Joint Committee on the Draft Gambling Bill Minutes of Evidence


Examination of Witnesses (Questions 1780 - 1799)

TUESDAY 2 MARCH 2004

YVETTE COOPER MP, MRS VICTORIA THOMSON AND MR ELLIOT GRANT

  Q1780 Mr Meale: I accept that it may not prove impossible but I think you have to accept that it would if, say, Pontefract ski slopes were to be adapted to have a casino licence?

  Yvette Cooper: We are not talking about small-scale developments here, we are talking about major-scale developments which have an impact on the entire region and not simply on people who live in Pontefract and Castleford; and it is right that other people who live in the region, other local authorities and so on should be involved in the discussion about location in order to have the most sensible strategic impact. If it is just a small casino which only has a small market then, clearly, the considerations are completely different and should be.

  Q1781 Mr Page: Chairman, most of my points have been answered. Minister, you said the planning system is used to dealing with large planning applications and so on, and the planning inquiry is part of that process. I cannot see that anything you have said is going to avoid an almost automatic public inquiry for every large resort application. You are going to get regions arguing with regions and it is going to be called in and will have to be handled that way. Is that the way you want to see the planning application process work?

  Yvette Cooper: No, I think that is also why the attempt is to try to change the way that the regional plan is developed—to try and build those considerations in at the earlier stage. If people have come to an agreement that in the Yorkshire part of the regional planning body in drawing up their regional plan that Ryedale, for example, is an appropriate location for a casino resort development, or that kind of development, then that debate has been had; it has been had in public and there has been an opportunity for everybody to have those discussions, to argue about what the different merits are, what the consequences are and to come to an agreement through the regional planning process. Once you have got a regional spatial strategy which is then reflected in local development plans it is then possible for the system to work far more swiftly and far more effectively for individual applications that then come in and are in accordance with those plans. You have had the debate, disagreements, discussions and negotiations at an earlier stage in the process. That is how you would expect it to work in the long-term. I do not think we should be in any doubt, however, that as some of these early applications come along these are going to be new issues. There will be a lot of things to be considered. It may well be that there will be planning inquiries and so on, especially at the early stage, when a lot of these developments are new.

  Q1782 Jeff Ennis: On the issue of the potential for pubic inquiry, it seems to me, Minister, you were actually saying that all the spadework would be done in the early part of the process, and that to some extent will then nullify the possible need for a public inquiry for this type and scale of development. Is that the case?

  Yvette Cooper: I think that is how you would want it to work in the long-term. We have to be realistic about what issues would be raised in the short-term. In any individual case I cannot pre-empt whether a planning inquiry will be appropriate for a particular case. We have very specific criteria we use for call-ins, on whether it is departures from local plans and so on; and we would need to abide by those criteria for any individual case. You can imagine it would be more likely that those criteria would be fulfilled, and you would need a planning inquiry at the earlier part of this process, as this just starts to get going and these new developments come along, than later on. Certainly the broad aim of the reforms that we are putting in place is to try and reduce the need for planning inquiries across the board by actually having the discussions and debates at the early stage, rather than later on.

  Q1783 Jeff Ennis: We are focussing on the really big resort developments that have got regional significance or planned regional significance in some cases. What about the slightly smaller developments that fall into the 10,000 square feet category? Do you foresee the need that they will come under the public inquiry umbrella?

  Yvette Cooper: Obviously even the very small-scale developments can end up going through the whole process if there is a departure from the local plan, or if there are particular problems that are thought to have national implications. For example, if somebody is proposing to put a small casino in the green belt you can imagine that it would raise a whole series of planning inquiry issues, just because that is the way the planning system works, and rightly so. The issue we are still in discussion with at DCMS is what the dividing line should be. Clearly, you can imagine that big-scale resorts which are going to have a massive impact need to fall into the category of those that should be dealt with at the regional level, and should be considered as part of the regional spatial strategies and so on. However, equally, the very small-scale ones should not, and should simply be dealt with by the local planning authorities as part of their normal processes. Where I think we have not made the decision yet is exactly where you draw the line between those two. There are some quite complex issues here because the planning system in the end is trying to capture, for the regional trigger, those cases where you are going to get a lot of people travelling from all across the region where you are perhaps creating an awful lot of jobs; but the planning system cannot set out its criteria on the basis of, "Okay, all those which create more than a certain number of jobs, all those which have more than a certain number of people, we will consider as part of the regional process". You cannot do it that way because that does not provide any sufficient certainty for the industry as to whether a particular proposal will be considered through one route or through another. This is why at the moment in the planning system for retail developments we have a proxy for that sort of regional impact based on the level of floor space. We will need to find a proxy in the same way for the casino resorts. What we have not yet come to a decision on is exactly what that proxy should be. Should it be the kinds of measures that are set out specifically in the Bill? Should it take into account other considerations? What is the appropriate size? Is it based on the overall floor space of the development, or on the floor space of the gambling area? All of those sorts of things are the kinds of details we are still looking at, at the moment, and need to come to a clear agreement on so that we provide a very transparent system for the industry to be able to operate in.

