Page 3323 - Week 09 - Wednesday, 19 August 2009
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MS GALLAGHER (Molonglo—Treasurer, Minister for Health, Minister for Community Services and Minister for Women) (11.45): The government will not be supporting this motion. It is quite clear from the Leader of the Opposition’s speech that it is driven purely by a political agenda. They are our opponents; they have woken up from the winter hibernation. That group over there have picked up the first copy of the Canberra Times after their seven week break and they have said, “Thank goodness, there’s a little strategy for us.” I think everyone in this place can see it for what it is. Perhaps some merit could be laid on the opposition leader’s concerns in the first part of his motion on the establishment of clubs for community benefit. If he had held those same concerns on the proposed sale of the club for all the other clubs that have been sold recently—for example, the West Belconnen Leagues Club, West’s Rugby Union Club, the RSL club and the soccer club—there would be some merit to it. If these same concerns are genuine, then presumably they hold for all clubs.
The clubs that have gaming machine licences are, by definition, not-for-profit entities that are established for the benefit of their members. A licensed club must have eligible objects that state the purpose for which the club was established. A club must conduct its operations in order to achieve this goal, and such objects as outlined in section 145 of the Gaming Machine Act may include recreational, social, religious, political, literary, scientific, artistic, sporting or athletic purposes. The Gaming Machine Act requires a minimum of seven per cent of net gaming machine revenue of clubs to be allocated as community contributions. Eligible contributions are grouped under the following broad categories: charitable and social welfare, problem gambling assistance, sport and recreation, non-profit activities and community infrastructure.
In 2007-08, clubs contributed $14.6 million in eligible community contributions, an increase of 14.1 per cent on the $12.8 million contributed in 2006-07. A club’s community contributions are verified each year by the Gambling and Racing Commission to ensure that each licensee meets the required minimum of seven per cent and to provide a publicly available report on the contributions made by each licensee. The report is required to be tabled each year by the minister.
The proposed sale of the Labor Club Group, if it proceeds, could only be to another gaming machine licensee in the territory. Thus, the future returns of the machines would stay in the territory for the benefit of the community. The surplus from any sale of the Labor Club Group would be a matter for the members of the club to determine, as reflected in the club’s constitution. This is entirely appropriate and consistent with the Gaming Machine Act, as the funds of the club are for the benefit and purposes of its members.
The so-called community-based gaming law is not undermined in any way, as the sale of any club is a democratic matter for a particular club’s members to decide under the provisions of the relevant club constitution. Of relevance here is that a club’s constitution has been approved by the members at a general meeting and, accordingly, can be changed if the members consider it necessary or desirable. This is fair and equitable and entirely consistent with the operation of a community-based club.
The Gaming Machine Act provides that a club gaming machine licensee must identify its influential persons as defined in the act who must undergo suitability checks
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