Page 2628 - Week 09 - Wednesday, 24 August 1994
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On ABC radio last week, Mr Deputy Speaker, Mr Lamont said that the New South Wales TAB processing fee was five percentage points higher than that offered by Victoria. Mr Lamont - through you, Madam Speaker - for your information, it was 0.06 per cent higher. Last month, Madam Speaker, Mr Lamont wrote to all the TAB agents and told them that a deal with Victoria had been agreed to in principle and that the link would not be severed, yet on the very same day the Victorian TAB told Mr Lamont that a link was not possible at that time. Three days later, Madam Speaker, ACTTAB found itself without a major betting pool link, which caused punters to leave in droves and plunged our racing industry into financial crisis. If people do not want to believe that, I can quote you one example. Just to test it out, when I put $50 on a horse in a Sydney race via ACTTAB its odds went from 12/1 to 6/1. That was with one $50 bet. That was the crisis situation that our TAB agents were in. I honestly wonder, Madam Speaker, whether Mr Lamont can ever lie straight in bed.
Mr Lamont: Madam Speaker, I seek withdrawal of that. It is a clear implication by Mr De Domenico that I have lied. I ask him to withdraw.
MADAM SPEAKER: Mr De Domenico, would you withdraw any imputation - - -
MR DE DOMENICO: If the Minister feels aggrieved by that statement, I withdraw, Madam Speaker.
MADAM SPEAKER: It is withdrawn. Carry on, Mr De Domenico.
MR DE DOMENICO: The VITAB affair has been the worst disaster faced by this Territory since self-government. The consequences, financial and political, are dire for the Follett Labor Government. The impact will not be forgotten by Canberrans when they cast their votes next February.
Let us look also, Madam Speaker, at what the Chief Minister attempted to do at question time and at other times, here in front of us. She treated members of this Assembly and the people of the ACT as fools. In response to questions asked by the Opposition, the Chief Minister said that it was not going to cost the ACT anything; the $3.3m was going to come from ACTBIT across to the TAB, and the TAB was going to pay it back. Allow me to give you the benefit of my business experience and that of some of my colleagues in the world of financial management. In considering whether any organisation or company can be termed a good risk for a loan, especially one for $3m or more, the first thing that would be looked at is the company's ability to repay the loan, Madam Speaker.
We would like someone to explain to this Assembly and the people of the ACT how ACTTAB intends to repay this rather large loan, when it has consistently made a loss over the last few years. Let me quote some of the figures from the ACTTAB corporate plan. In 1993-94 the net loss was $180,000. For 1994-95 there is a projected net loss of $350,000. For 1995-96 there is a projected net loss of $360,000. We have not factored in the fact that we are going to be losing $350,000 per annum by losing the Northern Territory link, and we have not factored in the fact that, whilst previously we paid Victoria 0.125 per cent, we are now going to be paying 0.19 per cent.
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