PM - Friday, 18 July ,
2003 18:50:00
Reporter: Neal Woolrich
MARK COLVIN: The New South Wales Government
wants to double the tax take from the state's poker machine operators,
but some Government members may be about to break ranks.
New South Wales Treasurer Michael Egan announced the measure in last
month's state budget. Michael Egan says the increased tax rate will
bring the tax on New South Wales poker machines into line with other
states. But some backbenchers, and at least one Cabinet member, are
questioning the decision.
Neal Woolrich has this report.
NEAL WOOLRICH: New South Wales Treasurer Michael Egan wants to double
the state's tax take from poker machines and put the estimated $1.6
billion in additional revenue over eight years into the state's health
budget.
The Treasurer says the state's registered clubs made $2.7 billion in
profits from poker machines last year, but only donated 2 per cent of
that total to community programs.
Chairman of Clubs New South Wales, Pat Rogan, says the Treasurer is
guilty of accounting chicanery.
PAT ROGAN: For a person who occupies the position of Treasurer of New
South Wales, I'm surprised and rather alarmed at his lack of fundamental
knowledge of accountancy, because what he's quoting is revenue figures.
It is misleading, and that's what the Treasurer has been doing all the
way through this debate, to just quote revenue figures without taking
into account the other costs that go with that to arrive at a profit
level.
NEAL WOOLRICH: Clubs New South Wales Chairman Pat Rogan says because
clubs are mutual organisations, the money they generate must go either
to the community or the club's members.
PAT ROGAN: Whatever money comes in either goes back directly for
members' benefits or it goes back in the community. It doesn't go into
some big corporation. It's not going into private hands. It's community
based, and we're the last of the major mutually based organisations in
the country.
NEAL WOORICH: But Fairfield Councillor Thang Ngo says there's no
guarantee that community donations from clubs go into the club's local
area.
THANG NGO: We're the people losing $251 million a year, but not all of
that money is coming back to the community. For example, I know that
Mounties sponsor Parramatta Eels, and that's great, that's good, it's a
good cause. But that's not a local cause.
We know that Penrith Panthers own the Macon (phonetic) Club, and we know
that's good too. But I can't help but think a lot of that money is going
back to supporting Penrith Panthers, which is certainly quite a few
kilometres away from the people of Fairfield.
NEAL WOORICH: Fairfield, in Sydney's south west, has 43 poker machine
venues in its jurisdiction, and Councillor Ngo says the clubs'
contribution into the community pales into insignificance against the
losses gamblers in the area incur.
THANG NGO: By the contribution that the clubs have to make by law into
the community schemes in Fairfield, they're putting in about $3.5
million, and that is the highest of any council area in New South Wales.
Now, balance against that – that $3.5million – residents are losing
$251 million to pokies in Fairfield. So you can see that we're talking
about, you know, we're talking about a small percentage of what the
communities lose. So for the clubs to say they contribute a lot, we've
got to remember that that is only a small amount.
MARK COLVIN: Fairfield Councillor Thang Ngo ending that report from Neal
Woolrich.
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