York racecourse chiefs today expressed confidence in the Tote after the announcement that the state-owned bookmaker is to be sold off under Government privatisation plans. However many racing enthusiasts, gathered in York for the May festival, remain wary of the scheme which has raised fears throughout industry.

Home Secretary Jack Straw today announced the Labour Government's first privatisation, saying he had accepted recommendations of a review by the Home Office, the Treasury and the Tote itself.

He added the method of sale had not been decided and a sale to the racing industry had not been ruled out.

The Tote Ebor, which is run at York in August and is worth £115,000, is a crucial part of the racing scene. The Tote also has a handful of shops in the city.

The industry is concerned because of the lack of guarantees about the future of its income from the Tote, which last year contributed £10.2 million to the industry from its £12m profits.

The clerk of York Race Course, John Smith, said the cash was essential to racing. "It is very serious money and we are very anxious it is kept within the industry."

Its marketing and sponsorship manager, James Brennan, said the announcement "left most of the doors open", but at the same time expressed concern in Tote's future.

But he was confident that York would retain its good relations with the Tote, whatever its future management, pointing out many other big organisations that were well aware of the importance of value to shareholders continued to support racing - and racing at York in particular.

Mr Brennan was also concerned that the Tote retained its friendly presence at courses, where its staff were very helpful to racegoers.

Ryedale MP and Shadow Home Affairs spokesman John Greenway, a racing enthusiast, said: "I'm deeply concerned about the situation. We have been arguing strongly for the racing industry to take ownership of the Tote in some form.

"Essentially the danger is it will be flogged off to the highest bidder; they can't do that without damaging racing's interests."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.