Joint Committee on the Draft Gambling Bill Minutes of Evidence


Examination of Witnesses (Questions 1020 - 1039)

TUESDAY 27 JANUARY 2004

LORD LIPSEY, MR CLARKE OSBORNE AND MR RICHARD HAYLER

  Q1020  Lord Faulkner of Worcester: What happens if the person who does that then tells Lord Mancroft that he has done it and Lord Mancroft then lays against that dog?

  Lord Lipsey: I would call that conspiracy to cheat.

  Q1021  Chairman: I agree with the witness!

  Lord Lipsey: Not that I could imagine any such thing happening!

  Q1022  Mr Page: Let us suppose somebody did not do anything to the dog but saw that when it woke up in the morning it was not looking very well and possibly could not keep its breakfast down, and used that information to lay against the dog. Is that cheating?

  Lord Lipsey: I think it is cheating. Of course, it becomes more difficult to police as we get to that end of it.

  Q1023  Lord Faulkner of Worcester: It is probably not illegal.

  Lord Lipsey: It is probably not illegal, as you rightly say. If I can make a general point about integrity in this, and thinking about the witnesses you had last week, one of the great advantages, from an integrity point of view, of dogs is that you do not have men sitting on their backs. You cannot bribe a dog not to run, though you can stop it in other ways.

  Q1024  Chairman: I do not know the answer to this. Are you saying that non-triers rule in greyhounds?

  Mr Osborne: Not as written for horse racing but there are certainly procedures which would look at, if you like, non-triers because, effectively, there must be a reason and procedures find out that reason.

  Lord Lipsey: Again, it is easier with dogs because they run very much to time. If you see that a dog has had a clear run and it has taken it half-a-second longer to get round the 460 yards than it did the week before, that in itself is extremely strong grounds for suspicion. The other thing is that dope testing is very strong. The first of these figures is slightly off the top of my head, but at one stage roughly 3 per cent were testing positive for dope. We are now down to a fraction of 1 per cent testing positive, and in many cases—in most cases—this is not a dog that has been doped. There are two main sources: season suppressants (which we will not go into in any great detail), which can give positive results, and unsourced meat. Unsourced meat, which is a problem with getting false positives, is very much a problem of the lack of prosperity in some parts of the industry.

  Q1025  Lord Faulkner of Worcester: The very important point you made earlier, if I can make it again, is that the growth of the betting exchange and the opportunity to bet on something to lose a race—whether we are talking about a horse race or greyhound—does increase the risk to the integrity of that sport.

  Lord Lipsey: I think so, yes. I would not say it is a qualitative difference because you could always make money if you could stop an odds-on favourite in a race, as we know from some of the cases, but it is a quantitative difference, and the scale of the opportunity for bad practice is hugely increased.

  Q1026  Jeff Ennis: Just a supplementary question along the same lines as Lord Faulkner, my Lord Chairman, because of the human element you have far more what you call stewards' inquiries into horse racing because you eliminate the human element from the dog racing. Obviously we will not have the same amount of inquiries. What sort of level of inquiries do we have, given that you are removing that human factor, in comparison with a sport like horse racing?

  Mr Hayler: Can I answer by saying that when a greyhound arrives at an NGRC licensed race course it is inspected by a qualified vet and every greyhound is also weighed to see if there has been any great weight change since it last ran, so the potential for a dog to be slightly lame or anything like that is very limited; it would not get past the vet. So the opportunities to have some inside knowledge are very much restricted. What we said a few moments ago is that the temptation when you are able to profit from a greyhound getting beaten may lead to people seeking new ways in which they might be able to beat the system. At the moment it is very solid.

  Q1028  Jeff Ennis: Given that high level of integrity, which I accept and I think is an exceptionally good thing, what sort of level of inquiry do we have these days in dog racing?

  Mr Osborne: In terms of the comparative numbers with horse racing, I would not be able to furnish you with that data.

  Lord Lipsey: Could we write to you, please? I would like to consult with the NGRC about this. As you know, we are not the authority responsible for integrity, they are. We will write to you to give you an indication.

  Chairman: That would be very helpful, given the questions that we have asked. Can we move briefly to the social implications involved?

  Q1029  Lord Wade of Chorlton: Do your members currently contribute to the Gambling Industry Charitable Trust?

  Mr Osborne: Yes, some of our members do. The BGRB, as yet, had made no recommendations in this respect, so those members are doing so, effectively, just from the information provided to them. It is the BGRB's intention, when the position is clear as to the collection mechanism for the Trust and how that is to be shaped across the whole of the gambling industry, to formulate a recommendation to our members.

