Page 2619 - Week 09 - Wednesday, 24 August 1994
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It certainly would. The article continues:
One thing led to another and the ACTTAB was cut out of the Victorian TAB because of its connections with VITAB and it could not get into the New South Wales TAB for the same reason. The racing industry looked like coming to its knees in Canberra. The local racing club is the heart and soul of the very big racing industry in southern New South Wales. Payments from the ACTTAB make up 60 per cent of the club's revenue -
I repeat, 60 per cent, Ms Follett -
and as a result of the ACTTAB being out in the cold this revenue had fallen by 60 per cent. There was a threat to the Black Opal Stakes next Autumn. The new Sports Minister, David Lamont tried to opt out of the VITAB deal, but found the Vanuatu crew had a waterproof contract.
A great deal, Mr Berry! This article continues:
VITAB sued. On Wednesday the ultimate humiliation - the Government owned ACTTAB settled out of court for $3.3m. The Opposition Leader, Kate Carnell reckons Bob Hawke will get at least $330,000.
Just a fortnight later the same newsletter, the one that goes all over Australia to all the decision makers, said this:
... in the Federal Court this week lots came out; like the fact that the Victorian TAB was charging the ACTTAB an astonishingly generous 0.125 cents in the dollar for the pooling arrangement. Yet the ACT managed to throw this bonanza away by entering into the Vitab deal. And Vitab had everything in the contract with the ACTTAB nicely tied up. For example if the pooling arrangement failed Vitab could pull out of the contract, but the ACTTAB could not. Indeed if the arrangement failed Vitab could sue for damages AND continue the contract. And even though ACTTAB officials had canvassed with the Victorian TAB before it signed the Vitab contract the importance of the Victorian pooling continuing, no effort was made to get Victoria to enter into a binding contract on this vital point. It is worth recalling that the former Minister for Sport, Wayne Berry, who was Minister when all the action was taking place on Vitab, once said it was a good deal for the ACT ... If the petrol scandal and the TAB disaster in conjunction happened in any other State, it would go close to toppling the Government. But not in the ACT.
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