Pokies hearing - MHS final submission

In his final submission to the VCAT hearing on the Castlemaine pokies fight, Maryborough Highland Society’s barrister, Peter Caillard spoke for several hours about the evidence that had been presented to the tribunal, while he waited, and waited, for his written submission to arrive at VCAT headquarters in Melbourne.

Indeed at times Mr Caillard appeared to be padding and buying time, as he recapped and compared the evidence of expert witnesses Rhys Quick and Bonnie Rosen on the social and economic impacts of the proposed venue.

Mr Caillard said the new club would generate 31 new jobs and keep money in the town, rather than having residents leave the municipality to play in other towns.

He said it would accommodate those residents who wanted to gamble without harming themselves or others and he spoke at length about the monopoly situation that presently exists in the town with Cumberland Hotel as the only pokies venue in the shire.

“The competition between the venues will improve service standards and give people more choice,” Mr Caillard said.

He urged VCAT Deputy President Mark Dwyer to give more weight to the Victorian Commission for Gambling Regulation’s (VCGR) decision to grant a license to MHS to open a venue with 65 gaming machines in Castlemaine.

“The VCGR has specific expertise in deciding these applications.”

Mr Caillard said it would have a minimal impact on retail in the town, with the retail centre some distance from the proposed venue.

“There would be a negligible impact on the local economy and a range of social benefits including new facilities and meeting rooms.”

He added the proximity of the station did not suggest increased traffic passing the venue.

“There is nothing to the north and the Salvos are south of the venue and they have agreed to work with us, which would be a benefit.”

He said the $50,000 cash and $150,000 in-kind contributions would benefit the local community and that the cash contribution would be made before MHS was paid any management fees.

MHS' written submission finally arrived at the hearing and was handed to Deputy President Mark Dwyer, who read it overnight and found “several discrepancies” in the document.

Mr Dwyer questioned who would have control of the venue – MHS or The Club?

Mr Caillard said the Society was a not-for-profit organisation with a long, proud history.

The Society will manage the day-to-day operations while The Club will be the licensee of the venue and the gaming machines, he said.

Mr Dwyer then focused his questions on the $50,000 cash contribution, noting there was no guarantee that it would be paid if the venue did not make a profit. 

“The reason I am harping on this is that in your written contribution it says that the cash contribution might be less than $50,000. Now if that is a mistake, it needs to be corrected.

“There is no certainty in my mind arising from the document on the table now as to what is going to be paid and who is going to be paid. There are discrepancies in the document and they need to be resolved.

“It seems that every time something is put to me about this in an attempt to rationalise an anomaly, it almost seems to reinforce it.”

Mr Caillard later said the intention was to pay the $50,000 cash contribution but “there is no certainty as to the profit of the venue”.

“However, it is the opinion of expert evidence that the financial assessments on which the project is based are correct and if they can be achieved, it will be paid.”

Mr Dwyer re-itererated his point.

“We can’t leave the hearing tomorrow without knowing what the deal is so I am giving you every opportunity to make it clear to me and the community,” Mr Dwyer said.

He urged Mr Caillard to have a “good read” through the written submission over his lunch hour and correct any anomalies.

Mr Caillard welcomed the opportunity to do so. Mr Dwyer had the final word on the day saying, the side of the community that loses this decision would know that it had been made after all of the proper facts had been put before the tribunal.

Pokies decision hanging on a thread

Hi everyone - sorry for the delay in posting the last few posts re the VCAT hearing. I have been away for a few days, recharging the batteries after the hectic week in VCAT. I will be posting the final submissions from the hearing this week. Apologies for the delay. In the meantime I have posted the round-up story below which was printed in this week's Midland Express. - cheers, Jeff :)

