Package huge for industry: Pike

WELLINGTON: Cambridge trainer Tony Pike believes the $72.5 million dollar Covid19 emergency support package for the racing industry announced by Minister of Racing Winston Peters yesterday has breathed life back into the $1.6 billion industry which has been halted by Covid19.

The support package consists of $50 million relief grant for the Racing Industry Transition Agency (RITA), up to $20 million in funding to construct two new allweather racetracks and $2.5 million for the Department of Internal Affairs to fasttrack work on the online gambling revenue, and address loss of revenue impacts on community and sport groups.

‘‘It is obviously huge for the industry,’’ Pike, who is the president of the New Zealand Trainers Association, said.

‘‘Without government support the TAB, or RITA were heading west.

‘‘By the sounds of it, they hadn’t been paying suppliers for a while, with $26 million to clear their current liabilities. This provides us with enough money to carry on until domestic racing gets back on track, in addition to sports and gaming.

‘‘There is a big restructure going on at RITA. Obviously they are going to streamline the business significantly. If we can get domestic racing back up and going, sports betting

and gaming back on track, then hopefully there is going to be more coming out the other end that can be distributed to the codes.’’

Racing broadcaster Trackside is one of the areas earmarked for cost savings but Pike is acutely aware of the importance of racing’s shopfront.

‘‘From a personal point of view, yes it needs streamlining but we still need a promotion of domestic racing and some sort of coverage to drive turnover domestically.

‘‘Hopefully, they don’t cut that too much to the bone because that is your shopfront delivering to people out there, both from an ownership and punting point of view.’’

With a synthetic track already well under way in Cambridge, two further allweather surfaces slated for Riccarton and Awapuni and are expected to play a role in both centralising racing and reducing costs through efficiencies, in addition to providing reliable training and racing surfaces throughout the winter.

For those outside of racing questioning the government relief package for the industry, Pike was quick to point out what a substantial contributor it is to the New Zealand economy, as well as employing 15,000 people fulltime.

‘‘For people at the coal face, it is not considered a gambling industry,’’ he said.

‘‘It employs a huge number of people and an enormous amount of care is taken looking after the horses and we are renowned on the world stage.

‘‘It is a stimulator for the local economy. Areas like Cambridge and Matamata, their local economies rely heavily on the thoroughbred industry.

‘‘It is a massive export earner with horses being sold overseas and income coming from overseas investors who support breeding and training in New Zealand.’’ — NZ Racing Desk