Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I have for many years suggested increasing the rate to 3%. If we were to increase the rate to 3% and without changing anything else, high street bookies would be put out of business overnight. High street bookies are going out of business overnight for other reasons, such as people moving to using mobile phones and so forth. However, there will be a certain level at which that will plateau and we are probably reaching it at this point. The betting duty is putting high street bookies out of business.

The rate needs to move to 3% and placed on the punter. At the moment the shop or company absorbs the 1%. If it were increased to 1.5% or 2% the likelihood is that the larger organisations could absorb that until they wiped out the high street bookies and then possibly they would pass it on to their customers. It has to be of a sufficient scale but not inappropriate to gamblers. I believe companies will not be able to absorb 3% and it would be passed on. It could also be done legislatively. If the Government did that overnight, it would save jobs.

I have looked at the audited accounts of some high street bookies and they have showed me the margins they are making. They have closed down shops in the past and they are closing down more. They are in debt to the Revenue and in arrangements with the Revenue because they cannot pay this. However, this should be passed on to the customer. Gambling is a vice and if I am gambling, I should know that I am paying the tax. I am not suggesting that we impose a 3% tax and leave it as it is with it being absorbed by the industry, because it cannot be absorbed. We should go back to how it used to be where it was passed on to the customer. The best way of doing that is by applying it to winnings because nobody minds having a deduction from their winnings, although some people might mind. However, it is like "take it or leave it" at that stage.