The Hon. PENNY SHARPE (Parliamentary Secretary) [3.50 p.m.], on behalf of the Hon. Ian Macdonald: I move:

That this bill be now read a second time.

The five-year statutory review of the Gaming Machines Act 2001 was tabled in Parliament on 7 December 2007. At the centrepiece of the proposed package of 42 legislative and non-legislative reforms is the Government's intention to further encourage a reduction in gaming machine numbers through the removal of unnecessary red tape and the strengthening of the Act's existing harm minimisation measures to help further protect problem gamblers. As the speech has already been made in the other place I seek leave to have the remainder of it incorporated in Hansard.

Leave granted.

The Minister for Gaming and Racing and the New South Wales Office of Liquor, Gaming and Racing have been consulting with the industry on these proposed measures in order to develop a final package of amendments to bring before the Parliament later in 2008.

At the time of the release of the report the Government announced a temporary freeze on certain gaming machine applications.

This temporary freeze is necessary because of the time lag between the announcement of the reform recommendations contained in the report and the introduction of the amending legislation to the Parliament.

This is necessary to prevent venue operators rushing through new gaming machine applications in the meantime.

I will now outline the measures contained in this bill.

The first measure in this bill will impose a freeze on the approval of new social impact assessment applications by hotels and clubs to increase their gaming machine thresholds or, in simple terms, the maximum number of gaming machines that may be authorised to be kept in their venues.

This freeze will remain in place until the commencement of the new Gaming Machines Act that the Government will be introducing into Parliament later in 2008. These amendments will contain a new and strengthened method for assessing the impact of additional gaming machines in an area.

Many local communities already have a higher than average number of gaming machines and they do not want or need any more.

This new method will make it very difficult for hotels and clubs located within certain local government areas to obtain an increase in the number of gaming machines that may be authorised to be kept in their venues.

These local government areas will already exhibit a high density of gaming machines, a high level of gaming machine expenditure and a low socioeconomic index for areas as provided by the Australian Bureau of Statistics.

Hotels and clubs located within local government areas such as Fairfield, Canterbury, Ashfield, Auburn, Marrickville, Burwood and Bankstown are expected to be captured by this new and strengthened process.

The second measure in this bill relates to the Gaming Machines Act review's recommendation to impose a 15 per cent cap on the number of multi-terminal gaming machines that a club may operate on its premises.

This bill will impose a temporary freeze on new applications for additional multi-terminal gaming machines by clubs already operating above the proposed 15 per cent cap. It will also impose a temporary freeze on new applications by clubs that would potentially breach the proposed multi-terminal gaming machine cap.

It should be noted that the final policy determination on this proposed cap is subject to further consultation.

As previously mentioned, the freeze is an interim measure that will remain in place until the finalisation of the new Gaming Machines Act that the Government will be introducing into the Parliament later in 2008 after consulting with the industry.

Finally, the bill also clarifies who is required to consent to the transfer of poker machine entitlements from a leased hotel and places a freeze on the approval of the transfer if one party does not consent to the transfer.

Currently under the Act the Liquor Administration Board must take into consideration when making a decision on an application to transfer poker machine entitlements any submissions that attest to a person's relevant financial interest in the hotelier's licence. The relevant financial interest currently excludes persons who are the owner of a hotel.

Within the review's report the Government proposed to amend the legislation to ensure that the owner of a hotel who has a beneficial interest in the licence will be able to object to the transfer of entitlements from a leased hotel.

As previously mentioned, this amendment will temporarily prevent the approval of applications for the transfer of poker machine entitlements by lessees where consent has not been given by the lessor and others with a financial interest in the licence or business.

This freeze applies to applications lodged since 7 December 2007.

This freeze does not apply to applications lodged before the announcement.

The final policy determination on this proposal is subject to further consultation with the industry.

The freeze is a temporary measures designed to prevent certain poker machine transfer applications until the final policy determination is made and the package of amendments established.

The Government has consulted, and will continue to consult, with the industry on the amendments to the Gaming Machines Act, which will be brought before this place later in 2008.