  Q1030  Lord Wade of Chorlton: Following on from that, do you think that contributions to the Trust should be tapered according to the gambling activities companies offer?

  Mr Osborne: Yes, I think so. That would be a fair way of considering it across the entire gambling industry.

  Q1031  Lord Wade of Chorlton: Do you know, in fact, what the industry is likely to contribute to the scheme you mentioned?

  Mr Osborne: We have not computed that, I am afraid.

  Q1032  Mr Page: This morning we were given evidence by another trade association that they, in fact, collect the money from their members and send it over to the Gambling Trust. Would you consider that as an operation you would want to undertake, or would you rather leave it to the individual members?

  Mr Osborne: I would say it would be a matter for the Board. Certainly the BGRB would not want to shirk from such a responsibility if it could see itself as being able to provide the right sort of mechanism for doing that. I do not think they would demur from that responsibility.

  Q1033  Lord Brooke of Sutton Mandeville: Are there any negative social side effects associated with greyhound racing?

  Lord Lipsey: Yes, there are because some people bet more than they should. Quite a lot of people spend more money than they should to buy the dogs in the first place. What really strike me are the positive side effects of dog racing. I have been going dog racing for 28 years; I have never seen a fight, I have never seen anybody lying down drunk, I have practically never seen a policeman intervening, and I see a lot of people having a good time, having a decent meal together and chatting together. I must say, as these more and more soulless forms of gambling come along—you sit in your living room having solo gambling intercourse over the Internet, or whatever—and I compare that with the social activity of going to a greyhound race for a good night out, I call that a positive side effect. In America, I think, Bob Putnam called it "social capital"; it is a thing that builds social capital whereas some gambling activities destroy social capital, which is yet another reason for being passionately in favour of turning this into a more flourishing sport.

  Q1034  Lord Brooke of Sutton Mandeville: That was a very firm and enthusiastic enforcement. However, I have to take you back to the fact that I originally asked a question about the negative side effects—

  Lord Lipsey: I am a Parliamentarian!

  Chairman: That has been very obvious since a quarter-past two!

  Q1035  Lord Brooke of Sutton Mandeville: I am never sure that I am. You can have positive side effects while having negative side effects as well. Do you want to say anything about problem gambling in the context of greyhound racing?

  Lord Lipsey: No, apart from saying that we will do what we can through the Gambling Industry Charitable Trust, and the more profitable the industry is the more it will be able to do in that kind of way. Beyond saying that, there is a whole operation to be done in terms of training staff to watch out for it and all the things that GamCare has been developing and the Charitable Trust has been developing. We are all learning as we go on this and we do not know a tremendous amount about problem gambling. All I can say is yes, as I think I initially said, there are negative social side effects, and give you an absolute assurance that greyhound racing is committed to keeping those negative side effects to an absolute minimum by whatever means are necessary.

  Q1036  Viscount Falkland: Greyhound tracks have become more popular venues for families, which you rightly encourage. How can you ensure that children are prevented from placing bets? Do you agree that your tracks should, in line with other gambling venues, operate under a formal code of social responsibility? May I just tack on, if you would not mind commenting: how much involvement by the Commission, when it is in full flow, would you expect or is appropriate?

  Mr Osborne: In terms of the question of families being admitted to racecourses and, therefore, the proximity of children to betting, some of the key issues to think about are that admission to racecourses is controlled, so it is not open. It is always controlled. Children who are admitted to racecourses are admitted, effectively, in the family environment; they are admitted only with adults of parenting age. So that position limits the ability for children to be, effectively, unattended and to be in close proximity to a gambling exercise. On the race course itself and the activities, racecourses have a high ratio of staff to customers, so there are no situations, within a racecourse environment, where children could effectively go off and use a slot machine which was unattended or could effectively place a bet without having to transact that with a member of staff. At the point of control, I think racecourses are in pretty good shape. As to your question on whether or not we feel that we would want to interact with the Commission, I think the answer to that is yes. To the extent that the Commission looks across the whole of the gambling network and is looking at this particular position of children gambling, quite obviously they will want to look at racecourses, so we would see the potential interaction there as positive.

  Q1037  Chairman: Just a couple of questions on welfare. Should codes of practice dealing with animal welfare be attached to licences given to tracks where greyhounds are bet on?

