HC Deb 21 January 1993 vol 217 c354W
Mr. Pendry

To ask the Secretary of State for National Heritage if he will publish the terms of reference given to the GAH group of consultants for the report on the national lottery commissioned by his Department.

Mr. Brooke

All the firms invited to tender for the consultancy were sent the following terms of reference.

The Commission ANNEX A

  1. 1. The Secretary of State for National Heritage intends to introduce a National Lottery to raise funds for arts, sport, the heritage and charities, and for the Millennium Fund, which will finance projects which celebrate and commemorate the turn of the millennium. The Department of National Heritage will require advice on the key determinants of a successful National Lottery in the United Kingdom. To this end, the contractor is asked to provide a report which covers structure, administration and marketing issues, and includes consideration of the following:
  2. 2. The determinants of a successful Game.
    • Lotto/instant lotteries;
    • On-line/off-line operations;
    • Frequency of games;
    • Size and range of prizes, and roll-over provision;
    • Retailing strategy.
  3. 3. The Secretary of State is concerned that there should be competition between providers of Lottery goods and services to ensure efficient practice. It is envisaged that one contract will be let to co-ordinate and run the National Lottery, but that a competitive environment will be created in the provision of games. The contractor is asked to provide a suitable model to promote competition and efficiency.
  4. 4. Creating a competitive environment.
    • Length of contract awarded to primary operator.
    • Separation of services/games offered by sub-contractors.
    • Administrative costs of complex/simple arrangements.
  5. 5. Regulatory issues. The contractor is asked to bear in mind the balance to be struck between regulation, innovation, and yield.
    • Identify where either on-line or off-line systems might present opportunities for fraud, and ways of avoiding or minimising those opportunities.
    • Ways of minimising vulnerability to very large, big-spending syndicates.
  6. 6. Assessing other economic effects. Some respondents to the consultation have claimed that the introduction of a Lottery will seriously damage the turnover of other industries. Some substitution to the Lottery will undoubtedly take place, but it would be helpful to have an estimate of:
    • The extent to which the Lottery will tap into new markets. Insofar as existing markets are affected (particularly gambling and charitable giving), advice will be needed on possible changes to the current regimes for those activities, with quantified effects as far as possible. The contractor should for the purposes of this exercise assume no changes in the tax regimes for any of these markets.
    • The Method
  7. 7. Given the time constraints, it is not envisaged that the contractor will undertake specific market research for this project but will proceed by modelling, using information already available in the United Kingdom and abroad. Your presentation will need to make clear how you would intend to carry out the commission.