Page 3013 - Week 10 - Tuesday, 15 September 2015
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The call for expressions of interest clearly stated that applicants “must demonstrate that they currently have the ability or a plan to successfully operate a wagering business, including the pari-mutuel pooling arrangements, since existing pooling arrangements may or may not continue post the sale process.”
The conclusion drawn by the audit report was that the operational capacity criteria inappropriately excluded interested parties from further consideration. The audit report appears to have taken the view that a future plan, albeit without any guarantee of a licence, should have been taken as sufficient compliance with the criterion. The government strongly disagrees with this proposition. The government considers it would have been contrary to commercial good sense to permit an applicant, who did not have a realistic prospect of obtaining a licence to proceed to the competitive bidding stage.
As the smallest TAB in the country, ACTTAB could not operate a totalisator without access to a large pari-mutuel betting pool. This had obvious indications for the risk and the value of owning ACTTAB, which was highly dependent on the ability of the owner to have access to not only a totalisator system but also an adequate betting pool. This meant it would have been inappropriate and futile to allow through to the next stage any expressions of interest that did not provide a realistic and credible plan to operate a totalisator.
The government notes that the audit report raised no issues about the significantly more involved and complex elements of the ACTTAB sale process, which included the indicative bid, due diligence, final offer and contract execution stages.
In closing, I can advise in relation to the recommendation contained in the audit report on procurement processes that the government regularly reviews its procurement processes in consultation with stakeholders. If necessary, amendments will be made to procurement policies, procedures and processes. I commend the government’s response to members.
Paper
Mr Corbell presented the following paper:
Gene Technology Act, pursuant to subsection 136A(3)—Operations of the Gene Technology Regulator—Quarterly report—1 January to 31 March 2015, dated 10 June 2015.
AP2: a new climate change strategy and action plan for the Australian Capital Territory—government response
Paper and statement by minister
MR CORBELL (Molonglo—Deputy Chief Minister, Attorney-General, Minister for Health, Minister for the Environment and Minister for Capital Metro): For the information of members, I present the following paper:
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