Mr POOLE - 1999-10-19
Over the past few months, and in fact the past few years, there have been various reports about selling TABs around Australia. Can the minister advise the House what progress this government has made with regard to the sale of the Northern Territory TAB?
ANSWER
Mr Speaker, it gives me great pleasure today to announce that the complex process which needed to be put in place prior to formally advertising for potential purchasers of the TAB has now been completed.
Before I detail the sale process for the NT TAB, I take the opportunity to advise the House that the racing industry funding arrangement will be formally signed today. The funding commitment to the thoroughbred and greyhound racing industry in the Northern Territory equates to about $30m over 5 years. That will allow the industry to move forward with certainty and put in train its own business plan so that the industry can grow even further, expanding country racing as well as metropolitan racing.
I place on record my appreciation for the dedication to seeing this process through of the executive members of the racing industry, in particular Ted Bailey, Stuart Cox, Wayne Pollock, Rob Brendan, my own CEO of the Department of Industries and Business, John Gardner, and certainly the Under Treasurer.
The formal signing of the racing industry funding opens the door for the sale of the TAB to be formally placed on the market as from today. The TAB sale will involve the issue of a licence to operate on-course and off-course totalisator wagering in the Northern Territory. Also, a fixed-price sports betting licence will be offered from 2001.
An information memorandum is to be made available. It will be advertised through various financial newspapers and trade papers. Parties with a genuine interest who can show a demonstrated capacity will be invited to submit indicative offers for the TAB. We have on board the Macquarie Bank, the law firm Minter Ellison and Ernst and Young to assist the government in the whole sale process.
Following on from the advertising phase, it is anticipated that short-listed parties will be provided with an opportunity to undertake detailed due diligence and also, as appropriate, negotiate and conclude the necessary sale arrangements. I expect negotiations with the preferred bidder or bidders to take place by the end of the calendar year allowing the TAB sale to be completed well within the first quarter of next year.
I believe that it is ideal timing for the sale of the NT TAB. There has already been very significant interest in the sale due to the recognition, I believe, of the substantial opportunities and benefits in developing wagering and sports betting in the Northern Territory. We are still at the very forefront and cutting edge of that industry. To date, many expressions of interests have already been registered from potential purchasers. Those groups will now be forwarded the information memorandum which will allow them to progress their bids.
I point out that the key government requirement in the sale process will be that the delivery of the highest standards of product to Territorians is the underlying aim of this sale. The government will also ensure that the successful purchasers maintain staffing levels and the number of TAB agencies throughout the Territory for a certain time into the future.
I look forward to the official signing which will take place with racing industry representatives today at lunchtime, and also the formal announcement of the trade sale of the Northern Territory TAB.
ANSWER
Mr Speaker, it gives me great pleasure today to announce that the complex process which needed to be put in place prior to formally advertising for potential purchasers of the TAB has now been completed.
Before I detail the sale process for the NT TAB, I take the opportunity to advise the House that the racing industry funding arrangement will be formally signed today. The funding commitment to the thoroughbred and greyhound racing industry in the Northern Territory equates to about $30m over 5 years. That will allow the industry to move forward with certainty and put in train its own business plan so that the industry can grow even further, expanding country racing as well as metropolitan racing.
I place on record my appreciation for the dedication to seeing this process through of the executive members of the racing industry, in particular Ted Bailey, Stuart Cox, Wayne Pollock, Rob Brendan, my own CEO of the Department of Industries and Business, John Gardner, and certainly the Under Treasurer.
The formal signing of the racing industry funding opens the door for the sale of the TAB to be formally placed on the market as from today. The TAB sale will involve the issue of a licence to operate on-course and off-course totalisator wagering in the Northern Territory. Also, a fixed-price sports betting licence will be offered from 2001.
An information memorandum is to be made available. It will be advertised through various financial newspapers and trade papers. Parties with a genuine interest who can show a demonstrated capacity will be invited to submit indicative offers for the TAB. We have on board the Macquarie Bank, the law firm Minter Ellison and Ernst and Young to assist the government in the whole sale process.
Following on from the advertising phase, it is anticipated that short-listed parties will be provided with an opportunity to undertake detailed due diligence and also, as appropriate, negotiate and conclude the necessary sale arrangements. I expect negotiations with the preferred bidder or bidders to take place by the end of the calendar year allowing the TAB sale to be completed well within the first quarter of next year.
I believe that it is ideal timing for the sale of the NT TAB. There has already been very significant interest in the sale due to the recognition, I believe, of the substantial opportunities and benefits in developing wagering and sports betting in the Northern Territory. We are still at the very forefront and cutting edge of that industry. To date, many expressions of interests have already been registered from potential purchasers. Those groups will now be forwarded the information memorandum which will allow them to progress their bids.
I point out that the key government requirement in the sale process will be that the delivery of the highest standards of product to Territorians is the underlying aim of this sale. The government will also ensure that the successful purchasers maintain staffing levels and the number of TAB agencies throughout the Territory for a certain time into the future.
I look forward to the official signing which will take place with racing industry representatives today at lunchtime, and also the formal announcement of the trade sale of the Northern Territory TAB.
Last updated: 09 Aug 2016