1993_01_january_tabauth

The chief executive of the ACT TAB and its former chairman have attacked the proposal by

the Minister for Sport, Wayne Berry, to convert the TAB from corporation to a statutory

authority.

The former chairman, Jim Colquhoun, said yesterday that the move was ideological. As a

corporation the TAB ws running better than it had ever done. It was the only TAB in Australia

to increase turnover in the face of a casino opening. Because he had opposed the change, his

appointment as chairman had not been renewed.

The chief executive, Philip Neck, said he could see no logical reason for the change.

“”If it ain’t broke; don’t fix it,” he said.

Mr Berry said on Tuesday in answer to questions from The Canberra Times that making the TAB

a statutory authority would increase its accountability.

“”The decision is consistent with the ALP branch policy platform to own and operate

government business enterprises in selected areas. . . .

“”I have received no direct opposition to the decision.”

However a letter was sent to Mr Berry on December 11 opposing the move. It was signed by

the deputy chairman of the ACT Racing Club, Bill Bartley, the president of the Canberra

Harness Racing Club, Lindsay Cooper, and the chairman of the Canberra Greyhound Club, Les

Mainwaring. It said: “”Members of the ACT racing industry are alarmed . . . that the

Government now proposes to change the structure of the ACT TAB after only two years of

operation as a territory-owned corporation. . . . Any suggestion that the present successfully

operated organisation be summarily changed, and without any consultation with the industry, is

unacceptable.”

They sought a meeting with Mr Berry, but Mr Colquhoun said there had been no reply yet.

The Opposition spokesman on sport, Tony de Domenico, said, “”After two years of

profitability as a Territory-owned corporation the loony left wants to change the structure of

the ACT TAB.”

It should not change. “”Firstly, it’s making money, secondly, everyone I’ve talked to says

they object to the changes and thirdly, no-one has been consulted.”

The changes were only aimed at milking the racing industry.

Mr Neck said TAB turnover was up 7 per cent in the six months to December 31 on the same

period last year, despite the opening of the casino. It had increased turnover in a full year

by 2.6 per cent. Most other states had not done nearly as well.

Mr Neck has served one year of a three-year contract as chief executive of the corporation

ACT TAB Ltd. He did not know what his exact position would be if the corporation were

abolished.

Mr Neck, who came from South Australia, is highly thought of in the racing industry. People

in the industry are concerned that Mr Neck might leave the ACT if the move goes ahead,

however, he said he was willing to serve in a new body but his contract would have to

continue. Mr Berry said he had been given no indication that Mr Neck would want to leave.

Changes instituted by Mr Neck and Mr Colquhoun have been applauded in the industry and

among ACT TAB agents. The TAB is incorporated under the Territory Owned Corporations Act.

Under that Act appointments to the board and executive must be on the basis of relevant

business experience. Racing sources are fearful that if the TAB were made a statutory

authority it would give the Minister power to appoint a much wider class of people.

In general, the law provides much greater ministerial control over statutory authorities

than over territory-owned corporations.

People in the industry are fearful that if the TAB is not run on a business basis, TAB

turnover could fall or not be as high as it otherwise might. All three racing groups rely on

TAB money. The industry gets 4.25 per cent of TAB turnover, 0.75 per centage points of which

goes to the racecourse development fund. Punters get 83.9 per cent. The ACT Government gets

6.4 per cent and operating expenses take 5.4 per cent.

Mr Colquhoun said, “”There is no business justification for the move. The TAB has never

been better.”

An industry source said, “”If the agenda is to knock off the racecourse development fund or

any racing money, he’ll have the fight of his life. The whole of the industry is against this

move.”

Corporatisation was working for the ACTEW, and the Government was not changing that, nor

should it change the TAB. Most other staes were taking their TABs away from government control

and corporatising or privatising. Historically the only reason the TAB began with government

control was “”because the wowsers would not have allowed it otherwise”.

Another industry source said the ACT TAB was not a monopoly that could be milked. It worked

in a competitive environment against other state TABs through telephone accounts, where the

large clientele were. It competed against other forms of gambling, like poker machines,

lotteries and the casino and it competed against other forms of entertainment generally. If it

went from a business environment to the inflexible public-service environment it would go

backwards. That environment was incapable of responding quickly to competitive forces.

The present corporate structure gave ample accountability because the Chief Minister and

relevant Minister were the shareholders and could demand accountability.

Mr Berry said, “”The ACT TAB will continue to conduct its business along current lines and

the changes with are being made will ensure that the TAB has the appropriate degree of

accountability to the Government as the elected representatives of the people of the ACT.

“”The Government will be working closely with the board of the ACT TAB to ensure that the

operation of the ACT TAB maximises the returns to government whilst providing appropriate

levels of return to the industry and ACT TAB clients.”

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