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Electoral Funding Amendment (Registered Clubs) Bill 2023

Published on: May 2023

Record: HANSARD-1323879322-131511

Electoral Funding Amendment (Registered Clubs) Bill 2023

Second Reading Debate

Debate resumed from an earlier hour.

Ms KOBI SHETTY (Balmain) (17:44:02):

On behalf of The Greens, I contribute to debate on the Electoral Funding Amendment (Registered Clubs) Bill 2023 and indicate that we support it. The bill amends the Electoral Funding Act 2018 and the Electoral Funding Regulation 2018 to prohibit political donations from registered clubs involved in gambling. The intent is to close a loophole where some registered clubs that have gaming machines or are otherwise involved in gambling may not be captured by the existing provision of the Act that defines a liquor or gambling business entity as a prohibited donor. For instance, some registered clubs with gaming lounges have been able to make political donations lawfully due to their not-for-profit status. It is incredibly important that we close this loophole.

We must do all we can to stop the corrupting influence of the gambling industry on our democracy. One of the ways we must do this is by making it crystal clear that people who want to come to this place or campaign to represent their local community at any level of government may not do so on the back of donations from the gambling industry. We know that the harm caused by gambling impacts the community in many ways. Just this month new data released by Liquor and Gaming NSW on poker machines highlighted the explosion of poker machine losses in New South Wales. The data reflects the first full year of results unaffected by COVID‑19 closures and shows that losses have soared $1.5 billion higher than pre-pandemic levels.

It is an embarrassing title to have the highest amount of gambling losses per capita in the world. It is no wonder that the gambling lobby is unrelenting in its objective to stymie meaningful gambling reform in this State. Wesley Mission CEO Stuart Cameron was quoted by the ABC as saying that people struggling financially were drawn into gambling in the hope of winning so they could afford groceries and pay the rent. He said:

The predatory pokies industry is positioned in every town and suburb to take advantage of people who may be vulnerable.

Poker machines are designed to addict and the harm they cause must be stopped. Closing the loophole that allows registered clubs with gaming machines or clubs that are otherwise involved with gambling to make political donations is a small but important step in minimising this harm.

I note that in October last year my colleague in the other place Cate Faehrmann, MLC, sought to amend the Electoral Legislation Amendment Bill 2022 to prohibit registered clubs from making political donations. That amendment was not passed. Labor voted against it at the time, but it is good to see that Labor has come around. I counter something the member for Prospect said earlier, perhaps to try to minimise his feelings of guilt about the Labor Party accepting gambling donations to date. He said that all political parties in this State take donations from clubs. I can proudly clarify that The Greens do not, and never have. It is no wonder that during the 2019 election campaign the gambling lobby made a concerted effort to sway voters in the Balmain electorate to move away from The Greens.

The bill needs to go further to close all the loopholes that allow prohibited donors to go against the spirit of the law, flout the rules and wield undue influence in this place. I am aware of the considerable work that crossbench members have done—in particular, the member for Sydney—in raising concerns about the wording of the bill, which suggests the potential for registered clubs to offer political parties more discreet in kind donations such as the use of services and facilities in lieu of cash. I thank the member for Sydney for his sensible amendments, which The Greens will support.

The Sydney Morning Herald

Another loophole that needs to be closed quickly concerns the definition of property developers. Property developers have rightly been included in the list of prohibited donors because of the potential corruption risk associated with windfalls arising from favourable planning decisions. Similar to the loopholes flouted in clubs that the Government is seeking to close, a recent report in suggested that it remains all too easy for a property developer to make a political donation. Published just last week, the report suggested that in January this year the New South Wales Liberal Party took a $1,500 donation from a company that describes itself as "Sydney's leading developer". When questioned, the company stated that it was in fact only the builder. Another three donations worth $7,000 each were apparently made from a retired developer and channelled through three different business interests.

In each of those cases, the prohibited donor rules did not seem to apply. This bill could have provided an ideal opportunity for the Government to close that additional loophole. I thank members of the crossbench and the Government for their discussions with me this week on this issue. I am pleased to hear that the Government is looking into it and taking the issue seriously. I will certainly be pressing for more loopholes to be closed on electoral funding laws so that decisions are made in the best interests of the people of this State, and not for lobbyists.

Ms FELICITY WILSON (North Shore) (17:49:38):

I contribute to the debate on the Electoral Funding Amendment (Registered Clubs) Bill 2023. Schedule 1 to the bill states that it prohibits political donations from a registered club if the business of the registered club includes wagering, betting or other gambling. It concerns me that the legislation before the House is the only approach that the Government is taking that bears any resemblance to reforming gambling and poker machines in this State. The Government seems happy to ensure that registered clubs that undertake wagering, betting or other gambling cannot make political donations based on their profits from gambling. It seems to understand that there may be problems with profits from problem gambling. It seems to understand that there may be problems with dirty money being laundered through clubs and pubs. So why will this Government not also bring forward legislation that effectively tackles the scourge of problem gambling and the scourge of dirty money being laundered through some, potentially many, of our clubs and pubs?

There are more than 86,000 poker machines in New South Wales, which is 30 per cent more than in Victoria and Queensland combined. We know that areas with some of the highest losses to poker machines are home to some of the lowest-paid workers, further entrenching disadvantage while wrecking families, lives and futures. There were revelations by the New South Wales Crime Commission that more than $95 billion was turned over through poker machines in pubs and clubs in New South Wales over the course of 2020-21. That is a truly staggering figure. The New South Wales Crime Commission also estimates that billions of those dollars are the direct proceeds of crime. That is before the additional evidence that we will receive in this House through the member for Sydney's order for papers last week.

While this bill points out that there are issues with political parties accepting donations from clubs that profit off gambling, Labor does not seem to have a plan to legislate solutions to problem gambling like introducing a cashless gaming card. It is offensive that this Labor Government is turning its back on local communities and enabling crime syndicates and other entities to continue the practice of laundering money through clubs and pubs. I reiterate that I am astonished that this is the only conversation and policy that Labor wants to bring to the House on poker machines in New South Wales. The people of this State deserve better.

In my own community, there was enthusiastic support for the former Government's plan to introduce a cashless gaming card and overhaul the way that we view and utilise poker machines in New South Wales—to tackle the harm and abject misery that individuals face and the impact of organised crime. I acknowledge then Premier Dominic Perrottet for his leadership on that. I am disappointed that this Government has not yet set out a clearly laid-out plan to reduce problem gambling. I am hopeful that in the future it will see the light and do so. We need to root out the menace of dirty money being laundered through clubs across New South Wales and make sure that we are supporting the people of New South Wales who are harmed by problem gambling.

Mr MICHAEL REGAN (Wakehurst) (17:52:39):

I speak in support of the Electoral Funding Amendment (Registered Clubs) Bill 2023 but put on the record my view that the Government's gambling reform policy does not go far enough. One really positive part of the 2023 election campaign was the massive shift in the political discourse around the urgent need for gambling law reform to reduce the shameful social harm caused by poker machines across the State. I know this all too well from my own community in Wakehurst, where in 2018 Gary Van Duinen tragically died by suicide after an all-night gambling binge at the Dee Why RSL—my local club. This occurred after family members begged the club to help curb his gambling. That is just one particularly tragic example, but there are many more. That one was particularly public, given what happened and the club involved.

I use this opportunity to add my voice to the many calling on the Government to implement the recommendations of the New South Wales Crime Commission's report, including a full rollout of a mandatory cashless gaming card. This measure will reduce problem gambling and stop criminals washing money in poker machines. We know it can and should be implemented. The clubs know it, and the CEOs will tell you they can do it. We should be doing it. While I welcome adding registered clubs with poker machines to the prohibited donor list, I also know the donation caps already significantly limit donations, so we cannot assume this massively diminishes the undue political influence in the gaming industry, which goes far beyond political donations. Again I speak on behalf of the people of Wakehurst. I hope we can go a lot further with this reform.

