A gloomy picture for ACT racing was painted yesterday by the ACT Racing Club unless the ACT TAB links with another major TAB.
The chair of the club, Bill Bartley, told the Vitab inquiry that the greater proportion of prizemoney, administration and capital costs of ACT racing came from the ACTTAB dividend. If the dividend were jeopardised, ACT racing would lose money which would have significnt flow-on effects for employment and the tourism industry.
Racing was the third-largest employer in Australia, he said. About 60 per cent of horses raced in the ACT came from outside Canberra, attracted by the prizemoney. This was a significant contribution to the visitor industry.
The Victorian TAB has given notice it will cut the ACT’s access to the pool of punters’ funds from Victoria, South Australia, Western Australia and Tasmania from August 1 after the ACT entered a contract with the Vanuatu-based Vitab, giving Vitab access to the superpool through ACTTAB computers.
The chief executive of ACTTAB, Philip Neck, told the inquiry on Wednesday that without a link to a major TAB, the ACTTAB would lose turnover.
Mr Bartley said ACTTAB only had to lose “”one or two big punters for the whole thing to go flat”.
Without a link with a major TAB, the ACT Racing Club’s status as a principal club was threatened. This would have a large impact on the industry in the ACT.
The ACT book-making industry would also be affected because ACT bookmakers often “”laid-off” very large bets with the TAB.
Without an interstate link they would not lay-off with ACTAB because any large sum on one race would distort the small ACT-only pool and reduce the return.
Mr Bartley said he had had no warning of the Vitab deal. He called for formal representation of the racing industry on the ACTTAB board to prevent such things happening in future.
[The former ACTTAB chairman Jim Colquhoun was also an officer bearer of ACT racing organisations, but the link was not a formal one. Mr Colquhoun’s term ended before Vitab approached ACTTAB and he was not reappointed.]
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 Sports Minister Wayne Berry last month causing him to resign.
Vitab shareholder and former Prime Minister Bob Hawke is expected to appear next Friday (May 13).
It was learned yesterday that Mr Berry is receiving legal advice from Greg James QC instructed by Gary Robb, solicitors, at government expense.
Government sources have pointed out that Mr Berry’s representation fits squarely within the guidelines used by the NSW Independent Commission Against Corruption: “”Ex gratia assistance may be granted to Ministers and public officials who are required to give evidence before the commission provideed their involvement in the proceedings relates to, concerns, or arises out of their officials functions and provided they have a substantial and direct interest in the subject matter of the proceedings.”
Legal sources said that at first Mr James was being isntructed by the ACT Government Solicitor, but Gary Robb was engaged when it was thought there might be a potential for a conflict of interest.