The bookmakers give money to horse racing through picture rights, through the levy, through voluntary sponsorship of races and indeed through hospitality. As my hon. Friend says, the amount of money they put into racing cannot measured just by the levy, and we must be careful not to tax them too heavily. Last week, during DCMS questions, a number of Members attacked the so-called clustering and proliferation of betting shops. I pointed out that over the last 20 years the number of betting shops has actually halved. I am not sure that that can accurately be described as proliferation.
The pressures on betting shops and bookmakers have increased. As was mentioned earlier, the amount of money that certain individual shops make is very small, and the number of independent bookmakers has been reduced. Creating a level playing field should not mean heaping more tax on bookmakers. We should view the
position another way. Yes, we should be searching for that level playing field, but the level could be a great deal lower than it is at present.
Rather than imposing a 15% tax on bookmakers who are based offshore, should we not try to attract them back onshore by reducing the overall burden of taxation, not just for those based abroad but for those in this country? It would be rather perverse to impose a 5% tax on those based in Gibraltar, for example, and a 15% tax on those based here. The levels should be compatible, but lower. I fear that imposing a 15% tax on bookmakers based in such places as Gibraltar would have a negative effect.
I mentioned in an intervention that I have been to countries—I am not going to name them—where there is a tote monopoly and it is illegal to bet outside that monopoly, and I have sat next to people as they have had illegal bets. That is not a clever situation. It is not something I was proud to witness, but it goes on. That is the real world.
We must be careful not to drive businesses from being legitimate and based in Gibraltar, for example, to being based anywhere else in the world and taking bets from this country, completely unregulated and without paying a penny in tax or levy. That would be the complete opposite of what the Government are trying to achieve. There would be no protection for consumers, and we know the internet is notoriously difficult to regulate. That is no fault of this or the previous Government; it is just what has happened.
A few years ago a company called Betfair stole a march on the entire betting industry by creating a betting exchange business. It was hugely successful, and Betfair puts a lot of money into racing, but that move took the entire country and industry by surprise. Nobody knew how to compete with or respond to it. That is the way of the world, however. That is the way things are going.
That is the way things have gone in this House, too. When I arrived here 16 years ago, there were no such things as iPads. Now, they can be used in Committees, and some Committees have even gone paperless: papers are not circulated and instead they use the iPad, which links into the internet. Things have changed, and we do not know how they will change over the next five or 10 years. It is difficult to regulate what goes on via the internet, and we should not pretend that we can. We have to ensure that we do not inadvertently, through well-intentioned measures, make the situation worse.
Mr Deputy Speaker, I am aware that you are anxious to get on to the next debate so I will not say any more. I entirely agree with many of the points made today, and I do not want to repeat them. I am basically in favour of the Bill and a level playing field for taxation, levy, regulation and customer protection. But as the Bill proceeds, I urge the Minister and the Government to ensure that we do not inadvertently make the situation worse.
3.47 pm