An Illawarra newsagent says the state government is ‘‘covering its backside’’ with a deal that claims to protect newsagents as the main outlets for lottery sales.
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Robert Ciraudo, who runs the Corrimal Court Newsagency with his brother Serge, says the move is short-sighted and delays the issue. On Thursday night, Treasurer Andrew Constance signed a memorandum of understanding with lottery operators Tatts not to expand their network of franchises into supermarket chains for three years, from April 1 this year to March 31, 2018.
Mr Ciraudo said the move was only made because an election was ‘‘just around the corner’’.
‘‘I don’t think it’ll be a permanent thing,’’ Mr Ciraudo said.
‘‘They’re covering their backside, I don’t like it at all.’’
The brothers’ business would lose at least 80per cent of its revenue if supermarkets were allowed to sell lottery products and Mr Ciraudo said the government was only thinking short term.
‘‘If you were really positive about not putting the sales in the big supermarkets, the chain stores that have got everything at the moment, why put a time zone of three years?’’ he said.
‘‘It’s not in concrete yet...I wouldn’t be surprised at all if after the election they turn around and say it wasn’t suitable.’’
Mr Constance said the government would introduce a dedicated $15million Newsagents Assistance Fund, to help newsagents upgrade shop fit-outs and diversify their businesses.
‘‘This package will protect newsagents for a further three years and allow them to transform their businesses,’’ Mr Constance said.
Member for South Coast Shelley Hancock welcomed the news.
‘‘Labor left newsagents high and dry when it sold lotteries in the first place, and as advocates of small business we want to right that wrong,’’ Mrs Hancock said.
However, chief executive of the Newsagents Association of NSW and ACT Andrew Packham said the legal validity of the memorandum of understanding was unknown and raised questions.
‘‘The agency network deserves more assurance, we’re kicking this three years down the track,’’ Mr Packham said.
He said as Tatts would still be able to sell lottery tickets through fuel stations – many of which are owned by Coles and Woolworths – ‘‘it really is a Trojan [horse]’’.
NSW Opposition Leader Luke Foley said last week he would extend a moratorium on the sale of lottery tickets in supermarkets, in place for the past five years, if he wins government in March.
