By Erica Haines
ADELAIDE — On February 8, the South Australian Liberal government announced its plans to sell the TAB and State Lotteries Commission by the end of the year.
Government enterprises minister Michael Armitage stated that a comprehensive review has indicated that both organisations will not remain competitive in the expanding gambling market. The government expects to reap up to $600 million from the sales, which will go towards reducing state debt. Future funding for hospitals and recreation, which currently comes from TAB and Lotteries revenue, will come from general revenue.
The sales also mean that another 400 public sector employees are facing the privatisation scrap heap. The state Labor opposition has vowed to block the sales when the relevant legislation is introduced to parliament.
The ALP is demanding that the government produce documentation that proves the assertion that SA Lotteries has a bleak future. No Pokies MLC Nick Xenophon has described the sales as a "bad bet".
The Public Service Association (PSA) claims taxpayers could lose more than $500 million over the next 10 years if the sales goes ahead.
Independent research conducted by Queensland's James Cook University shows the lost income as a result of privatisation will be more than the interest saved by using the money to pay off debt. The research shows that the government would need to receive at least $1.7 billion for the assets for the move to be financially viable.
The PSA has held talks with the government about the proposed sales and has deemed as unacceptable the proposals for managing the impact on staff. The current proposals do not guarantee that forced redundancies will not take place, and do not include redeployment opportunities.
Staff in some positions may be required to transfer to the new owner without any compensation and only six months' employment guaranteed. Staff not required will be offered redundancy packages worth far less than those offered in some other government agencies.
Lotteries and TAB staff have, however, been guaranteed that employment conditions and pay for those transferring to the new organisation will not be less than existing entitlements — in contrast to TransAdelaide bus staff who are currently taking action to secure the same assurances.