National Lottery Bill

I am grateful for the breathless way in which the noble Viscount asked his question. The clause is about a single licence, not many licences, but I will certainly seek to meet the points that he accurately made. The Government’s clear and firm presumption is that a single licence will be issued to run the National Lottery, awarded by competition. I cannot emphasise too strongly that that is the Government’s clear policy, which was reached after considerable discussion in the wake of the previous competition. We believe that the National Lottery Commission is preparing very competently for the award of the third licence sometime next year. We are optimistic that there will be a good competition and a successful outcome. Even though that is what we want to happen, we cannot, of course, guarantee it. We have therefore decided that, in the extreme and unwelcome circumstance of an unsuccessful competition—and mindful of concerns expressed by the Public Accounts Committee, which drew attention to this issue on the second licence competition—we need a fallback position, which is what Clause 6 provides. It gives the Secretary of State the reserve power to introduce a new licensing structure, set out in Schedule 1, whereby more than one licence can be issued to promote lotteries forming part of the National Lottery. We do not say that this is the best outcome—after all, it is a fallback positions—but we believe it offers the greatest alternatives scope for the combination of innovation and efficiency that the lottery requires if it is to remain successful. If the Secretary of State needs to take action, she will make an order under Clause 6 for Schedule 1 to take effect, but only after consulting the National Lottery Commission. That statutory instrument may bring in Schedule 1, in whole or in part, and would be subject, of course, to the negative assent procedure in both Houses. Schedule 1 sets out how a system of more than one licence may work and the consequent changes to existing legislation—in the main to the National Lottery Act 1993. Paragraph 4 of the schedule replaces Sections 5 and 6 of the Act with a new structure for the licensing and operating of games. Specifically, it covers matters such as the procedure for granting applications and how that relates to the competition. The key change relating to this fall-back option is in the proposed new Section 5. I could go through the total justification for the clause, which we debated on Second Reading, but I think I have established its main purpose in response to the noble Viscount’s abbreviated comments on it. I hope he is satisfied that the clause should stand part of the Bill.