The New Zealand racing industry was in a desperate state before the coronavirus outbreak, which halted racing on March 24. Racing was set resume on July 3 with a flat stake level of NZ$15,000 for the 13 meetings to be held next month.

Tuesday’s announcement by Minister for Racing Winston Peters of a NZ$72.5 million COVID-19 emergency support package includes a relief grant for the Racing Industry Transition Authority (RITA) and funding for the construction of all-weather tracks at Awapuni and at Christchurch, while work is already under-way for the first surface at the Cambridge training centre.

Peters delivered news of the support package, which he described as the beginning of a lengthy recovery process for the future financial sustainability of the New Zealand industry.

“We can’t gild the lily. The racing industry has been hit by the perfect storm of COVID-19 while in a weak financial state and in the midst of a reform program,” he said.

“As a result, there is a genuine risk of insolvency and the industry losing the future gains of its reforms.

“The Government has a respond, recover, and rebuild strategy for COVID-19. This announcement is the first step toward a long term restoration of racing. "

The support package consists of a NZ$50 million dollar relief grant for the RITA; up to NZ$20 million in funding to construct two new all-weather race tracks and NZ$2.5 million for the Department of Internal Affairs to fast track work on the online gambling revenue and address loss of revenue impacts on community and sport groups.

“Of the immediate grant, $26 million will be used by RITA to pay its outstanding supplier bill, which it hasn’t been able to do because of strangled revenue,” Peters said.

“The other share of this package will ensure RITA, and each of the racing codes, can maintain a baseline functionality and resume racing activities.”

Last week, RITA announced proposed staffing cuts to the TAB in response to the impact of COVID-19.

The proposal included a reduction of approximately 30 per cent of roles across all areas of the organisation and is in addition to other cost saving measures aimed at reducing total expenditure.

The detail of the proposal would see the business becoming leaner, more efficient and with increased commercial and customer focus.

The scale of change presented to staff was required to ensure the business was sustainable for the future and best placed to meet the needs of New Zealand racing and sport, RITA Executive Chair Dean McKenzie said.

Following the initial consultation process, final decisions will be announced later this month.

“The racing industry is seriously underestimated for its economic contribution. For this reason, the Government will also consider recapitalising the industry to help promote a quicker recovery and achieve a greater economic outcome,” Peters said.

“Past studies indicate racing contributes NZ$1.6 billion to the economy each year. There are 15-thousand full-time racing industry jobs and nearly 60,000 jobs which participate in the industry in some shape – from vets to equipment suppliers, and owners. New Zealand bloodstock is world class and a significant export earner.

“Over the next three months officials will assess recapitalisation options. Ministers will need to be assured industry reforms are making progress to ensure any such future investment is well directed.”

The Government has also approved up to NZ$20 million dollars from the Provincial Growth Fund (PGF) to construct two new synthetic race tracks. The intention is to have one located at Awapuni in the Manawatu and the other at Riccarton Park in Christchurch. The construction of a track in Cambridge is already underway after receiving NZ$6.5 million in PGF funding.

"Whilst the NZ$20 million has been approved, the next step is for RITA and the codes to consult with the local race clubs on the terms behind these projects,” Peters said.

“COVID-19 has also impacted on funding available to community and sport organisations which receive a share of gambling revenue. There has also been an increase in New Zealanders gambling offshore throughout online platforms.

“Both trends are concerning. For that reason the Government is fast tracking a program of work by the DIA to re-evaluate the gambling framework of our community, sporting, and racing groups.”

Peters has unveiled a major injection of funds for the Racing Industry Transition Authority (RITA) and for the construction of all-weather tracks at Awapuni and at Christchurch to complement one already under construction at Cambridge.

Industry figures we spoke with were all delighted and relieved racing’s economic importance had finally been recognised at a national level.

National Trainers’ Association President Tony Pike, who also runs a highly-successful stable at Cambridge, welcomed the news and desperately needed financial assistance.

“It will be interesting to get a bit more detail on everything and obviously it’s a big thanks to the Government with what they have come out with,” he said.

