WELLINGTON - The racing industry wants a share of gaming machine proceeds, saying it may not survive otherwise.
In a report to Racing Minister Annette King, the industry has recommended a raft of changes including tax write-offs for breeders, loosening Government controls and giving racing a share of gaming machine proceeds.
Investigating track closures, amalgamating the TAB and Racing Industry Board and changes to the racing codes were also recommended to boost the flagging industry.
One proposal was to give them 1.5 per cent of the estimated $2.4 billion yearly annual turnover from gaming machines - equal to more than $34 million a year.
Currently, venues other than chartered clubs or casinos are required to turn at least a third of their gaming machine profits over to charity.
Three industry taskforces suggested, that alternatively, racing operate their own gaming machines,
Mrs King conceded some of the proposals were "radical" but said she was delighted the industry had found unanimity.
She said the Government hadn't yet decided its position on gaming proceeds for racing.
"I think the bottom line here is that the racing industry is trying to put more money into the industry because if they don't get more money into the industry, then we're going to see the industry die."
Racing employed around 30,000 people and needed more money or New Zealand would continue losing horses overseas, she said.
Mrs King suggested another option for the TAB to take over the role of monitoring gaming machines from Internal Affairs, giving it much needed extra income.
Racing Industry Board and TAB chairman Rick Bettle said that was an option as the TAB had the required equipment.
In New South Wales, a similar move had benefited the industry, while in Victoria, racing had benefited from being allowed to operate its own machines.
"What the racing industry sees is the benefit that could be gained from some of that money. Clearly that is a source of income and the taskforce makes it quite clear they don't believe there is sufficient in racing itself to cover all their needs in future."
The Australian racing industry was "catching up rapidly" in all traditional areas where New Zealand had excelled in the past - "and they're catching up because there's more money in racing".
Mr Bettle said the report gave the board a clear mandate for the way forward and they would analyse its recommendations and implement some immediately.
"It is obvious from the report and its recommendations that there is widespread agreement on the industry on the key points which affect racing, and how they should be managed."
Some of the recommendations would require changes to legislation and should be actioned by the new board formed by a merger of the NZRIB and TAB.
Three task forces were established by Mrs King to examine funding, administration for greyhounds, harness and thoroughbred racing and the clubs, and to identify strategies to encourage ownership, sponsorship and investment.
According to information supplied to the task forces by the TAB, racing had been "treading water" in terms of turnover, despite a 157 per cent growth in gaming market turnover overall.
On-course sales, adjusted for inflation, had declined $500 million over 25 years, horse numbers were below the level needed to support meeting licences, the industry was fragmented, its current financial performance could not be sustained without making changes and the number of starts was down 23 percent in gallops and 13 percent in harness racing compared with 10 years ago.
Recommendations included:
Amalgamating the Racing Industry Board and Totalisator Agency Board, with the new board comprising an independent chairman and representatives of each of the codes;
A new Racing Act, giving the new board autonomy and largely freeing the racing codes from statutory direction;
The new board investigate the benefits of integrating racing services across the three codes and each code investigate the advantages of a regional administrative system;
The racing codes be bulk funded under a new, largely flat rate system, except thoroughbreds, which would be funded on a percentage system (currently clubs are funded by the RIB under a formula based on off-course turnover and other factors);
That racing be given access to gaming machine funds;
That the new board review the number of racing venues and training tracks;
That broodmares be written off in full, starting at age 10, and down to $1 at age 12; that a 100 per cent deduction be offered in the year a stallion is purchased in New Zealand by a New Zealand taxpayer, providing the stallion remains in New Zealand;
Develop a fairer racing class system that allows horses to move up and down the classes easier.
- NZPA
Racing: Gaming machines seen as path for survival
AdvertisementAdvertise with NZME.