The VCAT hearing to decide the Castlemaine pokies fight is hanging on a thread and the final decision - not expected until February - could go either way.
The hearing was called after Mount Alexander Shire Council appealed the Victorian Commission for Gambling Regulation's (VCGR) decision earlier this year to grant Maryborough Highland Society (MHS) a licence to open a club, complete with 65 poker machines, in the old railway goods shed, in Kennedy Street, Castlemaine.
The matter was heard by VCAT deputy president Mark Dwyer in Melbourne.
The hearing was adjourned on August 24 this year after the first five days of legal argument and resumed last Monday for a further five days.
Highlights of the hearing were:
· The Club will be the owner of the entitlements for the 65 poker machines and will form a board to run the club, while MHS will manage the day-to-day activities of the club in return for a $250,000 management fee.
· The venue will need to generate $33.69 million of gaming revenue in the first nine years to stay on track with its budget. This breaks down to $3.5 million of gaming revenue that would be needed in the first year of operation.
· The $50,000 cash component of MHS' $200,000 community contribution per annum, which includes $150,000 in-kind, wasn't guaranteed until the dying minutes of the hearing.
Compelling evidence by local residents from both sides was the main feature of the week.
John Walter of Stoneman's Bookroom in Castlemaine; Alex Perry of The Good Table; psychiatrist Dr Gianni D'Ortenzio, People Not Pokies president Jeremy Forbes and Chan Nyok, former president of the East African Community in Castlemaine were called to give evidence in support of EPIC.
Bill Jefferies, Jenny Rixon and Ian Braybrook gave evidence in support of The Club and the Maryborough Highland Society.
Two key witnesses were former president of the Maryborough Highland Society's (MHS) board, John Inglis and EPIC president, David Stretch.
Both men spoke with passion and conviction and each appeared to have a strong impact on the hearing.
The momentum appeared to swing from one side to the other several times during the hearing, with the council and Enough Pokies in Castlemaine (EPIC) looking to be on top midway through last week.
Maryborough Highland Society barrister Peter Caillard appeared to be trying to buy time while waiting for the written version of his final submission to arrive on Wednesday.
Mr Caillard's presentation was followed by very strong final summaries from council's barrister, John Rantino and EPIC barrister Susan Brennan.
Ms Brennan described the hearing as a "great moveable feast" with a trickle of information at the beginning and repeated changes to MHS' information, budgets and documents including the Management Agreement.
"It's very much been a case of them plugging the gaps," Ms Brennan said. "We believe that we now have a completely different legal structure in front of us compared to when we started - we have a different contract, lease terms, MHS constitution, personnel involved, forecast budget and evidence.
"We would say it is a different case to that presented to the commission."
Mr Caillard made a late bid on Friday to swing the decision back his way in the dying minutes of the hearing when he told the tribunal that his client would be willing to accept a condition to guarantee the MHS' $50,000 cash contribution to the community was paid each year.
He said if there were insufficient funds for the proposed venue operator, the Castlemaine Sports and Community Club (The Club) to pay the amount then MHS would "pick it up".
Mr Caillard said there was some doubt over whether the tribunal could impose such a condition and furnished Mr Dwyer with a few alternatives.
One alternative was to pay the $50,000 annually to council to distribute as it sees fit to problem gambling services in the municipality.
He said another alternative could be to include a requirement in the management agreement between MHS and The Club that it must be paid.
Mr Caillard said his final option was already in place, under existing VCGR laws which states that a promised community contribution has to be paid otherwise the applicant (MHS in this case) could face serious repercussions such as losing its venue operator's licence for the Maryborough Highland Society club; and/or disciplinary action.
Only time will tell if it was enough to convince the tribunal to ultimately approve the new venue in Castlemaine.
Deputy president Mark Dwyer took all of the information on board and said a decision wasn't likely to be handed down until February, 2013.

VCAT pokies hearing - the final countdown-1

Barristers have started making their final submissions at the VCAT hearing to decide the Castlemaine pokies battle.

Mount Alexander Shire Council is appealing the Victorian Commission for Gambling Regulation's (VCGR) decision earlier this year to grant Maryborough Highland Society (MHS) a licence to open a club, complete with 65 poker machines, in the old railway goods shed, in Kennedy Street, Castlemaine.