Dr JOE McGIRR (Wagga Wagga) (17:54:20):

I contribute to the debate on the Electoral Funding Amendment (Registered Clubs) Bill 2023. I support the bill but, like the member for Wakehurst, I call on the Government to go much further on this issue. I am supportive of measures to reduce the influence of venues with poker machines and, by extension, the influence of the gambling lobby. Gambling addiction has a terrible impact on our State and in our communities. In 2022, between 1 July and 30 September, Wagga Wagga locals lost $73.9 million to poker machines. That results in the life savings of families being hoovered up into a neon vacuum. That financial strain causes mental health issues, the breakdown of relationships and, in a number of cases, domestic violence. Wesley Mission found that the average poker machine claims almost $100,000 annually. Between 900,000 and 1.7 million people in this State are harmed by problem gambling. It is an appalling and severe tragedy, and one that many in my electorate spoke to me about during the recent election campaign.

I was touched by how people came up to me and shared their stories of family members whose lives had been so badly affected by gambling and poker machines. These people are victims of an illness: addiction. They are people who need our help, not our exploitation. There is also a vested criminal interest in the continuation of cash-based poker machines. As the New South Wales Crime Commission reported in the multi-agency report produced by Project Islington, criminals are laundering billions of dollars through poker machines in clubs. That report perhaps underestimated the extent of the issue, if documents that may come to light as a result of the member for Sydney's recent order for papers show a further extent of criminal money laundering.

Sadly, both sides of politics have allowed this situation to go essentially unaddressed for decades. Clubs and pubs have donated significant sums to both sides of politics. There is a community perception that clubs and pubs are powerful interests that can influence the Parliament and the Government. It is appropriate that steps are taken to ensure that there is no such influence. This bill takes significant steps in that regard. On those points, I think it is extremely fair that venues with poker machines and their overarching peak bodies be considered prohibited donors.

Labor made this legislation an election commitment as part of its greater package on gambling reform, which also included the removal of visible signage and having trained gambling harm minimisation officers on site in large venues. I wholeheartedly welcome Labor's efforts in this regard. They are positive moves. But we must not lose momentum on a complete transition to a cashless gaming system. In particular, the proposed trial of cashless gaming needs to be implemented as soon as possible and expanded with additional machines. It should have a comprehensive assessment within a year and a clear plan developed to implement a cashless gaming system throughout New South Wales.

Finally, I make the point that clubs are important to regional communities, particularly my community. The transition to cashless gaming, as I have said before, must be done in a way that is sustainable and preserves the important contributions of those organisations to the community. In particular, clubs provide an important facility for communities in the regions. Quite often there is a lack of suitable venues and facilities outside of clubs. That is why I am supportive of the commonsense amendments of the member for Sydney, which recognise the functional purpose that clubs serve when booking space for functions and clarify that. I also support the member for Sydney and his amendment that expands the definition of a prohibited donor to a body or close associate of a registered club. In summary, this legislation is an important and positive step. But it is just that: a first step on a long road that we need to take to transition to a cashless gaming system in this State.

Mr ALEX GREENWICH (Sydney) (17:59):

I speak in debate on the Electoral Funding Amendment (Registered Clubs) Bill 2023. Decades of lax regulation around electronic gaming machines in pubs and clubs have resulted in mini casinos covering the city and State, where every single day people's lives are destroyed and criminals wash their proceeds of crime. We have long known from the Productivity Commission report that problem gamblers and those at risk of problem gambling are the major contributors of spending on electronic gaming machines. We know that gambling leads to family and relationship problems. It also leads to distress, depression, suicide, violence, financial ruin, lost productivity, sackings and crime to support habits. We have long known that the use of cash and the lack of traceability in gaming machines makes them a lucrative tool for criminals to launder money, with the recent Crime Commission report estimating that contribution to be in the billions. Last week the House passed my motion to summons documents held by the regulator that I have been informed will demonstrate that the extent and type of money laundering in clubs goes well beyond what was identified in the Crime Commission report.

Business interrupted.