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Legislative Assembly for the ACT: 1997 Week 14 Hansard (9 December) . . Page.. 4694 ..

MRS CARNELL (continuing):

Before I turn to the findings of the inquiry and the action proposed to be taken by the Government, it is appropriate that I outline the circumstances that led to this report and, briefly, the background to the VITAB scandal. Members will recall that on 22 October 1993 VITAB signed a five-year contract with ACTTAB Ltd, a statutory authority which had been decorporatised by the then Labor Government in a move which it claimed would make the authority more accountable. This contract, the precise details of which were never released on the grounds of it being commercial-in-confidence, was approved by the then ACT Minister for Sport, Mr Wayne Berry, under the Betting (Totalizator Administration) Act.

The deal enabled VITAB, a Vanuatu-incorporated firm, to bet into the Victorian TAB's superpool via ACTTAB's link with that pool, in return for which ACTTAB would receive a commission based upon turnover. VITAB began operations in January 1994, but only a few days later the Victorian TAB gave ACTTAB notice that it intended to expel the agency from the superpool. Unable to establish a new link with another TAB pool or re-establish ties with Victoria while ever it was contractually attached to VITAB, ACTTAB was in desperate trouble. Faced with operating in an unlinked environment, losing punters and revenue, ACTTAB finally negotiated a $3.3m settlement payable to VITAB in mid-1994 that finally broke the contract. Many questions about the VITAB deal have remained unanswered since this time - until now.

Mr Speaker, on 18 July this year Mr Richard Burbidge, QC, was appointed as a board of inquiry following a resolution of the Legislative Assembly on 26 June 1997. That motion was, of course, moved by Mr Osborne. The original terms of reference were extended on 18 August, and as a consequence the time for the submission of the inquiry's report was extended until 30 November. At Mr Burbidge's request, a further extension was granted to enable the completion of his report. The final report, Mr Speaker, was submitted to me on Friday, 5 December, so it is appropriate that I table it in the Assembly at the first opportunity following its completion. Members will be aware of an earlier board of inquiry into the ACTTAB-VITAB contract which was conducted in mid-1994 by Professor Dennis Pearce. As Mr Burbidge has found, crucial evidence that was not available to Professor Pearce has now been uncovered and sheds extraordinary new light on this business arrangement.

By way of background, Mr Speaker, the report of this latest board of inquiry contains 144 pages and 96 pages of attachments. Evidence was heard from 22 witnesses, while 62 exhibits were entered as evidence and more than 10,000 pages of statements and other documents were considered by Mr Burbidge. The board held public hearings and sat for a total of 28 sitting days. The evidence obtained from these hearings resulted in 2,210 pages of transcript. It can be seen clearly that, within the time and resources available, the board of inquiry has performed a really mammoth task. Mr Burbidge is to be congratulated for his efforts, and the Government extends to him its gratitude for the thorough and comprehensive manner in which he performed his functions.

Mr Speaker, there are two key conclusions drawn in Mr Burbidge's report in response to the terms of reference. The first is that at least four of the promoters of VITAB Ltd were involved in fraudulent conduct both in the formulation of the contract with ACTTAB and in the receipt of the $3.3m compensation settlement that was eventually reached with

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