Greens Leader Nick McKim MP confirmed that he and fellow Greens’ Cabinet member Cassy O’Connor MP had today exempted themselves from a Cabinet decision relating to proposed legislation enacting a Memorandum of Understanding signed between the government and Betfair prior the State election.
Mr McKim said that he and Premier David Bartlett have previously acknowledged there would be policy differences from time to time, and both remain committed to handling such occurrences maturely and responsibly.
“This is simply a policy difference between Labor and the Greens, which will happen from time to time. This example demonstrates that the process put in place allows such situations to be dealt with in a mature and respectful manner,” Mr McKim said.
“The fact that we can handle our policy differences in a mature fashion bodes well for the stability and integrity of the government.”
“Such occurrences should not come as a surprise to anyone, as we have been consistently on the public record stating that no policy deals were done between the Greens and Labor.”
Mr McKim said the Bill provides for a significant reduction to Betfair’s contribution to state revenue.
“The Greens have always held concerns about Betfair’s operations in Tasmania, and we certainly have concerns about the impact on government revenues of reduced commission fees and licence fees.”
“This matter has been handled respectfully by both sides, and our working relationship remains very solid.”
BETFAIR RETURNS COLLAPSE
Deal to Cost Budget $17 million Over Three Years
Tim Morris MP
Greens Treasury spokesperson
The Tasmanian Greens today highlighted that the introduction of a legally binding Memorandum of Understanding with Betfair will see $17 million shaved off the budget bottom line over the next three years as part of the accompanying taxation sweetheart deal.
Greens Treasury spokesperson Tim Morris MP said that the significant reduction in Taxes and Levies that will be received from Betfair will have to be made up by increasing taxes elsewhere or by cutting services to the community, but that Labor does not appear to have a plan to address this revenue shortfall.
“Labor today introduced a Bill which will, if passed, give effect to the new taxation sweetheart deal offered to Betfair prior the last state election,” Mr Morris said.
“The Budget figures from last year showed an expected return from Betfair of $7.7m for this financial year and this year’s Budget papers show this will collapse to $2.4m; for 2011-12 expected revenue is to fall from $8.1m to $3m and in 2012-13 expected revenue is to fall from $8.5m to only $1.8m.”
“Many other local businesses must be wondering how they get to negotiate a similar tax sweetheart-deal with government.”
“Betfair has failed to provide the returns promised by former Premier Lennon when the betting exchange operator originally set up in Tasmania and if this Bill is passed it will not only ensure lower returns are locked in, but also enshrine the dodgy precedent that special taxation deals can and will be brokered secretly by government on behalf of the big end of town.”
