Page 4612 - Week 15 - Tuesday, 6 December 1994
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airport have an advantage in that they can fly charter flights full of junketeers directly to their doorstep practically. This is obviously what happens in some of the northern casinos. It is the exclusive form of business in the Christmas Island casino. Canberra would have to transport junket players from another port, and I think that could be seen as a disadvantage.
It is also the case, Madam Speaker - regrettable but true - that the ACT does not have a terribly high profile overseas. We are working on that. We are promoting the Territory, particularly in Asia; but at this stage the ACT's proportion of overseas visitors is quite small. We still need to do quite a lot of work to ensure that we raise our overseas visitation rate. There are some disadvantages and some reasons, therefore, to give our casino something of an edge, if it is possible to do so, and still get a revenue return.
Madam Speaker, I would like also to address the question, which I think Mr Kaine raised, about what kind of profitability there is in this business. I have before me an indicative profit and loss projection for junket operations. It makes interesting reading. Madam Speaker, it includes, under the item "expenditure", salaries and wages, 1.18 per cent; advertising, 2.88 per cent; commissions, 55 per cent - a huge proportion; complimentary air fares, tours, beverages, food, accommodation and so on, 8.73 per cent; gaming supplies, postage, printing and so on, 0.52 per cent; special events and entertainment, 3.09 per cent; the Singapore office, the head office, fees, 1.15 per cent; and the tax, 10 per cent. So the total expenditure is 85.66 per cent. If the income is 100 per cent, it gives you a profit of 14.34 per cent - not a very high proportion. Of course, against the casino's profit of 14.34 per cent, we set the Government's benefit, which is 10 per cent. I think you will see from that indicative profit and loss projection that the casino does stand to make considerable amounts of money if these junkets are successful, and so does the Government. But the outgoings are very considerable, and I think I explained that at the time that I introduced the legislation.
Madam Speaker, I will briefly address Mr Kaine's foreshadowed amendments, simply to say that I do not really believe that they are necessary but that they do not give me any great cause for concern. In introducing this legislation, I said that I would be reviewing it at the end of 1995. Indeed, I will, because that is when the supertax arrangements currently applying to the casino on their general profits come to an end. So, there will be that review of the junket tax regime at the end of December 1995.
Debate interrupted.
ADJOURNMENT
MADAM SPEAKER: Order! It being 9.30 pm, I propose the question:
That the Assembly do now adjourn.
Mr Berry: I require the question to be put forthwith without debate.
Question resolved in the negative.
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