Peg Putt, Press Release

The Tasmanian Greens today blew the whistle on the TT Line syphoning tourism accommodation business directly to Federal Hotels as a part of a promotion which offers cut-price fares on the Spirit of Tasmania ferries which also directs travellers to book with Federal Group Tasmania via a special spot on the Spirit of Tasmania website, leaving out small operators.

MEDIA RELEASE

Peg Putt MHA

Greens Opposition Leader

Monday, 24 JULY 2006

ANOTHER MATES DEAL – TT LINE SYPHONS CUSTOMERS TO FEDERAL HOTELS
As Small Businesses Miss Out

The Tasmanian Greens today blew the whistle on the TT Line syphoning tourism accommodation business directly to Federal Hotels as a part of a promotion which offers cut-price fares on the Spirit of Tasmania ferries which also directs travellers to book with Federal Group Tasmania via a special spot on the Spirit of Tasmania website, leaving out small operators.

Greens Opposition Leader and spokesperson on Tourism, Peg Putt MHA, said that this was yet another example of the Government’s mates getting special deals and called on the Lennon Government to come clean on all the deals involving Federal Hotels to which they have been and are currently a party.

Ms Putt outlined that the Federal Hotel Group had been part of a secret arrangement for a twenty-year extension of poker machine roll-out in the state without any open tender process, and no payment for the exclusive right received, and that the group seemed to have some special deal for water supply to their tourism attraction on the east coast. The Greens also are concerned that the Federal Group had received a mere tap on the wrist with the $100,000 fine just revealed for a major breach in rolling out pokies out illegally.

“Small tourism operators are doing it tough and will be particularly affected by the withdrawal of Spirit III yet the TT Line is channelling tourists straight to the Federal Hotel Group and their accommodation, thus sidelining the small operators,” Ms Putt said.

“The Government has to tell us why this Government Business is playing favourites with one of the Government’s best mates the Federal Group, because this is appalling public policy.”

“What other deals is Federal Hotels benefiting from because we only seem to find out about them after they have taken place.”

“Is there anything else on the agenda? Already we know that a deal was stitched up for a twenty year role out of pokies without an open public tender process and without any payment being made for being the recipient of that particular deal.”

“Also, in play is the use of our national park and a railroading of the National Park Management Plan in order to supply water to Federal Hotel Group’s development on the East Coast.”

“Shockingly over the weekend it also came to light that Federal Hotels had indulged in a major and ongoing breach of the Gaming Act and its regulations, yet the fine imposed of a mere $100,000 would not even cover the profits they made through their unauthorised activities.”

“To add insult to injury, not only is the fine imposed on Federal Hotels puny in relation to the benefit they will have reaped from the illegally installed pokies, but they have effectively been rewarded for bad behaviour by being allowed to keep the machines in place,” Ms Putt concluded.