Mr Kennett should get real and support the Productivity Commission's inquiry into the nation's gambling industry.
There is justifiably wide spread unease in the community at the growth and proliferation of gambling.
The concern springs in large part from the pace of change. Nationally the gambling industry has more than doubled in real terms in this decade alone with turnover growing from $33 billion in 1989-90 to $80 billion in 1996-97. Victoria has experienced the most rapid growth with gambling turnover expanding in real terms from $3.8 billion in 1989-90 to $26 billion in 1996-97 or by 650%.
Concern also emanates from the new forms of gaming and significantly increase it accessibility of gaming facilities in recent years. Since 1982 14 casino have opened their doors in Australia with the largest being the Crown Casino. Electronic gaming machines (EGM) have spread to clubs and pubs in all states except WA. Again these changes have been most pronounced in Victoria.
The angst over gambling is being vigorously fanned by people intrinsically opposed to gambling. However, neither the Commission or the average punter is going to be persuaded by wowsers or social engineers.
Gambling is a widely accepted and high valued past-time with around 80% of the Victorian adult population gambling to some extent during the year. Victorians have responded positively to the recent changes with 49% of Victorian visiting the Crown Casino last year and with EGM quickly becoming the favoured type of gaming.
Surveys show that the vast majority of gamblers are thought to act responsibly and gamble for social or recreational purposes.
The concerns is validly focused on problem gamblers and their families and in particularly the impact greater accessibility to the new forms of gaming -- EGM and casinos -- on them.
The fact is our understanding of problem gambling issues is rudimentary. The issue is not restricted to Victoria but is a national one. Hence the utility of national inquiry.
There are other issues -- in addition to problem gamblers -- that need to be examined.
Most pertinently the heavy level of taxation imposed by state governments on the industry. State government now collect around $3.4 billion in taxes from gambling -- which is about double the revenue collected at beginning of the decade and which represent about 10% of total state tax revenue. The Victorian Government not only collects more gambling taxes per capita but is more reliant on gambling taxes.
The simple fact is that gambling taxes are not only excessive but regressive -- falling more heavily on low income people. Moreover, the push for tax revenue has lead the states to create gaming monopolies which further increase the cost of gambling and to actively promote gambling.
Of course, the States are not primarily to blame for excessive reliance on gambling revenue. The Commonwealth -- with its refusal to continence tax reform and regular cuts to state grants -- is the prime culprit.
For this reason Mr Costello is trying to quarantine the inquiry into gambling from tax reform and state-federal relations. However, he has Buckley's chance of succeeding. Tax reform and problem gambling are inextricable linked.
Try as it will, the Commission simple will not be able to avoid the tax issue.
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