  Lord Lipsey: I am not sure, my Lord Chairman, whether we operate primarily for this Bill or for the planned Animal Welfare Bill, on which the Government is committed to another round of consultations, starting in the spring. So to that extent, although I could talk about welfare all night—since it is where I came into a lot of this greyhound stuff—I am not sure how totally relevant it is. I think the NGRC's rules give considerable support on welfare issues. For example, an owner now is supposed to tell the NGRC what it does with its dog when the dog is no longer racing and to be struck off if they do not. You would have to ask them whether it always works quite that way in practice, but that does give a power for that very important element of welfare—what happens to a dog when it stops racing. So far as tracks are concerned, I can see advantages to such a code. In particular, if I may say this, since I first raised this in a debate in the House of Lords in 2001, welfare has come on leaps and bounds. We are both in a different financial atmosphere on it and we are in a completely different level of commitment to it. In summer 2001, following a dreadful incident at Catford, where a dog died of heat exhaustion, the speed at which kennels were upgraded and the problem tackled—the incident should not have happened in the first place but there was a great willingness to do this. Not only since I got this job, but even bookmakers, who some of you may think of as hard-hearted people, have been coming up to me and saying "We are very happy to provide more money for welfare". So there has been considerable progress. The main problem is with the unlicensed tracks, the flapping tracks, and I do not blame them. They are often a mum and pop operation. They have not got the money for investment. They may have dodgier owners, they do not have owners who are subject to NGRC regulation, and I think that is probably where most of the welfare problems stem from. There was a recent survey that was strongly reported in The Times newspaper, done in the Wales, which said something like, "There are 10,000-odd dogs not being homed after racing and meeting terrible fates", but the survey under which that was done was based entirely in Wales and in Wales there is no NGRC track but there are four unlicensed tracks in the south. This is very much a problem of the unlicensed tracks. Some of those will go out of business if we go, and if we had some sort of statutorily backed code I think it would hasten the process which means, sad though it is for the people running those tracks, that if they cannot invest the money to make their greyhounds safe and well, then they should not be in business.

  Q1038  Chairman: Should they have access to the BGRB fund on veterinary and welfare issues?

  Lord Lipsey: Our approach is much more to try to bring them under the NGRC umbrella rather than to give handouts where we could not really be sure that we were getting the results from them that we wanted.

  Q1039  Chairman: I appreciate that these questions go a little bit beyond the scope of the Bill, but I think you will understand that when a Bill comes before Parliament for consideration in the normal course of events through Standing Committee and so on, outside organisations are likely to pose these questions. Could I ask you finally whether you would favour a statutory levy to apply to racing greyhound welfare?

  Lord Lipsey: I will divide that question if I may into two parts. The first is on whether we need more money for welfare, and, secondly, on the statutory levy in general. So far as more money for welfare is concerned, money going to the Retired Greyhound Trust has gone up to £240,000 in 2000. Bookmakers gave another large ring-fenced slice in 2002, so we are now up from £240,000 to £850,000 going into the Retired Greyhound Trust. To take another figure, there was a 121 per cent [increase] in spending from the fund on welfare last year alone. I am somebody who is on the trust and, to be frank, if there was a lot more money thrown at it I think there would be a lot more money wasted. If I could give another example, the Chair of the Retired Greyhound Trust is Duncan Green from Battersea who, as everybody round this table knows, is one of the most devoted dog welfare people in the country. He said, "If you get more money what people will want to do is build kennels and it costs £25,000 to build a kennel for one dog these days. You do not want to be doing that. You want to be spending the money encouraging people to have them in their own homes, which is what dogs like, and which is much more cost effective". You cannot build that up in a day, is all I am saying. I hope the money is not going to be the constraint on what we can do on the welfare front in the near future. However, can I just turn briefly to the question of the statutory levy in general because it does raise an extraordinarily important point. Not all bookmakers are paying the voluntary levy. The voluntary levy is paid in regard to 79 per cent of shops, which means that 21 per cent are not paying. In addition, of those who pay some are not providing us with audited accounts and I am fairly certain that not many of them are paying more than their due under the voluntary fund and many are paying less. This is wholly unjust to those who are paying and it is wholly unjust to the greyhound industry that you should have these free riders at the expense of the others, and one of the ABB witnesses in their evidence was at least as strong on this as I think I am being here today. I recognise that ever since the 1991 Home Affairs Committee, on which I think you sat, Chairman, if I remember rightly—


 
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