Racing: $11m incentive for radical changes to racing

Guy Sargent. Photo / Sarah Gully

Massive changes to the way New Zealand racing is run could see an extra $11 million paid out in stakes each year.

But now the men behind that idea face the tough task of selling it to the three racing codes.

The One Racing Task Force, commissioned in May to identify the most cost-efficient way to run New Zealand racing, has suggested all three codes come under the control of a new national body - Racing And Wagering New Zealand - at a press conference at the Ellerslie racecourse yesterday.

That would mean no more New Zealand Thoroughbred Racing, Harness Racing New Zealand or Greyhound Racing New Zealand, which, at present, run their respective codes separately, while the New Zealand Racing Board runs predominantly the gaming side of racing.

The task force's key recommendation is that the three codes and the Racing Board adopt a shared services' model to make more efficient use of people and capital.

The task force estimates this alone could save the racing industry $7 million annually.

They also believe the formation of RAWNZ would save, once the transition period is over, an extra $4.6 million a year.

That, according to the task force, could inject an extra $11.6 million into racing, much of it tagged for stakes.

They want the transition from separate administrations overseen by a Racing Council, which would have three appointees from thoroughbred racing, two from harness and one from greyhound racing as well as the chairman of the NZ Racing Board.

The new controlling body would be based in Wellington and task force members were quick to point out it would be totally unbiased toward any one racing code.

"The way we look at it there would no longer be separate codes at that level, all issues would be racing issues, rather than separate code issues," says task force member Guy Sargent.

Even if the $11.6 million figure proves inflated, a bottom-line saving anywhere near that amount has to be attractive to those running the three racing codes.

But getting their approval, and that of the separate code stake holders, may not be quite so simple.

Sargent is chairman of New Zealand Thoroughbred Racing and says his organisation is already behind the idea but still has to convince some within the code.

While the big city players are likely to be keen, smaller clubs could fear being swallowed up and losing their say.

But it is the two smaller codes who are likely to provide the most resistance.

Harness Racing New Zealand were informed of the task force's recommendations on Thursday and they are certain to have reservations.

For one, harness racing is run out of Christchurch, the long-time spiritual home of the industry in this country.

Under RAWNZ virtually all harness racing administration would move to Wellington.

While that should matter little in this electronic age, selling it to the harness racing clubs, particularly in the south, will not be easy.

But New Zealand Racing Board chairman and Task Force member Michael Stiassny was in no mood for doubters yesterday.

"New Zealand racing may be strong and resilient but we are not well positioned to tackle the many challenges we face," said Stiassny.

"Now is the time for action and the price of doing nothing is too high for the industry as a whole."

While task force members are realistic about the potential backlash against their recommendations by some in the industry, Stiassny said they would not faze them. "The people on this task force are used to getting things done and the figures are impossible to argue with."

One of the biggest concerns for the two smaller codes will be the almost certain scrapping of Section 16, the controversial funding policy from which all three codes receive their share of TAB turnover.

Sargent is adamant Section 16 will be scrapped, while others on the task force played down its importance.

But that will set alarm bells ringing in the smaller codes as they fear getting a smaller piece of the turnover pie.

The task force counters by saying the entire pie will be grown so squabbling over it will matter less.

With all three codes needing the approval of their member clubs at their annual conferences before signing off on the new structure, the squabbling may only have begun.

THE PLAN

*Formation of Racing And Wagering New Zealand to run all three racing codes.

*RAWNZ would also take over the duties of the NZ Racing Board, with the central office to stay in Wellington.

*A centralised and streamlined administration of all three racing codes.

*Potential annual savings of $11.6 million, much of which could be used for stake increases.