Former Prime Minister Bob Hawke and the chief executive of the ACT TAB, Philip Neck, stated that the ACT TAB had won the Vitab contract after competition with other Australian TABs, in apparent conflict with statements from the heads of other TABs.
The heads of all other TABs have said Vitab had not approached them, or in the case of Queensland that Vitab had approached but had been told Queensland TAB was precluded by statute from doing off-shore deals.
Mr Neck’s statement about the competition was given in advice to the Minister for Sport, Wayne Berry.
Mr Hawke’s was made at a media launch of the Vitab deal at which Mr Berry had also praised ACT TAB for winning the Vitab contract ahead of competition.
Mr Hawke, a Vitab director said at the November launch: “”ACT TAB was selected by Vitab over a number of other Australian TABs for the following reasons. ACT TAB is one of the more progressive TABs in terms of introducing and utilising technology . . . ” etc.
Mr Neck had advised Mr Berry “”I would impress upon you that there is strong competition for the Vitab contract.”
Mr Neck said yesterday, “”It was my understanding from Vitab that we were in the running with other TABs and you don’t go round in the commercial real world asking your competitors whether they have been approached by your potential client.”
The Queensland TAB said in its annual report that its executive managing of corporate services had gone to Vanuatu to see if could set up an operation there. The TAB requested changes to legislation to enable it.
The ACT Government has set up an inquiry into the Vitab contract, under which the ACT provides computer access to the multi-state betting super pool in return for 1 to 2 per cent of Vitab’s turnover.
The contract has led to questions of whether Vitab could pay inducements to bet with it (perhaps through Asian agents) rather than betting through Australian TABs. Australian TABs pay on average 85 per cent of turnover back to punters and 15 per cent to costs, government and the racing industry. As Vitab does not pay as much to government or any to the racing industry, the question is whether any of that money can been paid back to Australian punters in any way, making Vitab more attractive for them and thereby divert revenue to Australian TABs, state and territory governments and the Australian racing industry.
The conflicting statements of the other Australian TABs with the Hawke, Neck and Berry statements provide the defence for Mr Berry that he was relying on Mr Neck’s advice and/or believed what Vitab was saying.
The categoric statements by the other TABs that Vitab had not approached them or they were not considering a deal with Vitab means that either all of them were misstating the truth or that Vitab was misleading the ACT TAB and that the ACT TAB swallowed the Vitab line. It’s six of one or two of the other.
The Leader of the Opposition, Kate Carnell, rejected yesterday the claim by the Chief Minister, Rosemary Follett, that the inquiry put the onus on the Liberal Party to put up or shut up.
The onus was not upon the ACT Liberal Party, though it would provide whatever information it had to the head of the inquiry, Professor Dennis Pearce.
“”Rather, the onus must be on giving Professor Pearce the power and resources to do what Mr Berry and ACT TAB apparently failed to achieve: a thorough investigation into the background of Vitab Ltd, the way in which the contract with ACT TAB was brokered and the impact of this deal on TABs punters and the racing industry,” she said.
“”Mr Berry has already shown he did not know that ACT TAB was the only agency competing for Vitab’s business.”
The Opposition spokesman on legal affairs, Gary Humphries, said precedent suggested that Mr Berry stand aside from all ministerial duties during the inquiry. Mr Humphries cited four examples drawn from both sides of Federal politics where ministers had stood aside pending inquiries.
The Chief Minister has rejected this, saying there is nothing to show Mr Berry had acted improperly. She said the Liberals had put up nothing of substance to date. the inquiry would give them the chance.
She said questions about whether Vitab had approached other TABs was a matter for the inquiry.