Legislative Council Fifty-Fourth Parliament, Second Session (54-2) 54 2 Parliament of South Australia Legislative Council published Question Time SkyCity Adelaide SkyCity Adelaide The Hon. R.A. SIMMS Legislative Council SkyCity Adelaide The Hon. R.A. SIMMS (14:43): I seek leave to make a brief explanation before addressing a question without notice to the Treasurer on the topic of SkyCity Adelaide. Leave granted. The Hon. R.A. SIMMS Legislative Council The Hon. R.A. SIMMS: Yesterday, it came to light that Australia's financial regulator, AUSTRAC, had launched an investigation into potential serious noncompliance by SkyCity Adelaide with anti-money laundering and counterterror financial rules. Seven years ago, SkyCity Adelaide signed an agreement with the state government to vary the approved licensing agreement to allow for the massive expansion of its operations that we currently see, which included a requirement to make an up-front payment of $20 million to the SA government when the agreement became binding. My question to the Treasurer is: in light of the potential serious noncompliance of SkyCity Adelaide with anti-money laundering and counterterror financing rules, is the government concerned about the source of the $20 million up-front payment that was made seven years ago? The Hon. R.I. LUCAS Legislative Council The Hon. R.I. LUCAS (Treasurer) (14:44): That question is probably more appropriately addressed to the Leader of the Opposition in the Labor Party because, as I'm sure the member knows, sadly, seven years ago we were languishing in opposition—a long history of 16 years of being in opposition. Members interjecting: The President Legislative Council The PRESIDENT: Order! The Hon. R.I. LUCAS Legislative Council The Hon. R.I. LUCAS: The Hon. Mr Hunter, the Hon. Mr Maher and former treasurers would be people who subscribed to those particular arrangements with the Casino, so I think the question is probably best directed to them in relation to the detail of that particular arrangement or deal to which the honourable member refers. In relation to the overriding important aspect to the member's question, that is, that there have clearly been serious claims made—not claims, I should say—there is now an indication that AUSTRAC, which is the appropriate agency with responsibility for investigating anti-money laundering and counterterrorism financing breaches, is conducting an investigation into aspects of SkyCity's operations, and I know that other honourable members have raised this issue before. Certainly, from the state's viewpoint, the commissioner for business and consumer affairs has made it clear that he has now put his review on hold after discussions with AUSTRAC on the basis that they are the appropriate agency with the appropriate capacity, because these are obviously quite complex investigations that AUSTRAC has the capacity to monitor. The commissioner's view is that they are the appropriate agency to continue and finalise those investigations and then, ultimately, to report on them. Until the commissioner sees a final report, he has decided, after discussion with AUSTRAC, to put his review on hold until AUSTRAC have completed their negotiations. Coming back to the issue of that deal seven years ago, I can't offer any more detail because I had no direct knowledge of the discussions. The President Legislative Council The PRESIDENT: The Hon. Mr Simms has a supplementary.