The British Government has made it clear it stands
side by side in our dispute with Spain and that it upholds the right of
Gibraltarians to self determine their own future. However the UK’s obligations
should not end there. Although Gibraltar is punching above its weight on the
economic front London should also be giving as much help and assistance it can
to the economy of a community of just 30,000 people.
One of the success stories of recent years in
Gibraltar’s economy has been the gambling industry. Now take a seat here
because it has to be acknowledged that the man who established the on-line
gaming companies in Gibraltar was the former Chief Minister Sir Peter Caruana
for which he probably hasn’t been given enough credit.
It is clear that delicate discussions have been taking
place between the UK and our Government on the new legislation the Treasury
wants to introduce to claw back some of the tax income lost by major betting
companies moving their operations here. London needs to be careful to balance
its lust for winnings in tax against the damage it could do to our economy at a
time when we are being attacked on all fronts by Spain.
This week Lord Gardiner of Kimble spoke in the House
of Lords during the Gambling (Licensing and Advertising) Bill. In response to a
question he stated: “The Government (HMG) have
been working closely with the Gibraltar Betting and Gaming Association to seek
a remedy in the best interests of British consumers. Officials have met with
the Chief Minister of Gibraltar and the GBGA, and there will be further
meetings to discuss these matters. The Government have also hosted delegations
from the Gibraltar Government and the GBGA in London. The Government very much
look forward to continuing a positive and productive relationship with
Gibraltar.” A lot of wise words but words that leave us none the wiser.
However Reuters does have some words
of cheer. It reports that William Hill plans to maintain its online
betting base in Gibraltar despite a tax clampdown that will cost it tens of
millions of pounds. The
company was one of many bookmakers which have set up internet operations allowing
them to sign up British gamblers while benefiting from a benign local tax
regime.
The UK is planning to impose a 15 percent duty on bookmakers' online
winnings from British customers with effect from December 2014, a move that is
expected to yield around 300 million pounds a year. Reuters quite rightly says
the decision by William Hill will be welcomed Gibraltar's authorities, who have
been concerned that bookmakers could move their online operations out of the
territory.
Last Wednesday, Andy Lee, Managing Director
of William Hill Online who is based in Gibraltar told Reuters: “We have over
400 people in Gibraltar; we run our global operations from there. Our staff are very happy there and there are
reasons why we will remain there in order to be competitive in this market.”
William Hill Online is just one of our
online gaming companies. If others spoke out now in as reassuring terms as Andy
Lee it would be a major boost to confidence in Gibraltar in these troubled
times.
