The Deputy Leader of the ACT Opposition, Tony de Domenico, called yesterday for the ACT Government to outline what procedures the Vanuatu-based VITAB had to ensure that no large Australian punters would use VITAB to bet on Australian races.
Mr de Domenico said there were many unanswered questions about contract between VITAB and the ACTTAB, including the role played by former Prime Minister Bob Hawke, a shareholder in VITAB.
Under the contract ACTTAB has provided to VITAB computer services and access to the TAB super pool of money bet from the ACT, Victoria, South Australia, Western Australia, Tasmania and the Northern Territory in return for a commission of between 1 and 2 per cent of turnover. VITAB will return 85 per cent of takings to the punter as with Australian TABs and a further 1 to 2 per cent to the Vanuatu Government. However, it keeps the balance of 11 to 13 per cent for operating and marketing costs. Australian TABs return the 15 per cent balance to government, the racing industry and operating costs.
Mr de Domenico has expressed concern that VITAB could use its 11 to 13 per cent left over to induce, through kickbacks, large Australian punters, to bet with it rather than Australian TABs, causing a loss to the revenue and the racing industry.
The chief executive of the ACT TAB, Philip Neck, said that VITAB had given undertakings not to take bets from Australian punters. It would not do so because it would lose its access to the super pool if it did.
The Minister for Sport, Wayne Berry, said the deal was good for the ACT. It would give the ACT access to the Asian market which would give good returns to the ACT Government and the ACT racing industry.
Mr de Domenico called for the release of the advice given by the ACT Treasury and Law Office and the Vanuatu branch of Price Waterhouse which was asked to investigate the principals of VITAB. He also sought publication of what these bodies were asked to look at.
“”If the deal it is so satisfactory, the ACT Government should have no difficulty in releasing the information,” he said.
The ACT Attorney-General had said inducements would only be effective for big punters.
“”After that advice, why didn’t the Minister renegotiate the contract with an explicit prohibition on inducements?” he asked.
Mr de Domenico sought information on how the deal came about. Who had been approached in the ACT, he asked.
“”The Minister said he had not bee approached by Mr Hawke,” Mr de Domenico said. “”Someone must have approached someone in the ACT about the proposal. Who approached whom?”
Mr Neck said the ACT had won the contract because it had proven its technical ability to service remote places with its service to the Northern Territory, and because it was smaller than other Australian TABs VITAB would be a more significant part of its business and would therefore be looked after better.
Both he and Mr Berry expressed the view that it would be a pity if ACTTAB’s entrepreneurial success was dashed by niggling by Mr de Domenico.
The Canberra Times has sought information about VITAB under the Freedom of Information Act. Critical parts were refused on grounds of commercial in confidence and no remission of fees was given on public-interest grounds. Mr de Domenico’s similar FOI request was treated the same way.
The ACTTAB’s turnover is about $90 million, returning about $4 million to the ACT Government and $4 million to the ACT racing industry.