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The Australian
Michael Warner
August 30, 2007 12:00am

"That was the level of comfort that was going around in my mind at the time," he said.
"I believe that was the general understanding of the board. It was a free and open discussion," Mr Kerr said.

His evidence follows months of denials by Mr Bracks that he ever discussed licensing arrangements with Tatts or its lobbyist.


A FORMER Tattersall's boss says he discussed gambling licences with Steve Bracks, contradicting repeated denials by the former premier.

Ex-Tatts trustee Peter Kerr told a parliamentary inquiry Mr Bracks had freely discussed licences at a secret meeting in the company boardroom in February 2003.

Mr Kerr told an Upper House select committee he left the meeting with a clear understanding the Government supported the multi-billion-dollar pokies duopoly Tatts shared with rival gaming operator Tabcorp.

David White, and supports Herald Sun reports during last year's state election, which prompted the inquiry.

Tatts and Tabcorp reap huge annual profits from their 27,500 gaming machines. Victorians lost $2.5 billion on pokies last year.

Last November, Mr Bracks's office stated "he has never discussed licences with David White or anyone else outside government".

In Parliament on February 27, Opposition Leader Ted Baillieu asked Mr Bracks if he stood by this.

Mr Bracks replied: "The Government, I as Premier, or any other minister, do not discuss gaming licences when there is a tender process on, nor have we discussed those matters prior to that."
Mr Kerr yesterday told the committee Mr White's report to the Tatts board of a dinner meeting he had with Mr Bracks at Lorne over the 2003/04 holidays was the "blockbuster" development that led it to decide to float on the share market.

"He had a very strong message to deliver the board. The way David put it, to the best of my knowledge, was: `If you want to maintain your licence, you have to go public.'

"That was David White quoting a meeting he claims to have had with the premier. The board was somewhat stunned by the nature of the message . . . I'll always remember it."

Mr Bracks has admitted meeting Mr White but said they didn't discuss licences, and accused the ex-minister of making things up.

Opposition gaming spokesman Michael O'Brien called on Mr Bracks to appear at the inquiry: "Today's evidence suggests that either Mr Bracks lied, or David White did."

The committee voted last night to invite Mr Bracks to appear.

Mr White last night said: "I'll appear before the committee on the 17th (of September)."

Fellow Tatts trustee Ray Hornsby said yesterday that Mr White had relayed a message from the Government from the Lorne meeting. "Mr White had said to us they were leaning towards the continuation of the duopoly . . . it had served well. They saw no pressing reason why there should be a change," he told the inquiry.

But Mr Hornsby and Mr Kerr both told the committee they believed Mr Bracks had never given assurances that the company would be treated favourably or given preferential treatment.
"There were no promises, undertakings or even inferences," Mr Hornsby said. "I always believed there would be a full tender process."

Mr Kerr added: "I felt that we would have our licences renewed on our merits. I don't think David professed to be a magician at all."

Mr Hornsby said he believed Mr White may have been telling the board what they wanted to hear.

"I'm a cynic, so I don't take everybody at face value without some proof," he said.

But Mr Kerr said Mr White had boasted to the board of having the ear of, and influence over, Mr Bracks, now-Treasurer John Lenders, now-Premier John Brumby, ministers Bronwyn Pike and Lynne Kosky, and Treasury head Ian Little, who has since died.

He confirmed that hours before the 2003 meeting, Mr White briefed the board on questions to ask Mr Bracks.Mr Kerr said Tatts had hired Mr White because of his ability to open doors inside the Government.

"That was why he was engaged to act for us. That was the role he was expected to play," Mr Kerr said.
Both trustees also confirmed the authenticity of an internal Tatts document, published by the Herald Sun, outlining a plan for an offer "written on a piece of paper" to be handed to Mr Bracks by Mr White.

"This can be handed to Bracks for perusal and acceptance," the document states.
"David White can present this piece of paper. Nothing official, only verbal."

The parliamentary inquiry was convened early this year after a series or articles in the Herald Sun revealing the Lorne dinner and Mr Bracks's discussions at the Tattersall's boardroom meeting.

Deputy Premier Rob Hulls yesterday defended Mr Bracks, saying neither Mr Kerr nor Mr Hornsby had asserted that the pokies or lottery licence processes had been handled inappropriately.

"Evidence was given . . . of a board meeting that occurred two years prior to the tender process being put in place," Mr Hulls said.