Page 539 - Week 03 - Tuesday, 12 April 1994
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Nowhere has Mr Berry misled the Assembly more often than on the issue of whether VITAB would give inducements to encourage Australian punters to use its operation rather than onshore Australian TABs. On 23 November, Mr Berry admitted in the Assembly:
... the agreement is silent on the issue of inducements ... Members should appreciate that the offering of inducements to investors is purely a commercial decision and TABs, like any other business, are not legally precluded from using such methods to attract business.
This statement would indicate that VITAB is at liberty to give inducements, that is, rebates, to punters to bet through their system rather than with another TAB. Remember that VITAB has a gross profit margin of more than 10 per cent of its turnover to play with, compared with as little as 2.5 per cent for onshore Australian TABs.
The Minister certainly knew that inducements could be a problem before VITAB even began operations on 18 January. A meeting of Australian TAB executives, including ACTTAB, was convened in Sydney on 6 December to discuss this very issue. On 8 December, Mr Berry told the Assembly of the outcome of the meeting. He said:
... the potential for the payment of inducements to Australian punters through ... offshore arrangements was recognised ...
VITAB sent a letter about inducements to ACTTAB on 23 November - a letter which Mr Berry has used constantly over the last five months, both here and in the media, in an attempt to misrepresent the true position. VITAB in this letter states:
1. VITAB will not at any time be knowingly seeking the business of Australian resident customers by way of rebates, any other inducements or any other similar means.
2. VITAB will not at any time be knowingly seeking the business of Australian resident customers by means of advertising or promoting its betting activities.
On 1 March, Mr Berry told the Assembly in relation to this letter:
VITAB have given an undertaking that they will not offer inducements to Australian residents. They will not offer inducements. They have given an undertaking and they have also said that they want a statement from people to say that they are not ACT residents.
On 2 March he said:
I am the one who has been given the undertaking by VITAB that they will not offer inducements to ACT bettors and, therefore, it will not happen.
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