Illawarra newsagents at risk of losing up to 90 per cent of their income say a Labor plan to safeguard lottery services might just hit the jackpot.
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NSW Opposition Leader Luke Foley announced on Tuesday a Labor government, if elected in March, would enact laws to ensure newsagents and other small businesses remained the primary distribution agents for NSW Lotteries.
About 1500 small businesses across the state rely on lottery sales to generate between 40 and 90 per cent of their revenue.
But many would be forced to close if a proposed new franchise agreement – which allows big businesses such as the major supermarket chains into the network – comes into effect when the current agency protection period expires in April.
Robert and Serge Ciraudo have run the Corrimal Court Newsagency for 14 years and would lose at least 80 per cent of their revenue and almost all their customers if lottery and lotto sales were allowed at supermarkets.
‘‘Once [people] come in and buy lotteries, they buy other items,’’ Robert said.
‘‘If you lose 80 per cent [of your business] you couldn’t survive, you’d have to shut the door.’’
The pair said the problem would be compounded by people buying lotto tickets at the supermarket and checking them at a newsagent, stifling their cash flow in the process.
They said the Labor move was good news, ‘‘as long as they keep their word’’.
Keira MP Ryan Park stressed Labor was committed to ensuring newsagents were the exclusive agents for lottery products.
‘‘What we don’t want to see is them going out of business and being absorbed by the majors, particularly Coles and Woolworths, as a result of a change in policy,’’ Mr Park said.
‘‘We are very much committed to this, because we’re committed to small business.’’
Mr Park called on the Liberals to support the move, which has been backed by the Newsagents Association of NSW and ACT (NANA), and allow a bipartisan approach on the issue.
NANA chief executive Andrew Packham said lotto sales were the ‘‘foot traffic driver’’ for newsagents.
‘‘To expand the network into the vultures that are Coles and Woolies, we think is a little unreasonable,’’ Mr Packham said.
‘‘This is a very complex issue and they [Labor] have translated it into a very workable and practical solution.’’