Horserace Betting Scheme (Hansard, 16 March 1984)

§ Mr. Brittan

I have today sent the following letter to the chairman of the Horserace Betting Levy Board and the Secretary of the Bookmakers' Committee. A copy of the scheme has been placed in the Library of the House.In your letter to me of 1 November 1983 you reported that the Board has been unable to approve the recommendation of the Bookmakers' Committee for the Scheme to have effect for the 23rd Levy period and that the Scheme accordingly fell to be determined by me. I have now reached my decision and enclose a copy of the Schemes I have determined. In reaching my decision I have taken into account all the submissions made to me by the Levy Board and the Bookmakers' Committee about bookmakers' capacity to pay and about the needs of racing. The Scheme I have determined provides for an increase in levy rates of about 3 per cent. The Levy Board estimates that horserace betting turnover will increase by 5 per cent. in the period of the 23rd Levy Scheme. The Bookmakers' Committee suggested in October 1983 that it would increase by 6 per cent. On the assumption of a 5 per cent. increase in horserace betting turnover the levy rates I have determined should produce a yield of about £19.2 million. I am satisfied that bookmakers will be able to make their contributions to the levy at this rate without making any increases in deductions from the punter. At the same time the projected yield from the 23rd Scheme, although £0.9 million less than the Board would like, should in my view enable the Board to continue to pursue the police objectives outlined in Appendix 10 of its 22nd Annual Report. The Scheme incorporates some minor technical changes agreed by the Levy Board and the Bookmakers' Committee. I have taken note of the recommendation made to me by the Bookmakers' Committee that a review should be undertaken of the Levy Board and its activities on the line proposed in the Report on Non-Departmental Public Bodies (Cmnd. 7797). I would accordingly be grateful if you would set in hand such a review, agreeing its terms of reference with my officials. The review should in particular look at whether the Board's activities are being carried out well and economically. I would hope that its results would be available before the 24th Levy Scheme is determined. This is the third successive Levy Scheme which has had to be determined by the Home Secretary. The levy cannot continue 292W to function effectively unless it is agreed. I therefore welcome the Levy Board's proposal, made to me in one of it submissions, "to initiate discussions with the Bookmakers' Committee about the whole question of the way in which the levy is applied and collected, with a view to establishing whether alternative methods might make levy disputes less likely in the future to the advantage of all concerned". I hope the Bookmakers' Committee will respond to this inititiative. The future health of racing and of bookmaking depends on the co-operation of all those involved in the racing industry. My hope is that this determination and the other proposals I have mentioned will stimulate a spirit of co-operation and compromise for the benefit of racing.