June 27 2018 Sleepy Minister depriving racing industry of support The failure of the Minister for Racing and Gaming to understand the operations of the TAB and its relatively high cost structure could be depriving the racing industry in terms of its distribution from wagering, the State Opposition said today. Shadow Minister for Racing and Gaming John McGrath said a study conducted by respected bank analyst Morgan Stanley showed the WA TAB has become bloated with operating costs at 55% of revenue, which is almost double that of Tabcorp and Tatt’s in other States. “When questioned about the TABs significant cost base in Parliament today, it was alarming the Minister had no idea of the issue even though it had been highlighted in the media,” Mr McGrath said. “The racing industry is being deprived of the support it deserves because the Minister is asleep at the wheel. “The higher the cost structure of the TAB, the less it can provide the industry which is crying out for as much support as possible. “The Minister needs to improve his performance and explain to the industry the basis of the TAB’s high operating costs and what he intends to do to address it. Otherwise the Western Australian racing industry and participants will lose out.” Mr McGrath said Morgan Stanley estimated the TABs operating expenses made up 55% of its $340 million in annual revenue compared with just 21 per cent at Tabcorp and 23 per cent at Tatt’s. “How can the state owned TAB compete with the likes of Tabcorp and the online bookies when its costs are double that of the other operators,” Mr McGrath said. “The McGowan Government said in the recent budget it intended to end the uncertainty over the future of the TAB, yet the racing industry is still waiting for a decision to be made. “It is high time the Minister showed interest in his portfolio and made sure the TAB was providing the best possible support to the industry. “When the Minister was asked that he request the Treasurer use the powers available to him to have the Economic Regulation Authority review the operations of the TAB, he rejected the notion even though he admitted he was unfamiliar with the issue of the TAB’s high cost structure. “It beggars belief that the Minister is not familiar with the operations of the TAB, but for him to flat out refuse to have an independent Government agency review its operations, in order to improve its performance and support the for the racing industry, shows a failure of leadership. Media Contact |
