Big losses at Racing Queensland may foreshadow future reductions in rural and regional racing; are the South Burnett’s race clubs up for another round of cuts? (Photo: Ross Stanley)

Gunsynd's GossipJuly 17, 2015

Fifty years ago the Beatles released their “Help” album. And the lyrics of its stand-out hit “Yesterday”, first heard in 1965, seem an apt backdrop to this week’s worrying political developments.

Upcoming, unknown issues for country racing tie in with the lines “Yesterday … all my troubles seemed so far away. Now it looks as though they’re here to stay. Oh, I believe in yesterday…”

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2014-15 Budget Papers

Last year, the Queensland Department of National Parks, Recreation, Sport and Racing reported the following things:

  • The racing division has a 2014-15 operating budget of $85.4 million, including an allocation for corporate support.
  • In 2014-15, NPRSR will continue its important work to rejuvenate Queensland’s racing industry through funding for racing infrastructure projects, support for country race meetings and provision of integrity services to the industry, such as scientific, research and drug-testing services.
  • This year, the budget also includes $1 million to fund an additional 20 country race meetings as well as increased prize money, which will help to contribute to economic sustainability and employment in the racing industry.
  • Continued funding will be provided for major racing infrastructure projects across Queensland to meet future industry requirements. NPRSR will also conduct a major review of the Racing Act 2002.

2015-16 Budget Papers

This year, the Budget papers told a somewhat different story:

“In the current financial year, the Racing service area will deliver key Government commitments and initiatives by:

  • Contributing to the implementation of the accepted recommendations of the Commission of Inquiry into the Queensland Greyhound Racing Industry to strengthen and improve the integrity and public confidence in the industry
  • Reviewing the Racing Act 2002 to ensure the Act addresses contemporary developments in the racing industry
  • Continuing to fund major racing infrastructure projects
  • Providing $1 million to fund 20 additional country race meetings to contribute to regional economies and support the long-term sustainability of the Queensland racing industry

The last point is very gratifying, and indicates an intent to maintain the improvements made for rural racing in the past season. And if you’re interested, more financial details for the Racing segment are available in the Budget Papers: Part 5 Service Delivery Statements.

However there is also a vastly grimmer picture being painted.

Last Thursday, the Minister for Agriculture and Fisheries and Minister for Sport and Racing, the Honourable Bill Byrne, was quick to put oil onto the canvas.

The following July 16 media statement does not use bright colours:

 

“Consultation Begins To Get Racing Qld Back On Track”

Queensland Racing Minister
Bill Byrne

“Action must be taken to stem mounting and unsustainable financial losses at Racing Queensland”, Minister for Sport and Racing Bill Byrne said today.

Minister Byrne and Racing Queensland’s Acting CEO Ian Hall today released details of the scale of the task facing the industry and declared there would be broad consultation on Racing Queensland’s plan to secure a sustainable future.

In figures released today, Racing Queensland posted a $12 million loss in 2014-15 and was forecasting a deficit of $28 million in 2015-16.

Minister Byrne said it was clearly time to act.

“There are some tough realities to face and some tough decisions to be made,” Minister Byrne said.

“We all want to see racing thrive and grow in this state, but Racing Queensland can’t do that if it goes on haemorrhaging funds.

“The problem is stark – revenue assumptions from the past were wrong. The finances of Racing Queensland had a foundation built on rivers of gold that didn’t exist.

“Finding solutions will take time and it will require robust and realistic discussions – it will be difficult but it has to be done.

“We will also be consulting with staff from Racing Queensland, the Office of Racing, as well as union representatives.”

“Our focus now is on the future and what can be achieved if all stakeholders work together. There is no other choice. Laying the facts on the table is the first step.

“If we commit to this process we can ensure a sustainable future for Racing Queensland and help return public confidence to what has always been a proud, vibrant and economically important industry for Queensland.”

Racing Queensland Acting CEO, Ian Hall said that consultation would soon begin with industry.

“This is untenable for the viability of Racing Queensland and the Queensland racing industry as a whole,” Mr Hall said.

“We have no intention of facing further losses. All participants have a role and a responsibility to work towards returning Racing Queensland to profit and industry so we can continue to invest and grow the industry.

“Since the end of the financial year, we’ve worked hard to make efficiencies. We have found savings of $6 million, but that is clearly not enough.

“Over the past five years, revenue has increased by only 20%, while direct operating expenditure has increased by 32%.

“It is important that all stakeholders are fully aware of the financial position of Racing Queensland and the key issues that need to be addressed.

“We’ll be seeking input from the racing industry regarding making immediate savings to ensure we get racing back on a sustainable footing for the long term.

“To do this, we’ll be undertaking extensive consultation over the next two months to make sure the views of all stakeholders are heard – and that includes clubs, trainers, jockeys, drivers, owners and breeders.

“There will also be opportunities for individuals to have their say.”

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In-Digestion

The July 16 media release is broad-brush in nature. There are certainly no details as yet about where the costly over-runs may have occurred.

Clearly all the sectors will be pushing a barrow during the three months of consultation.

But at this early point, it is safe to say the usual claim that non-TAB racing does not contribute to the industry’s income will be raised.

This argument is short-sighted.

