Page 592 - Week 03 - Tuesday, 12 April 1994
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VicTAB. I have sought to emphasise that the benefits of the VITAB agreement will provide significant returns to the ACT community in the first twelve months and in future years. Already the Territory has received some $50,000. That is a good deal. We have returned our investment many times over, and if it ended tomorrow it would still be a good deal. If it ended tomorrow there still would be $50,000 safe in the bank. There will be more money flowing from the deal. It is extra revenue for the ACTTAB and for the Territory, and a further $50,000 is projected through to 30 June 1994. So of course it is a good deal. There is no question about it being a good deal, because it returns profit to the Territory.
The VITAB agreement was framed by both ACTTAB's solicitors and the ACT Government Solicitor and, taking account of Treasury's view, if you look at the arrangement by itself, it is returning money to the Territory. It was examined and cleared as safe by Treasury and the Law Office.
Mr De Domenico: They approved it, did they?
MR BERRY: They recommended that it be agreed to, and it was signed by ACTTAB. The VITAB agreement, as framed by both ACTTAB's solicitors and the ACT Government Solicitor, and taking account of Treasury's views, provided the necessary financial security for the Territory in relation to the arrangements with VITAB. Examples of provisions included in the VITAB-ACTTAB contract which give full financial protection to the Territory include provisions for weekly settlements, cash funds in an ACTTAB bank account, and personal performance guaranteed by the directors. That sounds pretty safe to me. Based on all of this, I said that the agreement with VITAB was beneficial to the Territory, and I think it has been.
Let me now turn to the quite separate question of the VicTAB notice of termination. I firmly believe that it would have been irresponsible, premature and damaging for me to have made an earlier announcement on VicTAB's decision to terminate its link with the ACT. Bear in mind all the mud slinging that was going on by those opposite, bear in mind their lack of commitment to the Territory's own TAB, and bear in mind the damage that they are prepared to do just to get a headline. I think we had to be very careful with the approach we took on this matter. In the first place, VicTAB's notice gave no reasons for the termination. In discussions with VicTAB's chief executive in early February, the chief executive of ACTTAB was led to believe that VicTAB would consider retaining the link with ACTTAB under certain specific conditions. In spite of this undertaking, VicTAB merely confirmed that it would uphold its earlier termination notice, and again gave no reasons for its decision on the matter. VicTAB confirmed its intentions on 14 February 1994.
At the racing Ministers meeting on 10 February 1994 I personally raised the issue with the Victorian Minister for Sport, Recreation and Racing, Mr Reynolds. You know him. Mr Reynolds expressed to me his concern about the possibility that VITAB may poach clients from VicTAB by offering inducements. I provided him with a copy of the letter from VITAB, as I recall. I indicated that we had not received a formal explanation from VicTAB as to its reasons for terminating the agreement. I again raised these concerns in
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