The involvement of former Prime Minister Bob Hawke had help make ACTTAB boss Philip Neck think the Vitab deal could help ACTTAB start a major international operation in Asia.
Mr Neck, ACTTAB’s chief executive, told the Vitab inquiry that he thought that if he had not looked at the deal he could have been criticised 12 months down the track for not seizing the Asian opportunity.
He had in the back of his mind Mr Hawke’s extensive contacts in Asia and interest in racing and his involvement in a scheme to set up a race track in China.
Mr Neck said that at the time Vitab seemed like the answer to a maiden’s prayer. After years in the red, it looked as if Vitab could put ACTTAB back in the black. So he had been enthusiastic.
He thought ACTTAB could increase its turnover from $90 million a year to $150 million.
He also attacked the ACT Opposition for making “”offensive” statements about ACTTAB officers over matters which it had no direct knowledge.
In another Vitab development, Independent Helen Szuty agreed to postpone consideration of a censure motion against Chief Minister Rosemary Follett.
In the Assembly on Wednesday Ms Szuty and Independent Michael Moore questioned Ms Follett about whether she knew about the Victorian TAB giving notice to end its linked arrangement with the ACT well before the Assembly sitting in February and March during which her then Minister for Sport, Wayne Berry, had told the Assembly that all was well with the TAB.
Professor Dennis Pearce is inquiring into the contract with the Vanuatu-based Vitab and ACTTAB under which ACTTAB gave computer access to the multi-state super-pool and other services in return for a percentage of turnover, enabling Vitab to run phone and other betting on Australian races. He is also inquiring into why the Victorian TAB terminated it super-pool arrangements with the ACT.
The contract led to a successful Assembly no-confidence motion against Mr Berry last month, causing him to resign.
Mr Neck said that the ACT Opposition had no personal knowledge of matters before the inquiry, was not involved in the negotiation or the agreement between ACTTAB and Vitab.
He rejected suggestions by ACT Opposition Leader Kate Carnell that ACTTAB’s computer system was antiquated and not up to establishing a link with NSW if a sharing arrangement was needed after notice by the Victorian TAB that it would end its super-pool arrangement with the ACT.
A central issue has been the question of probity checks on the Vitab principals. The three main parties, ACTTAB, the Minister’s office and the Department of Environmental, Land and Planning (which embraced sport) have all suggested it was one or both of the other parties’ job to do the probity checks.
The then head of the department, Jeff Townsend, (now acting head of Chief Minister’s) said his bound notebook, which was tendered, showed that after a meeting with the minister that he was to instigate checks with the Treasury and the Law Office, which had been done. There had been no mention of probity checks.
Mr Townsend said ACTTAB had signed confidentially agreements with Vitab without getting departmental advice. This had precluded him from seeking wide industry advice on the matter.
He had not met with ACTTAB and the Minister on the issue together. The Minister was not to sign the contract so there was less requirement for departmental checking.
He said Mr Berry had one of the most difficult jobs in Canberra with his health responsibilities, so sport had received less attention _ only five meetings in 1993.
ACTTAB alone knew of the appointment of Michael Dowd as director of Vitab on October 10 last year, two weeks before the contract was signed, yet it had not asked for a probity check by the department.
Mr Neck, questioned by Professor Peace about Mr Dowd, agreed it had not been possible to check Mr Dowd in the short period between him becoming director and the signing of the contract.
however, he had taken it upon himself to do some checks because he had known Mr Dowd in South Australia as a registered bookmaker. Mr Neck said he had checked on Mr Dowd with the book-makers’ board in South Australia.
Mr Townsend pointed to other evidence that indicated it was ACTTAB’s job to do the probity checks: papers with Mr Neck’s handwriting saying “”ACT to conduct probity check”; an ACTTAB letter saying ACTTAB’s solicitors “”are conducting full investigations in Vitab; and the fact that only ACTTAB knew of Mr Dowd’s appointment yet it had never asked the Department to do a check on him.
Mr Neck, however, said that the Minister had written to ACTAB approving the contract and it had assumed the checks had been done either by the Minister’s office, the department or other ACT Government agency,
He said, “”The worst that can therefore be said about this issue is that there was confusion by those involved about who was to do checks which everyone agreed should be done.”
Asked why he did not seek a higher than 1 to 1 and a half per cent commission on turnover, given that Vitab had as much as 13 per cent to play with, Mr Neck said it was because there was competition for the deal and the ACT had to be competitive. He said he would prefer to keep the number of Vitab customers private, but Professor Pearce had already indicated that there were only a handful. TAB official Bruce Packard said ACTTAB computers could easily handle Vitab because, despite a large percentage increase in turnover, there were only a few transactions for the computers to handle because Vitab bets were for large amounts. Mr Neck indicated he hoped Vitab would increase ACTTAB turnover from $90 million to $140 million.
[That equations points to, say, 10 punters averaging $5 million each a year.]
Former ACTTAB chairman and practising lawyer, Jim Colquhoun, questioned the haste with which the confidentiality agreement had been signed. He also said he would have be careful about any Vanuatu-based company because Vanuatu was a notorious tax haven. He acknowledged the need for TABs to seek off-shore business.