Page 2447 - Week 08 - Wednesday, 13 August 2014
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The ACTTAB feasibility study undertaken by PricewaterhouseCoopers in 2013 provided a strong case supporting the sale as ACTTAB continued to struggle in the face of increased competition and changes in technology and consumer preferences for wagering, including mobile betting.
After extensive consultation with a range of stakeholders, including the relevant unions and the racing industry, the government decided to pursue the sale of ACTTAB with the following objectives: firstly, to achieve a fair and reasonable price; secondly, to ensure the racing industry was not negatively affected; thirdly, to achieve a timely sale; fourthly, to ensure the successful purchaser had the appropriate experience and capacity to operate a wagering business; and, finally, to ensure employee welfare was considered.
In order to achieve a fair and reasonable price, there was an open call for expressions of interest that was advertised nationally, which was then followed by a competitive bidding process. I suggest anyone would be hard pressed to argue that the sale price of over $100 million—$105.5 million—is not a fair and reasonable price. We can also confidently observe that no other TAB privatisation has achieved an exchange of contracts in such a short time frame.
As one of the most successful wagering operations in the country and one of the top 100 listed companies on the Australian Stock Exchange, there can be no doubt that Tabcorp has the appropriate experience and capacity.
In framing their proposals concerning the staff and the local racing industry, bidders were asked to take into consideration the preferences of the union relating to staffing and those of the industry in relation to future funding arrangements. The government remains committed to ensuring staff are treated fairly and that to the extent possible they can retain their jobs under existing terms and conditions.
By way of background, it is important to note that late last year ACTTAB engaged an HR adviser to provide career transitioning workshops and individual assistance to staff, including financial counselling. Assistance in finding suitable positions will also be provided to any staff seeking to join the ACT public service, although of course they will need to go through the same merit selection process as anyone else. I am aware that the union has provided some positive feedback from staff to ACTTAB about these arrangements.
In relation to the terms of sale, Tabcorp has undertaken to offer employment to all staff except for the chief executive officer, who is about to retire. Tabcorp is also required to employ all staff on substantially the same and no less favourable terms and conditions, with full recognition of prior service.
At a general ACTTAB staff meeting held on the morning of the sale, Tabcorp stressed that they would be making offers of ongoing employment, and not just for three months. Tabcorp has also indicated that it is expected to take at least a year to fully integrate ACTTAB’s business operations. Although no guarantees have been given beyond three months, it is reasonable to assume that most staff will be retained over the longer term, given Tabcorp were keen to acquire all of ACTTAB’s premises and retail outlets.
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