“The response was part of my question to RITA a couple of weeks ago and it’s answered that. With the state of the industry pre-COVID-19, RITA needed a capital injection to pay outstanding debts and have some working capital to continue on until domestic racing and sports betting gets back up and running again.

“I’ve always said it’s not the current RITA Board that has put us in this mess, it’s obviously previous Chief Executive Officers and management teams.

“Hopefully, the Racing Reform Bill will go through before the next election and with this capital injection we’re all hoping there will be a financial platform that we can go forward from.”

Pike said the benefits of synthetic tracks would be major and Peters had been true to his word in pressing for funding and construction.

“To be fair to Winston, he’s been very strong on that and it was in the Messara Report and he’s always been very pro-active to get the industry the three synthetic tracks.

“The Cambridge track is looking fantastic and we’ve walked around it a fair bit during the lockdown and it’s going to a fantastic surface.

“It will be a great asset to New Zealand, whether people like synthetic tracks or not, they have become accepted worldwide with consistency of form. It will give our horses much better opportunities with reasonable track surfaces through the wetter parts of the year.

“It will be a huge help to get our horses ready for spring targets, which has been quite difficult to get to.”

Costs out of hand

Cambridge Stud’s Brendan Lindsay praised Peters for his efforts, but said it was crucial to rein in administrative costs and follow sound business practices.

“We’re welcoming the news with open arms, but there’s still a big task ahead. I’m pleased that they are dealing with the overhead costs, which has been one of the biggest problems,” he said.

“I can’t understand why it’s taken so long to deal with this - the cost of running our industry. You have to address fundamental issues and I hope this is the first step.

“Obviously, RITA has got a problem and has to pay NZ$26 million to creditors and said they are going to cut a third of their staff. I would have been a bit tougher if it was me, but you have to start somewhere.

“It’s been frustrating waiting 18 months, but at the same time a lot of us have had faith in the Racing Minister and good on him. I don’t think anybody else would have been able to get this across the line.”

Lindsay was also delighted to see provision made for two further all-weather tracks at Awapuni and Christchurch to the one currently under construction at Cambridge.

Well played Minister

New Zealand Bloodstock Managing Director Andrew Seabrook said the Minister deserved major credit for his support of racing and delivering such a package.

“It’s great news and we should thank Winston Peters because there are plenty of other struggling industries that won’t be getting a hand-out.

“I think his acknowledgement of what an important contribution the industry makes to the New Zealand economy was significant. He’s put his words into action with a NZ$72.5 million bail-out.

“It will give industry stakeholders some much-needed confidence at this time. From a breeding point of view, it will give those people that were sitting on the fence about breeding their mare this year.

“From a racing point of view, I think it will make some of our people thinking about going to Australia hopefully staying put in New Zealand and committing to making us grow stronger.

“It’s good to have funding for those synthetic tracks too. The Government has been spending a lot of money lately and as I say, there are other industries that won’t be getting a hand out like this.

“It’s come at a much-needed time – I can’t emphasise that enough. I think Winston has done his job and it’s great for our industry.”

Major supporter

Te Akau principal David Ellis has been a massive supporter of the industry as the country’s biggest buyer of yearlings and with a significant training operation at Matamata under head trainer Jamie Richards.

“It’s a fact that COVID-19 has changed the world and our industry is certainly not exempt,” Ellis said.

“We all know change is needed and we are fortunate we have a government that values the racing industry and the contribution it makes to the economy and that’s both domestically and in export dollars. I just hope as an industry we are proactive and we finish up with a leaner, sharper and more efficient industry that can go forward.

“The leadership now has the financial support and legislative framework to make tough decisions and they are necessary for the future prosperity of the industry. "

Ellis said the introduction of all-weather tracks would also bring long-term benefits to the industry.

“We have very long winters in this country and with these tracks we can firstly trial on them and then race. That will enable us to have less racecourses and make overall savings and not have the costly abandonments of meetings we’ve had in recent years.”

Confidence-booster

Brighthill Farm’s Nick King said he drew great confidence from the Government’s acknowledgment of the importance of the thoroughbred industry to the country.

