Problem Gambling

Ronnie Cowan Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Jeremy Wright]

I am grateful for my right hon. Friend’s comments. He is right to be sceptical: we are all sceptical and remain sceptical in government about this. However, it would be wrong not to recognise the significant step forward that this announcement represents.

In answer to my right hon. Friend’s point about hypothecation, I should say that it has been made clear that £100 million of the money announced today will be reserved for treatment over the four-year period. We will want to make sure that the requirements for treatment are met via this contribution and those that we expect the rest of the industry to make.

As I mentioned in the statement and as my right hon. Friend knows, commitments have already been made by my right hon. Friend the Secretary of State for Health and Social Care to spend money on gambling, which is a recognised and real health problem. The money I have announced today is to supplement that. We must make sure that there is no duplication but rather that these contributions reinforce the money that is already committed.

[Ronnie Cowan (Inverclyde) (SNP)]

I thank the Secretary of State for advance sight of his statement. I appreciate the progress that is being made. Having discussed many of these issues with the Secretary of State and his Department, I genuinely believe that he gets it and is improving the situation, but I would take issue with a number of points. The statement touches on the argument for a mandatory levy, but undermines it by saying that it would take a year to complete. That reminds me of the old adage that my hon. Friend the Member for Falkirk (John Mc Nally) often reminds me of: “When is the best time to plant a tree? Twenty-five years ago.” If we do not start now, we will not be any closer a year from now. Is the Secretary of State suggesting that the gambling companies would withdraw their offer? If not, there is nothing to lose by starting the ball rolling now.

What we have now is an unacceptable compromise. Any amount that cannot be guaranteed, cannot be budgeted. If we are to provide education, research and support, it cannot be done piecemeal. We need to employ people, provide training and rent premises, and we need a strategy that can be followed over a five, 10 or even 15-year period. A voluntary levy does not provide such a platform. There is no continuity or security.

This offer is an attempted pay-off—a bribe—to appease the conscience of the gambling industry, and it takes the heat off. I fear it also allows the UK Government to absolve themselves of their responsibility. It leaves the commissioning of services to organisations favoured by the Gambling Commission, which is funded by the gambling industry. That is not a good model for commissioning harm-reduction services, or education and research. Will the Minister review the role of the Gambling Commission and its funding model to make sure it is effectively regulating gambling companies, including by legislating, if necessary, to ensure that responsible working practices are in place?

The draft statement says:

“I have met users who have lost more than the UK’s annual average salary on credit cards during one night of gambling online.”

Are we going to address gambling on credit cards? I see no word on that. It mentions fixed odds betting terminals, for which the maximum stake was set at £2, but let us not forget that the gambling industry was dragged kicking and screaming to the table on that particular one. I hope the same will not be said about harm reduction in years to come.

[Jeremy Wright]

The hon. Gentleman started his comments with the mandatory levy. He is right, of course, that it will take time to do this. If someone is interested in how quickly they can do things, the sooner they start, the sooner they finish. All of that is true. I said it would take at least a year; it may in fact take nearer to 18 months because any of these changes will need to begin at the start of a tax year.

A mandatory levy would deliver a return of 1% of gross gambling yield. What is being put forward today—except by only five companies, but that represents about half of the commercial gambling industry—is exactly for that: 1% of gross gambling yield. We would not derive any more income from a mandatory levy than we will from this process, but via this process we will derive it more quickly, and that is a real advantage for the problem gamblers whom I know he and I are both very concerned to help.

I do not accept that this is a piecemeal commitment. It is a four-year commitment, which we—all of us; not just the Government—will have the opportunity to monitor. If it is not being met in the way we all expect, we can and will take further action.

The hon. Gentleman is right that the Gambling Commission receives its funding from the industry; that is generally the case with regulators. If we had a mandatory levy, it would still fund the same activities. However, I believe the Gambling Commission is the right body, as the regulator, to be able to give us the assurance, which the Opposition spokesman properly raised, that the money is being spent on the right things, not simply ploughed back into the activities of the five companies.

The hon. Gentleman knows I take the view that there is more to do in relation to gambling on credit. He knows, too, that the Gambling Commission is in the process of looking at this in detail. I want to see what it concludes, but I believe a lot more can be done on gambling on credit to make sure that those who are particularly vulnerable do not find themselves more vulnerable by gambling on credit.

Oral Answers to Questions

Ronnie Cowan Excerpts

Thursday 23rd May 2019 Commons Chamber

[Jeremy Wright]

First, let me mostly endorse what the hon. Lady said about the women’s World cup and wish a huge amount of luck to England and almost as much luck to Scotland.

