Gaming Minister Joy Burch has defended government plans to establish a trading scheme for Canberra's poker machines before an inquiry into the future of the clubs industry starts.
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Legislation creating the new trading scheme and lowering taxes for most clubs will be introduced this week, as submissions close on Wednesday for the inquiry by the Assembly's Public Accounts committee.
The clubs inquiry is covering the gamut of club topics, from problem gambling and poker machines to ways to ensure the viability of the clubs sector. This includes clubs' abilities to commercialise their land. The head of Clubs ACT, Jeff House, will appear at a public hearing on Monday, as will Ms Burch.
But alongside the inquiry, chaired by the Liberals' Brendan Smyth and including the Greens' Shane Rattenbury, Ms Burch is pushing ahead with her package of changes, which she says will give clubs certainty. Expected to be introduced on Thursday and pass with Mr Rattenbury's support, the new tax rates are to take effect from July and the trading scheme will be phased in over three years.
Ms Burch has claimed the package will mean "the biggest reduction in gaming machines numbers in history".
In reality, it is likely to bring only a small reduction in poker machines in clubs – if any. There are currently 4906 machines in clubs. The new system will introduce a ratio of 15 machines for every 1000 adults, to take effect after three years, which means about 4785 machines, depending on population.
The scheme will also allow clubs to take machines off the floor without losing them (at the moment they are forfeit if taken off the floor). Clubs will be able to buy an extra 51 licences from hotels and pubs, which will no longer be allowed to operate poker machines. And the bigger clubs will be able to buy up and convert older poker machines from small clubs who no longer need or want them.
The scheme replaces the current target of 4000 machines.
Ms Burch has also said the new scheme will mean Canberra has fewer poker machines a head than NSW, which has a ratio of 17 machines for every 1000 people. While numbers will be lower than NSW under the new ratio, Canberra will still have more poker machines for each adult than any other state or territory. Victoria has six machines for each 1000 people and Queensland 13. The Australian average is 11.1 machines for each 1000 people. If the ACT was to match the national average, it would have to cut machine numbers by about 1700.
The new tax rates to take effect in July will mean a tax cut of about $18,000 for most clubs – and $61,000 for the biggest winner, the Tuggeranong Rugby Union Club – paid for by five big clubs, whose tax will increase. Twill each pay about $140,000 extra a year in tax, and
The tax regime is revenue neutral, despite the government's own review of tax in 2012 pointing out that ACT poker machine taxes fell well short of taxes in other states and territories, and would need to increase by $20 million to equal the national average. ACT clubs pay about $34 million in poker machine tax a year.
On Monday Ms Burch did not answer questions about criticism of the government's changes to poker machine regulation.
"The package has been signed off and is in place and is scheduled to be introduced into the Assembly this week," she said.
"This gaming reform package is sensible, it will stand on its own right and will inform the other considerations that [will] be undertaken through the committee."
