Media Releases

27 May, 2010

Labor blows our money on pokies deals

The State Labor Government had lost about $1 billion on the mismanaged auction of poker machine licences, Nationals MP for Northern Victoria Region, Damian Drum told State Parliament this week.

“Labor’s botched poker machine licence auction saw licences which could have been valued at $70,000 to $100,000 per machine, chucked out in a fire sale for just $5500.

“The gaming industry estimates that the Government should have received $1 billion more in the auction than it achieved.”

He said Labor had refused to consult properly with the gaming industry and the taxpayers were now paying the price.

“We have seen many elite sporting clubs, such as racing clubs and AFL clubs walk away with thousands of poker machine licences at the bargain basement price of $5500.

“Yet, it is clear by the price paid for pre-auction licences that the clubs themselves were prepared to pay up to $100,000.”

Mr Drum said the lost $1 billion could have been used to pay for better hospitals, more ambulance and paramedic staff, more police, schools and kindergartens.

“Coming on top of other mega-muck ups such as myki, the blow out in the regional rail upgrade and the dumb Smart meters, few can now doubt the level of this Government’s incompetence.”

Mr Drum said the Parliament’s Upper House had requested the Auditor General to probe the Brumby Government’s handling of the pokies licence auction process.