“This shows we are an industry of value to the government and for me that’s the most important thing to come out of it. It’s unbelievable and can only applaud the Minister and the Government for what has been done and that they’ve recognised the contribution the racing industry makes.

“We’ve been given a wonderful opportunity and let’s hope as an industry we can make the very most of it. We have to look at different ways of doing things, as do other industries, and out of crisis can come opportunity.

“The Government really has grasped the importance of our industry. There has been frustration as we all know about how good it can be and now we’ve the chance to do that.

“It’s a wonderful decision and package and I can only applaud them and now we can get on and fully implement the Messara Report.”

Dream track

A dream will come true for leading Riccarton trainer Michael Pitman, who operates in partnership with son Matthew, with funding for an all-weather track at his home base.

“I’ve been very constant in my wish for a synthetic track for 10 years,” he said. “The synthetic tracks in Victoria get supported by all the best trainers.

“I’ve been to Singapore, Hong Kong and England where they race on a lot of synthetic tracks. It is not just the racing, but the training of horses in winter and getting them ready for spring racing, I think it is a big plus.

“There is probably nobody in Christchurch that has a bigger commitment to racing than myself, Diane and Matthew. We have our own property with stabling that is worth seven figures and we rent off the Christchurch Jockey Club.

“I would like to put it out there that Riccarton could stand racing every week. A lot of people will object to it and country racing at Christmas will always have its place, but to put out a product for people to bet on, there is no better place than Riccarton. "

Timing important

The reality of a synthetic track at Awapuni has also been received with delight by Alasdair Robertson, Chief Executive of RACE Group, who operates both Trentham and Awapuni racecourses.

“It is something that we have been working on for four or five years,” Robertson said. “We have been very committed to it as part of our masterplan for not only Awapuni, but for the Central Districts, and New Zealand racing.

“The fact that Winston has come out and given certainty to it at this time, when we are all in desperate need of assistance, is amazing. We really couldn’t praise him enough for doing that. His timing has been very important.”

Robertson also acknowledged Peters’ announcement has breathed an air of optimism back into the racing community.

“It is going to give hope and optimism to a huge number of people who have been pretty despondent with the TAB situation and COVID-19,” he said. “It is also going to give us the blueprint to grow fantastically into the future. It is very exciting.”

Andrew Williams has heeded the wise counsel drummed into him from his industry mentors, having consistently been told to travel the world and learn from the best.

Williams followed that sage advice and left his home shores of New Zealand to complete the renowned Godolphin Flying Start followed by an extended stint in the horse capital of Lexington, Kentucky.

He continued to soak up as much knowledge and information as possible from luminaries such as John Messara and John Hawkes when moving to Australia in 2014, before taking the plunge to establish Andrew Williams Bloodstock based out of Sydney.

But it all started back home in the Waikato, the heartbeat of New Zealand’s breeding and racing industries.

“I was born in Matamata, before moving to Cambridge. Both of my grandparents owned and trained racehorses at one point in their lives,” Williams said. “My godfather is Lance O’Sullivan, the champion jockey. My close family friend growing up was Aliesha Moroney so after school I’d always be at either the O’Sullivan or Moroney stable.

“I also worked at then neighbours Alan and Linda Jones’ racing stable during the school holidays, which was next to the Windsor Park Stud, so was always around the industry in some way, shape or form.

“Alan and Linda’s daughter Clare Hawkes (nee Jones) was like a big sister. She married Michael Hawkes and I became close to the Hawkes family when moving to Sydney.

“I inspected a lot of yearlings at sales with John Hawkes, who is an incredible judge of a yearling and master trainer. I learned a hell of a lot from Mr Hawkes, and still do.”

Travelling the world

At the end of his high school days, Williams moved to Dunedin and graduated from Otago University after studying business.

“I loved it at Otago studying, playing rugby and working in the marketing division of Lion Nathan learning valuable life lessons before completing the Flying Start program, which was the experience of a lifetime,” Williams said.

“During the scholarship, I spent time working at Lindsay Park and got to know David Hayes, Pilko (Mark Pilkington) and Jenny McAlpine, those relationships have been very important to me. I work closely with the team there now and continue to learn a huge amount from them.

