EPIC’s barrister Susan Brennan delivered her final submission at the VCAT hearing on the Castlemaine pokies fight, early on the final day of proceedings - Friday, December 18.
Ms Brennan described the hearing as a “great moveable feast” with a trickle of information from MHS at the beginning followed by repeated changes to the Society’s 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 Victorian Commission for Gambling Regulation.”
Ms Brennan said a key part of the MHS and Commission’s case was the annual contribution of $50,000 in cash and $150,000 in-kind contributions to Mount Alexander Shire Community.
“Our submission is that there isn’t any certainty. There is no obligation to pay it or distribute it and there is some real doubt in relation to the surplus and the ability to meet the community contribution.
“We also have questions about what benefit is actually derived from the community contribution where the club’s own constitution allows it to support works beyond the shire.”
She questioned what the in-kind contribution actually included?
“Mr Inglis has confirmed it will not include venue operating costs and capital expenditure in relation to the establishment of the venue.
“He also said the meeting rooms would not be part included (this was later amended by MHS in the Management Agreement) so what exactly does the $150,000 in-kind contribution comprise of?
“As far as I can there are only the meal vouchers left and that’s an awful lot of meals!”
Ms Brennan said MHS and The Club were aspiring for the club to be a long-term development.
“But we submit they are talking about a significant capital investment in a building that has a 11-and-a-half year lease to run with no option to extend beyond that and the gaming entitlements can only be enjoyed for another nine years.”
She said the MHS had pushed its `not-for-profit’ status inferring it wasn’t interested in making money.
“Nothing could be further from the truth!” she said. “Mr Inglis himself said MHS was looking for an investment.
“There are many examples of existing not-for-profit organisations who run commercial ventures – AFL football clubs are a prime example. They run commercial operations to make money to put back into their football club – they are running these commercial operations to make money.
Ms Brennan said MHS was doing exactly the same thing.
“It’s just wrong for them to say they are not trying to make money out of it.”
She then set her sights on The Club.
“The Club has no budget, its members have told us they have no experience in running a gaming venue, they have no understanding of their statutory responsibilities, they have a limited understanding of the depth of what they are taking on and they don’t know how the community contributions will be distributed.”
Ms Brennan said VCAT Deputy President Mark Dwyer, who was hearing the case, was entitled to have serious concerns about The Club and its ability to run the venue.
She went onto question MHS general manager Malcolm Blandthorn’s latest budget, which includes a forecast that the new venue would need to generate $3.5 million in its first year to be on track.
“We think this venue is going to be under real pressure to fulfil its minimum obligations … there are two entities here who will be under significant pressure to make money and repay loans that their ability to look after members will be undermined.”
Ms Brennan said the new venue would pose significant problems associated with problem gambling. She quoted social impact expert, Dr Charles Livingstone’s figures saying it would generate another 50 problem gamblers and 70 moderately at risk gamblers in the town.
“This venue significantly increases the number of gaming machines in the town from 30 to nearly 100 and it completely alters the gambling landscape of Castlemaine by making gaming machines more accessible for problems gamblers and those at risk."
“Castlemaine is quite distinctive for its low density of gaming machines and one consequence of it trebling the number of machines is that it goes from a comparatively low density of machines (compared to other towns), to around the state average.
“By country Victoria standards, it pushes Castlemaine right up there and changes the gambling landscape of the town.
“We say the community is entitled to object to a change of the character of the town. They are entitled to say this proposed venue doesn’t fit in our town.”
She said the new venue would have a strong impact on retail in town, in particular cafes and restaurants and that several could close their doors as a result.
Ms Brennan also highlighted the council survey which found that 72 per cent of residents believed the new venue would have a negative impact of the social character of Castlemaine.
She said the location was wholly inappropriate being so close to the railway station.
“People will walk past the front door of the club on their way to the station and lose their family fortune on the way. It is a clear example of bad planning.”