  Q1784 Lord Wade of Chorlton: Listening to what you have said, I am concerned about two things: one, the timing of all these proposals, and how it will delay the actual action; and when you say that earlier applications could be taken through on an inquiry basis, but that longer term you would need a regional strategic planning basis. Once you have established one or two on an inquiry basis, how can you then change the policy later on if you wanted to do it in a different way? Listening to what you have said, I would have thought you have got a tremendous amount of work to do in a very short time to actually establish a regional strategic planning system as quickly as possible. If your committee has already been sitting for 18 months, it seems to me that that is a matter which has to be met with some urgency, because you cannot wait until there is a strategic plan in two or three years' time to deal with this, because people are going to want to start investments very quickly. I would have thought people who are going to benefit will want that as well. I am a bit surprised that there seem to be an awful lot of options.

  Yvette Cooper: The same would apply to every other major development taking place. This is not something which specifically applies to casinos. Because we are trying to change and reform the planning process, there are inevitably cases that are major developers that are being dealt with at the moment in advance of regional spatial strategies being drawn up, that may be dealt with slightly differently once the regional spatial strategies are in place. I do not think that casinos therefore are in a particularly different situation from any other major development. The fact is, we are reforming the planning system to try and speed it up, to make it more effective, and to try and have the kinds of debates about strategic locations and so on to take place in advance rather than at a late stage down the line. Therefore, there are mechanisms by which early applications can be dealt with by the existing system. There is no reason why, once the Bill is in place, somebody wanting to put forward an application at some speed could not do so under the existing system. The fact that an individual planning inquiry may be appropriate for one particular development in one particular place does not mean it always will in every other development. I am trying to be realistic in terms of what our expectations should be. A lot of these early cases are likely to raise a whole series of different questions, which will have a whole series of impacts. Of course, it is more likely that at the earlier stages planning inquiries would take place than some time down the line.

  Q1785 Baroness Golding: Following on Lord Wade's question to you, Minister, the memorandum from the Office of the Deputy Prime Minister says the likelihood is that it will take three years for each region to have a revised regional strategy. Given what you said to Lord Wade, is it not quite possible that there would be difficulties arising because regional strategies will not be in a position to talk to each other about planning applications within their areas and within their regional proposals; and you could have two big casinos granted very close to each other which would not be a very good idea?

  Yvette Cooper: That is exactly the kind of consideration a planning inquiry would need to take into account. If you imagine a particular proposal to develop a very big casino resort and a planning inquiry was set up, all of the stakeholders that would be involved in the regional spatial strategy would be able to put forward their views in terms of the planning inquiry. Equally, these are the kinds of things that a secretary of state would have to take into account once the planning inquiry was finished. The opportunity for all of those same stakeholders to put forward their views would remain; it just means it would be done through a slightly different route than through the route of allowing them to debate the whole regional spatial strategy, which may not simply include issues around casino resorts but will include a huge wide range of other issues, which is why it would take several years for them to get into place. They have to look at the whole of the employment strategy for the region; the housing strategy for the region and so on. I think it is still possible for all of those same issues to be taken into account; we would just need to ensure that as planning inquiries and so on consider those things that they do take into account all of those regional and broader questions in the early stages too.

  Q1786 Baroness Golding: Are you saying that your Office would have an overall view of where casinos were going to go?

  Yvette Cooper: No, I do not think that would be appropriate. I do not think we should have a national view of where casinos should go. It is something that does need to be decided at the regional level but, clearly, the kinds of inquiries that end up coming to the secretary of state for final decision are obviously ones where the secretary of state needs to take account of all views which have been put forward by the inquiry and the conclusions of the inquiry, which must take into account all of those regional considerations. I do not think it would be appropriate for us to have pinpoints on a map strategy from a national level as to where a casino should go.

