Lottery shake-up criticised

Tuesday, 14 June 2005 12:00 AM

Government plans to alter the way the National Lottery works could compromise the fund's independence, according to the Opposition.

Both the Liberal Democrats and the Conservatives are wary about plans to establish a single lottery money distributor - the Big Lottery Fund - to replace the Community Fund, the New Opportunities Fund and the Millennium Commission.

The National Lottery Bill - which received its second reading in the Commons today, would also create simpler rules for the distribution of funds and seek to give the public more input in how the money is spent.

Lib Dem culture, media and sport spokesman Don Foster said that he was concerned the bill would give the Government greater discretionary powers to influence where the money should go.

Dr Foster, said: "Once again, Labour is threatening to undermine the independence of lottery funds.

"Labour's increasing control, such as these proposals for Government powers to redistribute funds for good causes, exposes the lottery to accusations of being a 'stealth tax'."

He accused Labour of a "slow takeover of lottery funds" adding that increased public involvement should "promote informed participation" and not be a "cloak of democratic legitimacy".

And Shadow Culture Secretary Theresa May said she thought the fundamental principles of the Lottery were being undermined.

Ms May told The Daily Politics : "The aim of the lottery was to have four pillars: of good causes, arts, heritage and sport, with the money to be redistributed to those areas independent of government. This really is the Government taking significant control over the lottery.

"I think people are more likely to want the money to go into either charities which they have an interest in and want to support or local projects they want to support."

But Lottery Minister Richard Caborn vigorously defended the proposed changes as he opened the parliamentary debate.

Mr Caborn said: "The National Lottery is now part of the national way of life. Seventy per cent of us play on a regular basis, buying over 4.7 billion tickets last year. Sales are rising and the Lottery has now raised over £17 billion for good causes.

"But its success can't be taken for granted. We need to move forward. We need to get money out to good causes quicker. We must involve the public more in deciding where Lottery money goes. And we must get more of the money out to the front line, not tied up in administration."

He added: "The Big Lottery Fund is at the heart of the reforms I am presenting to the House. The Fund will also be a centre of Lottery excellence, developing cutting edge ways of involving the public in decisions about grants and programmes. It will also save up to £16 million a year in administration costs."

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