Recent action taken against highly dubious practices among some poker machine funded charitable trusts is welcome, but more must be done, Labour’s Internal Affairs spokesperson Chris Hipkins says.

“Under the Gambling Act it is very clear that profits generated from pokie machines need to be used for charitable purposes. I’m sure the New Zealand public will be appalled to learn about some of the very complicated arrangements some organisations have been using to get around this basic principle,” Chris Hipkins said.

“At a time when so many community groups are struggling to raise enough money to survive, it’s shocking to think that money that should have been used for charitable purposes has been channelled through a complex web of companies and trusts, ending up being used to promote more gambling rather than support charities.

“I’m pleased the Department of Internal Affairs are taking decisive action.

“However the fact remains that there are still some very questionable practices in parts of the pokie trust sector and the Government needs to deal with them. The public should be able to have confidence that money earmarked for charitable purposes is actually ending up being used for that purpose.

“Both the current Minister of Internal Affairs Nathan Guy and his predecessor Richard Worth expressed concerns about ‘dubious practices’ in parts of the gaming machine industry. They need to do more than just express concerns, they actually need to do something about it.

“I’m more than happy to discuss these matters with the Minister at any time to ensure he can gain sufficient support for any legislative changes that may be required. It’s time for some action,” Chris Hipkins said.