Taxpayers pay hefty racing bill

Liberal government must at very least insist on improved animal welfare outcomes, writes Jan Davis

Did you know that your taxes are used to support the racing industry? Almost two-thirds of Tasracing’s revenue (64 per cent) comes from the government – in other words, from Tasmanian taxpayers. Government funding in other states ranges from about 6 per cent – 24 per cent.

Last year, the Tasmanian government provided more than $32m in funding support for the racing industry – which is the equivalent of $56.27 for every Tasmanian.

Tasmania is the only state where the government guarantees annual taxpayer funding for the racing industry. This comes by way of a 20year funding deed signed in 2009, following the sale of the TOTE. This agreement sets the annual rate of increase in funding at half the rate of CPI, which is currently around 6.5 per cent per year.

The government also often provides additional annual increases above CPI.

It is hard to understand why our taxes are being spent on a sport that exploits animals for entertainment and profit. It is even harder to understand how such generous subsidies can be justified when essential public services are under such serious funding pressures.

A 2010 government inquiry into the performance of Tasracing highlighted numerous issues with the funding agreement.

It concluded that: “The ongoing indexed $27m funding model fails to tie funding to performance and is irrespective of revenue earned.”

Yet here we are 12 years later and nothing has changed.

Opinions are varied with respect to racing. Some people will never agree that animals should be used for human entertainment.

Others argue racing is an intrinsic part of the Australian culture. However, taxpayers have every right to be appalled at the apparent lack of any plan to make the industry sustainable.

They also have every right to be dismayed at the industry’s lack of transparency about animal welfare outcomes.

Community attitudes have changed a great deal over recent years. There is very little support for activities in which animals are harmed – and even killed – in the name of entertainment.

Most reasonable people would agree that, at the very least, the government should be insisting on improved animal welfare outcomes and increasing standards of accountability and transparency in return for taxpayer funding.

Leading industry participants also recognise the need for change.

After the ABC’s 7.30 report in 2019 about the unfathomably cruel treatment of what has been euphemistically called “thoroughbred wastage”, hall of fame thoroughbred trainer, Lee Freedman, said “if we don’t make real changes, the court of public opinion will bury racing”.

He is right. The government may well be bound by the commitments made under funding arrangements put in place after the sale of the TOTE. However, there is no case for taxpayer subsidy of the racing industry to continue beyond the expiry of that agreement in 2029 – and there should be much more stringent requirements for transparency and accountability.

The racing industry needs to stand on its own feet and plan for an orderly transition to self-sufficiency at that time.