Blue sky ahead after tough love for racing

The three codes are now on a sustainable footing, says Jeremy Rockliff

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the racing industry and always have — my family in one way or another have been involved over many decades, and I enjoy the odd punt.

As minister for racing I understand the importance of our racing industry to our economy and its positive flowon effects to rural and regional Tasmania.

That is why the Hodgman Liberal Government is determined to have a Tasmanian racing industry that is sustainable, vibrant and in a position to invest and grow in the future.

Unfortunately, our Government inherited a racing industry that was constantly in the red and in an untenable financial position.

Tasracing had a structural funding gap (deficit) of between $3 million and $5 million and while the previous Labor-Green Government knew this, nothing was done to fix it.

Tasracing recorded significant accumulated losses of $16 million between 2009 and 2014-15.

It became abundantly clear that propping up the industry with more taxpayer dollars and diverting funding from health, education and public safety was not an option.

Because of this we had to make some hard decisions.

But we’ve done this with no reduction in government support for racing, and we’ve increased prize winning stakes and Tasracing has posted two consecutive financial year profits.

We maintained the level of support and honoured the $30 million Tasracing Funding Deed that has been in place since the Labor Government sold TOTE Tasmania.

We acted to ensure the racing industry lived within its means and amended the funding deed to remove the requirement to maintain prize money in “real terms” each year, to allow the company to close the funding gap by resetting stakes and industry funding.

This tough love has worked, resulting in Tasracing recording its first profit last financial year and then again this year, posting a profit of $371,000.

The profit signals a new start for an industry with its future in its own hands and not reliant on more government handouts.

We introduced legislation in 2014 that allowed Tasracing to have greater flexibility over race field fee income, thereby increasing Tasracing’s second source of revenue.

Tasracing’s achievements in growing revenue and developing a sustainable business model cannot be overstated. The industry can have confidence there is blue sky ahead and we have created a much better environment in which to invest.

The sustainability measures have allowed Tasracing to increase base code funding and in 2017-18 it will be increased by 6 per cent to $22.05 million across the three racing codes.

After taking account of funding carryovers last financial year from the 2014/15 season, the year on year increase in funding allocation will be 4 per cent.

The following has been allocated: Thoroughbred: $12.11 million; Harness: $5.80 million and Greyhound: $4.14 million.

Tasracing’s sustainable position enables a $45 million investment over the next five years in infrastructure, such as the construction of a centre for the Greyhound Adoption Program, investment in redevelopment of the Elwick thoroughbred track (course proper), and enhancing and improving owner/trainer facilities at key racing venues.

The Hodgman Government also supports the industry through the provision of around $4 million to the Office of Racing Integrity, where we are taking action to strengthen integrity functions by investing in staff, education and technology upgrades.

We are also focused on improving animal welfare.

In 2015 we commissioned an investigation into animal welfare provisions in greyhound racing and took measures including tougher penalties for animal cruelty, master racing for older greyhounds, mandatory education units for licensed participants, and the abolition of breeding incentives.

I look forward to continuing to work positively together with Tasracing, the Office of Racing Integrity and industry participants, who are to be commended for their dedication which has secured a good outcome for the strong long term future of the racing industry in Tasmania. Jeremy Rockliff is Tasmania’s Minister for Racing