pokies stimulus

http://www.theage.com.au/national/handouts-fuel-pokies-binge-20090426-ajef.html

Hand-outs fuel pokies binge

* Jason Dowling
* April 27, 2009

VICTORIA'S gambling watchdog is signalling the Federal Government's attempts to stimulate the economy are hurting some of the most vulnerable in society by fuelling spending on poker machines.

The warning comes as the Government puts the final touches on the federal budget and after recent cash hand-outs caused an almost $30 million increase in poker machine spending in a month.

The December Federal Government stimulus payments led to a surge in poker machine spending in Victoria, with $250 million being pumped through, up from $220 million a year earlier.

April figures to be released next month are expected to show a continued jump in taxpayer-funded spending on poker machines.

Research has shown a significant amount of money spent on poker machines comes from problem gamblers.

In an unusual move, the Victorian Commission for Gambling Regulation has warned that "extra government payments can lead to customers or club members spending extra money gambling. Gambling providers are encouraged in these times to watch for signs of problem gambling among patrons."

The commission has confirmed this warning was timed to coincide with the latest cash hand-outs.

Economists and community groups are calling for cash payments to be scrapped from the next stimulus package.

Victoria will receive about $3 billion of the Federal Government's latest $12 billion stimulus package, with the $900 cash payments sent out this month.

A recent survey by social researcher Ipsos Mackay found Australians were negative about stimulus measures, particularly the hand-outs, The Age revealed on Saturday.

The office of Treasurer Wayne Swan declined to comment on the cash payments and poker machine spending. Instead, a spokesman for the Federal Government said: "We're very confident that the vast majority of Australians are spending responsibly, and that spending is helping to support jobs."

Victorian Employers Chamber of Commerce and Industry chief executive Wayne Kayler-Thomson said new economic stimulus measures should not include "funding another cash hand-out through debt". "Any future stimulus must be based around measures aimed at encouraging businesses to hire labour, such as cutting taxes on jobs like payroll tax, and investing in shovel-ready infrastructure projects, as well as planning future projects," he said.

Lateral Economics chief executive Nicholas Gruen said he supported the first two stimulus packages, but the time for cash hand-outs had passed.

Victorian Council of Social Service chief Cath Smith said: "The question is could that money have been spent better to protect jobs and protect essential services for people?"

World Vision chief executive Tim Costello shared her concerns. "We know with every stimulus package what jumps is pokies spending, which creates virtually no jobs," he said.

"The worst social and economic outcomes are being encouraged and the social outcomes are communities fragmenting, families fragmenting, crime rising because of what happens when you play the pokies. It is not just you blow $950; you keep playing and lose horrendously," he said.

Tatts Group spokesman Michael Mangos said: "It's a nonsense to suggest that the entire extra money that came into the economy went into poker machines.

"Based on normal spending we got our share, we didn't get double our share, we didn't get treble our share; we didn't get all of it."