Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education

Front Page



UK Politics







Talking Point

In Depth

On Air

Low Graphics

Friday, August 6, 1999 Published at 11:07 GMT 12:07 UK

Business: The Company File

Post Office bids for Lottery

Post Office chooses Camelot ahead of Virgin as bid partner

The Post Office is to join forces with Camelot in a bid to run the National Lottery after the current licence expires in 2001.

The BBC's Rory Cellan-Jones: "The Post Office wants a stake in the National Lottery"
It has chosen to link up with the existing operator despite discussing the possibility of joint bids with Richard Branson's Virgin group and pools firm Littlewoods.

The state-owned Post Office said it believed the partnership with Camelot would best promote the interest of good causes, players and the public.

Politicians welcomed the move as a way of drumming up more customers and so possibly securing the future of many struggling rural Post Offices in the UK.

[ image: Camelot's Tim Holley wants licence renewed]
Camelot's Tim Holley wants licence renewed
Camelot chief executive Tim Holley said: "We're delighted that the Post Office has chosen to join Camelot in bidding for the next licence.

"The National Lottery and the Post Office are both widely respected national institutions that impact on everyone."

The Post Office, which has 4,000 on-line terminals, has been the largest seller of tickets since Camelot launched the UK lottery in November 1994.

Camelot has raised more than £7bn for the six good causes so far and has set itself a target of £10bn by 2001, £1bn more than the original target.

Manifesto challenge

As part of the agreement, the Post Office is invited to join the current Camelot board but this is subject to formal regulatory consent from the National Lottery Commission.

The Post Office also confirmed that whether it wins the next licence or not, its network of Post Offices will be available to the eventual winner as National Lottery outlets.

Labour MP Martin O'Neill, chairman of the trade and industry select committee, said of the bid: "What this means for the Post Office is that this is the first example of commercial freedom and it really could consolidate the Post Office Counters network.

"It will enable them to get the kind of underpinning which really is required for the Post Office, and especially the smaller rural post offices."

He was tackled on BBC Radio 4's Today programme about the Labour Party's election manifesto commitment that the Lottery would go to a non-profit operator.

"Well, if one of the main partners is still in public ownership and they are operating to fund and support what is in effect a public service, namely the network of local post offices, if that can serve to underpin that then I think that is quite legitimate," he said.

Opening hours

Camelot would "probably" still make a profit, he conceded.

Richard Branson confirmed last month that he had discussed teaming up with the Post Office to make a bid to run the Lottery on the basis that 100% of the profits would go to the Good Causes.

Some 60% of the UK's adult population still play the Lottery regularly.

Shadow trade and industry secretary Angela Browning also welcomed the news, adding a warning that "existing lottery rules often preclude some of the most rural post offices due to lack of density of population and limited opening hours.

"I hope every effort will be made for as many sub post offices to be included as possible."

Advanced options | Search tips

Back to top | BBC News Home | BBC Homepage | ©

The Company File Contents

Relevant Stories

14 Jul 99 | The Company File
Post Office profits down

01 Jun 99 | The Company File
Dreaming of a big-money game

31 May 99 | Your Money
Premium Bonds hit all-time low return

01 Jun 99 | The Company File
Camelot profits sharply down

21 May 99 | The Company File
Virgin in lottery talks with Post Office

Internet Links

National Lottery

The Post Office

The BBC is not responsible for the content of external internet sites.

In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles