John Menadue

GRATTAN INSTITUTE. Special deals for special interests. Packers casino licence

How rent seekers and lobbyists work - The Casino Licence

In February 2012, James Packer proposed building a hotel-casino on the Sydney Harbour foreshore at Barangaroo. The NSW premier and opposition leader were quick to back the idea, saying it would bring jobs and tourists to Sydney. Both major parties ignored the public interest.

In August 2012, Packer personally pitched the project to Premier Barry OFarrell. Just a week later, a requirement for independent evaluation of unsolicited proposals was removed .Two weeks after that, Packer formally lodged his proposal. Packer hired former Labor Senator Mark Arbib and former ALP National Secretary Karl Bitar to help secure Labors support.

The unsolicited proposal won the backing of the NSW Cabinet in October 2012, survived a late counter-bid by Star Casino in 2013 and won final approval from the NSW Government in 2016. All without a competitive tender process. Independent evaluation had previously been required before an unsolicited proposal could proceed without a tender process. A steering committee chaired by David Murray was set up to compare the two proposals .

Packer influenced the tax rate for the new casino, the development was exempted from smoke-free laws and the area was carved out of the CBD lockout law zone.

https://grattan.edu.au/report/whos-in-the-room/

John Menadue

John Menadue is the Founder and Editor in Chief of Pearls and Irritations. He was formerly Secretary of the Department of Prime Minister and Cabinet under Gough Whitlam and Malcolm Fraser, Ambassador to Japan, Secretary of the Department of Immigration and CEO of Qantas.