Gambling (Licensing and Advertising) Bill

Paul Farrelly Excerpts

Tuesday 26th November 2013 Commons Chamber

[James Duddridge]

I could not agree more with the hon. Gentleman, who makes his point eloquently. That arrangement is better for those who have a developing problem, because they have the support of professionals who are there to monitor their behaviour. There is nothing to stop someone sitting in their bedroom and gambling away a fortune while drinking half a bottle of Scotch, but that would not be allowed at a roulette table. Under my new clause, someone gambling in that way would be stopped by staff within the casino, so the hon. Gentleman’s point is absolutely true.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

We have tried to avoid complexity in the Bill because there is the prospect that it might be challenged. However, it will not be challenged on the grounds that it clears up a simple anomaly, which is what new clause 1 would do. I thoroughly support the new clause. Does the hon. Gentleman agree that it is odd that we have gone through extensive pre-legislative scrutiny, but the Government have ignored this central recommendation of the Culture, Media and Sport Committee?

[James Duddridge]

I agree with the hon. Gentleman. It is disappointing that more has not been taken on from the pre-legislative scrutiny. Otherwise, what is the point of having it? However, the Government have been right to resist the obvious temptation to tag too many things on to the Bill. There is a balancing act to be done, but some kind of enabling legislation in the Bill would allow the tinkering to take place later and with more consultation.

Customers should be allowed to choose what they want to do and where they want to do it. Customer choice is moving in favour of gambling in casinos and the legislation should not stand in the way of that. In many ways, the new clause is deregulatory.

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[Philip Davies (Shipley) (Con)]

As ever, it is a pleasure to follow the hon. Member for Bradford South (Mr Sutcliffe) who, as people have said, is an expert in these matters and did an excellent job when he was the Minister responsible for them. I agree with his comments about new clause 1, although I think he was characteristically —and perhaps unnecessarily—generous to his Front-Bench colleague, the hon. Member for Eltham (Clive Efford), about his new clauses.

Before I go any further I refer Members to my entry in the Register of Members’ Financial Interests. I congratulate my hon. Friend the Member for Rochford and Southend East (James Duddridge) on new clause 1, which is absolutely spot on and follows the conclusions we reached in the Culture, Media and Sport Committee during pre-legislative scrutiny. His point about the clear anomaly in this area is right. It seems ridiculous that somebody can play on a tablet or remote machine three paces outside the door of a casino, but is not allowed to do so three paces inside that door. It is about time legislation in that area caught up with modern technology. We cannot allow the law to be so behind the times; some of us may be considered luddites, but the law should not exist to protect luddites in such a way.

[Paul Farrelly]

Before the hon. Gentleman goes on to being under-generous to the shadow Minister, does he agree that throughout this debate, the Government have yet to give a reason for why they are rejecting a provision such as new clause 1 to remove that anomaly?

[Philip Davies]

I agree with the hon. Gentleman; he is absolutely right and I am sure we all look forward to the Minister’s response. I hope we can look forward to hearing her accept new clause 1. It seems that Governments often refuse to accept amendments and new clauses simply because they have been tabled by a Back Bencher rather than the Government. It would be to the Government’s credit if they were to accept that the new clause is sensible and has cross-party support and support from the Select Committee that scrutinised it. The new clause does not add a great deal of complexity to the Bill; it is fairly straightforward and would be easy to implement. When the Minister responds, I hope she will say that she has listened to the argument and realised that we should pursue this sensible measure.

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[Philip Davies]

I agree with my hon. Friend, and I take it from what he has said that he agrees with my amendment. The fear has been expressed, both in the Treasury’s forecast and during the debate, that the number of people gambling with unlicensed operators could increase. I therefore think it only right for the Government to present a report to the House once a year—it need not be an oral report; it could be in written form—to update us on what the Gambling Commission has been doing and how successful it has been, so that we can decide whether it is dealing properly with a problem that we all fear may arise.

[Paul Farrelly]

The hon. Gentleman said that the report need not be in written form, but the amendment says:

“The Secretary of State shall publish a report to Parliament”.

That implies that it should indeed be a written report. Will the hon. Gentleman provide some guidance for the Government and the Gambling Commission by saying a few words about what he expects to be its form and content?

[Philip Davies]

I think that the hon. Gentleman misheard me. I actually said that the report need not be oral, and could be written. The amendment is worded as it is because otherwise there could simply be a written report with no accompanying oral statement.

