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NEWSAGENTS around the state will remain the primary outlets for lottery products in an agreement announced Friday morning.
NSW Treasurer Andrew Constance and Minister for Small Business John Barilaro said newsagents will be granted more protection in a deal brokered between the Tatts Group and the NSW Government.
A memorandum of understanding has been agreed by both parties, ensuring newsagents remain the major outlets for lottery sales while a deal on a franchise agreement between the parties can be reached.
Under the agreement that has been signed, Tatts Group will undertake not to expand the network of franchises into supermarket chains for three years from April 1, 2015, to March 31, 2018.
In return, the NSW Government will provide support to the existing network of franchises to update their point of sale shop fitting to the standard required by Tatts under the franchise agreement.
The NSW Government will introduce a dedicated $15million Newsagents Assistance Fund, allowing agents who require assistance with upgrading shop fit-outs and diversifying their businesses to be supported.
The fund will mean existing lottery agents can apply for contributions of up to $10,000 for approved shop re-fits for the point of sale of lotteries products, while being given an additional three-year extension of protections to remain competitive in the lottery marketplace.
“Today we are cleaning up another diabolical mess left to us by the last Labor Government,” Mr Constance said.
“This package will protect newsagents for a further three years and allow them to transform their businesses.
“Concerns were raised about the viability of small newsagents to undertake major shop re-fits that would have been a burden to operators under Labor’s dodgy sale contract.”
Mr Barilaro said the government had been working methodically with newsagents, the Tatts Group and local operators to reach “a sensible outcome that supports small business while protecting taxpayers from the risk of compensation”.
“We thank the Tatts Group for reaching a sensible outcome and coming to an agreement with the MOU,” he said.
“Labor left newsagents high and dry when it sold lotteries in the first place, and as advocates of small business we want to right that wrong.
“The NSW Government is also inviting lottery agents to take part in the Small Biz Connect Program, free of charge.
“As part of the support available the Small Biz Connect advisors can also complete a range of business health checks on topics including retail, succession planning, marketing, sales and social media,” Mr Barilaro said.