Doubt over pokies trust

A Dunedin-based national trust is demanding answers after a poker machine licence was issued to the Christchurch Earthquake Recovery Trust.

The Department of Internal Affairs confirmed a six-month licence was issued in December to the start-up trust to operate 18 poker machines from the Islington Tavern, in Christchurch.

Concerns have been raised over the name of the trust, its structure, and its ability to return grants to Christchurch.

Cert director Bruce Inwood, of Christchurch, told the Otago Daily Times the trust would return at least the 37.1% minimum required by Internal Affairs. The trust was financially viable, and had been approved by Internal Affairs.

Mr Inwood declined to comment further.

The move has perplexed Karen Shea, the Dunedin-based chief executive of the Southern Trust, which has poured millions into Christchurch, including a $1.4 million grant to the Prime Minister's earthquake fund.

She said three large national trusts, including the Southern Trust, had returned an estimated $12 million to Christchurch's earthquake recovery, and she disagreed with granting a licence to a start-up trust.

"We do what we do just quietly and then we have a new entity coming in, basically feeding off what the sector has already done."

The pub in question, which used to be aligned with the Southern Trust, had a pokies turnover of around $1 million each year, with an estimated 40% of that total returned to the community via grants from the Southern Trust.

Ms Shea said it would be difficult for the start-up trust to return any funds to Christchurch as it would have to source its own machines, have its own management structure and overheads.

"It is a start-up and it is unproven," she said.

The Southern Trust lost three venues in the earthquake, as well as the Islington Tavern, and "we have continued our usual support of organisations".

Internal Affairs gambling compliance acting director John Currie said Cert aimed to distribute the majority of its net proceeds to "assist with the recovery from the Christchurch earthquakes".

"At the time of the issue of the licence to Cert, the department was satisfied that the trust could adequately return funds back to the community."

Internal Affairs had consulted the Canterbury Earthquake Recovery Authority (Cera), and was "advised that it had no difficulties with the name Canterbury Earthquake Recovery Trust Ltd", he said.

- hamish.mcneilly@odt.co.nz