ACCC Poised To Probe Betfair Threats

Tuesday, 22 November 2005 00:00

The Premier today announced he had secured a commitment from the Australian Competition and Consumer Commission to consider a submission from the Tasmanian Government should anti-competitive retaliatory action be launched against the State over its decision to licence Betfair.

Mr Lennon met ACCC Chair Graeme Samuel in Hobart recently and outlined the State Government’s position on the persistent threats being issued against Tasmania by interstate vested interests in the racing industry.

The Premier said he was heartened by Mr Samuel’s commitment that, should those threats come to being, he would welcome a submission from the Tasmanian Government in relation to public interest issues arising from the merger of the Tabcorp and TAB Ltd businesses.

“The Tasmanian Government did not register any opposition to the merger at the time it was considered by the ACCC,” Mr Lennon said in a letter to Mr Samuel following the meeting.

“At that time, Tasmania did not see any issues that might arise that would be negative to Tasmania’s interests.

“Subsequent actions taken by other jurisdictions has, however, raised the possibility that actions could be taken in relation to the merged entity that would have a negative impact on Tasmania.

“Clearly, Tasmania expects that other jurisdictions and their statutory officers will deal equitably with this State, its industry and its publicly-owned businesses.

“However, should the Tabcorp-TAB Ltd merger in any way lead to decisions in other jurisdictions to take discriminatory action, in any form, against the Tasmanian Government, any of its businesses, or the Tasmanian racing industry, I can assure you the ACCC will receive a submission from Tasmania detailing why this merger will not prove to be in the public interest.

“I am grateful for your commitment that the ACCC would be prepared to accept such a submission from the Tasmanian Government and that the ACCC would give sympathetic consideration to reviewing its decision, announced on 23 February 2004, in relation to the merger or to taking other action under the provisions of the Trade Practices Act.”

Mr Lennon repeated that the Tasmanian Government would not be intimidated or bullied into a backflip on Betfair and that the threats from interstate vested interests in the racing industry only cemented his resolve to press ahead.

“We have a compelling case to put on integrity and probity in the racing industry, in funding to the Tasmanian racing industry and in new jobs for Tasmania,” the Premier said.

“I am confident that Members of the Legislative Council will consider these significant points when they debate the Betfair legislation.

“I am also confident in the integrity and independence of MLCs and I believe they will see these threats for what they are – a desperate attempt to preserve the status quo by those who directly benefit from the current licensing arrangements.”

Media Release - Tasmanian Government