Northern Territory Second Reading Speeches

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GAMING AND LIQUOR LEGISLATION AMENDMENT BILL 2015

Mr Deputy Speaker, I move that the bill be now read a second time.

This bill deals with electronic gaming machines which have been in the Northern Territory community since the 1990s. Appropriately licensed clubs and hotels provide electronic gaming machines as an entertainment option for their clientele and an alternative revenue resource. Revenue from electronic gaming machines are returned to the community through hotels’ contribution to the Community Benefit Fund and of the contribution of clubs to their local communities.


This government is committed to modern legislation that establishes the right regime for electronic gaming machines. This will ensure the right level of regulation for the community and business. In late 2014 this government announced policy changes to the regulation of electronic gaming machines in the community. The arbitrary Territory-wide cap was abolished in favour of a rigorous community impact assessment process for new electronic gaming machines. Changes to individual venue caps were announced, to be implemented through legislative amendments. The government also agreed to implement a levy for new electronic gaming machines.


In the Northern Territory all clubs and hotels must apply for a licence to operate electronic gaming machines. The
Gaming Machine Act does not provide for the transfer of an electronic gaming machine licence to a new entity or venue. This created a legislative problem for any hotel business owner wanting to transfer an electronic gaming machine following the sale of the business or as part of a corporate restructure. The gaming machine licence not being able to be substituted to a new venue was also a problem if a hotel or club was forced to move to new premises. In the past, the Northern Territory Licensing Commission implemented an administrative procedure where a hotel business was being sold or a hotel or club was forced to move to new premises. The holder of existing electronic gaming machine licences would hand back the existing licences.

In addition to the amendments to the
Gaming Machine Act, this bill will amend the Liquor Act to give effect to this and former governments’ policy to not allow stores to trade takeaway liquor on Sundays. A new application would be submitted by the new business owner if the business was being sold, or for the new venue if the hotel or club was forced to move to new premises. As there was no levy for an electronic gaming machine, this was an acceptable workaround for licences.

With the announcement of the introduction of the new gaming machine levy, this administrative procedure is no longer available without paying the levy. For a hotel business the levy for an electronic gaming machine is $50 000. Existing hotel business can have up to 10 electronic gaming machines, and in the future hotel businesses may be eligible to apply for up to 20 electronic gaming machines. This implementation of the levy meant that hotel businesses seeking to sell their business or restructure would lose their value of their existing electronic gaming machine licenses.


Since the announcement of the changes to the regulation of electronic gaming machines, we have listened to our clubs and the business community. Our hotel business owners have explained the impact of the levy on their ability to sell their businesses. Our licensees have also explain the impact of the levy and prohibition on substitution of licenses if they forced to change venues. This government understands the impact on these clubs and the business community and we have proposed legislative changes to address these concerns. The details of these changes to the
Gaming Machine Act proposed in this bill are as follows.

Electronic gaming machines can only be operated under Category 1, hotel or tavern, or Category 2, a club, gaming machine licence issued by the Director General of Licensing.


A gaming machine licence can only be issued in conjunction with a full liquor licence. It cannot be issued on its own.


The Liquor Act provides a mechanism to transfer a liquor licence from one entity to another. The Liquor Act provides another mechanism to substitute a liquor licence from one premises to another premises.

The proposed amendments will align the Gaming Machine Act with the Liquor Act.

Under the proposed amendments, a Category 1, that is a hotel or tavern, electronic gaming machine licence holder will be able to apply to transfer the licence to a different entity. This will usually be upon sale of the business or a corporate restructuring.


The proposed amendments will replicate the assessment requirements for the new licensee as they relate to personal and financials probity. The entity that is proposed to receive the electronic gaming machine licence will have to pass existing probity, business acumen and financial security requirements.


Under the proposed amendments, a Category 1, hotel or tavern, or Category 2, a club, electronic gaming machine licence holder will be able to apply to substitute their licence. This will usually be upon a requirement for the licence holder to move to new premises, for example, at the termination of the lease and destruction of premises.


The proposed amendments will not waive the normal assessment requirements to ensure that the new venue is suitable for electronic gaming machines, including the preparation of a community impact analysis.


The inability to transfer a licence or substitute a venue has caused unnecessary red tape and cost for licensees selling or restructuring their business. These businesses have lost value and this is a cost to the Territory and business community. Clubs have no options but to pay the new levy if they have to move to a new venue.


In addition to amending the
Gaming Machine Act, this bill will amend the Liquor Act to enshrine in legislation this government’s policy around Sunday trade of takeaway liquor from stores.
Since 1999 it has been successive governments’ policy that stores could not trade takeaway liquor on Sundays. The amendments to the
Liquor Act remove any ambiguity as to the hours of trade for stores to sell takeaway liquor.

The bill before the House will reduce red tape and unnecessary cost for licensees. The bill provides protection for the community and a streamlined system for licensees.


I commend the bill to the House and table the explanatory statement.


 


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