Senate keeps a big kitty for the states

Sydney Morning Herald

Mark Metherell

November 11, 2008

GOVERNMENT and Coalition senators have refused to recommend tougher action on problem gambling, triggering criticism that they are bowing to state government addictions to gambling tax revenues.

Despite an assertion by the Prime Minister, Kevin Rudd, that he "hates" poker machines and their effects on families, the Labor and Coalition majority on a Senate community affairs committee yesterday rejected legislation to put limits on poker machine betting and removing automatic teller machines from gambling venues.

The committee chairwoman, Claire Moore, said the majority recommended that the legislation not be passed in anticipation of an inquiry by the Productivity Commission into the gambling industry, which is not expected to report for a year. [See p.5 for “Terms of Reference”].

But minority party senators accused the Government of a cop-out, saying the Productivity Commission had reported on the issue in 1999 and found that 130,000 people had serious gambling problems and 160,000 more had moderate problems.

Senator Moore said she was aware of the serious suffering caused by gambling addiction but the nine years since the last Productivity Commission report constituted "a major gap" in information that needed updating.

Last year Mr. Rudd said: "I hate poker machines and I know something of their impact on families." But the federal and state governments have since agreed to withhold further action on the industry, which generates billions of dollars in state taxes, until the commission report late next year.

The Australian Greens senator Rachel Siewert said evidence given to the committee showed that poker machines were a problem for 85 per cent of all gambling addicts in Australia, and that 50 per cent of revenue came from 2 per cent of users.

The willingness of governments and industry to allow such a situation showed "a clear conflict of interest, given the obscene amount of income they generate", Senator Siewert said.

The Greens had called for simple and practical measures to be implemented immediately to reduce the harm being caused by poker machines, including: removing ATMs from gambling venues, banning banknote acceptors on poker machines and limiting the rate of betting and the size of jackpots.

The South Australian anti-pokies senator, Nick Xenophon, said the Government had heard from experts and welfare groups about the devastation caused by the poker machine industry.

"We don't need an inquiry to tell us that these machines are causing significant harm," he said. "We need action, not more talk."

The Family First senator, Steve Fielding, said the inaction showed Mr. Rudd's view to be "just words" and that state governments were "hopelessly addicted" to gambling revenue.

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