Smith: seeking end to "Fat Cat" culture

Chris Smith interviewed on Radio 4's Today Programme

Smith Warns Camelot "Fat-Cats"

Camelot, however, defended the rises, which come despite the fact that its profits have dropped. It also revealed that it had applied for a third weekly TV show in a bid to boost sales of scratch cards.

Mr Smith called the heads of the lottery organisation to a meeting, though it will not take place immediately. He said he was "very angry" at the pay awards, which ranged up to 93%. "The lottery is for the prizewinners and for the good causes. It is not for profiteering," he told BBC Breakfast News.

The Heritage Secretary admitted that Camelot was legally entitled to pay what it liked but he warned the company that it should consider the consequences. Mr Smith pointed out that the Government would be bringing out legislation this year to turn the lottery into a non-profit organisation when the current contract expires in 2001. If Camelot did not mend its ways it would be out of the running.

He also argued that people would not play if they lost confidence in the lottery and this would damage Camelot's profits. Camelot should know this, but was acting as if it did not, Mr Smith said.

Sure-fire jackpot for Camelot bosses

Total sales dropped from £5.22 billion to £4.72bn and the amount raised for good causes fell from £1.42bn to £1.27bn.

Camelot's response to the decline has been to try to boost sales of scratch cards by applying for a third TV show concentrating on them. This is bound to be a controversial move, not only because of the current row over pay, but because the cards have been criticised as addictive and as encouraging young people to gamble.