I rise to support the Bill, although I am a little disappointed that it is so narrowly drawn as I think that major issues need considering. Gambling is very much part of modern life in Britain. We all cheered the Olympians in 2012, and a lot of that success was built on the national lottery. One needs only to look at the various books produced at Budget time to see how much the industry generates in taxation to pay for the things we want in this country, such as health, education or law and order.
Gambling is an important industry, and it is also part of our offer as a country that many people come to visit. We need only look at casinos in London to see that a high percentage of people in them are visitors to this country who have come to take advantage of the facilities and what we have to offer. Progress was clearly made in the Gambling Act 2005, but given the way the internet is developing, it is difficult without a crystal ball to work out what the future will bring. It is clear that we have lost a large slice of the industry to abroad because of the tax system, and it is therefore perfectly sensible for the Government to look at ways and means of tempting people back to the UK to make a bigger contribution.
We ought to be aware of concerns that we might load too much on the Gambling Commission because it might then load higher fees on to domestically based businesses. Many of those businesses found that the size of the commission compared with the old gambling board, and the number of people it employs, has put their fees up substantially over several years. Many issues must be considered and this Bill is part of the solution. I suspect that the other part of the solution, as we discussed earlier, will be in the Finance Bill following the Budget.
A number of important issues have been raised, include how we tempt offshore companies to come back. Do we tempt them back by setting a competitive rate? My hon. Friend the Member for Shipley (Philip Davies) made a strong argument for that, but there are a number of competing concerns. The domestic industry is clearly upset that people offshore can set better odds and therefore take customers, but we must also consider the rate we set, as that could ensure many more illegal sites in the UK, which raises the issue of problem gambling.
I think we have a responsible domestically based industry that, as I said, generates a lot of tax. It has codes and practices that it sticks to, and it is part of our offer as a country. It also expects a degree of fairness. When we talk about a level playing field, we must take into account the millions of pounds of investment, the thousands of people who are employed, and the tax they generate. The rate we set for remote gambling operations will be important, but the Gambling Commission and Treasury must also consider whether
sufficient assets are deposited in the UK, or whether any entity subject to action by UK regulators or the authorities has assets in the UK that can be picked up. They must also consider whether people from remote companies have locally based directors who are responsible for what they do—that is important.
The hon. Member for Newcastle-under-Lyme (Paul Farrelly) asked whether there ought to be sanctions against individuals or businesses that provide facilities for offshore remote gambling companies. That is a difficult area and an absolute minefield, and there are tricky issues for the Government to consider, which means setting out a balance. In reality, however, because we are not getting tax from the remote industry, the UK has probably lost £1 billion or £2 billion in revenue over the past few years, and it is an area in which any sensible Government would look for reform.
A number of other issues have been raised, including why we have to wait until December 2014 before we bring in a new rate. By some estimates, the UK may well lose £200 million or £300 million by having that delay. The issue raised by the Culture, Media and Sport Committee is also important. Someone can gamble remotely on an iPad in the street, but when they go into a casino, which is safe, regulated, taxed, and where people have a duty to look after their general welfare, they are not allowed to. I was pleased after my earlier intervention when the Minister said that the Government might consider that issue during the passage of the Bill.
A number of points in the broader industry need addressing. The hon. Member for Bradford South (Mr Sutcliffe) mentioned the portability of casinos. A lot of our—very successful—industry still runs under the Gaming Act 1968, which is nearly 50 years old. Certain issues need looking at if we are to modernise the industry and for it to continue to be a success.