LABOR has announced a three-point plan to "save" thousands of newsagencies and convenience stores, which are about to lose their exclusive right to sell lottery tickets.
However, Treasurer Andrew Constance said Opposition Leader Luke Foley was "gambling with the state's future" and would "expose taxpayers to hundreds of millions of dollars in compensation".
He said NSW Treasury estimated the potential loss to the state could be as much as $1 billion if a deal entered into by the former Labor government in 2010 was dumped.
Newsagencies were given a five-year moratorium on exclusive rights when the privately owned Tatts Group was given a 40-year lease of NSW lotteries.
The moratorium expires on April 1.
Mr Foley said newsagencies were often "the beating hearts of local shopping villages".
Many would be devastated by a proposed new franchise agreement, which included increasing the number of agents in the distribution network and allowing big businesses, such as major supermarket chains, into the network.
The proposal would not provide any geographic or other form of exclusivity, while imposing expensive fit-out requirements on all lottery agents, which will cost up to $25,000.
Mr Foley said if Labor won the March election it would enact laws that preserved the present agency protections until such time as the parties reach agreement on new terms.
In addition, a Labor government would continue to restrict outlets selling lottery products to newsagencies and other small businesses, and would work with them to ensure a sensible commercial arrangement was established that was fair to all parties.
Mr Constance said Labor's plan to renege on an agreement it made when in government would "deprive the state of growth in duties revenue, trigger massive compensation to the Tatts Group and poison the market's view of sovereign risk in NSW".
He said the government had been "engaging productively with Tatts and newsagents for weeks over the transition away from exclusivity".
"We will continue this process and if further measures are needed, we will take them," he said.
"But unlike Mr Foley's latest thought-bubble, they will be responsible and properly costed."
NEWSAGENT FEARS
One St George newsagent believes opening up lottery sales to big business could have a devastating effect on the industry.
Matthew Kesuma, who has owned and operated Kogarah Newsagency for 11 years, said the proposed changes were a big concern.
‘‘In the past, we’ve always had that agreement to protect us from the bigger companies like Woolies,’’ he said.
‘‘But on top of the competition, we already have online we would also have more competition from the big stores. In the end, we hope they won’t proceed.’’
Karala and Rasiah Sivapalan are extremely worried about the future of the newsagency they have operated in Parkside Plaza, Miranda, for 10 years.
Mr Sivapalan said lottery sales made up a large part of their business.
He said they hoped the Newsagents Association of NSW, which is in negotiations with the Tatts Group and the government, would find a solution.
Labor candidate for Miranda Greg Holland said many Sutherland Shire businesses faced ‘‘financial hardship and possible closure’’.
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