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Legislative Assembly for the ACT: 1997 Week 14 Hansard (9 December) . . Page.. 4698 ..

MRS CARNELL (continuing):

It is also perhaps appropriate at this point to highlight several of the positive findings made by Mr Burbidge, in the interests of balance. In particular, he found that the actions of the new ACTTAB board, which was appointed in the wake of the Pearce inquiry, in attempting to reach a reasonable settlement with VITAB in mid-1994, were appropriate. Indeed, the report states:

VITAB knew that ACTTAB was in dire financial trouble in consequence of its link to VITAB and had no qualms about using its superior bargaining position. ACTTAB had no choice but to settle at best ... In these circumstances Mr Glanville and his board acted with commendable dispatch ... There is no reason to suppose that any better result could have been obtained by the ACTTAB board on the facts known to them at the time.

Mr Burbidge found that the financial disaster which ACTTAB was facing at the end of July 1994 was averted and the agency's financial results had subsequently demonstrated a remarkable recovery, which he says is a tribute to the new board. I agree, but I would add that this Government's decision to take over the $3.3m debt which had been hung around ACTTAB's neck by the previous Government and to recorporatise ACTTAB also contributed to its improved performance.

Mr Speaker, the second issue examined by Mr Burbidge was the payment of incentives to punters by the ACT Racing Club to attract them to its racecourse and use its betting facilities. The board of inquiry found that the practice, while widespread around Australia, was not illegal. Members will recall that in February this year I wrote to the heads of the three racing codes in the ACT and requested that the funds paid to the racing clubs via ACTTAB's turnover should not be used for the payment of rebates to punters. The report finds that this practice by the ACT Racing Club ceased upon receipt of my letter.

I turn now to the actions proposed to be taken by the Government in response to Mr Burbidge's findings. Mr Speaker, it has clearly been a difficult task unravelling the secretive and complex story behind VITAB's relationship with ACTTAB. Mr Burbidge's report is a complex document and the future use of some of the evidence he gained may be restricted by section 19 of the Inquiries Act. It should be noted that section 19 renders inadmissible in civil and criminal proceedings against a person any statements, disclosures and documents made or produced by that person to the inquiry.

It is also relevant that the inquiry was not bound by the rules of evidence. The combination of these factors means that, despite Mr Burbidge's findings and conclusions about the behaviour of such persons as Messrs Kolomanski, McMahon, Bartholomew and Tripp, any legal action to recover ACTTAB's settlement payment to VITAB or to obtain damages will require further legal analysis and assessment of the prospects of possible litigation. Therefore, the board of ACTTAB, in cooperation with the Government, will seek to have the legal analysis undertaken and then decide whether it is feasible to commence legal action for damages or for misconduct against persons associated with VITAB, against legal advisers to ACTTAB or against any former staff of ACTTAB. (Further extension of time granted) I can give members an undertaking that I will advise them of the outcome of this assessment once it has been completed.

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