The matter is being heard by VCAT Deputy President Mark Dwyer and the hearing is due to finish tomorrow, Friday, December 14.

During their final submissions, barristers get the opportunity to present their cases to the panel member, they can refute and accept expert opinion and advise the Deputy President on which parts of the evidence they believe should be given more weight when it comes to Mr Dwyer making his final decision.

Victorian Commission for Gambling Regulation barrister Liam Brown `opened the batting’ for the barristers as he described it.

Mr Brown outlined the various laws that applied to the case and the recent history of the relevant Act.

There were no major surprises in Mr Brown’s summary. He basically re-affirmed the Commission’s decision to grant MHS a licence for 65 poker machines at the proposed Castlemaine venue but stressed there was one significant difference in the two hearings.

He said he believed the tribunal's final decision in this case would come down to the net detriment test, which means the proposal can have a positive or even neutral effect on a community but not a negative one.

“In totality, it (what was presented to the tribunal) wasn’t vastly different to what was presented before the Commission and on that basis, the Commission maintains its reasons for the decision were sound,” Mr Brown said.

“But the identity of the ultimate permit holder is the key difference between the two hearings.

“The Commission placed greater weight on the character, integrity and experience of Maryborough Highland Society as the holder of the permit but that no longer remains the case and it is not clear who the ultimate permit holder is.

“It is likely the entitlements will be transferred to the Castlemaine Sports and Community Club (The Club) … but the Club has no experience in running a club, servicing gaming machines plus it still has to apply for a venue operator’s  licence and there is no guarantee it will get it.

“The MHS will exercise substantial control over the (management of the) operation.

“In considering its decision, the Commission was very careful to place significant weight on the identity of the Society as the permit holder but the model put before the tribunal is quite different to that put before the Commission. The motivations for establishing The Club are also unclear.

“As a result the Commission believes the weight given to the Society as the permit holder should now be reduced when the tribunal is considering the final outcome.”

Mr Brown went further saying the Commission gave weight to the MHS because it was an experienced operator of gaming machines, but with a new entity (The Club) it should be given reduced weight by the tribunal.

With regard to community opposition to the proposal, he said there was nothing that had been put forward to the tribunal that would have affected the Commission’s decision.

“The formation of The Club has garnered support for the proposal. The issue remains divisive in the community with views both ways.

“In view of the Romsey decision, weight must be given to community views … but it is very difficult in this case because the views are very divided in the community.”

Mr Brown said there positive and negative aspects when it came to the social impact with the positives being that some part of the Castlemaine community would get a clear benefit from using the new venue if they wished to use it; plus there was the added benefit of redistribution of revenue to community groups.

The negative aspects were the increased problem gambling and the community attitude towards the proposal, he said.

Mr Brown said there was no doubt the approval of this application would increase the amount of competition for poker machines in the municipality, given that the Cumberland Hotel was presently in a monopoly situation.

MHS barrister Peter Caillard was next up to present his submission to Mr Dwyer but it didn’t go as smoothly as Mr Caillard would have hoped. More in my next post tomorrow.



Psychiatrist says he will close the door if new club goes ahead - VCAT hearing - Day 8

A local psychiatrist has told the Castlemaine pokies hearing in VCAT that he will close his doors if the new pokies venue goes ahead in the town.

Mount Alexander Shire Council is appealing the Victorian Commission for Gambling Regulation's (VCGR) decision earlier this year to grant Maryborough Highland Society (MHS) a licence to open a club, complete with 65 poker machines, in the old railway goods shed, in Kennedy Street, Castlemaine.

The matter is being heard by VCAT Deputy President Mark Dwyer in Melbourne.

 Dr Gianni D’Ortenzio was called as a witness for Enough Pokies in Castlemaine (EPIC) on Wednesday and told the tribunal he would rather close his business than be “the ambulance ay the bottom of the cliff”.

