December 4, 2015
The South Burnett could lose up to four race meetings in future – and possibly more – under a controversial plan to rein in Racing Queensland’s escalating debts.
The “Tracking Towards Sustainability” report released on Thursday recommends Racing Queensland (RQ) strip $4.2 million from country racing as part of its drive to stem an expected $28 million loss this financial year.
It notes that although country racing provides a significant community benefit “there is no financial return to RQ”.
The report says RQ has been paying out too much in prize money and other costs while income from betting hasn’t risen.
It suggests a number of cost-saving measures as well as a move to favour TAB meetings (which generate revenue to RQ) over non-TAB meetings.
Recommendations include:
- The axing of the Country Queensland Showcase Series, the Celebrate Country Series and the Sustain Country Series, introduced by the LNP Government (this change could mean the Kumbia Race Club – granted an extra race meeting under the Sustain Country Series – would return to a single meeting a year)
- Clubs which hold between four and seven race meetings per year be reduced to three (this change could see the Nanango Race Club lose three of its six race meetings)
- Reducing prize money and slashing subsidies given to country race clubs to strip a further $5.2 million from Queensland country racing (the report proposes 20 per cent of the savings be put into a sinking fund which could be used to upgrade ageing infrastructure at country race tracks)
The report proposes that once Racing Queensland returns to financial stability, a portion of the savings be used to develop a regional “hub and spoke” model for country racing.
A central hub in each region would be upgraded to TAB status and race on a regular basis, while the remaining clubs would race once or twice a year.
If no South Burnett race club was selected as a regional hub, both Nanango and Wondai could both lose a further race.
However, the report also suggests racing clubs look for funding for extra race meetings from alternative sources such as “sponsors, regional councils and community action”.
If they can raise this support, Racing Queensland “will facilitate the conduct of any such meeting, agreeing an appropriate date with the club in question”.
“(Racing Queensland) may also be willing to provide an additional meeting or meetings subject to the club providing adequate subsidisation of the stewarding and race day costs incurred by RQ.”
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In a bid offset the impact of the Racing Queensland cuts, Racing Minister Bill Byrne immediately announced a $21 million Queensland Country Racing Support Program package.
He said the government would guarantee funding for country race clubs for four years.
Mr Byrne said the package would give regional clubs time to “adjust” to the reduced level of funding from Racing Queensland.
He said tough decisions needed to be made to return Racing Queensland to surplus but this should not be at the detriment of the regions.
“Living in Central Queensland I know firsthand the role that country race meets play in regional Queensland,” he said.
“It’s not just about the race meet. It’s the social aspect as well as the significant economic boost they bring for the small businesses in those communities.”
However, Mr Byrne said Queensland taxpayers shouldn’t be underwriting RQ which has a large portion of its spending going to prize money on horse races.
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The LNP says the proposed cuts are unfair and unnecessary.
Shadow Racing Minister Jann Stuckey warned that 60 race meetings across Queensland would lose their funding and up to $19 million of prize money would be cut out of the industry.
“All year I have been championing the push to retain funding for country racing and today’s announcement is a huge blow to the industry,” Ms Stuckey said.
“The industry is already angry and upset at being used as a political football by Racing Minister Bill Byrne and today is another slap in the face.
“This incompetent Labor government is holding Racing Queensland back and only released the ‘Tracking Towards Sustainability’ report after months and months of pressure from the Opposition.
“Now the document has finally been released, the Minister has shown his true intention – to cut, slash and attack the racing industry.”
Ms Stuckey said the decrease in prize money would seriously impact on Queensland’s ability to compete against other States.
“The report indicates $4.6 million will be cut from country racing prize money while $8.5 million will be cut from the thoroughbred racing prize money,” she said.
“NSW are increasing the amount of prize money for races, attracting more quality racing product, while Queensland is left languishing behind other States.”
Ms Stuckey said after 10 months, Labor’s agenda for racing in Queensland was now clear and the picture wasn’t pretty.
“Labor has forced Racing Queensland to do all the heavy lifting, cutting costs all over the place, while it continues to maintain the same wagering tax revenue,” she said.
Ms Stuckey said Mr Byrne also had questions to answer about the costs associated with the greyhound inquiry.
“The acting CEO’s wage is expected to reach $1 million, $600,000 was paid for security and kennelling of greyhounds and potentially millions in out-of-court payments to trainers whose dogs were illegally seized,” she said.
“The costs for establishing and maintaining the Integrity Commission and Commissioner are yet to be released while the new Board is still unannounced.
“The fact remains that Racing Queensland is leaderless, rudderless and without direction.”
- The 97-page report Tracking Towards Sustainability report can be downloaded from Racing Queensland’s website
- Additional comment: Gunsynd’s Gossip
