HALF of New South Wales’ 1600 newsagents could disappear if a major supermarket chain takes over NSW Lotteries, Moss Vale Newsagency owner David Reid warned this week.
The NSW Government this week won Coalition support for privatising NSW Lotteries, after guaranteeing that community newsagents will retain the sole right to sell lottery and lotto tickets and scratchies for the next five years.
After five years, the new NSW Lotteries operator can give agents six months’ notice of termination.
Mr Reid welcomed the extension of the protection for newsagents from the three years initially proposed to five.
But he said what newsagents had really wanted was guaranteed tenure as the preferred agents for NSW Lotteries.
“Initially, the Government seemed to think that was possible, but all of a sudden they changed their minds.
“We suspected TABCorp or Tattersalls would be in the front line, but it looks like one of the major supermarkets has put their hand up as an interested bidder.”
Mr Reid said if a supermarket chain won the 40-year lease to operate NSW Lotteries, newsagents could lose their only competitive advantage.
“If one of the supermarkets get it, lotteries will soon be in petrol stations and hardware stores as well,” he said.
Mr Reid, recently a NSW Lotteries Top Shop finalist, said although NSW Lottery products were not highly profitable for newsagents, they brought customers to newsagencies.
“Lotteries are the only thing that we have that supermarkets don’t have,” he said.
“If it does go to supermarkets, you will see half of New South Wales’ 1600 newsagents disappear - it’s that important to the business.”
Mr Reid said until newsagents know who the successful tender was, they would have no certainty to make long-term plans for their businesses.
“I know there are newsagents that are trying to sell and potential buyers worried about what will happen in the future,” he said.
Oxley Mall Newsagency owner Amanda Denning said it would be disastrous if a large retailer won the contract.
Liz Gardner of the Bowral Newsagency said the five-year protection might not be adequate.
“It really depends on the terms of the lease after five years,” she said.
Ms Denning said the government had a responsibility to protect newsagents and their employees.
“They should be protecting the agency network at all costs,” she said.
Mrs Gardner said the government would be losing an asset if it off-loaded the NSW Lotteries for 40 years.
“Once it’s gone, it’s gone forever,” she said.
Mr Reid said he hoped that NSW newsagents and a partner would bid for the NSW Lotteries lease.
He said community newsagents filled an important role in the community, not only as a meeting place but also by supporting local groups and events.
“You ask Coles or Woolworths to sponsor your local football team,” he said.
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