HC Deb 10 May 1994 vol 243 cc90-1W
Mr. Kilfoyle

To ask the Secretary of State for National Heritage (1) what consideration he has given to the potential conflict of interest created by the appointment of Mr. Gummer as chairman of the Arts Council national lottery advisory panel, in the light of the appointment of Shandwick Communications as advisers to a bidder for the national lottery franchise;

(2) if he will seek information on which bidders for the national lottery franchise are advised by companies in which Mr. Gummer, chairman of the Arts Council national lottery advisory panel, has a financial interest.

Mr. Brooke

Mr. Gummer is a chairman and chief executive of Shandwick Communications, a public relations company which is advising one of the companies that have applied to run the National Lottery.

The operation of the lottery and the distribution of lottery funds are entirely separate and distinct functions. The successful applicant to run the lottery will have no function in the distribution of lottery funds; the Arts Council, supported by its national lottery advisory panel, as a distributor of the national lottery proceeds, will play no part in the running of the national lottery. There is therefore no real or potential conflict of interest.

Mr. Kilfoyle

To ask the Secretary of State for National Heritage what instructions he has given to the Director-General of the Office of the national lottery to disqualify bids from companies where there is prima facie evidence of conflicts of interest involving their directors or advisers.

Mr. Brooke

None. The Director General of Oflot has a statutory duty under section 4 of the National Lottery etc. Act 1993 to ensure fitness and propriety in the running of the national lottery and must take account of any matters he deems appropriate to fulfil that duty.

In addition, section 5(4) of the Act states that the Director General of Oflot shall not grant a licence to run the lottery unless he is satisfied that the applicant is a fit and proper body, and section 6(4) states that he should not grant a licence to a body to promote a lottery that forms part of the national lottery unless he is satisfied that the applicant is a fit and proper body.