I disagree with the hon. Lady’s description of the position. We do not accept the characterisation in the report that she refers to. In relation to TV licences, as she has heard me say this morning, I think it is important to wait until we see the BBC’s proposals, and we will then be in a position to comment. That principle applies more broadly—it is always sensible to wait and see what is proposed before you decide you do not like it.

[Ronnie Cowan (Inverclyde) (SNP)]

4. What steps his Department is taking to ensure adequate funding for (a) education, (b) research, (c) treatment and (d) support to minimise gambling-related harm.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

I am pleased to say that the NHS is expanding specialist support for gambling addiction in its long-term plan. Public Health England is reviewing evidence, and GambleAware will publish a needs analysis this autumn. Building evidence is key to future funding decisions. We want the industry to be responsible in all ways, which includes funding support for people experiencing harm.

[Ronnie Cowan]

According to the Gambling Commission, the gross gambling yield of Great Britain’s gambling industry is £14.4 billion, yet the amount donated through the levy for gambling-related harm was less than £10 million. A statutory levy of 1% would equate to £140 million. I know that such a levy is being considered, but what alternatives exist to raise a guaranteed amount over a period?

[Mims Davies]

GambleAware was fully funded last year. As the hon. Gentleman said, it almost reached the £10 million target, and another £7 million was brought in through financial penalties. We expect targets to be increased in the future and welcome commitments by operators to substantially increase the amounts they give. However, as I said at the Gambling Commission strategy launch, if the voluntary system cannot meet current or, more importantly, future needs, we will look at alternatives. Everything is on the table, including a mandatory levy.

UK Telecoms: Huawei

Ronnie Cowan Excerpts

Thursday 25th April 2019 Commons Chamber

[Jeremy Wright]

I think it is entirely appropriate for the Committee on which my hon. Friend serves to make inquiries as it thinks fit. It is not a matter for me or for the Government to indicate what it should or should not do. He will recognise, of course, that these are documents that should be discussed by the National Security Council—it is a way in which the National Security Council can make sensible and properly informed decisions—but as I said a moment or so ago, and as he knows full well from his own experience, that will become less and less likely to happen, and decisions will get less and less properly based, if we cannot trust people to keep private what should be kept private.

[Ronnie Cowan (Inverclyde) (SNP)]

As I see it, there are two major considerations. In the UK we are lagging behind China, the USA and South Korea. The fact that we are even talking about this issue is a strong indication that there has been a lack of a realistic UK Government-backed strategy, and that has allowed us to fall behind, and we are now facing tough decisions, which could and should have been avoided. There is the threat of espionage, which is obviously denied by China. There have been persistent rumours since 2012 of an elite cyber-warfare unit using either Huawei’s software or flaws in it. Why it should go to such lengths when the NSC leaks like a sieve is beyond me, but if we do not know, how we can possibly take that risk?

I have two brief questions for the Secretary of State. Can he define the “core” and the “edge” of a 5G network and assure me that it cannot be compromised from either side? As EE is building 4G to carry emergency services, with its planned 5G piggybacking on that, will Huawei’s 5G plan disrupt that service?

[Jeremy Wright]

First, there is no lack of UK strategy. We have a clear intent to make maximum use of 5G technology. That is important because, as the hon. Gentleman will recognise, in order for our economic development to be as successful as we all want it to be, this country will need to embrace this technology and make use of it in a variety of ways. The option of simply saying we will not engage in 5G technology is not available to us, nor should it be, and I know he does not argue for that.

If we need to provide for 5G networks, I repeat that it is important to be realistic and to recognise that Huawei is a significant player in this market. There are few others—and, by the way, the others that exist use Chinese equipment or assemble their components in China. The idea that any option available to us could completely exclude Chinese equipment or involvement of any kind is, I am afraid, not realistic.

It is also worth saying, for the reassurance of the hon. Gentleman and others, that we already take action to, for example, exclude Huawei from sensitive networks. There is no Huawei equipment in defence or intelligence networks. The division between core and access networks—which, as he says, is technically complex—is something we will need to address in the review, but I would much prefer that we discuss that review in the round when it has been properly developed, rather than attempt to do it piecemeal on the back of incomplete leaks.

