HC Deb 02 April 1992 vol 222 cc482-3W
Mr. Pendry

To ask the Secretary of State for National Heritage (1) what powers he intends to give to the director general of the national lottery to determine the levels of profit and administrative costs for the body corporate licensed by him to run the national lottery or for those bodies corporate licensed by him to promote lotteries as part of the national lottery;

(2) what powers he plans to give to the director general of the national lottery to determine the extent to which radio and television advertising is used to promote the national lottery;

(3) what control the director general of the national lottery will have over the contracting out of work to other bodies corporate by the body corporate licensed by him to run the national lottery and by the bodies corporate licensed by him to promote lotteries as part of the national lottery;

(4) if the applications made to the director general of the national lottery by bodies corporate to run the national lottery, or by bodies corporate to promote lotteries as part of the national lottery, will be required to detail any proposed contracting out of work to other bodies corporate;

(5) if the licence authorised by the director general of the national lottery to a body corporate to run the national lottery, or to bodies corporate to promote lotteries as part of the national lottery, will include authorisation for those bodies corporate to contract out work to other bodies corporate;

(6) what control the director general of the national lottery will have over the contracting out of work to other bodies corporate by the body corporate licensed by him to run the national lottery and by the bodies corporate licensed by him to promote lotteries as part of the national lottery;

(7) if work contracted out to other bodies corporate by the body corporate licensed by the director general of the national lottery to run the national lottery, or by those bodies corporate licensed by him to promote lotteries as part of the national lottery, will be on the basis of competitive tender.

Mr. Key

The powers of the director general are set out in the National Lottery etc. Bill. In considering whether to grant a licence under clause 5 the director general will no doubt take into account a number of matters, which might include the levels of profit and administrative costs of those bidding; these may then be reflected in licence conditions. Whether or not to contract out work would be an operational matter for the body which was awarded the clause 5 licence. It would be subject to normal commercial tendering arrangements. However that body could not contract out the running of games unless they were regulated under a clause 6 licence. In addition, the director general could, through the clause 5 licence, ensure that any sub-contracts included conditions to enable him to carry out effectively his statutory duties under clause 4. Advertising would be a matter for the operator, and would be subject to the constraints of the ITC and Radio Authority codes; however, in assessing the merits of particular bids the director general would no doubt take into account the effectiveness of the proposed marketing strategy.

Mr. Pendry

To ask the Secretary of State for National Heritage what powers he intends to give the director general of the national lottery to determine places of sale for national lottery tickets.

Mr. Key

My right hon. Friend has powers under clause 12 of the National Lottery etc. Bill to regulate the places where lottery tickets can be sold. The director general may, among other things, consider the retail strategy of applicants for a licence under clause 5.

Mr. Pendry

To ask the Secretary of State for National Heritage (1) what powers he plans to give to the director general of the national lottery to decide on the frequency of national lottery games;

(2) what powers he plans to give the director general of the national lottery to determine the size of the prize offered by the national lottery;

(3) what powers he plans to give to the director general of the national lottery to determine the extent to which the national lottery is allowed to roll over prizes.

Mr. Key

In consideration whether to grant any licence under clause 6, the director general will examine the rules of proposed games and will be able to take into account matters such as the prize structure, odds (and therefore the likelihood of rollover), and the frequency of competitions. In addition, my right hon. Friend is minded to direct the director general to use his powers to limit rollover to no more than three consecutive games.