Mr John Whittingdale (Maldon) (Con): I welcome the debate as an opportunity to bring some light to the subject, rather than the large amount of smoke that has obscured it so far, but that might be a statement of hope, rather than experience.
It is important to bring some perspective to the debate. Gambling is a legitimate activity that brings considerable pleasure to millions of people in this country, that generates a lot of economic activity and that provides employment and tax revenue for the Government. Betting shops are not a blight on the high street; they are regulated and controlled environments that provide employment and, in some cases, a social benefit.
Steve McCabe (Birmingham, Selly Oak) (Lab): The hon. Gentleman says that gambling raises revenue for the Government, but in actual fact the Government receive about £3 billion a year in revenue and the profit on fixed odds betting terminals is about £1.5 billion. It costs the state £3.6 billion to deal with problem gamblers, so does not that suggest that this is bad economics?
Mr Whittingdale: I shall come on to problem gambling, but it is a myth to suggest that that is entirely a result of FOBTs. There is a difficulty due to problem gambling, and a small number of people suffer from addiction—of course they need some protection. It has always been a principle that the harder forms of gambling are permitted in more controlled environments. To that extent, it was something of an anomaly that the previous Government allowed B2 machines on the high street while there were restrictions on those machines in adult gaming centres and casinos. It was ironic, too, that the previous Government wanted to introduce category A gaming machines, for which there were no limits on stakes or prizes, in super-casinos. Perhaps those anomalies should have been addressed. That was why, when the Culture, Media and Sport Committee looked at the problem, we recommended allowing up to 20 B2 machines in casinos and some B2 machines in adult gaming centres.
Philip Davies: Does my hon. Friend agree that while it is all very well restricting stakes and prizes in betting shops, there is nothing to stop the people involved from going back home where they can play exactly the same games on the internet with unlimited stakes and unlimited prizes?
Mr Whittingdale: My hon. Friend is absolutely right; I was going to come on to that point.
The latest statistics in the English health survey show that something like 0.5% of the population might be suffering from problem gambling, which represents a drop from the previous figure in the gambling prevalence study.
Graham Jones (Hyndburn) (Lab): Will the hon. Gentleman give way?
Mr Whittingdale: I am sorry, but I have very little time, so I shall have to continue.
Although that figure might have fallen and although only a small number of people are involved, I accept of course that those people still need protection, which was why the Select Committee looked at various technologies that might help to address the problem. We looked at self-exclusion, taking periods of rest between playing machines and mandatory pre-commitment. We should consider such measures, but before taking any action, it is important that we act on the evidence. That was why we recommended that more research should be conducted so that we could establish whether B2 machines presented any greater risk of attracting problem gamblers than other types of machine. As my hon. Friend the Member for Shipley (Philip Davies) pointed out, the strongest growth in gambling is taking place online, but there are far fewer controls online for people who have a problem. It is much more difficult to verify someone’s age online and for someone to self-exclude.
Graham Jones: Will the hon. Gentleman give way?
Mr Whittingdale: I am sorry, but there are strict time limits on speeches, so I want to press on. I have explained why I believe that we need much more research.
The issue of clustering has been raised, too, and it was also recognised by the Select Committee. We recommended, although this was widely misinterpreted, that there should be some flexibility for local authorities so that if it could be shown that a large number of betting shops had opened to get around the limit of four machines in a shop, one solution might be to allow local authorities to permit more machines in individual betting shops precisely to stop more shops from opening. We suggested that such flexibility should be applied in an upward rather than a downward direction.
I support localism, but the problem with the Opposition’s motion is that, as the hon. Member for Eltham (Clive Efford) confirmed, the proposal would not be retrospective. It would apply only to new shops, so he would not seek to close existing betting shops on the high street.
Clive Efford: The licensing powers relating to the machines could be retrospective. The number of machines per shop could be reduced.
Mr Whittingdale: But the hon. Gentleman is not proposing to revoke the existing permissions for shops that are currently on the high street, so what he suggests would not be likely to make any great difference. It would act as an anti-competitive measure that would benefit the people currently operating on the high street and prevent new entrants from coming into the market. Generally, that would be detrimental to consumers.
The Select Committee’s overall conclusion was that before we take action in this area, we need much more research. The hon. Member for Bradford South (Mr Sutcliffe), who is a member of the Responsible Gambling Trust, pointed out that a thorough study is under way, with a report due in the near future. The Opposition’s motion pre-empts the work that the trust is doing and draws conclusions before we have even seen the results of its research. That is completely the wrong way round, and it is for that reason, in line with what the Select Committee recommended, that I shall support the Government’s amendment and not the Opposition’s motion.
