Perrottet may have the Nationals on board,but his pokie plan faces one more hurdle

When NSW Premier Dominic Perrottet embarked on the mostsweeping reforms to poker machines since they were legalised in 1956,he faced a massive roadblock. But the powerful clubs and pubs lobby were not Perrottet’s only major hurdle.

The NSW Nationals were,and still are,anxious about the impact that removing cash from pokies in small one-pub towns could have on regional economies. The junior Coalition partner has argued the role licensed venues play in the bush is vastly different to those in metropolitan areas.

Being on the ground in regional NSW during the devastating floods gave Perrottet a better understanding of the Nationals.

Being on the ground in regional NSW during the devastating floods gave Perrottet a better understanding of the Nationals.Peter Rae

The Nationals are also worried about the looming election,where they are not only trying to wrestle back seats but hold those under threat. While some senior Nationals are convinced that the party is on safe ground and could well save the government,the road to victory remains narrow.

Perrottet was never going to convince pubs and clubs,who rely so heavily on poker machine revenue,to back his push to radically change their business models. Even a major report from the influential NSW Crime Commission,which recommended a cashless card to combat money laundering in clubs,was not going to shift the industry’s thinking.

However,Perrottet had to win over the nervous Nationals if his policy was ever going to eventuate,and he started from a position of resistance. Deputy premier and Nationals leader Paul Toole may be a less combative figure than his predecessor John Barilaro,but he was clearly not on board early.

Toole’s language suggested the Nationals would put up an almighty fight,perhaps even dwarfing the bitter battle over koala planning policy that nearly tore apart the Coalition in 2020,under Barilaro and then premier Gladys Berejiklian.

However,Perrottet and Toole have a different working relationship. The pair both assumed their leadership roles at the same time and cemented their partnership through the devastating floods. Perrottet’s determination to be on the ground in regional NSW to help flood-ravaged communities gave him a better understanding of the Nationals,and Toole.

Perrottet also has another trump card. He was able to point to the significant support packages he provided to the pubs and clubs during the pandemic lockdowns. As treasurer,Perrottet worked hard to stand up for the industry to ensure no jobs losses or closures. Indeed,on the day of the highly anticipated reopening of the state’s economy on October 10,2021,just weeks after the demise of Berejiklian,Perrottet posed at a pub,beer in hand,to celebrate.

His message to Toole (and the industry) was that he had their back in the past,and he would again in the future. While it is yet to emerge whether the Nationals also extracted other promises or trade-offs for supporting Perrottet’s plan,one thing is clear:Perrottet managed to gain Toole’s support.

And through that support,Perrottet has delivered a detailed plan that is by far the most significant social policy that this government has embarked on. However,there remains one more mountain to climb. Perrottet’s plan for cashless poker machines by 2028 is dependent on the Coalition winning the election on March 25. He now needs to convince voters,too.

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Alexandra Smith is the State Political Editor of The Sydney Morning Herald.

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