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Past catches up with McGowan in TAB sale

Gary AdsheadThe West Australian
VideoThe State Government announced a 15% tax to fund racing in the future

Trying to follow the political discourse on whether the TAB in WA should be sold to a private bidder has been like trying to pin the tail on a donkey blindfolded after a bottle of red.

Last week, after his Government announced the betting agency was finally on the market, Premier Mark McGowan got all surly because he felt the media, along with the Liberals and Nationals, were twisting comments he made in 2016.

Back in June that year, the then Opposition leader put out a statement questioning whether the Barnett government planned to flog the TAB and allow new gaming machines, including “pokies”, to operate in this State as a sweetener to any deal.

McGowan was reacting to what he saw as conflicting commentary between the racing minister at the time, Nationals MP Colin Holt, and premier Colin Barnett.

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“Mr Holt confirmed the government was still proceeding with negotiations over Keno and electronic horse racing with the racing industry and potential purchasers of the TAB,” the Labor leader said in his statement.

The electronic horse racing McGowan referred to is called Trackside and allows punters to wager on simulated racing at TABs as well as the real thing. Trackside machines are common over east.

“Just this morning, the premier claimed his government would not introduce Keno or Trackside electronic horse racing in TABs or country pubs and clubs, yet his minister has told Parliament the government is still actively considering the option,” the 2016 McGowan statement continued.

Move forward to last Tuesday, when current Racing and Gaming Minister Paul Papalia and Treasurer Ben Wyatt announced that electronic racing machines, like Trackside, would be permitted in WA to help get top dollar for the TAB sale. All hell broke loose in Parliament as the Premier was accused of blatant double standards because of his 2016 remarks.

“Would the Premier please explain to this House and the people of Western Australia why he has changed his mind on the Trackside product?” posed Liberal leader Mike Nahan. “In the past he opposed it absolutely. Now he is proposing to introduce it throughout TAB outlets throughout the State.”

McGowan was indignant.

“What we see from the Liberal Party in Western Australia is that it makes things up,” he said. “The Leader of the Opposition is an expert at finding something I said about issue X, pretending it was about issue Y.”

But it was not just Labor’s traditional political enemies that were calling the Premier out over the electronic horse racing green light.

“In WA, simulated racing products are currently only available within Crown’s Burswood casino,” said public sector union the CPSU/CSA. “We’re concerned that its extension to other locations will have implications for the incidence of problem gambling in our State.”

The Premier and his minders insisted that back in 2016, the only concern McGowan had was over Keno or pokie machines being a component of a TAB sell-off. They were playing down the Labor leader’s references to Trackside.

“All my commentary on this was based on long experience as someone who grew up in New South Wales and saw poker machines and the evils that they promote,” McGowan told Parliament.

Without wanting to further ruffle the Premier, he did mention “Trackside”, “electronic horse racing” or “gaming machine expansion” eight times in that 2016 rebuke of the Barnett government.

Given his Government committed last week to allowing a restricted version of simulated or electronic racing in TAB outlets to encourage a buyer, the Premier should not be too surprised his previous words were used against him.

The truth of the matter is that by permitting the simulated racing machines in TABs, the Government is dangling a carrot to one potential buyer — Tabcorp.

The Eastern States gambling colossus is the only company in Australia that operates electronic racing in venues and the name of its product is Trackside.

Further to what was said back in 2016, Labor’s gloating last week about finally resolving the impasse on selling the TAB — and achieving what they said the Liberals and Nationals could not — was bound to raise the hackles of the current Opposition.

John McGrath, the Liberal spokesman on racing, could not help himself before giving his support to the long-awaited TAB privatisation.

“It’s interesting the McGowan Government says this ends years of uncertainty for the racing industry,” McGrath told reporters last week. “I find that unbelievable. This is one of the biggest backflips in the history of our Parliament.”

McGrath was referring to Labor’s previous strident opposition to selling the TAB at a time when growing competition was putting the agency’s value and relevancy in jeopardy.

In fact, the word strident is perhaps not strong enough with McGowan moving a motion in mid-2015 to oppose the sale, with Papalia in fierce agreement.

“The opposition is very clear in its position on this important issue for jobs, the racing industry and regional communities,” McGowan told Parliament. “If we have Tatts Group or Tabcorp running the industry in WA what will be the first thing that it will do? It will look to cut costs. They will see what services run in WA can be run over there. A call centre can just as easily be run in Melbourne as it is in Perth.”

McGowan was not finished there in arguing against selling the TAB.

“Jobs could very well be lost,” he said. “Actually, let us be frank. They will be lost if the TAB is sold.”

Papalia echoed the resistance that day.

“The government cannot guarantee the disbursements ... once the TAB has been sold,” he said. “Once it has been sold we will lose control. Ultimately, industry shareholders on the east coast will benefit and our product will suffer.”

Sometimes history can be rewritten and sometimes history — like a quality thoroughbred — catches up with you.

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