SA Lotteries

I seek leave to make a brief explanation before asking the Minister for Government Enterprises a question about SA Lotteries.

The Hon. J.M.A. LENSINK: In the last sitting week the minister referred to some $91 million that SA Lotteries had provided to the Hospitals Fund. She stated that it was an increase of some $5 million on the previous financial year. I have been contacted by an irate constituent who says that SA Lotteries has been telling owners of newsagencies that it wants 'a 5 per cent increase in sales over this financial year so the government has more money at its disposal to spend on things such as hospitals'. My questions are:

1. What penalties will be issued for those agents and outlets that do not pursue the upsizing policy of this government?

2. At what level has this policy been decided?

3. Will the minister confirm that the Department of Treasury and Finance has issued instructions to revenue raising agencies to push such sales to substitute for other falling revenues?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:41): Certainly, there has been significant change in the Australian gambling industry over the past decade which has impacted on the lotteries segment. Several key strategic issues are facing the gambling industry—in particular, the lotteries segment—such as: a maturing market; Australian households allocating a declining proportion of income to lotteries; increased competition; industry consolidation; a changing regulatory environment; a changing product; and distribution trends.

An independent assessment of the strategic options for lotteries business in South Australia has been undertaken by ABN AMRO. The objective of the assessment is to maintain returns to the South Australian government in the short term (two to three years) and increase these returns in the medium term (five to seven years) and long term (10 years).

There was a wide scope for the assessment, which I do not need to go into today, but recommended options are to be aligned with the objective of South Australia's Strategic Plan to grow prosperity. The review commenced in May and the final report has been received by the commission for consideration.

In light of the ever-changing environment and various developments, we need to keep changing and refitting the way in which we do things. Some changes have been proposed in relation to future planning for our lotteries. I do not have those details in terms of targets or amounts, but I am happy to take the questions on notice and bring back a response.

Wednesday 4 February 2009

In reply to the Hon. J.M.A. LENSINK (28 October 2008).

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy): I am advised that:

1.&2. SA Lotteries does not have an upsizing policy.

3. SA Lotteries has received no instructions from the Department of Treasury and Finance to increase sales as there is no upsizing policy.