WELLINGTON - Individual racing clubs are to receive lump-sum payouts as the result of the Racing Industry Board's decision to pay out $3.1 million directly to them.
The extra funds were paid to the board recently by the TAB as surplus end-of-year profit.
There has been considerable debate over what would happen to the money, with the individual codes becoming involved in the discussions.
With the codes to be bulk-funded in the future, it was thought in some quarters that it might be prudent to use the current surplus in that way.
However, the board decided against that and has indicated it wants clubs to use the money to boost stakes.
Board chairman Rick Bettle said the board had spent considerable time identifying options so that the money delivered the maximum benefits to racing.
The board had been concerned about the plight of some clubs, which had already indicated they would be reducing stakes.
"We have determined that giving the money directly to racing clubs, as a top-up based on last year, and requesting that they pay it out as additional racing stakes, is the best way to go.
"Extra stakes will benefit owners and encourage a greater level of ownership, leading to bigger and better races with more opportunities for betting," he said.
The board would monitor clubs by analysing their financial performance, to see what use was made of the money and how it benefited racing. Bettle said.
The thoroughbred racing clubs will receive the main share of the payout, at $1.76 million, with $980,000 going to harness clubs and $370,000 to greyhounds.
The main beneficiaries will be the Auckland Racing Club ($225,000) and New Zealand Metropolitan Trotting Club ($216,000). Other big winners are the Auckland Trotting Club ($170,000), Waikato Racing Club ($114,000), Wellington Racing Club ($113,000), the Canterbury Jockey Club ($111,000) and Avondale Jockey Club ($108,000).
The Hawke's Bay Jockey Club will get $89,000 and the Manawatu Racing Club $62,000.
Bettle said the industry board had other reserves that it was looking to pass on to the industry.
However, no decision had been made on how to spend the $11 million received from the sale of Radio Pacific shares.
He said that was unlikely to be decided till the proposed new Racing Board came into being.
That board depends on legislation being passed to merge the industry board and TAB, but could be in place by next July.
- NZPA
Racing: Board uses TAB cash to boost club stakes
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