.

§ Lord McIntosh of Haringey
My Lords, I acknowledge that money—about £8 million—was given to accelerate the A43 bypass around Silverstone. That money was not given to the British Racing Drivers' Club, it was money for a bypass that is used by local people and for all the other motorsports events that take place at Silverstone. As for the point about the motorsport engineering industry, that is why the Department of Trade and Industry set up a motorsport competitiveness panel and development board and is, as I said, working to secure the continuation of that valuable industry.

§ Lord Laidlaw
My Lords, are the Government aware that Formula One Management has already been paid the enormous sum of 93 million dollars by IPG when it gave up its contract to run the British Grand Prix? In 928 demanding an additional 13.5 million dollars per annum, escalating at a compound 10 per cent per annum, the promoter, Formula One Management, is effectively asking to be paid twice for the same event. Is there any way that the Government can pressure the promoter to be paid once only to run that event?

§ Lord McIntosh of Haringey
My Lords, I understand that the negotiations are very difficult. I do not think that they would he helped if the Government took a position on any of their commercial aspects.

§ Lord Moynihan
My Lords, it is not a good omen for the Government that the clock has stopped on the British Grand Prix. Does the Minister agree with today's Times leader that: It cannot be right that a major sport, on which so many jobs and so much investment depend, be reduced to one man's Circus Maximus"? If so, what will he do about it?

§ Lord McIntosh of Haringey
My Lords, I can only answer as I did to the noble Lord, Lord Laidlaw: it would be neither desirable nor appropriate for this Government to comment on commercial aspects of negotiations to which they are not party.