Page 3741 - Week 10 - Wednesday, 26 August 2009
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number of serious potential conflicts of interest that have become apparent in this matter. We have one body, the ACT government, which is charged with regulating the gaming industry in the ACT and which is also a major player in the gaming industry. The body charged with investigating regulatory breaches, the Gambling and Racing Commission, reports to a minister, the Treasurer, who has a vested interest in the outcome of that investigation. The CEO of this commission, who is charged with running the investigation in this matter, is appointed by and can be removed by the minister who has a vested interest in the outcome of the investigation.
Then there are reports that the ACT Labor Party’s administrative committee exerted influence on the board of the Labor Club Group to halt the sale of the group. As far as we are aware, the Chief Minister, Jon Stanhope, is a member of the Labor Party’s administrative committee. During recent publicity about this matter, it is evident that the Chief Minister gave direct quotes that could be read as influencing the decision making of the board of the Labor Club Group.
Then we have the recently appointed temporary secretary of the ACT Labor Party, Ted Quinlan, who was brought in to resolve the conflict. He also is reported to be a member of the board of the clubs.
All that the community can see of this matter is a tangled web with millions of dollars at stake—millions of dollars in which the community has an interest, because these licences are for the benefit of the community, and for which the community demands and expects accountability.
The various conflicts or potential conflicts in this matter heighten concern about the nature of the proposed transaction and the role of various parties, both directly and indirectly, in influencing the progress of the transaction.
At the most fundamental level, gaming machine licences did not provide, and were not intended to provide, the capacity for an organisation to build up and then sell a gambling empire. There is no provision in the act to sell the licences. They are to be surrendered. They are to be reissued. Yet this is what is proposed with the proposed transaction in which the Chief Minister has been involved through his membership of the administration committee.
In the Canberra Times of 29 July, the Chief Minister is quoted as saying:
It would be bizarre in the extreme if the Labor Party as the owner of an asset says we no longer wish to sell this asset but a group, albeit members of the Labor Party and directors of the board, says well we are going to sell the asset anyway. That’s just untenable.
It raises the issue of who owns the Labor clubs. This is a Chief Minister who has far more than a passing interest in this matter. At this point, the Chief Minister must satisfy the community about his involvement in all aspects of the proposed sale transaction. That is the simple objective of the motion. As one can see from the notice paper, part 1(a) says:
… the Treasurer has referred certain documents to the Gambling and Racing Commission for inquiry …
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