SA LOTTERIES

The Hon. I.K. HUNTER (15:10): I seek leave to make a brief explanation before asking the Minister for Government Enterprises a question about SA Lotteries' agent reference group.

Leave granted.

The Hon. I.K. HUNTER: SA Lotteries is one of the state's great success stories, providing nearly $97 million last financial year in profits to support our hospitals. I know that SA Lotteries relies on its networks of agencies to be its arms and legs to provide service to South Australians. My question is: as a key stakeholder in state lotteries, how does SA Lotteries engage and consult with its network of agents; and does the minister have any advice for the chamber on the good works that SA Lotteries does for the hospital sector?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide) (15:11): I thank the member for his important questions. The 550 lottery agencies throughout South Australia are a key customer interface for SA Lotteries' games so obviously SA Lotteries values highly the experience and feedback from its agents and also their staff.

In January 1996, SA Lotteries established the agent reference group to strengthen its relationships with the agency network and to provide a forum for the presentation of new ideas or concepts that may affect or be impacting on agents. This group is a valuable source of advice and a mine of experience on how SA Lotteries' products are received by customers. As the business partners of SA Lotteries, agents received more than $29.2 million in commission in the 2009-10 financial year.

The agent reference group comprises 10 people who represent the various distribution channels such as retail traders, like newsagencies or licensed premises, and their particular interests. Each year five positions in this group are vacated after a two-year term. Nominations for new members to fill the five positions are sought from the agency network. Selection criteria are based on the distribution channel and region. This selection process involves a broad cross-section of the agency network to ensure that it continues to be represented while the rotation of positions ensures that continuity of advice is maintained.

During 2009-10, the agent reference group continued to provide valuable input into SA Lotteries' marketing and promotional strategies and elements of the replacement on-line lottery system. Metropolitan and regional information and training sessions are held in support of major game launches and significant organisational projects such as the replacement on-line lottery system. During 2009-10, 16 sessions were conducted in support of this project. SA Lotteries also has seven sales representatives regularly communicating with and visiting agencies such as the 180 newsagencies, 160 hotels and 30 clubs that sell SA Lotteries' products. These representatives also provide their feedback to management to ensure that any issues are addressed.

The relationship between the big business of SA Lotteries and its varied small business partners is a very productive one which benefits our state as a whole. Using its agent reference group, SA Lotteries keeps its finger on the pulse of the concerns of its agents. I certainly congratulate SA Lotteries for maintaining that ongoing dialogue to the benefit of us all and also acknowledge the important role of our agents.