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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-02-08 Daily Xml
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Question Time

GAMING MACHINES

The Hon. R.L. BROKENSHIRE (15:34): I seek leave to make a brief explanation before asking the new Minister for Gambling, and Leader of the Government, who I congratulate on his position, a question regarding pokies'—

An honourable member interjecting:

The Hon. R.L. BROKENSHIRE: I did indeed help him get there, and I am not even in the factions—a question regarding pokies' market power.

Leave granted.

The Hon. R.L. BROKENSHIRE: As a dairy farmer, I am witnessing first-hand the human cost of the Coles/Woolworths duopoly flexing its massive market powers with the current price war. In the USA, the top two supermarket players have 20 per cent of the market; in the UK, it is 48 per cent; yet here in Australia it is up above 70 per cent market share for the duopoly, yet the ACCC seems to have trouble intervening in the market power held by the supermarket duopoly to date.

Turning to the minister's gambling portfolio, we hear regularly that Coles and Woolworths are moving strongly into hotel ownership and poker machine operations. Woolworths owns about 12,000 pokies nationwide and 280 hotels through the ALH Group. Coles' parent company, Wesfarmers, owns 3,000 pokies with 90 hotels across the nation. In Victoria, Monash University identified $1.89 billion in profits from pokies for Woolworths since 2004. Woolworths owns almost a third of the state's pokies entitlements in Victoria.

There are concerns ranging from the hotel industry itself to anti-gambling advocates and the concern sector about the social benefit of the duopoly muscling into hotels. In conclusion with my explanation, on a pro rata basis it appears that about 1,000 poker machines now in South Australia would be held by Coles and Woolworths. My questions to the minister are:

1. Is the minister advised on the extent and trends of local and national Coles and Woolworths related ownership of hotels that have poker machines and, if not, will he bring a response to the house when he has time to be advised?

2. Is the government concerned or unconcerned about this powerful duopoly flexing its market power within the poker machine industry?

The Hon. B.V. FINNIGAN (Minister for Industrial Relations, Minister for State/Local Government Relations, Minister for Gambling) (15:37): I think, as Minister for Gambling, the key responsibility that I have is to oversee the regulatory framework that parliament has put in place. Obviously, there have been changes in relation to gaming machines. There have been changes to the legislation over the years. Often those matters are subject to a conscience vote, and people do indeed have lots of different views about the framework that should exist for gaming machines and other gambling activities. So, it is important that I fairly and diligently administer the legislation as it stands.

In relation to the number of licences that might be owned by Coles and Woolworths, that is not information I have to hand. I am happy to take that question on notice and bring back a response. In relation to the ownership of hotels, that would be a matter on which I would seek some information or advice from my colleague, the Minister for Consumer Affairs, in relation to liquor licensing. Obviously, we expect anyone who holds a liquor licence or gaming machine licences to comply with the law and to act responsibly. I will find out more information for the honourable member in relation to the holdings of those two companies in particular.

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