Online Harms White Paper

Ronnie Cowan Excerpts

Monday 8th April 2019 Commons Chamber

[Jeremy Wright]

I am very sorry to hear about what has happened to the hon. Lady. As she knows and as others have said, she is sadly not alone. It is important that we consider what online platforms can do. As I have said, closed groups and encrypted communications are a particular challenge. None the less, we think that online companies should do everything they can, with the restrictions that apply to encrypted communications, to keep their users as safe as they possibly can. The regulator will be entitled to ask, as it is entitled to ask in relation to other matters, whether the platform really is doing everything it could. If it is not, there will be consequences.

[Ronnie Cowan (Inverclyde) (SNP)]

I was delighted when I got to page 26 of the White Paper to read the phrase “designed addiction”. My heart sank, however, when I got to “future action” and it talked about setting:

“the right expectations of companies to design their products in safe ways”

and to

“set clear expectations for companies to prevent harm to their users.”

If we have recognised designed addiction, has the time not come to legislate and stop those companies?

[Jeremy Wright]

When I visited the west coast to discuss these matters with a number of online companies, I had the privilege of meeting the inventor of the infinite scroll. He was, I am pleased to report, suitably apologetic. The hon. Gentleman is right. There are a certain number of technological responses that we might expect online platforms to adopt to deal with some of the harms we will expect them to tackle. As I have said, that will be a significant part of what the regulator should do to encourage those technological developments and ensure they are widely implemented.

Fixed Odds Betting Terminals

Ronnie Cowan Excerpts

Thursday 1st November 2018 Commons Chamber

[Jeremy Wright]

The whole House has respect for my right hon. Friend’s passion on this subject and his commitment to change. Of course, he is not alone and I am sure that many other Members will speak who also deserve huge credit for their consistent efforts. I simply say to him that I have tried in my response to set out the logic of how we balanced out several different factors in making our decision. None includes consideration of the profits of the betting companies. There are considerations about the livelihoods of those who work in betting shops and it is perfectly proper for the Government to make them. He will know that, if we did what the betting companies wanted, the change would not be made at all. We have done this contrary to the strong wishes and consistent argument of the betting companies because we believe it is the right thing to do.

[Ronnie Cowan (Inverclyde) (SNP)]

I thank the hon. Member for West Bromwich East (Tom Watson) for introducing the urgent question. We know—and the Government have acknowledged—the damage caused by fixed odds betting terminals. It has been accepted that, to reduce the harm, reducing the maximum stake to £2 is required. Until that is implemented, the acknowledged harm continues. For technical and other reasons that we have heard, but that I believe are questionable, the implementation date has been set at October 2019. We have already heard what the original date could have been, but that is to miss the point. Every day we hesitate results in additional debt, increased gambling-related harm and, tragically, the possibility of more suicides relating to these machines. That is not a price worth paying to placate the bookmakers or a handful of Back Benchers. There is cross-party support for an implementation date in April 2019. Any later is tantamount is negligence and will be resisted at every opportunity.

[Jeremy Wright]

No, I do not accept that it is negligence to take the approach we have taken. It would be negligent not to take into account all the relevant considerations in making this decision. I think I have been as clear as I can be: the profit margins of the betting companies are not one of the relevant considerations. However, it is appropriate for us to think about the economic impact of this decision on those who work in the high street and it is appropriate for us to think about the necessary notice to be given not just for the FOBT change, but for the remote gaming duty change. Although I entirely accept the hon. Gentleman’s passion on this. I know why he argues as he does. There is no monopoly in this House on compassion for those who suffer from problem gambling and its effects. We have had FOBTs in this country since the early 2000s and this is the Government who are taking action against them in order to make the substantive change that he and I will agree needs to be made.

Oral Answers to Questions

Ronnie Cowan Excerpts

Thursday 21st June 2018 Commons Chamber

[Matt Hancock]

I am grateful for my hon. Friend’s support and for that of many Members across the House for the action we are taking on problem gambling. Clearly it is important to ensure that we tackle online issues as well. That is complicated by the nature of the technology, but the Gambling Commission is working hard to ensure that the right protections are in place.

[Ronnie Cowan (Inverclyde) (SNP)]

I once again congratulate the Secretary of State on introducing the £2 maximum stake for FOBTs. Will he use his considerable persuasive powers to talk to his colleagues at the Treasury and get that implemented by April 2019, and not a day later?

[Matt Hancock]

Of course, this needs to go through Parliament, and there is a process that needs to be followed. In order to cover any negative impact on the public finances, the change needs to be linked to an increase in remote gaming duty, paid for by online gaming operators at the relevant Budget. There are steps that need to be taken, but the hon. Gentleman knows just how enthusiastic I am to get this in place.