Dr D’Ortenzio is a qualified psychiatrist, who opened his practice in Castlemaine in 2001, after working in the public health system in Bendigo in the 1990s.

He said that in those days he wasn’t treating anybody for problem gambling but all that changed when pokies arrived in Castlemaine in the mid-1990s.

“Now, I see several patients who have problems with gambling plus quite a few others with existing disorders who are generally more vulnerable to problem gambling,” Dr D’Ortenzio said.

He said the patients came from a wide range of socio-economic groups.

“But with only one in ten problems gamblers actually presenting, I see more of their spouses and families than I do the problem gamblers.”

Dr D’Ortenzio said he was particularly concerned about the location of the proposed new pokies venue in Castlemaine.

“Literature tells us that problem gamblers are three times more likely to suicide than others, and the proposed site for this club is a particular problem for me.

“Victoria leads the nation with suicides by train and I am particularly concerned about that sort of venue being so close to a railway station.

“I am very proud to have been associated with very few suicides during my career but these things are only going to get worse in Castlemaine if this new venue goes ahead.

“I am going to close my doors as soon as the club opens.

“I don’t want to hang around and be the inadequate ambulance at the bottom of the cliff.”

Mr Dwyer asked Dr D’Ortenzio where people would go if he closed his practice, which is the only one in Castlemaine.

“I guess they would have to go back to Melbourne or to Bendigo … but these people go through a lot of denial, guilt and shame as it is and it would be another hurdle for them to have to get across.”

Dr D’Ortenzio told the tribunal that he believes problem gambling is a public health issue and the only way to control it is to cut down the supply.

“I think if anyone thinks there are not going to be any more problems as a result of tripling the number of pokies in Castlemaine, then they are quite misguided.”

Anyone needing counselling or help can call Lifeline on 13 11 14.

Jeremy Forbes, president of People Not Pokies, was the last witness called to give evidence at the hearing.

Mr Forbes said People Not Pokies was a positive community initiative aimed at showing that a community can provide strength and funding for their sporting groups without taking money from pokies.

“Our pilot program is with the Castlemaine Football and Netball Club,” he said.

“People Not Pokies is like a conduit for other businesses in town – money comes in through the organisation and we organise the sponsorship of $10,000 for five years (a total of $50,000) for the football club.”

Mr Forbes, a tradesman who lives in Castlemaine and has played and trained football teams at Campbells Creek, said Castlemaine Football and Netball Club was changing its culture.

“The sale of alcohol has already decreased and they want to become more of a family club. They saw People Not Pokies as a good chance to for them to continue to change the culture.”
He said the sponsorship would kick off from round one of the 2013 football season.

Following the final witness, the barristers then began making their final submissions to the tribunal.

Victorian Commission for Gambling Regulation barrister, Liam Brown was up first. He was followed by MHS barrister, Peter Caillard, who didn’t finish his submission yesterday and will start proceedings today.

Mount Alexander Shire Council’s barrister John Rantino will be up next followed by EPIC’s barrister Susan Brennan. Mr Caillard will then have a right of reply.

The hearing is expected to finish tomorrow, Friday, December 14.

A summary of the opening submissions will be in the next post.

Gloves are off at VCAT - part two

There were several witnesses called in the VCAT hearing to decide the Castlemaine pokies fight on Tuesday afternoon including EPIC president David Stretch and several other well-known Castlemaine identities.

Chan Nyok, past president of the East African Community in Castlemaine, took the stand after lunch.

Mr Nyok told the hearing there were about 50-70 people from the East African culture in Castlemaine.

“Some of them have families in Melbourne and go home on Fridays and return to Castlemaine on Sundays,” Mr Nyok said.

“Poker machines have an effect on our community and can damage our culture,” he said. “My people hear about someone wins some money so they start to play the machines and then it becomes very hard for them to stop.”

Mr Nyok said he had been trying to help his people who had become addicted and regularly counselled members of his community.