  Q1787 Lord Donoughue of Ashton: Minister, following up your answers to Jeff Ennis, I would like to try and get a little more precision on language relating to the size and type of casinos. The Bill refers on to "large" and "small" casinos but the position paper refers to "large leisure developments", "the largest casinos", "resort casinos" and "casinos of regional significance". Are these synonyms, do they all mean the same thing, or should the draft Bill and/or associated guidance distinguish between "large" and "resort" casinos? What are the kinds of casinos you would envisage, and what are the differences especially in terms of size from your Department's planning point of view?

  Yvette Cooper: What the Bill does is set out the difference in terms of the different licensing requirements that need to apply based on size. The Bill sets out its criteria in terms of small and large, depending on what the licensing needs are and the way that the licensing system has to approach it. What we then need to do is to work out how the planning system needs to deal with different sizes. Obviously their approach to the planning system, to retail developments and housing developments, needs to deal with different sizes and so on. It is a very familiar principle for the planning system to deal with size and spatial requirements, but what we have not yet decided is exactly what scale of development needs to be considered at the regional level in terms of the planning system; and, secondly, what the best measure is; and exactly what measurements we should use to categorise it. All I can say to you at this stage is, it is clearly the case the big large-scale casino resorts should be considered at the regional level. It is clearly the case that the small casinos should not be considered at the regional level. Exactly where we draw the line in between the two we simply have not yet decided.

  Q1788 Lord Donoughue of Ashton: Drawing the line, I think, is a problem for all of us. When you have drawn the line and decided what casinos are, say, in a regional dimension, will they be required to deliver regeneration benefits of regional significance?

  Yvette Cooper: Obviously that is one of the things that an inquiry or other decision needs to take into account. It may be that the regeneration impact of a particular proposal is very considerable. It may be that the regeneration impact in some areas will actually be quite hard to identify; that you can identify economic benefits in some sense; and you can identify job impacts, transport impacts and so on; but specifically identifying a regeneration impact may be more difficult. It is certainly the case that when the regional planning bodies are deciding what the appropriate locations should be for developments, we would expect them to take regeneration issues into account when they are deciding what the best location would be. When it comes to an individual application, and deciding the merits, then the planning body and the planning authority that has to grant the application needs to take account of a wide range of things, including the regeneration impact but also including other issues like environment, transport and a wide range of other things as well.

  Q1789 Lord Donoughue of Ashton: Can I just pick up on something you said at the beginning, where you said the planning system already deals with all such issues. Were you actually saying that these gambling issues—obviously they have differences—are basically routine to the planning system and there is nothing different, nothing special about gambling other than this regional dimension?

  Yvette Cooper: The issue for the planning system is to do with the impact of any particular development or proposal on the local area; whether or not it is appropriate for the local area; so the planning system would look at the environmental impact, and the number of people travelling; what are the transport routes, the motorways, the trains, the public transport routes; it would look at the environmental impact, and sites of natural beauty and all those sorts of considerations; and employment issues; a whole wide range of issues. Many of those issues would be the kinds of things the planning system would consider, whether it be for a major leisure development, like a ski slope, or whether it be for a major retail development. There are obviously issues around late night entertainment, clubs and those sorts of things which may have other considerations. The issues the planning system has to take into account are the kinds of issues the planning system already has to take into account for a whole wide range of different things; each one would be different; each one would have different mixes of those issues; so the mix of questions for a casino may be different from the mix of questions for another kind of development but the principle is basically the same.

  Q1790 Lord Donoughue of Ashton: You have said, on regeneration, that regeneration is likely to be a desirable factor but you have not indicated that it will be an absolute requirement?

  Yvette Cooper: We would expect development of the regional strategy to consider regeneration when they decide what the best location is for the different developments; but, at the stage of an individual application, you would expect them to take into account regeneration and a whole series of other issues.

  Q1791 Lord Donoughue of Ashton: They would be allowed to ignore regeneration?

  Yvette Cooper: They would be allowed to weigh it up in the balance with everything else.

  Q1792 Lord Wade of Chorlton: You refer to the fact that there is a history of dealing with these issues. The point is that we all understand the policy of the regional authority when it comes to supermarkets or big factories because there has been a history. We do not know anything about how a region would look and the importance of a casino. Is it not right for you, as quickly as possible, to get the regionals to actually define what it is that they are looking for?

  Yvette Cooper: There are two separate issues here. One is that we need to move relatively quickly in terms of determining the question that I said is still unanswered for us, which is to do with the size of the casinos that would be included at the regional level and what would be included at the local level. That we need to do relatively quickly, and we are expecting to try and make decisions for the summer on that particular issue. There is a separate issue about how fast local areas can bring in their regional spatial strategies. The difficulty there is that they need to take account not simply of issues around casinos but also a wide range of other issues—housing, retail and so on. Inevitably developing a regional spatial strategy is not something you can do overnight.

