Page 5285 - Week 14 - Thursday, 19 November 2009
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ACT scheme will be administered by the Gambling and Racing Commission on behalf of ACT racing clubs. The clubs have agreed to pay a fee for that work, and that fee will be established by a disallowable instrument.
The scheme is not without legal risk. There have been a number of legal challenges to similar schemes in other jurisdictions. For example, in August this year the Supreme Court of Victoria found that fees imposed by the Victorian thoroughbred and greyhound racing clubs on Tabcorp did not contain a legally certain liability. In response to this finding, Tasmania, although continuing with the requirement for approval, has deferred implementing the charge. There are currently two challenges to the New South Wales scheme. The reserve judgement for the challenges is not expected before February or March 2010.
The ACT bill has therefore been prepared, as much as possible, to avoid those elements that have attracted legal challenges. Elements that are already working well in the other jurisdictions, such as eligibility criteria, conditions of approval and administrative processes, have been adopted for the ACT scheme. It should be noted that if the ACT scheme is found to be void, it is likely that the schemes in those other jurisdictions will also be found void. I am advised that this outcome will place the ACT in a better position because more money flows out of the ACT in fees paid by ACTTAB to other racing bodies than will flow to the ACT racing industry from the charge.
Although there is a risk that this legislation could be challenged, we must move now. The racing industry is important to the territory. While the ACT is the odd one out, the industry will receive less revenue. While we have waited as long as possible to develop this legislation in light of legal challenges to legislation in other jurisdictions, we cannot wait any longer. To do so would severely disadvantage the ACT racing industry.
This reform is part of the government’s plan to secure funding for the racing industry from the ACT budget. Currently, clubs receive funding equivalent to 4.5 per cent of ACTTAB’s totaliser turnover on racing. With the changing nature of the betting industry, ACTTAB’s turnover is facing increasing competition, which is threatening the ACT racing industry’s funding.
It is clear that in the future a large proportion of funding for the ACT racing industry will need to be provided from the budget. The exact amount will be determined in the context of the 2010-11 budget and the outyears. Whatever the figure, the industry will not be worse off than they would be under the current scheme. The new arrangements will provide much more certainty for the racing clubs.
This bill facilitates implementation of an important revenue source for the ACT racing clubs and will assist them in continuing to deliver the services that the racing community expects. I commend the Racing Amendment Bill 2009 to the Assembly.
Debate (on motion by Mr Smyth) adjourned to the next sitting.
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