Gaming Machines

Ronnie Cowan Excerpts

Thursday 17th May 2018 Commons Chamber

[Tracey Crouch]

I agree entirely with my right hon. Friend. As I said in my opening statement, this is not about one particular product, although what we are doing is targeting intervention on the most harmful product, and the most harmful product on our high streets at the moment is the fixed odds betting terminal.

[Ronnie Cowan (Inverclyde) (SNP)]

I thank the Minister for an advance copy of her statement.

I welcome the announcement by the Government to reduce the maximum unit stake on FOBTs to £2 per spin. This is something that I have strongly campaigned for in my role as vice-chair of the all-party group on FOBTs, alongside other MPs, such as the extremely hard-working chair of the all-party group, the hon. Member for Swansea East (Carolyn Harris), and the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith).

I praise the Minister for her action on this issue and her acknowledgement of what harm these machines do. I do not believe that we would have achieved this outcome without her continued efforts in persuading her colleagues of the need for action on gambling-related harm.

Gambling-related harm is an issue that rightly continues to receive more attention. It is vital that the Government continue to listen to the many people, such as Dr Henrietta Bowden-Jones, and the organisations that are highlighting how gambling is becoming more prevalent, especially among young people. According to the Gambling Commission’s statistics, more than half a million children are gambling every week. Therefore, I am glad to hear the Minister say that gambling-related harm is about more than any one product or gambling activity and that the Government intend to enhance protection around gambling advertising, including a major multi-million pound advertising campaign. I welcome the fact that this campaign promotes responsible gambling.

I acknowledge the comments that the Minister made earlier in response to the Opposition that education to prevent gambling-related harm has to be funded. I believe that to fund such education, to promote social responsibility and to safeguard vulnerable groups, the Government should introduce a statutory levy on bookmakers to fund GambleAware and its activities to tackle gambling-related harm.

I welcome today’s announcement and hope that common sense and cross-party collaboration can continue in this area. I ask the Minister to work with the Scottish Government on any legislation that may already be devolved, or may be more appropriate to be devolved, to ensure the success of this proposal. Hopefully, this can be a platform to implement more legislation to help those affected by gambling and those who may become problem gamblers.

Oral Answers to Questions

Ronnie Cowan Excerpts

Thursday 21st December 2017 Commons Chamber

[Matt Hancock]

I am pretty sure that my hon. Friend’s son does not watch Parliament TV, so his secret should be safe—[Interruption.] Well, he certainly does not watch it yet. My hon. Friend makes the point that we need decent connectivity everywhere, and the Government are bringing in the universal service obligation to ensure that decent broadband can be available to everybody, fulfilling our manifesto commitment and delivering that by 2020.

[Ronnie Cowan (Inverclyde) (SNP)]

Last week the Gambling Commission issued a report that highlighted that 80% of young people aged between 11 and 16 have seen gambling on television, 70% on social media, and 66% on websites. Does the Minister agree that more action must be taken to educate young people positively about the risks of gambling, as that could help them to avoid gambling-related harm later in life? A statutory levy on bookmakers could go a long way to funding that education.

[Tracey Crouch]

The quick answer is yes, and GambleAware will lead a responsible gambling advertising campaign as part of the consultation that we publish.

Gaming Machines and Social Responsibility

Ronnie Cowan Excerpts

Tuesday 31st October 2017 Commons Chamber

[Tracey Crouch]

I hope that my hon. Friend and many other people across the Isle of Wight who have been affected by these machines take a look at the consultation paper and reply. This is an opportunity for the gambling industry to take a long hard look at itself and reassess what it offers the British punter. We shall see what happens over the next 12 weeks.

[Ronnie Cowan (Inverclyde) (SNP)]

I recently visited the National Problem Gambling Clinic, and commend the work being done by Dr Henrietta Bowden-Jones in supporting people affected by gambling-related harm. However, this is the only such clinic in the entire United Kingdom. Does the Minister agree that more help needs to be provided for individuals and families who have been affected by problem gambling? One way of doing this would be to put a statutory levy on bookmakers, so that they contribute more than the £8 million that they currently contribute on the back of the hundreds of millions of pounds of profit that they make annually.

[Tracey Crouch]

I agree. We certainly mention some issues around the levy in the consultation document. At the moment, bookmakers have to contribute 0.1% of their profits. If they did that, it would amount to somewhere in the region of £13 million to £14 million, but that is currently not happening across the board. We have made it very clear in the consultation that we want that to happen. If it does not happen, we will certainly consider the introduction of a mandatory levy.