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In the short term, I am confident that, through further voluntary agreements and perhaps income from other sources, the effects of the loss of revenue can be minimised. I would encourage those involved in the
game to explore longer-term and sustainable means of ensuring that the grassroots and smaller clubs on whom the future of the game depends are financially stable and are rewarded for the vital contribution that they make. The question for football is how it ensures that its unprecedented commercial success in recent years can be used to ensure its long-term success and stability through supporting the grassroots on which those depend.
It is understandable why a comparison is sometimes made between the situation in horse racing—this was central to my hon. Friend’s argument—where we have recently announced the retention of the horse race betting levy on bookmakers, and other sports, where there is no such levy. Let me explain why there is no question of the Government establishing for football or any other sport a levy analogous to the horse race levy. First, horse racing still makes up about 50 to 60 per cent. of betting business in the UK. Although betting on football is increasing, it is not yet even close to that level. The horse race betting levy acknowledges the special relationship between horse racing and betting, and was established back in the 1960s on that basis.
Secondly, any new levy or sports betting right is likely to constitute illegal state aid from the point of view of the European Commission. Policy would have to be implemented at EU level to facilitate sports levies across all member states, and it would then be up to national Governments to implement them. The Government ultimately aim to replace the horse race betting levy with a more modern, sustainable and commercial arrangement between the bookmakers and horse racing. We do not perceive the levy as a model for the future funding of any other sport.
To sum up, I believe that, although that the effect of the European Court of Justice ruling on databases has had some effect on the financial contribution of gambling companies to football, it needs to be put into perspective in terms of the amounts and the directive’s wider benefits. There is no convincing case to show that it has had a significantly negative effect on the overall financial position of the sport. I am confident that, given the determination and commitment of the football authorities, any losses can be recouped through further voluntary agreements between the industries. The Government’s position is clear—it is up to the bookmakers and the football authorities, as two independent commercial interests, to come to further financial agreements. I will do all in my power to facilitate that and I encourage those bodies to come together and find a solution.
I believe that the actions that we have taken so far and future agreements between the two main parties will resolve the matter. If we can do that, football and, indeed, other sports, will be enhanced.
Adjourned accordingly at nineteen minutes to Eleven o’clock.
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