Foster on the cost of the Olympics

12.25.00pm GMT Tue 11th Mar 2008

[mar 10] Don Foster (Bath, Liberal Democrat): The Minister rightly says that one of the important reasons why we are expending so much money on the Olympics is to ensure the legacy, and not just deliver the games.

However, a far greater amount has now been taken from the lottery to meet the costs. The amount is equivalent to a £1 million cut in every single right hon. and hon. Member's constituency. That will seriously damage the ability to provide support for grassroots arts, culture and heritage, and to provide the necessary legacy. Will she tell the House what she personally has done to persuade the Chancellor, in his Budget on Thursday-[Hon. Members: "Wednesday!"]-sorry, Mr. Speaker; Wednesday-to change the taxation of the lottery, so that more goes to the Treasury and back to good causes?

Tessa Jowell (Minister of State (the Olympics and London (Paymaster General)), Cabinet Office): The hon. Gentleman knows very well that discussions are under way. At the time of the Payments into the Olympic Lottery Distribution Fund etc. Order 2008, the then Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Stalybridge and Hyde (James Purnell), made it clear, without pre-empting the outcome, that there was a commitment to looking at gross profits tax as an alternative tax regime. In addition, the new lottery licence is expected to increase the income available for good causes. The hon. Gentleman has been thoroughly briefed on the issue, so he will know about the efforts that were made, successfully, to ensure maximum protection for good causes. I know that, like me, he will recognise that between now and 2012, the Olympics is a legitimate, additional good cause. Nothing will impel young people to take up sport in quite the same way as the Olympics in London in 2012.