Northern Territory Second Reading Speeches

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GAMING MACHINE AMENDMENT BILL 2000

Mr Speaker, I move that the bill be now read a second time.

This bill effects the current scheme for the regulation of community-based gaming machines in the Northern Territory. The overriding objective of the NT’s gaming machine policy has been to maximise the community benefit. This objective was made plain when the government first considered allowing gaming machines into the Territory’s clubs and hotels. It has been carried forward by the measured and responsible introduction of machines into our community venues. This has had a demonstrable and significant benefit to the Territory community in the form of helping the provision of improved local amenities, increased sponsorship and support of local charities, sporting and community groups as well as employment in the important hospitality industry.

But ensuring community benefit has also meant that gaming machines in community venues had to be regulated and operated in a responsible manner. Apart from ensuring the integrity of machine gaming, the regulatory structure helps combat the dangers to the small percentage of gamblers who develop a problem with this form of gambling. We have had a deliberately cautious introduction of gaming machines and we have avoided the excesses that have occurred in some other states.

We have a strong, responsible scheme of regulation. Even so, the Territory has been conscious of the need to keep the regulation of this activity under constant review. In 1998, the government commissioned Mr Otto Alder to conduct a review of the NT gaming machine industry, and his report was first considered by government in 1999.

At the same time, the Productivity Commission released its report into Australia’s gambling industries, which underlined the devastating effect of problem gambling on those persons afflicted by it. The government has had regard to the findings of that report, especially in relation to the impact of gaming machines and how they might be regulated.

The Northern Territory has been an active participant in the national development of gambling policy. The initial focus of the Ministerial Council of Gambling, of which I am a member, will be on gaming machines and the development of national best practice in promoting responsible gambling.

More recently the Chief Minister, as a member of the Council of Australian Governments, considered a national program for improvements in the way this form of gambling is delivered. A notable feature of this program will be the development and implementation of training courses in responsible gambling for the relevant staff of clubs and hotels. Attention is also being given to the actual operation of the machines themselves to see whether design improvements can lessen the risk of gambling problems.

These are but examples. Work is going on across the whole sweep of gambling and gaming machine operations. As we examine these developments this government will continue to place community benefit at the centre of its policy on gaming machines.

The government has decided that a number of changes should be made to the way gaming machines in community venues are regulated and operated in the Territory. This bill will give effect to two of the changes to be made. The purpose of the Gaming Machine Amendment Bill is, firstly, to enable the outsourcing of the monitoring functions and, secondly, to enable the transfer of ownership of gaming machines from the Territory to the venues themselves.

The monitoring of gaming machine operations is an important function. It helps ensure both the technical integrity and fairness of individual machines and the proper accounting of all funds associated with them. This function is presently undertaken by staff of the NT government. The experience of other states shows that this is a function that can be outsourced with confidence in its probity and integrity and with real commercial benefits to the industry. For example, when this function was put to the market in Queensland a number of entities emerged with the technical capacity and demonstrated probity to offer trustworthy machine monitoring services. The monitoring cost per machine fell as a result of the competitive pressures. These are the kinds of benefits I would like to see passed on to the local gaming machine industry. The Northern Territory would like to explore the benefits that may be available from outsourcing the monitoring function, and this bill allows that activity to occur.

The government has also made the decision that ownership of the machines should be transferred from the Territory to particular venues. Following the introduction of machines, it is now appropriate for the government to withdraw from ownership and maintain a strictly regulatory role. This bill provides for the transition of machine ownership. It allows for a gaming machine to be owned by the Director of Licensing and provided to the venue or to be leased to the venue or to be sold to the venue. As well, the Director may lease or enter into or approve a purchase arrangement for new machines for a particular venue. The ownership and leasing of the machines by the Director will be allowed for only a limited period, with the venue being required to assume full financial responsibility for the costs of the gaming machines.

The current tax scale reflects government ownership of the gaming machines. As the new ownership arrangements come into play, the tax scales will be adjusted accordingly.

It is important that such a major change is undertaken in close consultation with the operators. I will be asking the clubs and hotels to nominate representatives to help work through the details to make the transition as smooth as possible.

The limited scope of this bill does not, however, mark out all of the changes to be made to the regulation of gaming machines in the Territory. The government is presently finalising other reforms which I will release to the community for comment next year. These will further enhance the wider community benefit gained from gaming machine operations and will make improvements to the delivery of machine gaming in a responsible manner.

In the meantime, it is appropriate to prepare the ground to outsource the machine monitoring functions and to transfer ownership from the Territory to the venues. This is the purpose of this bill, and I commend the bill.

Debate adjourned.

 

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