Junior Rugby League does not figure on television, the source of so much of the sport’s funding. But without that sport’s grass-roots development, there would not be a productive green field.

Similarly, rookie apprentice jockeys need opportunities. An insufficient number of rides equates with giving the game away.

The bush tracks also provide employment for several categories of riders, trainers and young stewards.

Hopefully the various associations will present that sort of evidence to the the powers that be so at least the status quo can be kept.

More thoughts will follow in the coming weeks as the facts underpinning the above assertions are meticulously disclosed.

The State Opposition also released its own response to Bill Byrne’s media release the same day. Here’s what they said:

 

“Queensland Racing Under The Scalpel”

Shadow Racing Minister
Jann Stuckey

Shadow Minister for Racing, Jann Stuckey says the Palaszczuk Government should be ashamed of the way it has treated Racing Queensland and former board members.

Ms Stuckey said the members of these boards have been treated with contempt and disrespect ever since the inquiry into greyhound live-baiting was announced.

Today we hear of a consultation process to get racing back on track, but this is too little too late, Ms Stuckey said.

Minister for Racing Bill Byrne flatly refused to meet with members of the RQ board despite repeated requests, yet saw fit to meet on three occasions with former Deputy Chairman and Labor donor Mr Barry Taylor.

In Parliament today the Minister broadcast a range of accusations about the management practices of RQ yet former members of the board were denied any opportunity to consult the Government on these matters.

Stakeholders have echoed these sentiments, reading about industry developments in the media because Labor is focussed on tearing down and shaming an entire industry rather than fostering a co-operative environment.

Minister Byrne has not been consultative at any stage of this process, instead instilling a culture of fear amongst the industry.

Ms Stuckey said the LNP had welcomed the recommendations of the MacSporran Inquiry for a complete overhaul of the industry and tough accountability measures.

If Labor is serious about those recommendations the Minister should have started with listening to the former members of the RQ Board and the strategies they had devised for multi-year growth and strong investment, instead he scratched them from any discussion processes.

Instead of consulting and listening to the reasons behind current financial positions this inexperienced Minister closed his door.

From my discussions with industry there were a number of unprecedented pressures including a $12 million loan repayment taken by the previous Labor Board for a stable complex on the Sunshine Coast and pre-planning costs for projects at Eagle Farm, Gold Coast and Albion Park.

All attempts to speak with the Palaszczuk Government to lessen these pressures were ignored and now the Minister is saying that prize money cuts will be considered.

This Government should stop talking down an industry that contributes $855 million to the State’s economy and provides 30,000 Queenslanders with jobs.

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What racing used to be like: a typical Eagle Farm race meeting in the pre-technology 1950s
(Photo: Queensland Turf Club)

Bits And Bridles

  • An historic photo of Eagle Farm (circa 1950s) has come to hand. It was taken before mobile barrier stalls were in use. The crowd shown in the picture was typical for a Saturday in the pre-TAB era. If you wanted a bet – legally, anyway – you had to be on a racetrack. Times were not easy, not lucrative nor informal but processes were much simpler than now. The three enclosures (the Paddock, St Leger and the infield Flat) catered for different-sized wallets and purses. City racing was held on Saturdays and public holidays with the likes of Southport, Oxenford, Gatton, Laidley, Esk, Hazeldean-Kilcoy and Beaudesert staging the mid-week meetings. Given all the dramas of this year’s racing across the nation, the unsophisticated customs of the days of yore had something positives that are missing today.
  • Glenthorn Avenue has proven to be a consistent money spinner for his Hivesville owner-trainer Lindsay Anderson. Last Saturday’s Wondai success with Hannah Phillips aboard was the ex-Victorian’s seventh since coming north. The Bel Esprit gelding has also registered nine placings. Although the bay was runner-up in the 2014 Nanango Cup, he will not head for the event’s 1 August renewal at Lee Park. Instead the six-year-old – who is not averse to mixing his distances – is likely to step out at Gympie’s dual code fixture on 25 July. That timing will give Anderson a chance to recover from the five day long stint as judge at Rockhampton’s Paradise Lagoon Campdrafting Festival. Lindsay is a figure of renown in the sport. Among his many credits as a competitor was the award for the Highest Overall Points Average at the 2013 Australian Campdraft Association’s National Finals that were decided at Kilkivan.
  • The South-East country corner’s premiership battles continue at Bundaberg this weekend. In the absence of his nearest rivals, Jason Missen gets a chance to add to his two-win lead in the senior ranks. In the Apprentices category, Billie-Rose Derbyshire (on 16) has a full book. Hannah Phillips is the nearest chaser, four victories adrift. Jed Hodge’s double at Wondai puts him a winner further back in third berth. Kerry Munce, the third placed trainer, was successful at Wondai but is still four short of Barry Gill, the pacesetter who has Unique Fuse engaged in the Gold Cup. It could be movement day for Darryl Gardiner. He has five runners across three races on home sand. Readers should note that the standings I’ve provided are provisional at present.
Billie-Rose Derbyshire wins for trainer William Melvin at Kilcoy; the Gympie apprentice aims to repeat the dose at Bundaberg on Saturday (Photo: Ross Stanley)

 

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