Fixed Odds Betting Terminals

Louise Ellman Excerpts

Wednesday 8th January 2014 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The key issue at the heart of the debate is localism—the ability of local authorities to act in the interests of the people they represent. I was most surprised when the Minister referred to localism as an unacceptable patchwork, as that is an unacceptable approach to take when considering local authorities and their responsibilities.

The debate is not about gambling in general but about specific and growing concerns about fixed odd betting terminals in betting shops. Every 20 seconds, £100 can be gambled, often with disastrous results for individuals. Research has shown that the people using those facilities particularly include young unemployed men.

[Mr Whittingdale]

Has the hon. Lady ever played a fixed odds betting terminal? They have one of the highest rates of return of any gambling machine and it is virtually impossible to lose hundreds of pounds as the majority of the money one puts in comes back out again.

[Mrs Ellman]

I am concerned about the negative aspects of the activity, and I refer the hon. Gentleman to some of the information contained in the report of Landman Economics, which I have quoted.

There is certainly a link between the growth of such facilities and areas of deprivation. In Liverpool, Riverside, which I represent, there are now 189 such terminals—one of the highest levels in the country—and it is a very deprived area. That deprivation has been recognised by and has caused deep concern to the local authority, Liverpool city council, which is why it raised the issue last November and called for increased powers to enable it to deal with this specific concern.

It is often local authorities that recognise the cumulative effects of such facilities, and the impact on local communities and individuals. The city council has cited in its debates many cases of people who have turned to loan sharks in desperation, having got into debt because of these facilities, and the problems that they have experienced. Indeed, the Landman Economics report provides evidence of the economic impact on local communities. In fact, there is information that suggests that an increase in spending of £1 billion on such terminals rather than other services can lose the equivalent of 13,000 UK jobs. There is concern about the development of such facilities, about the fact that they are uncontrolled in areas of deprivation, and about the impact on individuals and local communities, and it is important that local authorities are given the necessary powers to deal with the issue.

Government Members seem to have said a number of different things about local authority powers. Some have suggested that local government has sufficient powers, others have said that such powers are perhaps difficult to find and others have cited examples of where such powers have been found to be failing or simply do not exist. The key point is that local authorities should be able to deal with the issues they consider to be important to their areas. That does not mean that they should be forced to take a particular course of action, but they should be enabled to do so when they feel that it is necessary.

The proposal is not about gambling in general and certainly would not deal with the significant growth of online gambling. This is about another very specific issue, as it is extremely important that local government is given the powers it requests to react to problems.

[Graham Jones]

My hon. Friend is making powerful points about the contradictions in the points made by Government Members about localism and nationalism and about addiction. In the 2CV survey of 500 punters in Newham, 87% said that these machines were very addictive and, as I said earlier, 62% said that they would put every last penny into the machines before they left the shops. Is that not shocking?

[Mrs Ellman]

My hon. Friend makes some important points, and I urge Government Members to recognise that the heart of the motion is about empowering local authorities to take the action they consider necessary in the interests of the people they represent. It does not preclude other decisions being made when further research has been carried out, and I urge the Government to support the motion.