Gambling (Licensing and Advertising) Bill

Helen Grant Excerpts

Wednesday 26th March 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)]

I beg to move, That this House agrees with Lords amendment 1.

The Lords amendment gives the Secretary of State reserve powers to extend the horserace betting levy to all bookmakers holding a remote operating licence from the Gambling Commission after the remote gambling Bill has been enacted. The amendment is fully in keeping with the context and purpose of the Bill, which is about levelling the playing field for bookmakers engaging with British punters.

Subsections (1) and (2) are broadly drafted to ensure that the Secretary of State can make all the changes necessary to secure extension compatible with the UK’s obligations under European Union law. Members may recall that we resisted previous levy amendments because we believed they failed to offer that necessary scope.

Subsection (3) provides that secondary legislation introduced under this amendment will be subject to affirmative procedure in both Houses of Parliament. Subsection (4) makes it clear that existing provisions to abolish the levy once a suitable replacement has been found are unaffected by the amendment.

We have tabled our own amendment because we are persuaded that a statutory levy should be applied fairly, but we remain firmly of the view that the need for genuine levy reform cannot be satisfied through extension to offshore remote bookmakers alone. That is why this amendment is part of a wider levy reform package, which was announced by the Chancellor a week ago in the Budget. We will now move forward very quickly on two concurrent pieces of work.

On extending the levy, we will seek to complete all of the necessary work in time for the 2015 negotiations on the 55th levy scheme, which will apply from April 2016. The timing will, of course, be subject to the outcome of discussions with the European Commission, which began last Friday. We hope to launch a consultation in May on the mechanics of extension.

[Guy Opperman (Hexham) (Con)]

Does my hon. Friend agree that this announcement and today’s developments are very good news for racing, which provides tremendous support for jobs and local tourism, and that it is good that the Government are now beginning to work properly with British racing?

[Mrs Grant]

I know that my hon. Friend, as a former jockey, has a deep and intimate knowledge of the industry. He makes an excellent point and that is precisely why we are making these reforms.

[Ian Swales (Redcar) (LD)]

Following on from the intervention of the hon. Member for Hexham (Guy Opperman), is the Minister aware of the damage that has been done to racing by bookmakers moving offshore and not paying the levy, and will she join me and Redcar race course in welcoming the fact that racing will be more healthy as a result of these measures?

[Mrs Grant]

My hon. Friend makes a very important point. We have to look after racing. It is an important industry that provides many jobs. This is a sensible move, making a level playing field for all operators.

At the same time, we will develop wider levy reform options and publish a consultation in the summer. The consultation will seek views on a range of options, which are likely to include commercial arrangements, modernising the existing levy and a horse race betting right. The amendment is about collecting the horserace betting levy in a fair and consistent way.

[Mr David Nuttall (Bury North) (Con)]

Will the Minister confirm that it would not be possible to extend the levy to offshore bookmakers without the approval of the EU and that we are totally dependent on receiving that approval in order to be able to do it legally?

[Mrs Grant]

My hon. Friend makes a fair point. Certainly, the levy scheme amounts to state aid and, because of the terms, we need to let the EU know if there is any substantial change in state aid and get permission for it.

The amendment is reasonable and I believe it commands widespread support. It signals the Government’s commitment to modernising the levy and it is, of course, part of, but not a substitute for, a wider reform programme.

--- Later in debate ---

[Mr John Leech (Manchester, Withington) (LD)]

I do not intend to detain the House for long, but I want to put on record the Liberal Democrats’ support for the Lords amendment. This change has been campaigned for by Members in all parts of the House, but particularly by my right hon. Friend the Member for Bath (Mr Foster). I found it rather frustrating that we could not deal with it in the House of Commons rather than expecting the Lords to improve a Bill that is generally considered acceptable. However, the amendment will help to level the playing field between onshore bookies and offshore gambling providers, which I think is in line with the overall aims of the Bill, and I am happy to support it.

[Mrs Grant]

With the leave of the House, Mr Deputy Speaker. I thank all Members for what they have said today about this important issue, and for their contributions during the Bill’s earlier stages. I shall be fairly brief, but I want to deal with some of the points that they have raised.

The shadow Minister, the hon. Member for Eltham (Clive Efford), accused us of performing a U-turn. I certainly do not accept that accusation, and I am a little surprised that he made it. I have said time and again—and the hon. Gentleman has heard me say it—that the extension on its own does not equate to genuine levy reform. The amendment is part of a wider levy reform programme, which is essential and which will involve our looking at all the various options.

The shadow Minister rightly asked for further details about time scales and delay. Delay is the last thing that I want: we need to move ahead. I can tell the hon. Gentleman that we will seek to complete all the necessary extension work in time for the 2015 negotiations on the 55th levy scheme, and that we will begin consultation on wider levy reform this summer. We hope to complete that consultation by the autumn. We want to get on with this, but it must be done properly, and there are a number of practical considerations that prevent us from doing it any earlier. As the hon. Gentleman will know, any significant change beyond extension would require primary legislation.

[Mr Nuttall]

Will the Minister give way?

[Mrs Grant]

I want to make a few more points, but I will give way before I end my speech.

[Clive Efford]

Will the Minister give way, on that point?

[Mrs Grant]

On that point, I will.

[Clive Efford]

A review of the levy terms will take place in October. We are pretty clear about what we want to consult on in relation to the extension of the existing levy. Why can we not complete the consultation in time for the review, so that we can aim for earlier implementation? The longer we delay, the more the horseracing industry will miss out on potential income.

[Mrs Grant]

I hear what the hon. Gentleman says. Of course no one wants delay, which is why we want to take this power. However, as I am sure the hon. Gentleman appreciates, things must be done properly and carefully, and that is indeed how they will be done.

The hon. Gentleman also asked about the benefits of the levy. The levy contribution is likely to constitute a considerable sum, which, as he knows, will fund integrity, veterinary and breeding activities. As was pointed out earlier, the prize money from what we hope will be an increased levy will support the maintenance of quality racing at all the different kinds of courses throughout the country.

My hon. Friend the Member for Hexham (Guy Opperman), who I know has considerable knowledge of the industry, referred to the “racing right”. It is not a foregone conclusion that there will be a racing right, but we will certainly consider it during the consultation.