The Tasmanian Greens today called on the Labor Party to review the deed agreement granting Federal Hotels a monopoly pokies licence, in light of the company’s decision to walk away from the lease for the West Coast Wilderness Railway.
Greens Gaming spokesperson Kim Booth MP said although Minister Scott Bacon had recently ruled out any change to the deed granting Federal Hotels the pokie monopoly on grounds of sovereign risk, it was time the Minister stood up to the company.
“It’s unacceptable that Federal can just abandon the railway and the many small businesses it supports, while it continues to receive massive profits off the back of its monopoly on pokies,” Mr Booth said.
“Federal Hotels was given the pokie monopoly for nothing and rakes in at least $120 million every year from gaming losses and yet they are too tight to stump up some of their ill gotten cash to maintain the Abt Railway.”
“This is about a company that profits massively from Tasmania showing a little bit of corporate social responsibility.”
“Federal Hotels have used the massive cash flow from their pokie monopoly to buy out just about every successful tourist operation in the state and now are not prepared to run the Abt Railway when the going gets tough.”
“These sweetheart deals always end up costing taxpayers, and it’s way past time that Mr Bacon started standing up for Tasmania rather than acting as the Minister for Federal Hotels.”
“Federal was granted a 20 year extension on the pokies monopoly in 2003 which was supposedly tied to Saffire at Coles Bay and claims of the maintenance costs of the railway.”
“They shrunk Saffire to one third of its size and are now about to evaporate from the Abt Railway deal, so it is time to rethink the monopoly.”
“With $120 million in monopoly pokie profits Federal Hotels can easily afford to maintain the line,” Mr Booth said.
Kim Booth MP Greens Gaming Spokesperson Tuesday, 12 February 2013
