Page 4852 - Week 16 - Thursday, 29 November 1990
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incorporated under the Commonwealth Companies Act 1981, and comes under the ambit of the Territory Owned Corporations Bill 1990. The Bill also abolishes the Racecourse Development Fund Advisory Committee and provides a new mechanism for consultation on the spending of moneys held in the Racecourse Development Fund. I will explain these changes in greater detail shortly.
There is a strong deregulatory emphasis in the Bill. The TAB is to be a fully commercial company and will be expected to behave as such. Many of the statutory provisions presently governing the TAB will therefore be removed. Instead, the relationship between the punter and the TAB will be governed primarily by the law of contract, as is appropriate in a commercial arrangement between a company and its clients. Of course, some regulatory provisions are retained, such as a prohibition on the TAB accepting credit betting. In addition, recognising the monopoly that the TAB will have on certain types of betting, ACTTAB Ltd will be made subject both to the Freedom of Information Act and to the jurisdiction of the ombudsman by regulation.
The existing 6 per cent turnover tax on the TAB is retained, as is provision for the tax rate to be varied from time to time. The distribution scheme which provides for recurrent funding to recognised race clubs has also been retained. That scheme is currently the subject of a review in consultation with the race clubs, but the mechanisms included in the Bill will allow the implementation of any changes to the scheme without further legislation.
As I mentioned earlier, the Racecourse Development Fund Advisory Committee is to be abolished and replaced by a simple statutory obligation on the Minister to consult with the race clubs and with the TAB before making grants or loans from the Racecourse Development Fund, or RDF as it is known. A reform which, I am sure, will be welcomed by the race clubs is the statutory requirement that 0.75 per cent of the TAB's turnover be paid to the Racecourse Development Fund. Although it has already been government practice in recent years to pay this amount into the fund, this level of funding is now put on a statutory basis.
The Racecourse Development Fund is retained. The distribution of money from the RDF will now be more along the lines of other government funding to community groups; funding agreements will include the normal terms and conditions aimed at protecting the public interest and compliance will be monitored by the staff of my department. Details of the Bill are set out in the explanatory memorandum, which I now present. I commend the Bill to the house.
Debate (on motion by Ms Follett) adjourned.
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