Probe the pokies deal

Will Hodgman Opposition Leader, MR, Mar 4

1. That this House notes the Deed between Federal Hotels and the State Labor Government made on March 18, 2003, which was negotiated in a secret and uncontested manner, and which extended the exclusive arrangement for Federal Hotels to operate casinos, pokie machines and keno in licensed hotels and clubs in Tasmania for a fixed term of 15 years, after which the licence would convert to a rolling five year licence, renewable on an annual basis;

THE State Opposition has today moved for a parliamentary investigation into whether there has been a breach of the State Government’s monopoly pokies deal with Federal Hotels, following the State Government’s failure to provide any assurances on this matter.

The Public Accounts Committee will also be asked to probe any possible breach, any action the State Government has taken to ensure compliance with the Deed, and if the Deed could be renegotiated on more favourable terms to taxpayers.

The State Government secretly renegotiated the monopoly deal with Federal Hotels in 2003, but secured an additional return to taxpayers of just $2 million a year, rising another $1.5 million per annum from 2013, and the promise of a new Coles Bay resort.

The negotiations were not done in a contested manner and the State Opposition was concerned from the outset that a better return might have been achieved for taxpayers.

The move to refer the matter to the Public Accounts committee follows revelations that Federal Hotels is now proposing to build a 22 room resort at Coles Bay, when the Deed specified that the project should have been completed by early 2005. References were made in an earlier Public Accounts Committee inquiry to it being a 150 room resort that would employ up to 180 people.

Following revelations about the new size of the proposed resort late last month, the State Opposition wrote to Attorney General, David Llewellyn, asking what advice he had sought in relation to any potential breach of the deed, and the nature of that advice.

The Attorney General has not yet responded.

The motion moved today is:

NOTICE OF MOTION

HON WILL HODGMAN MP,

Mr Speaker, I give notice that on tomorrow I shall move that this House:

1. That this House notes the Deed between Federal Hotels and the State Labor Government made on March 18, 2003, which was negotiated in a secret and uncontested manner, and which extended the exclusive arrangement for Federal Hotels to operate casinos, pokie machines and keno in licensed hotels and clubs in Tasmania for a fixed term of 15 years, after which the licence would convert to a rolling five year licence, renewable on an annual basis;

2. Notes that in return the State Government extracted a benefit to taxpayers of an additional $2 million a year in government revenue, and an additional $1.5 million per annum from 2013, a cap on pokie machines, and commitments related to a new premium standard resort near Coles Bay;

3. Notes that the Deed states the Coles Bay project is to be completed by early 2005, and that in subsequent evidence to a Parliamentary committee, references were made to a 150 room resort that would employ up to 180 people, but it has now been revealed that this resort will be a 22 room development;

4. That this House refers to the Public Accounts Committee the question of whether or not the Deed has been breached; whether or not undertakings made to Parliament have been complied with; and if the Deed has been breached, what action the State Government has taken to enforce compliance, and whether it is now in a position to renegotiate the Deed in a contestable manner to try to achieve a better return for taxpayers.

www.tas.liberal.org.au

Wednesday’s Mercury: Not yet posted