THE State Government’s sale of TOTE Tasmania is a mistake that will leave the racing industry to “wither on the vine”, its former chief executive Terry Clarke said yesterday.
The claims come as Opposition Leader Will Hodgman yesterday released a letter sent to Greens MP Kim Booth, as chairman of a committee into the viability of business, calling for an inquiry into the $103 million sale to Tatts Group.
Mr Clarke, who now races and breeds horses, said the Government’s deal to fund racing in Tasmania to the tune of $27 million annually for the next 17 years should have been scrapped.
“What other industry in Tasmania is fully supported by the budget for almost all its funding?” Mr Clarke said.
“We should delay selling it to see if there’s a better model where we can restore the link between the TOTE and the racing industry and get it off the budget.
“Before we rushed off and had a fire sale we should have looked at a way to remove the exposure of the taxpayer.”
TOTE Tasmania’s participation in betting pools with Victorian company Tabcorp was the real reason behind the sale, according to Mr Clarke.
“I don’t accept that the business was risky. My view is that the sale was brought about because they were told they weren’t welcome to continue to pool or they were told the fees would go up,” he said.
Mr Hodgman yesterday called for the TOTE committee to examine the lack of an open tender process and what he says are inconsistencies with the sale.
“Given the high number of unanswered questions and confused, contradictory statements by the Premier, the sale process must be fully investigated,” Mr Hodgman said.
“It is important that we get to the bottom of this dodgy fire sale in the interests of accountability and transparency. The TOTE committee is the appropriate body to do that.”
Mr Booth said that while the Auditor-General examined the sale it would be inappropriate for the committee to continue.
“Just because I believe Labor has failed the due process test here, doesn’t mean the others should fall into the same trap,” Mr Booth said.
“Proper process and probity must be followed, which is the advice we will seek from the Auditor-General. The racing industry deserves that at least.”
Premier Lara Giddings dismissed Mr Hodgman’s letter as political manoeuvring.