I should like the Gambling Commission to explain, in its own words, exactly what actions it has taken to try to close down unlicensed operators in order to prevent people from gambling with them; to update us on how successful it has been; and to give us an idea of how big the issue remains each year. That will enable us to decide whether the legislation that we have passed has succeeded, or whether we need to revisit it. If we are to proceed with the Bill, all of us will want to ensure that people gamble only with properly licensed legal operators, and any measure that focuses the minds of the Gambling Commission and the Government on that can only be a good thing.

[Paul Farrelly]

Does the hon. Gentleman think it advisable for the Gambling Commission to give us an annual running commentary on its estimate of the percentage of the market that is captured by licensed operators and the percentage that is lost to unlicensed operators? That might help the Treasury to determine the amount of the necessary tax levy, which will clearly be crucial in the context of how much of the gambling market is captured by licensed operators in the future.

[Philip Davies]

I am not entirely sure whether an annual report constitutes a “running commentary”, but if it does, then yes, I do want a running commentary on the steps that the Gambling Commission is taking, how effective those steps are proving to be, and how big the market is. Only if we know that will we know whether the Bill has been successful or whether we need to change it in some way.

When I table an amendment, I can often understand why the Government would not accept it, but I genuinely cannot understand why they would not accept this amendment, which is modest and which goes to the heart of some of the concerns that have been expressed about the Bill. On that basis, I hope that the Minister will accept my amendment and new clause 1, but will reject the new clauses tabled by Opposition Members.

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[Mrs Grant]

That is a fair question that I am just about to come on to. I know that the hon. Gentleman wants progress here, and I am aware that people need us to get on with this and I assure him that it is my intention to get on. I am committed to bringing the conversations that we have already started to a conclusion by March 2014. That may be a little later that he would like, but I want to do this properly, because that is far better than not doing so. Furthermore, I reassure him and my hon. Friend the Member for Rochford and Southend East that primary legislation is not needed in relation to the casinos’ aspirations. Those aspirations could be achieved by secondary legislation, if we felt that to be wise. For all those reasons I am firmly opposed to the new clause, because it removes important controls for consumer protection, which is what the Bill is about, and paves the way for unintended consequences.

I thank my hon. Friend the Member for Shipley and the hon. Member for Eltham (Clive Efford) for their important suggestions about enforcement, including reporting on enforcement activity and financial transaction blocking. However, amendment 1 is unnecessary as the Gambling Commission already publishes annual information and data about its activities, including its regulatory and enforcement activities as well as industry statistics, which include those on betting integrity. I draw the attention of my hon. Friend the Member for Shipley to the Gambling Commission’s 2012-13 annual review, which already details the enforcement activity it has undertaken. A further separate report would not significantly add anything to the material already published by the commission and would therefore involve unnecessary duplication. I know that he is a stickler, and I want to assure him that the commission is constantly improving its coverage of information and has assured me that it is willing to ensure that it includes information about its enforcement activities in relation to remote gambling as part of the material that it already publishes. For those reasons, I do not intend to accept my hon. Friend’s amendment.

[Paul Farrelly]

Will the Minister give way?

[Mrs Grant]

I want to make some progress; I have too much to get through. When I have made some progress, I will come back to the hon. Gentleman.

New clause 12 would permit the Gambling Commission to introduce financial transaction blocking. The evidence on the effectiveness of financial transaction blocking is far from convincing and, as we heard in Committee, the industry clearly has doubts about its effectiveness. I do not wish to rule out the blocking of financial transactions in the future should it become appropriate or necessary and if we can see that it is effective. As the range of tools at the Gambling Commission’s disposal has already been shown to be effective, I do not feel that it would be appropriate to seek that power in this Bill.

I thank hon. Members for raising the important issue of sporting integrity and the need to ensure that operators have an obligation to report suspicious market activity. Although I am satisfied that strong and effective measures are in place to ensure that that happens, I am pleased to be able to confirm, to the shadow Minister in particular, that the Financial Conduct Authority will issue guidance to the two sports spread betting firms operating in the United Kingdom and that will reinforce the current arrangements. The new guidance provides an opportunity for the FCA to clarify the meaning of its rules and to state precisely what it requires of the sports spread betting firms. That will allow greater consistency in how suspicious market activity is reported.