Oral Answers to Questions: Treasury: Topical Questions 24 April 2008

John Penrose (Weston-Super-Mare, Conservative)
If he will make a statement on his departmental responsibilities

Alistair Darling (Chancellor of the Exchequer, HM Treasury; Edinburgh South West, Labour) The core purpose of the Treasury remains to ensure the stability of the economy, to promote growth and to manage the public finances. Last week, the new figures showed that employment in the United Kingdom had reached a new record of 29.5 million people, which demonstrates the underlying strength and resilience of our economy.
amendment is intended directly to assist an industry that is under pressure, and to strengthen the Treasury's ability to ensure that we retain a successful gaming and arcade industry, which can continue to contribute to the Exchequer.
The amendment would enable gaming arcades to have up to one fifth of their gaming machines as B3 machines, and unless the provision was in place by April next year, this year's Budget increases in amusement machine licence duty would lapse. The amendment would force the Government to revisit allowing more B3 machines per establishment than the current rules in the Gambling Act permit. The new rules restrict establishments to a maximum of four machines, irrespective of the venue's size. The Act also introduced a further change, reducing the maximum stake on B3 machines from £2 to £1, which has meant a dramatic fall in the turnover of gaming arcades.
Although the debate is about amusement machine licence duty, to explain my amendment properly and so that hon. Members at least understand my rationale for tabling it I need briefly to outline the dramatic effects of the Gambling Act. I could have tabled a further amendment on increasing the current limited stake from £1 to £2 for a £500 maximum prize on B3 machines, which the Gambling Act reduced. However, I believe that the amendment will give me the chance to make plain my concerns about the viability of the gaming arcade industry and the impact on the economies that it supports.
Many people who are involved in the gaming arcade industry have serious concerns about even its short and medium-term viability, if my amendment is not accepted. Those anxieties are especially prevalent in seaside communities, where a much larger base of the local economy is linked to tourism and the entertainment industry generally.

John Penrose (Weston-Super-Mare, Conservative)
I assure my hon. Friend that I have received numerous representations from people in my constituency who run establishments such as those that she describes. They are all suffering greatly. Many have experienced catastrophic falls in revenue and many wonder for how long they can continue. My hon. Friend is right and I cannot emphasise enough the seriousness of the position of that sector of the industry.