HORSERACE BETTING LEVY BOARD EXTENDED TO 2009
Equestrian News Release
London, 18 March/GNN/ --
DEPARTMENT FOR CULTURE, MEDIA AND SPORT News Release (043/05) issued by the Government News Network on 18 March 2005 The funding of British horseracing through the Levy Board will continue until 2009 Minister for Sport, Richard Caborn said today.
The decision comes following the interim recommendation by an independent review group, Chaired by Lord Donoughue, that the sport needs more time to develop alternative commercial options following a recent European Court of Justice ruling on database rights.
It also follows consultation with the Horserace Betting Levy Board, the British Horseracing Board and the Association of British Bookmakers.
Minister for Sport, Richard Caborn said:
"After the ruling by the European Court of Justice last September it has become clear that the British Horseracing Board is not in a position to proceed immediately with its plans to fund racing by the sale of database rights in place of the current statutory Levy.
"So we are extending the Levy for three years to give all the parties involved the time they need to come up with a long-term, viable solution to the funding of racing.
"The Government remains committed to ending its financial involvement in racing. The extension is conditional both on racings continuing modernisation and on its commitment to explore commercial alternatives to the Levy."
The Levy board was due to be abolished by 2006. However, a ECJ ruling put the commercial agreement between bookmakers and racing that was to replace it in doubt. In response to the ruling the British Horseracing Board commissioned Lord Donoughue to Chair an independent review funding options.
Lord Donoughue's interim report was presented to the Government on 11 March 2005. His review group will continue its work and report again in Autumn of this year.
Notes to Editors
1. The Horserace Betting Levy Board is a statutory body brought into being by the Betting, Gaming and Lotteries Act 1963. The Levy Board is responsible for the collection of a levy on off-course horserace betting turnover from bookmakers and the Tote.
2. A text of this statement made to the House of Commons is laid out below:
The funding of horseracing
It remains the Government's view that commercial agreements between the relevant parties provide the appropriate long-term basis for the funding of racing. However, in the light of a judgment by the European Court of Justice last September it has become clear that the British Horseracing Board is not in a position to proceed immediately with its plans to fund racing by the sale of database rights in place of the current statutory Levy. Following consultations with the Horserace Betting Levy Board, the British Horseracing Board and the Association of British Bookmakers, I have therefore accepted the interim recommendations made by the independent review group, chaired by Lord Donoughue, that more time is needed to develop the commercial options and that it is in the public interest in the well-being of the sport that the Levy arrangements should therefore remain in place for a further limited period. We will accordingly be making an order under Part 2 of the Horserace Betting and Olympic Lottery Act 2004 to end the Levy on 31 March 2009, and to close the Levy Board six months later.
I welcome the agreement of the parties that Lord Donoughue's group should continue to explore the commercial options, considering all areas relating to the funding of racing which it believes are relevant to establishing appropriate post-Levy arrangements, with a view to preparing a final report this autumn. It will then be for the British Horseracing Board and the other parties to work towards putting agreed arrangements in place to meet the above timescale.
In the meantime it is important that racing continues to take forward the modernisation of its structures, with priority being given to the establishment of an independent regulatory authority.
It is also important that, both now and after the ending of the Levy arrangements, there continues to be proper financial support for the advancement of veterinary science and education and for the improvement of breeds of horses, which are the Levy Board's other statutory purposes.
I have therefore made clear the Government's wish to see the Board, while it continues in being, take over the funding commitments previously given by the British Horseracing Board in respect of the Equine Fertility Unit and the equine genome project; to maintain support for veterinary science and education at 2.5% of levy income and for breed societies at no less than current levels; to take forward consideration of the establishment of a university chair in the field of equine veterinary science; and to complete the grant to the National Stud, for which budget provision was previously made, on the Stud's proposed re-establishment as an independent charitable trust.
I wish to place on record my appreciation of the work of the members and staff of the Levy Board, who have been contending with an extended period of uncertainty, and of their commitment to running the Levy arrangements effectively for longer than had previously been expected.
I am aware that other sports, particularly football, have also been affected by the ECJ judgement. I have met with representatives from the football industry and I look forward to working with them, as I have done with racing, as they develop their own solutions to the funding difficulties arising from this ruling.
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