Workers will pay with their jobs

May 22, 2007

Workers will pay with their jobs

Skycity shareholders may have to get used to a much lower rate of return on their investment says Problem Gambling Foundation CEO, John Stansfield.

He says that businesses that make their profits from harming others are bound to run into problems eventually.

"The casino has become extremely unpopular as the public realised it was operating on the basis of extracting maximum profits without being responsible about the harm it was causing," he said.

"Families, businesses, and charities have been robbed to support their profits."

"Their business practices are comparable with strip mining where profits are extracted and costs are externalised."

"Our communities have been picking up the cost of their activities since it opened."

"This is a small country and you can't really get away with that sort of behaviour indefinitely."

Mr Stansfield says that national gambling revenue has been falling for some time and that this was unlikely to change.

"As more of the public wakes up to the dangers of gambling the casino will find it increasingly difficult to attract customers. They are already overly dependant on a relatively small number of problem gamblers to generate much of their income."

Mr Stansfield says he feels sorry for workers who will be laid off in the company's search for greater profits.

"It will be a futile exercise trying to cut their costs by sacking workers if they don't make fundamental changes to how they do business," he said.

Mr Stansfield says the difficulties the casino is trying to deal with at present are only the beginning of its problems.

He points to the casinos dependence on pokie machines at a time when income from them is falling nationally as being more likely to be a source of their problems than a few big wins from high rollers.

Mr Stansfield says there is an emerging trend overseas for people who have been damaged by gambling operators to take class actions against them for failing in their duty of care.

"It is only a matter of time before the same things happen here and then the casino will face enormous insurance problems."

Mr Stansfield says he believes that it may be possible to run a casino in an ethical manner.

"The casino could become a place where people safely enjoyed recreational gambling."

"It would require a different mindset and a willingness to accept a rate of return more in line with other responsible businesses."

"It is difficult not to compare Skycity with Telecom who held off making necessary changes until they were forced to by legislation," he said.

ENDS

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