Thinktank urges EU to investigate Tote sale
The right wing thinktank, the Adam Smith Institute, has called on the EU to investigate a proposed sale of the Tote.
It claims that a plan to sell the Tote to the Racing Trust, which would then put some of the profits back into racing, is “anti-competitive and an abuse of state aid”.
Aside from the thinktank’s concerns, the issue has recently been raised in Parliament by Lord Moynihan. He has tabled a series of questions in the House of Lords asking whether the proposed sale has received agreement in principle from the European Commission, and whether the Government would be willing to consider offers for the Tote from other interested parties.
It has been Government policy since 1999 to sell the Tote – which is currently state run – to a racing trust operator, and the provisions for the sale are contained in the Horseracing Betting and Olympic Lottery Bill.
The new trust would retain exclusive rights to pool betting for a seven year period, after which the market would be opened up to competition.
But, the Adam Smith Institute claims that the deal could cost taxpayers £350 million.
It claims that in an open sale the Tote would be worth £500 million, but that under the proposals it will go to the Racing Trust for roughly half its “fair value”, adding: “In a bizarre twist of logic, it will be up to the Government and the Racing Trust – hardly independent parties – to decide what that ‘fair value’ might be.”
It argues this is illegal under Article 87 of the EU treaty which outlaws anti-competitive practises and has asked the EU Commission to investigate the sale and to force the Government to sell the Tote in an open auction. The group argues that: “Only then will other bidders be able to come in.. That will give taxpayers a fair price for their asset, while the successful bidder will have a greater incentive to develop the full value of the business.”
