Smith: more money for health and education

Chris Smith speaking on the Today programme - Dur 4' 00"

People's Lottery Plan Creates a New 'Sixth Good Cause'

The Culture Secretary, Chris Smith, told the Commons: "I believe the package of proposals we are publishing today will mark a turning point in the fortunes of our National Lottery. It will make it even more popular and even more relevant to people's lives."

The diverted cash will go towards after-school clubs where children will be able to complete their homework, IT training for teachers and healthy living centres to encourage people to eat properly and look after their health.

Funds will also be put into a new National Endowment for Science and Arts, transforming innovative ideas into money-making businesses.

Mr Smith has also announced greater powers for the lottery watchdog, Oflot, to fine the operator when breaches of its licence occur.

The Culture Secretary said the reforms would "better reflect the people's priorities". The Government also confirmed that a non-profit operator for the lottery would be sought after Camelot's licence expires in 2001.

But critics say the £1 billion "New Opportunities Fund" will put a squeeze on funds available to the five other distributing bodies covering arts, charities, Millennium projects, sport and heritage schemes.

The £1 billion needed to float the new cause will come from the mid-week draw which was launched in February.

Money Printing Machine

But the former Heritage Secretary, Virginia Bottomley, attacked the idea of turning the lottery into a non-profit making operation. "People are deeply suspicious on this vindictive approach to Camelot, a very successful company," she said.