“Upon graduating from the Flying Start, I accepted a job offer at Darley America while Olly Tait was CEO there. I was meant to be there for six months and ended up staying for four years. It really set me up with a great skill set and knowledge of the American industry for the future.

“I was in a sales role with a sharp team around me. The American approach to sales is fast and determined and was a good working mentality to get myself into, straight out of the education provided by Flying Start.

“Olly was very good to me and taught me a lot. So did Tony Holmes, a New Zealander living in Lexington. Tony is a very good breeder, genuine good bloke and incredibly astute at trading horses. I was doing business with him, buying into mares and learning the art of the trade through the claiming market.

“That was my first foray into the trading side of the business and I learned a hell of a lot with him over those three years.”

Holmes operates Marula Park Stud in Kentucky where he and wife Susan breed from a boutique band of broodmares. The G1 Breeders’ Cup Juvenile winner Stevie Wonderboy (USA) (Stephen Got Even {USA}) and the G1 Breeders’ Cup Turf winner Dangerous Midge (USA) (Black Tie Affair {USA}) among their graduates.

Williams spent four years in the United States before returning to Australia and joining the team at Arrowfield Stud.

“I was waiting to come back for a particular role and when the opportunity arose through an introduction to John Messara, it was a terrific opportunity selling stallion nominations and yearlings at Arrowfield,” he said.

“I was grateful to be dealing with the higher end bloodstock, which exposed me to Australia’s leading owners, breeders, trainers and agents.

“I was always watching closely during inspections and got to work out what types of horses individuals like, especially those brilliant judges like Paul Moroney, Guy Mulcaster and Dean Hawthorne.

“I learned an awful lot from John Messara, Jon Freyer and Martin Story and I tried to soak up as much knowledge as possible. It was just amazing learning from them and listening to all the stories of how Arrowfield was established, the challenges they went through over the years and how it grew to be what it is today. What John went through to achieve what he has, is truly amazing.”

Solo career

He then decided the time was right to branch out on his own as Andrew Williams Bloodstock.

“It was a struggle early on. A lot of sleepless nights and a couple of bad payers taught me a few valuable lessons, which were pretty scary, but I was hungry to make this work,” he said.

“I was in my late twenties, without kids or a mortgage, plus I had always had a dream of running my own business. Being self-employed has shaped my lifestyle more than I thought, it is obviously heavily influenced around the sales and racing calendar.

“It’s very consuming from December to June and at some times out of control, always trying to be on the front foot. Thankfully, I’ve learned important skills from business coaches and mentors whereby you look after yourself mentally and physically and learn to switch off, even if it means going for a run just to clear your head.

“The most gratifying sense of achievement is getting a deal over the line for a client. But we all know horses can fail on inspections, vetting and then somebody might pull out of a deal.”

A special mare

A watershed moment for Williams was his involvement in securing a holding in Verry Elleegant (NZ) (Zed {NZ}) for clients. She had won two of her first three starts in New Zealand before joining Chris Waller’s Sydney yard as a 3-year-old.

As they say, the rest is history and she went on to win the G1 Vinery Stud S. and the G1 Australian Oaks and this season added the G1 Tancred S. to her impressive resume.

“Verry Elleegant will always be so special to me, winning that first Group 1 and going on with it for some fantastic owners. I’ve been able to grow the business off the back of that,” Williams said.

“I’m looking and learning the whole time. It’s a fickle industry and you’ve got to be resilient, but there’s always a chance to win Lotto. There’s a chance to get that big result, whether it’s buying a progressive tried horse, a yearling, a pinhook or a mare that gets a significant update, and that’s why it’s so addictive.”

Williams also has outside interests, albeit closely tied to the thoroughbred industry, and another that ensures he can celebrate his day job successes in style.

“I love trading cattle and love learning about wine especially given the similarities to the horse industry - crops/vintages, breeding/blends etc. If I wasn’t in horse racing, I’d be a cattle farmer or making and selling wine. Wouldn’t it be nice to combine all three one day,” he said.