I commend the bill to the House.

The Hon. TREVOR KHAN [3.51 p.m.]: I lead for the Opposition on the Gaming Machines Amendment (Temporary Freeze) Bill 2008. The Opposition will not oppose the bill. The bill seeks to do three things. Firstly, it puts in place a freeze on clubs and hotels increasing their gaming machine threshold. Secondly, it prevents applications for new multi-terminal gaming machines for clubs that are above the present 15 per cent cap, or where the proposed increase would breach that cap. Thirdly, the bill alleviates the continuing aggravation between lessees and lessors in relation to poker machine entitlements where a lessee presently has the right to sell poker machine entitlements without any financial gain or any financial sharing with landlords.

The bill is required to give effect to an announcement made by the Minister on 7 December 2007 in which he said that there would be a freeze on pubs and clubs increasing their gaming threshold. The Opposition understands that these three measures are temporary in nature pending the outcome of the Government's deliberations in respect of amendments to the Gaming Machines Act that, for the most part, evolved as a result of completion of the five-year statutory review of the Gaming Machines Act in December. Five years have expired since the Act was first assented to, so the automatic review contained in that legislation is that to which I am referring.

The Opposition is disappointed that it is necessary to have a bill of this temporary nature given that the real bill should be no more than a few months away from introduction. The effort expended by the Government on the temporary bill would have been better directed at the final bill. The Opposition is of the view that the public will welcome the temporary freeze on poker machine entitlements as many representations have been made to my colleagues and me. In those circumstances the Opposition does not oppose the bill.

Reverend the Hon. FRED NILE [3.55 p.m.]: The Christian Democratic Party supports the Gaming Machines Amendment (Temporary Freeze) Bill 2008. The bill is necessary to ensure that there is no gap. We want the freeze to continue. The bill will impose a freeze on new social impact assessment applications by hotels and clubs to increase their gaming machine thresholds or, in simple terms, the maximum number of gaming machines they may be authorised to keep on their premises. The freeze will remain in place until the commencement of the new Gaming Machines Act, which will contain a new and strengthened method for assessing the impact of additional gaming machines in an area. Many local communities already have a higher than average number of gaming machines and do not want, or need, any more. I certainly agree, and I echo that community concern.

It is reported that the Australian Hotels Association indicated in its submission to the Government's gaming review that it wanted an increase in the number of machines allowed in hotels. As members know, the House voted some time ago to allow New South Wales pubs, like clubs, to have poker machines, and now 1,700 pubs have them. Of those, more than 350 hotels have between 20 and 30 poker machines each. The report that contains the Australian Hotels Association submission indicates that the association lobbied for an increased share in the gambling profits and sought an increase in the cap from 30 to 40 machines for each hotel. That is contrary to what the Australian Hotels Association said publicly, when it claimed to be satisfied with the current arrangement. The Christian Democratic Party urges the Government to reject that submission from the Australian Hotels Association, and I understand that it will not proceed. The Government should gradually reduce the number of poker machines in hotels and clubs. It is seeking to do that, and I am sure the community will support that move.

Another issue of concern that has been raised both federally and in other States is cash machines on gaming premises. The New South Wales Labor Government must ban cash machines from gaming premises. They are a great temptation to gambling addicts, who are able to readily access cash to feed into poker machines. The Victorian Labor Government has legislated to ban cash machines from gambling venues from 2012. The Prime Minister, Kevin Rudd, has also expressed concern about the amount of gambling occurring in Australia. He supports the action taken by Victoria and has questioned whether Federal laws should be introduced, after the new Senate is sworn in later this year, to force all States to take action. Banning automatic teller machines from clubs and hotels would be a great help to patrons who cannot control their gambling addictions.

