Significant changes on way for ailing NZ racing industry

6 min read
The starting gates have opened for significant changes to the New Zealand thoroughbred industry after the Racing Reform Bill passed its third and final reading in Parliament on Thursday and will come into force on July 1.

Based on John Messara’s report and recommendations delivered at the initiative of Racing Minister Winston Peters to right a sport in dire straits, the Bill will put into action the first two phases of the review’s major proposals.

Key to this is the reconstitution of the New Zealand Racing Board into the Racing Industry Transition Agency Board (RITA) to drive change and allowing for the collection of revenue from overseas agencies providing betting services to New Zealanders.

RITA will have a new membership and a legislative mandate to manage the changes needed to revitalise the industry as well as to carry out business as usual functions.

The Bill also addresses the industry’s need for additional revenue and the totalisator duty currently paid to the Crown will be phased out, with the revenue returned to the industry.

Betting charges

It also introduces new charges on overseas betting operators to ensure they contribute to the New Zealand racing and sports codes from which they benefit. The Bill permits RITA to offer betting on a wider range of sports when an agreement is reached with Sport New Zealand.

“The revitalisation of this industry is underway. This Bill is an important first step, however while the race has begun we are still far from the finish line,” Racing Minister Winston Peters said.

“As a whole, these reforms serve to emphasise the value of racing in New Zealand.”

“The Racing Reform Bill lays out an opportunity to deliver real results, to grow this industry for the benefit of our regions, our communities, and our economy.”

Messara welcomed the news, but also cautioned there was still a long way to go.

John Messara welcomed the news but believes there is still a long way to go

“That was pleasing to see and a good start to the reform package and there’s obviously quite a bit more to do,” he said.

“I’m happy to see it happen and gratified that both sides of the House were supportive. Most, if not all, of what I’ve recommended needs to be done get the appropriate outcome.

“There’s a lot more to do in terms of more sensitive things such as the outsourcing of the TAB, commercial activities and the closure of racetracks.” – John Messara.

“There’s a lot more to do in terms of more sensitive things such as the outsourcing of the TAB, commercial activities and the closure of racetracks. I know these things are sensitive and have been talked about for 100 years. The time has come I think for people to seriously look at them in an unselfish way.

“New Zealand is lucky to have a Minister in the position Mr Peters is in. He’s taken the reform pretty seriously and is committed to it. It’s a good start.”

Chairman of New Zealand Thoroughbred Racing’s Board of Directors Alan Jackson echoed the comments of Messara, a highly-respected racing administrator and principal of Arrowfield Stud.

Alan Jackson, Chairman of New Zealand Thoroughbred Racing’s Board of Directors

”It’s certainly moving very quickly, very quickly indeed. It’s still got a little bit of work to do on it to get the detail and it now goes back to the implementation stage, but it was pleasing,” Jackson said.

“The main issues are obviously the creation of RITA and the race fields regime. It makes it very hard to compete without it.

"It’s certainly moving very quickly, very quickly indeed.” – Alan Jackson.

“A couple of the corporates have a voluntary thing at the moment, but it’s a large source of income that we haven’t been getting and having the Minister generously reducing over a three year period the remaining wagering duty.”

“If you look at our stakes and our investment in our industry we’ve just been falling behind the successful Australia states.

“It’s absolutely vital for our survival and we certainly didn’t want another couple of years of theoretical debate or anything like that. After the formation of RITA, the codes can look forward to working with that body in what is effectively a transition period.

“We can then get the levers to improve performance and a point of consumption tax and we’ve got to have it right to be competitive.

“It’s absolutely vital for our survival and we certainly didn’t want another couple of years of theoretical debate or anything like that. " - Alan Jackson

“Significant discussion has to occur and valuate the wagering services provided to the New Zealand market. With race fields coming into play there will clearly be additional options for New Zealand wagerers.”

Experienced administrator Dean McKenzie was appointed by Peters as chairman of a five-member Ministerial Advisory committee to report on major points for change as a precursor to the establishment of RITA.

Appointment lauded

That appointment in itself was hailed as a masterstroke by Te Akau principal David Ellis, New Zealand’s biggest buyer of yearlings.

“I’m just looking forward to RITA getting going because I’ve got a huge amount of confidence in Dean McKenzie,” Ellis said.

“I think he’s probably the best racing administrator we’ve seen in my lifetime. He’s very, very good and has a great understanding of the industry.

Te Akau principal David Ellis hailed the appointment of Dean McKenzie as a masterstroke

“He’s raced horses, he’s a punter and he’s everything that we need and that’s really encouraging.

“There are a lot of good things in the Bill that will help, for sure. Change can’t come soon enough.

“The Minister always said it would take time and he’s probably done really well to get a spot for legislation in the House of Representatives right now. It’s probably only because of his seniority that he can do that.”

Heartening news

Bloodstock agent Bruce Perry also took heart from the passing of the Bill.

“Across all parties it was encouraging and very positive and all the politicians that spoke on the Bill were very supportive, whether it was the Greens, New Zealand First Labour and National,” he said.

“A few of them have changed their tune from the first reading and they’re going to get in behind it.”

Bloodstock agent Bruce Perry and Mark Chittick from Waikato Stud

National’s former Racing Minister David Bennett was among those to support the initiatives.

“He was adamant that we’ve been given a lifeline by Winston Peters and congratulated Winston on all the work he’s done.” Perry said.

“He did say we have to make the most if it. He also said that we’re no different to any other primary industry, we all need to change and develop to go forward."