Fixed Odds Betting Terminals Debate

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Graham P Jones

Main Page: Graham P Jones (Labour - Hyndburn)

Fixed Odds Betting Terminals

Graham P Jones Excerpts
Wednesday 8th January 2014

(10 years, 4 months ago)

Commons Chamber
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John Whittingdale Portrait Mr Whittingdale
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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 P Jones Portrait Graham Jones (Hyndburn) (Lab)
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Will the hon. Gentleman give way?

John Whittingdale Portrait Mr Whittingdale
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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 P Jones Portrait Graham Jones
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Will the hon. Gentleman give way?

John Whittingdale Portrait Mr Whittingdale
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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 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.

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Philip Davies Portrait Philip Davies
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The right hon. Gentleman says that, but many of his constituents work in them, of course, and many of his constituents enjoy going into them. If they did not enjoy going into them, they would not be open.

It is true that more bookmakers have moved on to the high street in recent years, but their overall number has not gone up; instead they have moved from the side streets owing to lower rents because of the recession largely caused by the Labour party, and they will probably move back on to the side streets when the economy recovers and rents on the high street go back up.

Anyway, where are the legions of retailers wanting to open up on the high street in place of bookmakers? It is not a decision between having Next on the high street or William Hill or having M&S on the high street or Paddy Power. It is a choice between having Ladbrokes on the high street or a boarded-up shop.

Graham P Jones Portrait Graham Jones
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Will the hon. Gentleman give way?

Philip Davies Portrait Philip Davies
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I cannot give way again as I have taken the two interventions allowed.

People ask for a demand test and there is a demand test: it is called a customer demand test, which is the ultimate demand test.

The second myth is that bookmakers target poorer areas. There are two bookmakers per square mile in the most deprived areas. That compares with nine pubs and 11 takeaways. If the Opposition are saying that bookmakers are targeting the poorest people in society, what do they have to say about pubs and takeaways targeting those people? Do we hear anything about that? We do not, because this is not about the poorest in society being targeted; it is about people who are anti-gambling and anti-bookmaker. Bookmakers are not targeting poorer areas. This is about middle-class people being patronising towards working-class people by telling them that they know best how they should spend their money.

The third myth is that the machines are used by the poorest people. Again, that is untrue. The health survey published in recent months shows that gambling prevalence was highest in the top quintiles of household income, with 6% of people in the highest income quintile playing FOBTs, compared with 4% in the lowest quintile. The hon. Member for West Bromwich East said that he did not want surveys to be linked to the gambling industry, but this is the health survey, which has nothing to do with the gambling industry. That survey makes it clear that richer people are much more likely than poorer people to play FOBTs.

Only two gambling activities in that health survey were engaged in more by poorer people than by richer people. They were scratch cards and bingo. Poorer people spend more on scratch cards and bingo than do the richest people. What are the Opposition saying about scratch cards and bingo? Nothing, because they do not think that it would be popular to say anything about them. This is just a case of crocodile tears.

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Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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It is a great pleasure to contribute to this debate. I served on the Select Committee when it investigated this issue between 2011 and 2012. It was a useful inquiry to undertake several years after the Gambling Act 2005, because although, as has been said, there is a lot of anecdotal evidence, one role of Select Committees and of legislators is to step back and ensure that we are looking at the real data, as opposed to other people’s interpretations of them.

Let us have a bit of a history lesson. FOBTs appeared in high street bookmakers’ shops in the early 2000s, and, after a code of conduct was agreed with the industry, restrictions were put in place: the game type was restricted to only roulette; a cap was put in place on the stakes and prices; a minimum time interval between bets was introduced; and a limit was put in place on the number of machines per shop. That was a useful compromise, but the whole point of reviewing legislation is to see whether there have been any unintended consequences. One of the most obvious unintended consequences has been mentioned by many hon. Members: as the machines are popular and there is a demand for them, what we have been seeing in high streets in different parts of the country is that more and more betting shops are appearing. That may be partly due to the fact that premises are readily available. There have been mergers of various banks and building societies, which are in the same planning class as betting shops. Ultimately, those shops would not open if people did not want to use them.

Graham P Jones Portrait Graham Jones
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Is the hon. Lady as disappointed as I am that the Government have not mentioned the survey that 2CV did in Newham, which is a reputable data gathering company? She talked about how folk go into these premises and are addicted to these machines. The survey, which questioned 500 customers as they left betting premises, revealed that 62% admitted to spending every last penny in their pockets and leaving the shop only when all their money had been spent.

Thérèse Coffey Portrait Dr Coffey
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I think I have seen that survey. It was commissioned by the Campaign for Fairer Gambling. I do not deny that that was the outcome. Professor Orford, who is known to be anti-gambling, gave evidence to the Culture, Media and Sport Committee that we are the most studied country in the world, with three public prevalence surveys since 2000 and even more public health research. Despite that, our Committee was not able to substantiate the fact that gambling addiction is driven by fixed odds betting terminals.

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Louise Ellman Portrait Mrs Ellman
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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 P Jones Portrait Graham Jones
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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?

Louise Ellman Portrait Mrs Ellman
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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.

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Lord Jackson of Peterborough Portrait Mr Jackson
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It is interesting that my hon. Friend, for whom I have enormous respect—I think that he is wrong on this issue—should touch on the cumulative displacement impact on horse racing¸ football and greyhound betting.

Graham P Jones Portrait Graham Jones
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rose

Lord Jackson of Peterborough Portrait Mr Jackson
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I cannot give way. The hon. Gentleman is very engaging, but I must resist his blandishments on this occasion.

I am not a devil take the hindmost, freemarket libertarian. I am a Conservative—I am a social conservative. I believe that there is a compact or bond of trust with the most vulnerable people in our society. There is a problem with problem gambling. As a Christian, I have compassion for those people who are stuck with the mindset of feeling that they have to gamble, but my concern is mostly for the children and families affected by problem gambling. We have a responsibility and a duty. We have regulatory regimes for many things in our society. I think that it would be wrong, when so much money is being made, and from some of the poorest people in society, to walk on by and say that we do not need to look at this again. Labour was catastrophically wrong on this issue. I think that this is the worst motion the Opposition have ever chosen, because they are on very weak ground.

I believe that the Minister is right to look at the precautionary principle and to demand all the up-to-date information on the B2 machines, which are very sophisticated, from the gambling companies. A code of practice is not good enough, because we are not talking about Mother Teresa; we are talking about some pretty ruthless business organisations that are protecting their interests, and some of them are preying on the most vulnerable in society. We need the information. I agree with my hon. Friend the Member for Suffolk Coastal (Dr Coffey) that we need to base our decisions on data that can be proven and tested, not on anecdote.

Having said that, I believe that the Salvation Army has produced a great deal of data. We heard earlier about the increase in the number of problem gamblers in recent years. Some 23% of the money spent on FOBTs was spent by people with gambling problems. According to Dr Henrietta Bowden-Jones, the lead consultant at the NHS national problem gambling clinic, 50% of the clinic’s patients reported FOBTs to be particularly problematic.

In short, we are a Government committed to localism, so let us give local authorities more powers to look at use class orders, to crack down on clustering and to look at the absolute number of FOBTs, all of which I agree with. But let us have a consensus across the House, rather than vindictive, party political point scoring, because this is too important an issue for our families and communities for that.