  Q1793 Lord Faulkner of Worcester: Do you not think there is an inherent conflict between a policy which is based on a free market and a policy which seeks to achieve regeneration?

  Yvette Cooper: No, not necessarily. I think you can always point to tensions between having an unfettered free market and the planning system; and it is certainly true that the planning system takes decisions on an everyday basis about the location of all kinds of developments, rather than simply having a completely unfettered free market in terms of location of developments. That has long been the case. It is right that the planning system should support competitive markets, which are slightly different from an unfettered free market. I think it is right that the planning system should attempt to do that. I think you can use the planning system to support regeneration, and support competitive markets and regeneration without that being to the detriment of the economy.

  Q1794 Lord Faulkner of Worcester: I have to say, that is not what witnesses who have come in front of us have said. They have said if the Government is serious about seaside regeneration then the free market has to be suspended in that region; because the investment will not go to the seaside, it will go to the large centre of the population.

  Yvette Cooper: You could probably have the same sort of discussion about whether or not big supermarkets should be in town centres or not. An unfettered free market might allow supermarkets to put all of their new supermarkets on ring-roads and areas where they had easy access for those who live in the suburbs to get there by car, and also have a hugely detrimental effect on the town centre, where all the life moves out of the town centre and everybody jumps in their cars and goes out to the ring-road rather than using the town centre. The planning system has long said that it is a legitimate thing to do to support location of economic activity in town centres, rather than out on the ring-road. I think it is simply applying the same sort of principle as saying, what is the appropriate location for big new developments in terms of regeneration and wider economic issues. That is just extending the way in which the planning system already operates. It is not a new tension here.

  Q1795 Lord Faulkner of Worcester: We have had evidence presented to us in very, very stark terms. I am still not clear what the Government's position is. Is it saying that it is prepared to use planning legislation to hold back developments which would have the effect of preventing the investment going to depressed seaside resorts, when regeneration is supposed to be part of the policy?

  Yvette Cooper: It is going to be a matter for individual regions to decide where the appropriate investment should be. It would certainly be a legitimate decision for a regional planning body to decide, "We think the appropriate area for development of a big casino resort should be at the seaside for the following reasons". We have a big transparent debate as part of the regional planning process, so it has to be open for stakeholders, including the industry, to put forward all sorts of representations and so on.

  Q1796 Lord Faulkner of Worcester: Would your Department be prepared to say that to regional authority?

  Yvette Cooper: I think that is what we have already said. That is a matter for regional planning bodies to decide.

  Q1797 Lord Faulkner of Worcester: DCMS are saying that it is going to be a free market?

  Yvette Cooper: It is a free market in terms of what the number of casinos should be. There is a process here and what happens is that the regional planning body takes their decision about where they think the appropriate development should be in exactly the same way that they might around a big retail development like Meadowhall in Sheffield. Exactly the same sorts of considerations might apply. Equally, a regional planning body might decide it is not appropriate to have a massive retail development that had regional impact in Castleford or Ryedale, whatever, but it is appropriate to have a massive retail development in Sheffield, in Meadowhall or wherever. Those are the sorts of things it is perfectly appropriate for regional planning bodies to decide. It is not specific to casinos; it is the kind of thing they already are able to decide about big developments, and equally about housing developments. That is the point I am trying to make that these are already principles that are implicit in the planning system.

  Q1798 Lord Faulkner of Worcester: It is not a free market, is it?

  Yvette Cooper: It is a free market in terms of deciding how many there should be; and also it is still possible as well for applications to come forward that might be departures from a local plan. I agreed with your supposition at the beginning when you first asked the question, yes, there is a tension between an unfettered free market and a planning system—there is. Those tensions are in-built. My argument would be that we could equally use the planning system to support competitive markets, and there is a difference between competitive markets and an unfettered free market; and also that many of the principles we are talking about are not new to the casinos, the casino industry and the location of casino resorts; they are the kinds of things the planning system already has to deal with right across the board for all sorts of major developments.

  Q1799 Chairman: How much money do you think we might be talking about in terms of the value of regeneration projects linked to casinos? We have had evidence which speaks of £5 billion of investment, with around £2 billion available for regeneration. Have you come to a view about this within your Department?

  Yvette Cooper: No, and I have not got figures I could give you that would either substantiate or refute those figures, because clearly it would depend on the scale of the kinds of development we are talking about; and what the additional linkages are.


 
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