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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-06-26 Daily Xml
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ONLINE GAMBLING

Ms SANDERSON (Adelaide) (15:56): My question is to the Minister for Finance. Has the government undertaken any modelling regarding the impact on newsagents of allowing online sales of SA Lotteries products? If so, what are the results and, if not, why not? The Newsagents Federation is concerned that the government sale of SA Lotteries will lead to a greater emphasis on internet sales, diverting revenue from members.

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for the Public Sector) (15:56): I thank the member for the question. My dad actually was a newsagent so I have given this a great deal of thought. We had a newsagency in—

An honourable member interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: —and I spent a great deal of time working in the family business. When this proposition was raised with me, my initial concern was: what is going to be the impact on the business of newsagents? Those members who have been following the debate around Fairfax, with the potential move away from the print media, would be aware that the amount of revenue that has been flowing into newsagencies from the sale of newspapers and magazines over the last decade has been in decline and, increasingly, a significant source of their revenue has been by way of gaming: so it is an issue, indisputably.

Our dilemma is that we are the only state in Australia that has not allowed online gambling and, as a result of that, revenue that could be ultimately flowing into our hospitals has been going across the border.

Ms Chapman: You don't still believe that?

The Hon. M.F. O'BRIEN: Well, that's the fact of the matter.

Ms Chapman interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: Irrespective of what we do in South Australia, people will, increasingly, move to online gambling. It was the view of the board of SA Lotteries that this was forgone revenue and the smart thing to do would be to recognise that people's behaviour in relation to gambling was beginning to change. We made the decision, and there was extensive discussion with the industry, and I think there was a realisation that, approached in a constructive manner, we might actually be able to preserve the level of revenue that was flowing into newsagents by virtue of diverting some of that business into bricks and mortar. The impression that I took away from the discussion was that there was an acceptance of the new reality. I think that is the acceptance that in place within Fairfax as well.

The world has changed, and people increasingly will access their news by way of iPads and the like and increasingly will also go online. What newsagents have to do is alter their business plans in line with the changing reality. I took great satisfaction from the fact that SA Lotteries had taken the time to discuss these matters with the industry, and I think they did it in quite a sensitive and constructive manner. They did not do the modelling per se, but they knew the percentage of business that was going interstate that could be pulled back into South Australia. I think the manner that was adopted in these discussions was constructive. I think newsagents are of the understanding that they have to make the necessary changes to deal with the fact that the world is changing, as all retailers are.

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