Page 6164 - Week 19 - Tuesday, 17 December 1991
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believe, from the O'Connor Tavern ownership to the O'Connor Social Club, obtain a club liquor licence on that basis and then apply to the Commissioner for ACT Revenue for the issue of a licence to operate poker machines. In effect, it is a backhanded technique of expanding the number of premises in the Territory in which gaming machines can be installed.
As a result of that loophole, this legislation goes to great lengths to establish exactly what the bona fides of a licensed club should be. As I said, it goes on in quite some detail. This matter has caused some heartburn to members, including me, particularly when we consider the fact that under the current rules a club is required to have only 200 members. Under this legislation a club will be required to have 200 voting members. There is an enormous difference.
Quite a number of clubs have voting members and non-voting members - members who are, for example, social. The example put to me quite forcefully is the small ethnic clubs where membership of the board is vested in members of that ethnic community who, for whatever reason, established the club in the first place. I can understand why, for quite legitimate reasons, they would like to keep control of the club within the confines of the original ethnic community that set it up.
This also applies to some sporting organisations in the ACT which, whilst not having a large number of members of the club set up to establish and maintain that sport, have, however, for whatever reason, due perhaps to the pleasant location of the premises or the fact that it is a good place to go for a good time, attracted a large number of social or non-voting members. Under these provisions some of these organisations are going to have great difficulty in meeting the requirements of a licensed club as specified. Indeed, that was the matter that led to this debate being adjourned earlier this morning.
The argument has been put that proposed new section 30G provides that all existing gaming licences shall be taken to be cancelled from 31 March 1992 and that to get their licences renewed as of that date each club will need to prove to the Commissioner for ACT Revenue that it is an eligible club under the Act. To do this it will have to have 200 voting members as defined. As I said, a large number of clubs, to my knowledge, either are unable or may be unwilling to comply with this criterion, and will therefore stand to lose their licences. Proposed new subsection 30G(7) provides that if the commissioner is not satisfied that the club is an eligible club he may "with the consent of the applicant" grant a restricted licence or impose conditions on the licence. If the commissioner does that, the higher taxation rate of 35 per cent, which applies on gaming machines which are not owned or operated by licensed clubs, will then apply.
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