Federal Hotels’ $25M Bluff

*Pic: From ‘Team Mulawa’ here: “Greg Farrell Jr, “Mr. Mulawa”: Greg is by nature very hands-on – activity done translates into learning and understanding – and he still applies this essential quality to the horses with ambitious zeal and earnest dedication. Greg is a natural horseman – his innate affection for and confident ease with horses is readily apparent in his daily interaction with the horses at every level. Although Greg’s primary vocational responsibility has always been Managing Director of Federal Group (the highly successful and widely respected Australian owned family business and the world’s second oldest hotel group), he always finds quality time for the horses. He remains integrally involved with all the handling and training of the Mulawa Arabians, from early breaking through the professional turn out of top level show ring performers in hand. (Pictured with ADVENT) “

The Federal Group’s announcement today ( Fri, April 15, Mercury HERE ) that its proposed $25M development at Port Arthur will go ahead whether they have a long term extension to the pokies monopoly Deed or not, is revealing.

It’s clear previous threats that the company would not be able to build without the Deed security was a $25 million bluff from a seasoned hand at these sorts of gambles.

Today’s announcement makes it clear the Farrell family don’t need a guarantee of pokies’ revenue to sustain their business empire, although Tasmania’s estimated 2500 problem gamblers will be making a substantial contribution to the Port Arthur development.

Investment in regional communities is crucial to transitioning Tasmania’s economy and growing tourism sector.

We would urge the Federal Group to continue their investment in regional Tasmania and hopefully, repair some of the damage caused by the proliferation of poker machines in pubs and clubs across the State.

• James Boyce: The Tasmanian Politician … and the powerful will of Mr Farrell …

• Luigi in Comments: I read it differently: that the renewal of the pokie monopoly is a done deal, so Federal will go ahead with the motel development now. And David Walsh seems to be content with the deal too. It’s every Tasmanian political party’s goal to be in power when the monopoly renewal comes up for contract, so it’s nice to see something go well for the Liberals, too. Things haven’t been going well lately.