The department's dealings with the trust led to a negotiated outcome which will result in higher compliance expectations and more money to the community.
In bringing about a resolution, the trust has agreed to licence conditions that require it to distribute a minimum of 40 per cent of gaming machine profit to the community and to limit the expenses it pays to its venues in a year to 14.5 per cent of GMP, rather than the statutory cap of 16 per cent.
As part of the negotiated outcome, Grassroots is withdrawing the High Court action and its appeal to the Gambling Commission and the department is withdrawing the licence cancellation.
Debbie Despard, says the community will ultimately benefit because Grassroots will provide more funds for grant distribution. The trust also committed itself to be a best-practice operator and to improving its funding practices to better target community need.
While some pubs may see themselves as being punished for a society's misdemeanour, Debbie Despard urged venue operators to exercise caution in entering into an agreement with a society to operate gaming machines in their pubs.
She says the successful end to negotiations shows the department is prepared to be flexible in order to maximise benefits for the community.