The bill deals with the Gaming Machines Act review recommendation to impose a 15 per cent cap on the number of multi-terminal gaming machines that a club may operate on its premises. The bill will impose a temporary freeze on new applications for additional multi-terminal gaming machines by clubs already operating more than the proposed 15 per cent cap. It will also impose a temporary freeze on new applications by clubs that would potentially breach the proposed multi-terminal gaming machine cap. Finally, the bill will introduce a very important legal requirement for which I have been campaigning on behalf of a number of hotel owners who have visited me this year and in the past year. They explained that they have lost a very valuable asset in relation to the transfer of poker machine entitlements from a leased hotel. At present, if a hotel owner leases his hotel the lessee can profit from the sale of poker machine entitlements that belong to the owner. I am pleased that the bill will amend the legislation to ensure that the owner of a hotel who has a beneficial interest in the licence will be able to object to the transfer of poker machines entitlements from a leased hotel. I will watch to see how that fine innovation works in practice. The Christian Democratic Party supports the bill.

Ms LEE RHIANNON [4.03 p.m.]: The Greens support the Gaming Machines Amendment (Temporary Freeze) Bill 2008. It is clearly advisable to enact legislation to ensure that unscrupulous operators have fewer opportunities to take advantage of the time lag between the Minister's announcement of reforms in December 2007 and the implementation of the package. Imposing a temporary freeze on the maximum number of gaming machines and multi-terminal gaming machines, and clarifying who is required to consent to the transfer of poker machine entitlements from a leased hotel, is the essence of the bill before us. While this bill is necessary, we must be wary when government representatives argue that it is part of their strategy to reduce problem gambling. This has become the Government's mantra in an attempt to minimise criticism of its softly, softly approach to reining in the gambling industry. Too often this Government creatively uses statistical information about gambling to make out that the number of problem gamblers is decreasing.

The reality is that the Government is still failing to make the changes that will make a difference to the lives of problem gamblers, those on the slippery slope to becoming problem gamblers, and their family and friends. When it comes to handling gambling issues, currently New South Wales has no government policy on early intervention or health promotion and not many alternatives to traditional counselling services. Organisations that provide front-line services have no avenue for sustainable funding. Unlike New Zealand, New South Wales has yet to adopt an integrated public health approach to gambling. If gambling were treated as a public health issue many decent policies and legislation would flow from that decision.

This bill and what the Government will likely propose in the new Gaming Machines Act is typical of the minimalist approach of both the Australian Labor Party and the Coalition when dealing with gambling. The figures are alarming—and they are just the tip of the iceberg. Each year about 400 people commit suicide as a result of gambling-related burdens. I am sure all members have heard stories from people who work on the front line and who deal with the hardship that gambling brings. When the Gaming Machines Act is introduced the changes should be far reaching. However, the Greens do not feel confident that the Government has the courage to stand up to the gambling industry.

Last year Premier Morris Iemma and Minister Graham West refused to heed the call from a diverse group of stakeholders for a gambling summit. As I have said before, there have been summits on alcohol, drugs and obesity. But when it comes to gambling the Government goes silent, despite the fact that the Salvation Army, the Uniting Church, representatives from the Local Government and Shires Associations and people from a number of other different organisations, many of which are on the front line in dealing with gambling problems, have supported the Greens' call for a gambling summit. That was a lost opportunity. The Greens will continue to work with community groups to ensure, to the best of our ability, that the gaming review legislation is not another lost opportunity.

The Hon. PENNY SHARPE (Parliamentary Secretary) [4.09 p.m.], in reply: I thank honourable members for their contributions to this debate. In December 2007 the report of the review of the Gaming Machines Act 2001 proposed reducing gaming machine numbers and introducing new harm minimisation measures to protect local communities from problem gambling. These reforms will be introduced into Parliament later this year when the new Gaming Machines Act is drafted. As I said earlier, the proposed amendments prevent venues from rushing through new gaming machine applications before the new legislation commences. The temporary freeze does not apply to applications lodged with the Liquor Administration Board prior to 7 December 2007. I commend the bill to the House.

Question—That this bill be now read a second time—put and resolved in the affirmative.

Motion agreed to.

Bill read a second time.

Leave granted to proceed to the third reading of the bill forthwith.


Motion by the Hon. Penny Sharpe agreed to:

That this bill be now read a third time.

Bill read a third time and returned to the Legislative Assembly without amendment.