He said he opposed a new pokies venue in Castlemaine because it would mean a lot more machines, which would have a negative impact on his community.

John Walter, the owner of Stonemans Bookroom in Castlemaine, also gave evidence yesterday afternoon.

Mr Walter told the tribunal his family had first settled in Castlemaine back in the 1850s and that gambling was a family trait.

“I went to races rather than the football and my grandfather was an SP bookmaker,” he said.

“Life changed when poker machines hit Victoria – we used to go regularly to the river to play them.

“I lost control, members of my family lost control. I am a compulsive gamber and that is why I am here today – we don’t need any more machines in Castlemaine.”

Mr Walter said pokies had cost him a lot both financially and personally.

“I should be living on easy street and quite wealthy.”

He said he rang Gamblers Help and now gets weekly counselling from several sources to help him beat the addiction.

The prospect of another pokies venue in Castlemaine was daunting, he said.

“It’s just in your face again. I can’t see how we need extra machines; what’s (already) there isn’t being utilised.”

Alex Perry, the owner and chef of The Good Table in Castlemaine, said the proposed new pokies venue would have a negative impact on his and other businesses in the town.

Mr Perry said he was a member of the Castlemaine Chamber of Commerce, which involves 10 local businesses, and meets on a monthly basis.

He said the café/restaurant part of the local retail sector was already very challenging.

“We have got about 20 cafes/restaurants in Castlemaine and most of them are small, family operated businesses,” Mr Perry said.

“One exception is the Cumberland Hotel, which has poker machines, so it’s easier for them to charge less for their meals because they are subsidised by the pokies.”

He said the prospect of another pokies venue in the town would hit the local cafes hard – particularly the smaller ones.

Mr Perry also said the proposed new club would be out of character in the town.

“Castlemaine (eateries) have been attracting a lot more tourists to the town but this bigger sort of venue is going in the opposite direction.”

He said he was concerned that if the new club went ahead, Castlemaine would lose its unique appeal and become just like any other country town.

Enough Pokies in Castlemaine (EPIC) president, David Stretch said the group was a “grass roots organisation that started in August, 2010 when news of the proposed new pokies venue with 65 machines became known in Castlemaine.

Mr Stretch said about 90 concerned local residents attended a meeting at Winters Flat Primary School and the group has grown enormously since then.

“The EPIC membership list reads like the make-up of the town – it is a greatly diversified group that represents a cross-section of the community including people who are retired, young, tradespeople, those who have lived in Castlemaine for a long time and others who have just moved there,” Mr Stretch said.

“It is this uniqueness that is the essence of the town and what makes it different to any other town. It is why so many people were horrified by the proposal and why there is such very strong opposition to it in Castlemaine.”

Mr Stretch said he believed the Maryborough Highland Society (MHS) had been “extremely surprised” at the level and depth of opposition to the proposed pokies venue in the town.

He said there was clear evidence it would have a negative social impact on the town.

“Our feeling is that it will increase crime and problem gambling in our community. It will have very limited economic benefits and it will pull tens of millions of dollars out of a small town, which will have an impact on the existing local retail sector and tourism.”

Mr Stretch said the EPIC committee did not sanction any of the comments or actions made at a public meeting, which was called by the MHS to give information to the Castlemaine community about the proposal.

“If the community has acted inappropriately it was under people’s own volition, it was not sanctioned by the committee.”

He said the `aggressive' campaign run by EPIC against the proposal was really a vigorous protest.

“We didn’t invite MHS into our town. And we have a right to defend the community in which we have chosen to live in.”

Mr Stretch said there were passionate people on both sides of the debate.

As the proprietor of the Theatre Royal in Castlemaine, he said if the proposed new venue went ahead it would have a significant impact on his and other businesses in the own.

“It will have an extraordinary impact on the long-term viability of retail in Castlemaine – something like this has the potential to change retail in Castlemaine forever.”

