Payments into the Olympic Lottery Distribution Fund etc. Order 2007

rose to move, That the draft order laid before the House on 25 October 2007 be approved. The noble Lord said: My Lords, we all want to ensure that we can deliver the best ever Olympic and Paralympic Games, with venues and facilities of which the country can be proud and a legacy of regeneration, inspiration and sporting excellence unsurpassed in recent times. Jacques Rogge, president of the IOC, has already said that we have put in place the best preparations ever seen for an Olympic Games at this stage. We know that the Games remain popular throughout the United Kingdom, with 76 per cent of our population being pleased that London is staging the Games in 2012. We now have a funding package which is robust and sufficient to cover the assessed risks. The Government value the way in which all parties have supported the 2012 Games. Cross-party consensus is important to their success. I recognise, of course, the importance of scrutiny and I pay tribute to both Opposition Front Benches—to the noble Lords, Lord Glentoran and Lord Clement-Jones, and their colleagues—for the work they have done both in establishing that consensus and subjecting the Government’s work to close scrutiny during the period that has elapsed thus far. We still have a long road to travel. These are reasons why the Minister for the Olympics provided Parliament with the ODA baseline budget in December, and why she has agreed to provide every six months a full update on progress with the Olympics and spend against budget—a breakdown was provided in December. On 22 January we published our first annual report on the London 2012 Games. The order puts in place a vital component of the Olympic package—£1.085 billion from the National Lottery, made up of £410 million, as previously confirmed, and an additional £675 million as announced in March 2007. Without this funding the Games cannot be delivered. We are well aware of the concerns that have been raised, not only about the increase in costs but about the fact that the non-Olympic Lottery good causes will be contributing more than previously anticipated. We have taken account of these concerns and have made important assurances. First, there will be no further diversion from lottery good causes to fund the Olympics. We will not continue to collect funding from the planned Olympic Lottery game after the target of £750 million for that is reached. The Government will examine again—I know this is a cause dear to the heart of the noble Lord, Lord Clement-Jones—the case for a move to gross profits tax for the lottery. We will ask the Gambling Commission and the National Lottery Commission to explore cases of grey lotteries that give rise to concern. The revised memorandum of understanding agreed with the Mayor of London includes a new profit-sharing arrangement for land sales after the Games, making provision for the non-Olympic Lottery good causes to get back all of the additional contribution of £675 million which is being taken over the next few years. We have agreed with the Big Lottery Fund that it will honour its commitment to give 60 per cent to 70 per cent of its funding to the voluntary and community sector, and it has extended that beyond the Olympic period. The Minister for the Olympics has pledged to provide six-monthly updates to Parliament and quarterly briefings to opposition Members on the progress of the Olympic budget. We have also done a great deal to protect the Lottery from what could have been a much greater impact. Under the previous proposals the Lottery was meeting 44 per cent of the budget. Now the Exchequer is meeting the largest proportion—64 per cent—against 23 per cent from the Lottery and 13 per cent from the mayor. As a result of a consultation we undertook with the lottery distributors and key stakeholders, the order sets out 15 quarterly-stage transfers since the distributors indicated that that would minimise the impact. I make it clear that money will not be transferred unless it is required. The order merely permits a series of 15 transfers starting on or after 1 February 2009, with the final transfer on or after 1 August 2012. In the mean time the arts, heritage and sport will continue to receive substantial core funding from the Government, safeguarded thanks to the recent DCMS spending settlement that includes real-term rises as well as large amounts of lottery funding for the non-Olympic causes. Over £5 billion will be available between 2008-09 and 2012-13. On 15 January in the other place, Members voted overwhelmingly in favour of the order. The figures were 357 votes to nine. Members of Parliament clearly accepted the importance of the order in ensuring the success of the 2012 Olympic and Paralympic Games, and accepted the Government’s clear assurances. I hope this House will agree the order today. I commend it to the House and trust that I can count on its support. I beg to move. Moved, That the draft order laid before the House on 25 October 2007 be approved. First Report from the Statutory Instruments Committee, First Report from the Merits Committee.—(Lord Davies of Oldham.)