Page 1983 - Week 07 - Wednesday, 15 June 1994
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Madam Speaker, the Pearce report has clearly vindicated many of our concerns. It confirms that ACTTAB entered into a contract about which it knew very little. It identifies deficiencies in the negotiations leading up to the agreement. Ms Follett has already read these, but I think it is important to state them again. The most serious of these deficiencies was that there was insufficient consideration of the likely impact on the return to the Government and the racing industry of entry into a contract with a privately owned TAB. We understand, if Mr Hawke can be believed in this situation, that it is the only privately owned TAB in the world.
Mr De Domenico: That might have been hyperbole as well, though.
MRS CARNELL: It could have been. There was inadequate consideration of the manner in which a privately owned TAB could be used by its proprietor. I think all those who have not read the report should read that bit with great interest. There was the failure to check the backgrounds of the directors of VITAB and the fact that the terms of the contract were weighted in VITAB's favour. How on earth could you get a more damning set of deficiencies in any contract? It is hard to think of any.
This agreement would probably never have made it to first base if the members of the ACTTAB board had had even a basic understanding of the TAB industry and the ramifications of a link with VITAB.
Mr De Domenico: But they were not picked on ability.
MRS CARNELL: They were not picked that way, Mr De Domenico. You are quite right. Professor Pearce has recommended that the board should have members who are expert in the operation of TABs. By implication, the board which was a party to the VITAB contract had no expertise.
Mr De Domenico: And was hand-picked by the former Minister.
MRS CARNELL: Yes, and whose fault was that? It has to be the Follett Government's fault. They put them there. The former Minister picked them himself. I understand that at that stage, too, Mr De Domenico pointed out to the Minister that the people involved possibly did not have the appropriate expertise.
The debate that ensued in this Assembly when the Follett Government moved to return ACTTAB to the status of a statutory authority provides a fascinating background. In May 1993 the then Sport Minister, Wayne Berry, told the Assembly:
You would know that under the present legislation the chief executive officer, the chair and the deputy chair are appointed by the board. That is just not good enough.
That is what Mr Berry said. He continued:
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