MHS barrister Peter Caillard asked Mr Stretch if he was concerned about the competition the new club would have on his own business.

“I am concerned about the impact this venture will have because it (the new club) has the ability to provide live entertainment, food and beverages on the back of poker machines – my venue can’t. It’s not a level playing field.”

Mr Caillard then tendered a document to the tribunal and asked Mr Stretch if he had written it?

“Yes I did write this – it’s an email and it’s marked `confidential’,” Mr Stretch said.

EPIC barrister, Susan Brennan, was quick to object to the recipient of the email being identified and Mr Dwyer agreed.

Mr Caillard read excerpts from the email which suggested that some people in Castlemaine would like the idea of the new venue.

He then asked Mr Strecth if he had contacted musicians around the country asking them not to play at the new club?

Mr Stretch said he had set up a Facebook page called `We Won’t Play Castlemaine Pokies’ for musicians to register their interest if they wanted to.

VCAT Deputy President Mark Dwyer asked Mr Stretch if his opposition to the proposal was really about pokies or some other issue.

“My concern is that this venture will lead to the removal of $4 million a year from a retail situation like ours,” Mr Stretch said. “There is a finite sum of money available for retail in the town and if it leaves the community through gambling then that is a problem for me.”

The hearing continues.     

Gloves are off at the VCAT Castlemaine pokies hearing

The gloves were certainly off in the second day of the VCAT hearing to decide the Castlemaine pokies battle when it resumed in Melbourne.

Mount Alexander Shire Council is appealing the Victorian Commission for Gambling Regulation's (VCGR) decision earlier this year to grant Maryborough Highland Society (MHS) a licence to open a club, complete with 65 poker machines, in the old railway goods shed, in Kennedy Street, Castlemaine.

The matter is being heard by VCAT Deputy President Mark Dwyer.

Two leaders from opposing camps gave evidence today and barristers let fly with intense questioning of both witnesses.

Former president of the Maryborough Highland Society (MHS) board, John Inglis took the stand and he was followed later in the afternoon by EPIC president, David Stretch.

There were also a couple of well-known Castlemaine identities called today including John Walter of Stoneman’s Bookroom in Castlemaine; Alex Perry of The Good Table; and Chan Nyok, former president of the East African Community in Castlemaine.

As mentioned, the hearing did get quite heated with EPIC barrister, Susan Brennan accusing the MHS counsel of coaching witnesses from across the bar table.

Mr Brennan asked Mr Dwyer to direct counsel for the Society to not interfere with witnesses after “consistent attempts to influence witnesses”.

“Over the course of the last two days we have seen counsel visibly disagreeing with something a witness has said, mouthing `not right’ and giving signals like winking at witnesses,” Ms Brennan said.

“It is wholly inappropriate to coach witnesses and it prejudices the integrity of evidence they are able to give.”

Ms Brennan said she would be opposing the re-examination of any witnesses that she was referring to in her complaint.

Victorian Commission for Gambling  Regulation barrister Liam Brown said he had observed instances of what Ms Brennan was referring to but added he was not aware of a motive.

MHS barrister Peter Caillard vehemently denied the allegations.

“I deny it toally. I deny that any signal was given to any witnesses. I did not do it and I would not do it,” Mr Caillard said.

Ms Brennan then said she was referring to Mr Caillard’s co-counsel, who is solicitor Margaret Kearney.

Ms Kearney did not respond, nor was she asked to do so.

Mr Dwyer said the matter had been raised and that “everyone needs to watch their conduct at the bar table”. The hearing proceeded.

During his evidence, Mr Inglis did not hold back alleging there was “an extremist sort of element" in EPIC and that the group had run a `very aggressive' campaign against MHS.

“EPIC supporters have also attacked the Society by taking adverts in the Maryborough paper and we have had no reaction whatsoever!” Mr Inglis said.

He said people had told MHS that they had been verbally abused in the main street, had received threatening phone calls and felt intimidated by EPIC members.

