State refusing to take Munday crash blame

Alex de Vos
State Government has refused to take the blame for the collapse of Geelong businessman Rick Munday’s pub and restaurant empire.
Administrators have locked the high-profile entrepreneur out of his iconic Geelong restaurants Fisherman’s Pier and Man Bo six months after BRW magazine named him Australia’s 12th richest young businessman.
Insolvency firm PPB confirmed the restaurateur’s main lender, National Australia Bank, had placed the Munday Group in receivership after last-minute negotiations fell through.
The group also controls well-known inner-city Melbourne pubs including The Golden Nugget, Players on Lygon Street and Prahran’s The Court Jester.
Mr Munday was reported as blaming State Government’s new gaming machine regulations for the collapse of his company.
The new regulations will replace a duopoly between gaming machine giants Tatts Group and Tabcorp.
However, the Government brushed aside Mr Munday’s allegation, saying the new legislation would have a profitable impact on gaming operators.
“This Government believes the market for gaming machine entitlements is robust and that entitlements represent good value for business,” a Gaming Minister spokesperson said.
“Under the new industry model, with the removal of the gaming operators Tattersalls and Tabcorp, venues will have the opportunity to derive a greater share of gaming revenue generated by their businesses.”
The spokesperson said Mr Munday had “two years to prepare” for the entitlement auction and transition to the Government’s new venue-operator structure in 2012.
State Member for Geelong Ian Trezise said he was “disappointed” to see the collapse of one of the region’s “good local success stories”.
But he put the blame for the collapse back on Mr Munday.
Mr Trezise said Mr Munday was “consulted” on the changes and had plenty of time to prepare his gaming venues for the transition.
“The new regulations that will be put in place have been developed in consultation with pubs and clubs and everyone will be treated fairly,” Mr Trezise said.
“It’s not something that’s come out of the blue – it’s been developed over the last two or three years.”
A PPB spokesperson said Fisherman’s Pier and Man Bo would continue to operate “as normal”.
“At this stage the intention is to continue operating the businesses while we seek buyers for the restaurants and pubs.”
The Independent was unable to contact Mr Munday for comment before going to press.