Page 2621 - Week 07 - Tuesday, 28 June 2011
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gambling and addiction. Real harms are caused and that is why I will be putting up the amendment that it not be included in the community benefit part.
MR BARR (Molonglo—Deputy Chief Minister, Minister for Economic Development, Minister for Education and Training and Minister for Tourism, Sport and Recreation) (11.34), in reply: I thank the opposition and the Greens party for their broad support of the government’s intent with this legislation.
The club industry in the ACT makes a significant contribution to the community by providing funds and facilities to local sporting and not-for-profit organisations. Clubs are themselves not operated for profit but for the benefit of members and the community. This confers upon clubs a responsibility to conduct their activities in a transparent and accountable manner in line with acceptable standards.
In order to ensure clubs were operating within a suitable governance regulatory framework, the Gambling and Racing Commission was tasked with reviewing the governance arrangements applying to clubs. Two periods of industry and community consultation occurred, totalling 10 weeks. The commission first produced an issues paper released in May 2010 to commence the initial stage of public consultation. The paper was forwarded directly to stakeholders and advertised in the Canberra Times and was also made available on the commission’s website. The commission also participated in an industry seminar which was facilitated by ClubsACT.
This bill has been developed in consultation with the industry in an open and transparent process. The commission’s report and recommendations, which I made available to the Assembly on 5 May this year, have been accepted by the government. The Gaming Machine (Club Governance) Amendment Bill was designed to improve the transparency and accountability of clubs. It is also designed to strengthen the powers of the Gambling and Racing Commission as the local regulator.
The key to good governance in an organisation lies with the directors. Put simply, this bill requires that directors act in the best interests of their clubs. Whilst this provision echoes existing commonwealth Corporations Law requirements, it importantly places the monitoring of this provision with the local regulator. It should be noted that this provision does not impose any additional requirements on directors beyond those that already exist in Corporations Law. These provisions are aimed at ensuring major decisions, such as significant expenditure or other commitments, are taken consistent with a club’s constitution and in the best interests of members.
The significance of placing the monitoring duties in the hands of the Gambling and Racing Commission was outlined in its review of the governance provisions in the Gaming Machine Act. The review noted that the Australian Securities and Investments Commission—ASIC—has significant national responsibilities and a very large number of organisations to monitor. The report recognised that, as a result, ASIC is not always able to give local corporate issues the attention they may require. However, these issues are important to the proper conduct of the club industry and they should be addressed and rectified.
Unlike Corporations Law, the requirement contained in this bill does not have any civil penalties. Instead, where a director is found to have acted contrary to the club’s
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