Mr Inglis said EPIC members "took over" a public meeting called by MHS. He said the meeting was called to give the people of Castlemaine some information about the MHS’ proposal but “EPIC members dominated the microphone”.

EPIC president David Stretch addressed some of Mr Inglis’ allegations when giving evidence later in the afternoon.

Mr Inglis also highlighted the income of the Cumberland Hotel, which has 30 poker machines, and is presently the only poker machine venue in Castlemaine.

“It seems that they have become forgotten in all of this,” he said. “The Cumberland Hotel has been generating $106,000 per machine, per annum, for the past 15 years and I am not aware of any opposition to this profitable organisation run by a group of private business people.”

He said the silence towards the Cumberland was in direct contrast to the opposition that MHS as a not-for-profit organisation had experienced for wanting to put the money back into Castlemaine.

Mr Inglis also announced at the hearing that the Kyneton Bowling Club had won back-to-back awards at the 2012 Clubs Victoria Achievement Awards for `Bowls Club of the Year’.

He said it never would have happened if MHS had not bailed the Kyneton club out after members found themselves “locked out of their club, in the hands of the receivers and dead in the water” a few years ago.

Mr Inglis said the Maryborough Highland Society had also won the a major award for the second consecutive year for the Best Club and Entertainment Venue in Victoria.

MHS barrister Mr Caillard then asked him the $64,000 question: "Why did MHS want to open a venue in Castlemaine?"

“We have been looking for a couple of years for an investment option and had even thought of buying a motel but we looked at the Castlemaine community – it is nearby and seems to have very close links with our town (Maryborough) – the only time there is any unrest is when the football teams meet.”

Mr Inglis said the MHS demographic showed many in its membership base were in the 70-75 age group and “if we are continue to survive we need to do something”.

VCGR barrister Liam Brown asked how the MHS was going to boost its numbers if The Club was a totally separate entity to the MHS club?

“There is the incredible amount of goodwill that MHS is offering in Castlemaine and when people enjoy the new club and see the improvements to their sporting facilities in the town – well, people won’t forget that.”

Mr Inglis said there would also be a reciprocal membership relationship put in place between MHS and The Club.

He said the MHS members had been told (verbally) of the board’s plans to mortgage the MHS asset to finance the Castlemaine venture but the matter would not put to a vote until after the VCAT decision.

Mr Inglis also confirmed MHS had purchased the 65 EGM entitlements that it hopes to use in Castlemaine for between $500 and $600 each, which was “the lowest price paid anywhere in Victoria at the auction”.

He confirmed that if the Castlemaine project did not go ahead the MHS would have to wear the cost of the machines.

“We thought it as a pretty good option – it’s a commercial risk, it’s necessary.”    

Mr Inglis also told the hearing the Castlmeinae project was loosely based on the Horsham Sports Club model, which is completely different to Maryborough and Kyneton.

Panel member and VCAT Deputy President Mark Dwyer said he was trying to work out the real lines of autonomy between the MHS and The Club.

“Are you thinking Castlemaine could end up being run like Kyneton?” Mr Dwyer said.

Mr Inglis said: “No. We (MHS) will be managing the day-to-day operations but board of the Castlemaine Club will be making the final decisions.”

A further report on Tuesday’s hearing, including EPIC president, David Stretch’s evidence, will be posted ASAP tomorrow.

Castlemaine pokies fight - MHS witnesses take the stand

In the Monday afternoon session of the VCAT hearing to decide the Castlemaine pokies battle, the tribunal heard the evidence of Jacqueline Hutchinson, a compliance officer with the Mercury Group.

Mercury is a not-for-profit organisation that provides services to Victorian clubs by assisting them with gaming machine choices and EGM repairs.

Ms Hutchinson said Maryborough Highland Society (MHS) was one of about 45 clubs, who were members of the group.

She said MHS currently had 54 people who had self-excluded themselves from the venue.

