Page 3766 - Week 12 - Thursday, 13 October 1994

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Australian Capital Territory

CHIEF MINISTER

Rosemary Follett MLA

Mr Greg Cornwell MLA

ACT Legislative Assembly

London Circuit

CANBERRA ACT 2601

Dear Mr Cornwell

On 24 August 1994 you asked a question relating to the costs associated with the ACTTAB/VITAB Agreement. At that time, I was able to provide you with information on legal, administrative and printing costs, and undertook to follow up on other associated expenses identified in your question.

I have been advised that in relation to travel costs resulting from negotiation of the ACTTAB/VITAB Agreement and establishment of computerised links, all such costs were borne by VITAB.

I am also advised that ACTTAB did not incur any costs in respect of upgrading its computer system to provide for the VITAB arrangements. Some changes to software were required, however, and I understand that the approximate cost of this work was $17,000.

In relation to your proposition that the ACT has lost revenue as a result of a severing of the link with the Northern Territory TAB, I would take this opportunity of informing you that there has been no severing of links with the Northern Territory TAB. Rather, ACTTAB again expects to receive a substantial fee from the Northern Territory for providing linking services. I understand that this fee will be approximately $200,000 in 1994/95.

Finally, you sought information relating to the linkage fees payable by ACTTAB under the new pooling arrangements with TABCORP. I am advised that the linkage fee for 1994/95 is expected to be 0.19% of the total bets transmitted, and that this is a

considerably lesser amount than the fee recently proposed by the NSW TAB. -

Yours sincerely

Rosemary Follett

1 3 SEP

ACT Legislative Assembly, London Circuit, ACT 2601. GPO Box 158 Canberra ACT 2601

Phone (06) 20S 0000. Fax (06) 205 0535

Printed on 100% recycled paper

3766


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