House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Ministerial Statement Tatts TATTS The Hon. J.J. SNELLING House of Assembly Playford Minister for Workers Rehabilitation Minister for Defence Industries Minister for Veterans' Affairs The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:17): I seek leave to make a ministerial statement. Leave granted. The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: Today, the government has appointed Tatts as the master agent to operate SA Lotteries' brands and products for a 40-year period. Tatts is one of the most experienced lottery, wagering and gaming machine operators in Australia with over 100 years of experience in the industry. It has five state lottery licences in Victoria, New South Wales and ACT, Queensland, Northern Territory and Tasmania. Tatts has an established working relationship with SA Lotteries through national lottery bloc arrangements and has also managed the SA TAB network since 2002. We have secured $427 million for the people of South Australia. The $427 million, excluding GST, significantly— Mrs Redmond interjecting: The Hon. J.J. SNELLING House of Assembly The Hon. J.J. SNELLING: I can tell you it is a lot better than the sale of the TAB by the Liberal Party when they were in government—the sale amount which did not amount to one single year's revenue. The $427 million significantly exceeds retention value and is substantially above our reserve price. The $427 million is also the highest valuation multiple ever achieved for a lotteries transaction in Australia. Tatts has been chosen for its ability to guarantee uninterrupted access and experience and knowledge of SA Lotteries' popular large jackpot games that are offered nationally like Saturday X-Lotto, Oz Lotto and Powerball. The government retains ownership of the lottery licence and intellectual property associated with SA Lotteries brands. Lottery gambling tax and unclaimed prices, which make up the vast majority of revenue from Lotteries, will continue to be paid into the hospitals and recreation and sport funds. The Lotteries Commission of South Australia will also remain in operation in a revised capacity, with responsibility for administering the agreement with Tatts, including ensuring commitments are met by Tatts. Previously, I have made commitments to protect the business interests of the agents and taken steps to provide business as usual for them, including: maintaining current agency commissions; not changing the SA Lotteries corporate brand and products to help protect the investment that agents have made in their infrastructure; resetting contracts for all agencies to five years from the date of transfer of their contract, with an option to extend for an additional five years if conditions are met; and keeping fees stable at SA Lotteries current rates. These commitments have been enshrined in the contractual obligations with Tatts, and they are obliged to ensure that these commitments are upheld. SA Lotteries and Tatts will work with the agency network and their industry associations over the coming months to transition agents' arrangements from SA Lotteries to Tatts. The government's previous commitments to SA Lotteries staff are made; that is, no forced redundancies for non-executive employees, superannuation benefits under the SA Lotteries scheme will be protected, and entitlements as public sector employees will be maintained. For those staff who are offered and accept employment with Tatts, Tatts will assume the accrued sick leave, annual leave and long service leave entitlements of SA Lotteries staff and preserve existing employment start dates for determining long service leave accrual. Can I take this opportunity to thank the presiding member, Mr Hans Ohff, all the commission members, the chief executive, Mrs June Roache, and all SA Lotteries staff for their commitment and service to SA Lotteries. The appointment of Tatts as the operator ensures that tomorrow it is business as usual for SA Lotteries, with Tatts and SA Lotteries working together over coming months to ensure a smooth transition of operations to Tatts. The transaction is expected to close on or about 10 December 2012.