YOUR VIEWS

Racing club on RACE

I read the article in a recent edition of The Chronicle headed “Levin Racing Club to consider transferring assets and joining RACE”.

There are some very important issues that were not mentioned that readers should be aware of.

Last year the Racing Industry Act was passed by Parliament. This Act was specifically brought into law to provide the governing body of the thoroughbred racing industry (NZTR) with the powers to compulsorily take away the property of racing clubs throughout New Zealand and in the process override private property rights. In effect the Act facilitates industry reforms outlined in the Messara Report.

Under the Act the process to acquire the property of a racing club involves initially declaring the club redundant, then dissolution of the club and then taking the assets.

It is also worth noting that the Act provides that no club is permitted to enter into commercial arrangements with its property (sale, lease, development, mortgage, etc) without the express permission of NZTR. So the upshot is the club ceases to exist — so if the Act was invoked after 100-plus years, LRC would be totally lost along with the track.

NZTR have advised the Levin Racing Club on a number of occasions that if it does not participate in rationalising industry assets in the Horowhenua (and Ka¯ piti) region it will use its powers under the Act to force Levin Club to use its wealth to benefit other clubs in the region — in short sell the track to finance the upgrade of the other tracks in the region both of which are supported by NZTR.

RACE was originally established as, in essence, a co-op of racing clubs which together had the political clout to influence the agenda of the industry governing body at the time. So joining RACE was an obvious option for LRC to canvass so long as joining with RACE could provide a future for the racing club and a viable future for the track and its users.

What wasn’t mentioned in the subject article is that, on joining RACE, the track lease would be for 30 years. The draft agreement does not provide for periodic reviews of the lease as indicated in your article.

The five-yearly reviews in the draft agreement are relevant only to track operations — that is to agree operational strategies and ensure sustainability going forward. In fact, the joining agreement states that if RACE was to take unilateral action to amend or terminate the lease, LRC has the right to withdraw from RACE and take all its property back.

Track users are guaranteed at least 30 years of access to the track as long as they wish to train there and the funding will be there to ensure the track subsidy continues. This was a fundamental issue flagged to RACE at the outset and RACE has given that commitment to LRC which is reflected in the agreement.

Also LRC has expressly retained the right to develop certain property in the track precinct to secure additional income to sustain track operations for the term of the 30-year lease period should that prove necessary.

It is also worth mentioning that by joining RACE, LRC becomes the partowner of all the assets of RACE. So LRC would part-own Trentham and Awapuni tracks. LRC would have equal representation at board level with all the other member clubs.

RACE has become a powerful bloc of racing clubs that has significant say in racing in the Central Districts and LRC is right there at the table. So despite the fact that LRC has no racing at our track and no support from NZTR it will have a voice in the future of racing in our region.

I would also like to correct the record regarding voting at the SGM — the resolution only requires a bare majority to be passed not 75 per cent as indicated in the article. The 75 per cent is only required to alter the club’s constitution and for the dissolution of the club. Jim Sweetensen

Levin Racing Club committee member