Ms Hutchinson said MHS exceeded Mercury’s mandatory requirements in the code of conduct by providing staff that completed self-exclusion interviews with clients.

Under cross-examination from Mr Rantino, she said the Castlemaine Sports and Community Club (The Club) Inc was part of the MHS but then quickly changed her statement to say “it will be overseen by MHS management”.

“I’m sorry, I got the terminology wrong,” she said.

Ms Hutchinson, who was not an expert witness at the hearing, admitted she did not know what the Act said when it came to who was ultimately responsible for a venue signing up to be part of a code of conduct. 

Bill Jefferies, a committee member of The Club, was next to take the stand.

Mr Jefferies said The Club had 1571 members and he became involved because he didn’t think “a fair thing” was being done to the town by not getting a club.

“There are 1571 people who deserve a club,” he said.

Mr Jefferies said he had a very close relationship with the MHS management, describing its general manager, Malcolm Blandthorn, as “a Godsend”.

He said The Club had a very good team of board members who were dedicated and passionate about having a club in Castlemaine.

Mr Rantino asked him if he was aware that if the application was successful at VCAT that MHS would be transferring the gaming machine licences to The Club.

“In due course, after we have paid the bill,” Mr Jefferies said.

Mr Rantino also asked Mr Jeffereies if he knew that: “In order for you to hold gaming machine entitlements, you must first be in possession of a venue operator’s licence?”

“There are a lot of things I am not fully aware of … but I will be in due course,” Mr Jefferies said.

He said he was previously a member of the Hoppers Crossing Sports Club before it acquired pokies.

“I left in 1990 but have been back since and I can tell you it is doing very well. They now have 24 cricket clubs, 18 football clubs, two turf wickets, which are all due to the good operation and the well-being of the sports club.”

Mr Rantino asked Mr Jeffereies if he or any other members of the Castlemaine club’s committee had experience in operating a club?

Mr Jefferies said he didn’t and wasn’t sure if the other committee members had such experience.

“You would have to ask them.”

He said The Club did not have a budget at this stage but the treasurer was taking fees and “everything is accountable, written down and can be examined”.

Mr Jefferies said The Club committee members were "not taking it lightly" that they would be responsible for the Castlemaine venue and would have to pay back MHS a considerable sum of money.

“MHS are our financiers and will be responsible for the initial construction before handing it over to us. In due course, we will start paying that (money) back over the next nine-and-a-half years.”

Panel member, VCAT Deputy Vice President, Mark Dwyer asked Mr Jefferies what sort of sports and community facilities the Castlemaine venue would offer?

“We will have a premises that will include a 350-patron room and I believe indoor sports activities like carpet bowls, darts and hookey will be available.

“With regard to outdoor sports, we will sponsor them as they make applications for a community grant.

“The arts facilities will include art rooms, social rooms for the elderly and meeting rooms.”

The Club’s secretary, Janet Rixon was the next person to take the stand.

“There are a lot of people who want this club in Castlemaine – they want a club, not a hotel,” Ms Rixon said. “There is nothing else in Castlemaine like this, which is why I am fighting for it.”

Ms Rixon told Mr Rantino that she had no experience in running a club.

She said MHS management had attended The Club’s meetings but left on several occasions when the committee needed to vote on various matters.

Ms Rixon said if the club didn’t go ahead, Castlemaine would not go ahead and “that friction will always be there – we won’t mend”.

Another member of The Club, Ian Braybrook, was the last person called to the stand on Monday afternoon.

Mr Braybrook said that he and his partner enjoyed playing gaming machines.

“Although we have a poker machine venue in Castlemaine, I very rarely go there,” he said. “We prefer to go to a club – it’s a different environment with a different clientele and a warmer atmosphere.”

Mr Braybrook said he and his partner did try to go to The Cumberland Hotel to play the pokies on New Year’s Eve.

“We got there about 10.15pm and it was all shut up. There was nowhere else to go … there is no choice. We were very disappointed and alas, we finished up going home and going to bed.