National MP David Bennett talks potential ways to save the racing industry

National List MP David Bennett spoke to supporters on the racing industry at a meeting held at Tararua REAP. Photo / Leanne Warr

“If you really want racing to work, you need to make it a commercial business,” MP David Bennett told supporters in Dannevirke last week.

The National Party’s spokesman for racing talked at length about the struggling racing industry and the deal struck with British betting agency Entain, which takes effect on June 1.

Entain’s deal essentially is an investment of $545 million which will see the agency take over New Zealand’s horse race betting and broadcast operations for the next 25 years.

The deal was approved by the Government.

Bennett, a List MP based in Hamilton, said he had been in politics for 18 years and was intending to retire.

He spoke to supporters at the meeting at Tararua REAP when he addressed issues affecting the racing industry.

The racing industry is struggling. Photo / Ian Cooper

Bennett said racing in New Zealand was struggling.

“There’s no other way of putting it.”

The number of horses was down, as was betting and maintenance of tracks was not happening.

“You’ve got animal welfare issues coming in behind that.”

He said the TAB industry was also struggling.

“It’s in a really bad space on both counts from the betting side and also from the breeding and racing side.”

While former racing minister Winston Peters had tried an investment to get some decent races going, Bennett said that wasn’t sustainable.

He said New Zealand was better placed to use a similar model to that of Ireland, which accounted for around 35 per cent of European racing.

“The best horses in the world come from Ireland and France, but mainly Ireland.”

Ireland only did 1200 races a year, compared to 2500 in New Zealand and 16,000 in Australia.

“The potential for New Zealand to become another Ireland in horse racing is huge. We’ve got the same geographical weather pattern. We’ve got good breeding stock there already.”

Bennett said the biggest advantage was that Australia was putting huge money into stakes, and stakes in Hong Kong and Singapore were just as big, in terms of gallops.

Harness racing had potential in the American market where the stakes were equally huge, he said.

“What we’ve got around us is a market setup that is really easy to capture. And I’ve got a great deal of faith in where the racing industry will go.”

New Zealand couldn’t beat high-stakes racing such as the Melbourne Cup, but what it could do was breed really good horses that won the cup.

“And that means that people come and buy the 20 to 30 horses that are from the same bloodline.”

Bennett said he thought there was a good future in capturing the markets that were putting big money into horse racing.

“If we do that then we’ll be like any primary industry in New Zealand.”

Industries such as beef, sheep and dairy where the bulk of goods are exported and that money was brought back into New Zealand.

The deal with Entain was only one of three the TAB had considered.

“The TAB’s done due diligence on it and taken it to the minister and he had no choice. He would have had the TAB in front of him saying this is the best thing we can do. And it’s because they’re desperate.”

Bennett said the deal would have financial implications which meant they were buying a monopoly.

Another factor was the use of geo-blocking, which would ensure that anyone betting on any sports overseas would have to go through the TAB, rather than third-party providers, he said.

“Is it going to work? I think it’s a big injection in the sector. Long term though, if you really want racing to work, you need to make it a commercial business.”

Roly Ellis, prior to his retirement as Tararua District mayor. Photo / NZME

Supporter and former Tararua District mayor Roly Ellis, who had small shareholdings in syndicates, said he didn’t know enough about the small print in the deal to know whether it would work.

He also felt the racing industry was in trouble, feeling money was being wasted on such things as an all-weather track when it could have been better spent on improving the grass track.

“I think it’s just terribly badly organised.”

Another problem was that the racing industry boards tended to have “whiz kids and accountants” instead of farmers who understood such things as drainage, he said.

Ellis agreed there was potential in Bennett’s approach.

“We do breed some brilliant racehorses,” he said, naming the breeder the late Sir Patrick Hogan as one.

“There are all sorts of people breeding really good stock.”