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Legislative Assembly for the ACT: 2000 Week 11 Hansard (29 November) . . Page.. 3454 ..
MR SMYTH (continuing):
same amount that was achieved by the New South Wales government when it released a limited number of machines to hotels last year.
In addition to a tax rate of 30 per cent, which is adjusted for the GST, of gross gaming machine profits, the casino also will be required to donate $100,000 per annum to charities. This amount is subject to CPI movements. The tax on the casino's gaming machines operation is expected to return to the territory an average of $2.4 million per annum.
Mr Speaker, over the 10 years of the proposal, the deal achieved for the territory about $34 million plus at least $1 million to charities. I think the territory's taxpayers would be well pleased with this outcome. The licensed clubs also should be pleased with it. For the territory to receive the same level of additional income from the clubs, it would require an increase in tax receipts of at least 10 per cent.
When the club industry considers its positions in relation to maintaining its monopoly on modern gaming machines, it needs to compare the costs of the monopoly and the costs of limited competition. The Allen Consulting Group's 1998 report on its national competition policy review of gaming legislation in the territory records that the cost to the clubs of 100 gaming machines in the casino would be negligible. It is reasonable to assume that the costs to the clubs of 200 machines in the casino would be not much more than negligible, which is significantly less than the $3.5 million per annum. Mr Speaker, it is also an oversimplification to conclude that because the tax rate is 30 per cent inclusive of GST the remaining 70 per cent of the profits will flow out of the territory.
The casino is a significant employer, particularly of young people, and will require more staff to manage the gaming machines. The casino pays payroll tax as well as other government and government instrumentality charges. It also provides employment in the form of contracts for services to the casino, such as the supply of food and beverages, as well as the management and operation of its restaurant. The casino is an integral element in the territory's hospitality and tourism industry, recording about 600,000 visitations each year.
Mr Speaker, the government will also be commissioning amendments to increase the role of the Gambling and Racing Commission in the approval and operation of the machines. Unfortunately, the amendments are not ready. At a later stage in the debate we would like to adjourn the debate so that we have time to put forward our amendments when we get to the detail stage.
MS TUCKER
(8.57): No, the Greens will not be supporting this bill. I find it quite extraordinary that it was even put by Mr Kaine because he was chair of the committee that looked at the social and economic impacts of gambling in the ACT. As a result of that work there was a gambling commission set up, as all members are aware. We also have a cap on the number of poker machines. On the matter of hotels and the casino, the committee made it quite clear that we need to have an understanding of the social impact of increasing access to poker machines before we, as a responsible parliament, made a decision on such matters. What was very clear from this committee was that we have never had that information as a community. Decisions have been made in a very ad hoc way. Basically, it has just been market driven. Until the cap was imposed here, that was
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