People are beginning to wonder why in this country we just can't get things done properly

Peter Ainsworth

The lottery commission's five members voted 4-1 in favour of the existing operator in preference to a rival bid by Sir Richard Branson's People's Lottery.

Mr Ainsworth sought to compound the government's embarrassment over the issue with the attack on Mr Smith's competence.

He said: "It's just another thing to add to the list of things that aren't going right at the moment. People are beginning to wonder why in this country we just can't get things done properly.

"Many of the things that aren't going right are associated with the person of Mr Chris Smith ... and I think that his handling of this process shows us once again that he really isn't fit for office."

At odds with manifesto

The decision to award the seven-year lottery operating to Camelot is at odds with a Labour manifesto pledge for a non-profit lottery.

After the lottery commission's decision Mr Smith expressed gratitude to the commission for completing its task "under difficult circumstances".

Smith under fire

He said: "I note with approval Camelot's previously announced intention to reduce their profit levels under the next licence".

Liberal Democrat culture spokesman Robert Maclennan said Tuesday's decision came "as no surprise".

"The Commission must now justify their choice to Sir Richard Branson and the millions of people who play the Lottery.

"This decision fails to deliver the government's manifesto pledge to create a not-for-profit game."

Prime Minister Tony Blair's spokesman appeared to indicate that a rethink over the whole process of awarding the lottery licence was needed.

He said: "We recognise this hasn't been the smoothest process for well-documented reasons. I'm sure that people will want to sit down and see if there are any lessons to be learned."