Cllr Creasy said, "I have read the draft report. The authors clearly do not
know what the effects of a regional casino will be. The most important thing
missing from the report is an exit strategy in case the experiment goes
horribly wrong.
The draft report of Sheffield First's Casino Task Group raises real worries about whether we should have casino at all. The report was presented to invited members of the public on Wednesday 25th October.
The terms of reference for the group were to consider what effects a regional casino would have on the city and how they could be managed to maximize benefits and minimize problems. The decision to apply for a regional casino licence was made by Labour Council chiefs back in December 2004. There was no public debate - it was not even discussed in Full Council - and Sheffield First were not involved until January 2006.
Cllr Creasy said, "I have read the draft report. The authors clearly do not
know what the effects of a regional casino will be. The most important thing
missing from the report is an exit strategy in case the experiment goes
horribly wrong.
"There is no hard information about the economic impact, not even a figure for the expected turnover of the operation. There is no evidence about the possible effects on local businesses, even though the Ernst and Young report, commissioned by Region in 2005, warned that an edge of town casino could damage nearby city centres.
"The section on the environment fails to mention how many visitors are likely to arrive by car or how much money will be available to improve public transport. The fact is that pollution levels in Darnall and Tinsley already breach the 2010 European Directive levels. The Highways Agency will not allow any further development in the Don Valley unless this is reversed.
"The section on social and health effects admits that there is no local information about the level of problem gambling already in Sheffield or by how much it is likely to increase."
"The report implies that damaging effects could be remedied by tight licensing conditions. This ignores the commercial realities. Casino operators are not charities. If they engage in a £200 million investment in Sheffield, they will expect substantial profits. They can only achieve those profits by aggressive marketing over a wide area. This will draw many additional people into casino gambling including many additional problem gamblers. The Report's remedies are inadequate for Sheffield and do not even begin to address the impact outside Sheffield."
Cllr Creasy concluded, "I am truly shocked by the way such a major decision was based on such poor information and with so little public debate. The report from Sheffield First offers no reassurance whatever."
ENDS
Questions about Casino Task Group Draft Report
Economic impact
6.1.1 and 6.1.2 Which is more similar to Sheffield (post industrial, poor) - Atlanta or Cape Town and Melbourne?
6.2.3 Ernst & Young actually say that a regional casino is not intrinsically regenerative but that the local authority could "extract" regeneration benefits through the competition for a licence.
6.2.4 Please define Gross Value Added and explain how an increase in overall economic activity of any kind necessarily improves life for the majority of people in the region.
6.2.8 Cannot have meaningful discussion about "economic rents" ( the "tax" on "abnormal" profits) unless we have at least a rough idea of figures involved.
6.2.10 Gives number of new jobs, not net gain (the report doesn't attempt to estimate how many will be lost).
6.2.11 See Health/Social section (8.6.8) which states that most jobs will be part time, unsocial hours and poorly paid
6.2.13 Great that jobs are better paid than existing equivalents - what effect will this have on local businesses, who will lose regular staff?
6.2.14 Ernst & Young clearly state that international casino operators have high profit margins and long supply chains so are likely to create less indirect employment opportunities and a lower regional multiplier than the local business displaced.
6.2.18 What IS the expected turnover? (The total for all casinos in North of England is only £55m). Can't talk about local spend unless we know these figures.
6.2.20 What effect will this use of land have on cost/availability for expansion in manufacturing? (outgoing master cutler says it is already in short supply).
Recommendation 8 Begs the question of what kind of economic activity, private investment and tourism we want to attract.
Recommendation 9 Would it not have been wise to develop the strategic relationship with stakeholders before deciding to apply for a casino?
6.2.24 Are you seriously encouraging flying to visit the casino (and claiming it's a sustainable development?) "Transforming Sheffield's tourism market" - into what?
6.2.25 What kind of reputation does gambling have? Is it "uplifting"?
6.2.26 "Branding" - Do people want to change "Steel City" or "Made in Sheffield" for "Casino Capital"?
Recommendation 12 Wouldn't it be better to make a "robust and independent impact evaluation" BEFORE the decision to have a casino?
6.3.8 Ernst & Young clearly stated in 2005 that the casino could have a negative impact on the still fragile city centre night life in Sheffield, even more so on Barnsley and Rotherham. Would it not have been wise to do some research into this?
Recommendation 13 How will planning and licensing authorities protect the city centre once a casino is in place?
Environmental impact
7.1.1 A regional casino is intrinsically environmentally unfriendly (a regional centre) - should have been compared to other possible plans for the Lower Don Valley.
Recommendation 14 Please estimate the carbon impact of a the proposed casino
Recommendation 19. These are the only figures in the whole report estimating how much money might be "taxed" from the development. Assumes "gaming revenue" of £100m - what about other aspect (hotel, food, drink, conferencing etc)? Is 0.5% for "environmental" pot the total, or will there be other taxes for other things (e.g. help for problem gamblers).
7. 5.1 100% renewable energy on site??!! Most in any existing planning guidance for far less carbon dependant buildings is 30% (heating, lighting, cooling computers .)
7.6.1 Exceeding EU pollution limit is factor most likely to scupper whole project
7.6.2 How many visitors in how many cars?
Recommendation 25 City Council hasn't signed up to CO2 reduction targets for city.
Recommendation 27 - Will money to "enhance public transport" come out of same £5m lump sum and £500, 000 annual sum as in recommendation (19) above?
Social/health impacts 8.2.6 "No local information on level of problem gambling in Sheffield" - would it have been worth doing survey before embarking on application?
8.2.9 Note that SNIS was put forward as reason for siting casino in Sheffield - we have now heard that it doesn't capture effects on local businesses, environmental factors or relevant health factors and doesn't lend itself to chronologically sequential analysis.
Recommendation 28 - So how much money will be needed to ameliorate health effects and will the amount "taxed" from the casino be sufficient? See (19) and (27) above.
Jillian Creasy, 23rd October 2006
ENDS
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