The problem with monopolies is that they stifle development, increase costs and have no known benefit, except to the monopoly. Monopolies are certainly a cost to the public and thus to the Treasury. You and I pay extra to allow Federal Hotels (owned by the Farrell family) to exploit the poor.
When James Watt patented the steam engine, he had a monopoly on the concept for the next 50 years. This completely stifled any advancements in its design.
Tourism in this state has been completely stifled by the Federal monopoly; hotels disrupted and hospitality held back by this monopoly. This is why Tasmania is 20 years behind the mainland in its tourism and hospitality development.
So it is with Casino monopolies, which are supported illogically by the major political parties, Labor and Liberal.
The contradiction for the ALP Is that this monopoly exploits the poorest, the addicted and the vulnerable, all those they say they will protect. They favour the rich.
The hypocricy for the Liberals is that a casino monopoly stifles free enterprise, competition and development.
Yet both political parties consistently grovel when it comes to renewing the monopoly licence held by Federal Hotels. The Greens do not escape, because they did nothing about this travesty when they formed government with the ALP.
Once a monopoly is created, it corrupts, it costs and it compromises.
This application by MONA is a logical extension to its business, yet because Tasmanian governments are innately stupid, we the taxpayers have to live with limited development of an industry.
Treasurer Peter Gutwein will inevitably have to pay out Federal Hotels in some manner because he has fallen for the illogical argument of ‘sovereign risk’. This is the false argument used by Federal Hotels to describe why their gambling monopoly is protected. It is in fact an abrogation of Parliament’s right to rule.
These costs are rents or corruptions to the Tasmanian economy and political system.
I hope David Walsh and MONA can break this monopoly. It would in fact benefit Federal Hotels if he did. They would have to be competitive, improve service in their tired, stale casinos and develop their business. Inevitably this would challenge their current bored and lazy management but that can only be a benefit to the state.
*Greg James is a malcontent capitalist. He has employed (and fired) a lot of people and spawned many business opportunities for himself and others. Some have been wild successes and some abject failures. Greg refuses to accept that Tasmania is second rate, it is only the people who occupy it who are second rate. Greg is a self and state educated owner operator. He has been Chairman and President of State and Federal organizations, has owned a gay bar, built a suburb and wasted his life hoping that others around him would see the light as he see it. His brain is addled, his motives suspect and age has caught up with a life well lived. He writes about himself in the third person.
ABC: MONA casino bid prompts talks over Federal Group monopoly
The Tasmanian Government is in talks with Federal Group about breaking its monopoly on casinos to allow the Museum of Old and New Art (MONA) to open a gambling venue.
The museum which was started by millionaire gambler David Walsh last year revealed plans for a high rollers casino for tourists only in a bid to increase revenue.
But a deed of agreement giving Federal Group an exclusive licence to operate the state’s two casinos and poker machines stands in the way.
Treasurer Peter Gutwein told Parliament on Thursday the Government was negotiating with the company to allow MONA to go ahead before the agreement expires in 2023.
“Obviously, with the deed in place, any such development at MONA would not be able to take place until 2023 at the earliest,” he said.
“Accordingly, the Government has explored at officer level with Federal Group the grounds on which a MONA casino could be brought forward earlier than 2023.”
The Treasurer ruled out using an increase in the number of poker machines allowed in the state as a bargaining chip.
Mr Gutwein said the proposed boutique casino was important to the future of MONA which runs at a loss.
