Hon. Barry House questions the anticipated costs and savings associated with the establishment of Racing and Wagering Western Australia (RWWA). The Minister's response indicates uncertainty and defers detailed answers until RWWA's board determines the final structure.

AnsweredQoN 223Legislative Council
Asked
15 October 2002
Portfolio
Racing and Gaming

QuestionView source ↗

(1) What is the anticipated annual running cost of the new Racing and Wagering Western Australia?
(2) Will this be an extra cost to the racing industry in Western Australia?
(3) If yes, how does the Minister justify the increased cost and how will this cost be shared by the industry?
(4) If no, will the Minister detail the cost savings and where they will come from within the industry?
(5) Have budgets been prepared showing anticipated operating costs for Racing and Wagering Western Australia?
(6) What are the expected cost savings or cost increases for the TAB, the WATC, the WATA, WAGRA and the Racecourse Development Trust as part of the restructure?
(7) The Government has stated that when the TAB becomes the wagering division of Racing and Wagering Western Australia, that savings will be generated from board fees and associated board costs. How much are those savings?
(8) The Government has also stated that there will be some economies of scale achieved from the rationalisation of similar functions presently performed by the respective controlling authorities. Will the Minister detail those economies of scale?

AnswerView source ↗

Answered
5 November 2002
Responded by
Minister for Racing and Gaming
Response time
21 days
(2) (3) (4) and (6) It is not expected that there will be any significant increase in the cost of industry management brought about by the establishment of RWWA, as the current activities of the TAB and the racing controlling authorities will continue under the authority of RWWA. Until the Implementation Team is further advanced in its work in this regard, no details are available. (7) The current board fees and associated board expenses of the agencies to be abolished is approximately $200,000 per annum. (8) The final structure of RWWA will be determined by the board of RWWA and therefore, details of economies of scale available from rationalization of activities will not be known until this occurs.
(7) The current board fees and associated board expenses of the agencies to be abolished is approximately $200,000 per annum. (8) The final structure of RWWA will be determined by the board of RWWA and therefore, details of economies of scale available from rationalization of activities will not be known until this occurs.
(8) The final structure of RWWA will be determined by the board of RWWA and therefore, details of economies of scale available from rationalization of activities will not be known until this occurs.

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