JUST ANOTHER TOTAL COCKUP BY THE PREVIOUS LABOR GOVERNMENT, BUT THEN WHY WOULD THEY CARE, WE ARE STILL PAYING THROUGH THE NOSE FOR THE DESALINATION PLANT, ANOTHER LABOR WHITE ELEPHANT, AND DANIEL ANDREWS WANTS TO BE PREMIER ALL THE WHILE A PUPPET FOR THE CFMEU. The Victorian Government has been ordered to pay more than $450 million in compensation to gaming giant the Tatts Group, plus interest over changes to gaming licences introduced in 2008. But Tabcorp lost a similar challenge after claiming more than $700 million. Tabcorp said it would be reviewing the courts judgment. It has 14 days to lodge an appeal. The Victorian Supreme Court made the ruling after a trial was held earlier this year. In reforms introduced by the Brumby Labor government, Tabcorp and Tatts were stripped of their long-standing poker machine duopoly in Victoria. They had held the duopoly for 18 years, with 27,000 machines across the state. The reforms, which came into effect in 2012, allowed pubs and clubs to take control of pokies outside Crown Casino. Decision will be costly for Victorian community: Treasurer Its a very material blow to the states budget. Michael OBrien, Victorian Treasurer Victorian Treasurer Michael OBrien described the result as a mixed outcome that would lead to significant costs for Victorian taxpayers. While were pleased that his honour Justice Hargrave found in favour of the state with respect to the claim brought by Tabcorp, were disappointed that the Tatts Group claim has succeeded, Mr OBrien said. Should the Tatts Group decision stand, it will result in a significant cost to the Victorian community. The quantum of judgement and likely interest is expected to exceed $540 million. Its a very material blow to the states budget. This is $540 million that weve been ordered to pay that we would rather spend on schools and hospitals, and the fact that we are (in) this vulnerable position...is very much one the community should be concerned by. He said the changes introduced by Brumby government in 2008 has been costly for the state. The decisions that lead to todays judgement were decisions made by the former Labor government to change the structure of the gaming industry in Victoria, he said. He said the Government would consider whether it would appeal against the courts decision. The Government is considering the judgements...once we have received advice on those judgements and the prospects of appeal well make further announcements, Mr OBrien said. Chasing compensation The companies had been chasing compensation through the Victorian Supreme Court, where a trial was held earlier this year. Tabcorp claimed almost $700 million in compensation, while the Tatts Group has claimed nearly $500 million. Lawyers for Tabcorp told the court those figures could rise with interest accumulated every day until the case was resolved. Tabcorp claimed money it paid in advance for its gambling licence should have been returned when the reforms were introduced. It said the states obligation to pay the compensation dated back to its privatisation of the TAB and listing of Tabcorp on the ASX in 1994. It claimed that obligation was recognised by the state, including in its annual budget papers, over a 14-year period from 1994 to 2008. The Government argued the legislation relied upon was repealed in 2008. The Tatts Group said it was entitled to the lost funds because the Government never issued a new gaming licence as part of the restructure. But the Government said the new licences were so different that past agreements did not apply. Last August Tabcorp posted a net profit of $126.6 million, down 63 per cent on the previous year. At the time, the company said it was important to note that the tens of billions of dollars reaped from the states poker machines was merely flowing into other commercial coffers.
Posted on: Fri, 27 Jun 2014 00:57:33 +0000
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