The future of Avondale Racecourse remains contentious.
After a year of enormous change, the racing industry could be about to see one at the absolute highest level.
While industry participants rarely universally agree on anything, the one fact nobody denies is Minister of Racing Winston Peters has been enormous for the industry, instigating sweeping change, starting with the Messara report through to being crucial to getting a Covid relief package for the industry approved.
But there is far from any guarantee Peters will still hold the job next week, and the industry could have a new minister at a crucial time when key appointments will have to be made at TAB New Zealand board and chief executive level.
Then there are the hot button issues of track closures and potential outsourcing or joint venturing of TAB NZ's core functions, which will also be decided by whoever holds the reins of New Zealand racing for the next three years.
So the Herald asked the three parties most likely to supply the next Minister of Racing how they see some of the key issues facing the industry.
Along with Peters, answers were supplied by Labour's Grant Robertson and National's Ian McKelvie.
1. The horse racing industry has undergone huge change in the past 18 months. Are you happy with its direction?
Winston Peters: We are encouraged by the direction and progress made. It has been positive because we had the Messara review, passed two new racing Acts, removed the old Racing Board, refocused the TAB and gave new mandates to the codes. It was vital work to set a new direction for the industry. Of course Covid posed an existential risk, so as minister, I had to push hard to get a $72.5 million rescue package, including funding for two new synthetic tracks. So we are bringing the industry back from the brink that Messara warned about. This is a positive, but nobody in this industry, from top down, can afford to rest on their laurels.
Grant Robertson: The racing industry is an important industry and is estimated to contribute $1.6 billion to the New Zealand economy. There is no doubt things had to change to keep the sector functioning, safe and sustainable. In government, we passed the Racing Bill to support the industry in response to the Messara report. This bill was supported by all parties in the House. We are now on track for the industry to re-orientate itself to a modern world and to give opportunities for employment and breeding success.
Ian McKelvie: The industry is now set up to put a governance structure in place that will see it into the future, provided the right people are appointed to those boards, and we (National) would work closely with the industry and Sport NZ to ensure that happens. I also think that post-Covid, the industry has a sound base and a newfound enthusiasm which will evolve as they continue to recover from the serious disruption caused by the Covid lockdown.
2. What do you see as the key challenge for the racing industry in the next political term?
Peters: The key challenge is maintaining momentum. We have created the tools. Now we need to use them to make this industry reach its true potential. We must develop better leadership, seriously improve prizemoney, develop an innovation attitude and resolve the issues of dated infrastructure. As well, more work is needed to grow our bloodstock industry and achieve fairer tax treatment.
Robertson: Like many industries in New Zealand, Covid-19 has had a significant impact on the racing industry, and recovery from this will be a key priority for the industry. In government, we announced a $72.5 million Covid-19 emergency support package for the racing industry to help it respond to Covid-19. We now need the work of the Racing Industry Transition Authority (RITA) to come to the fore to lead the transformation.
McKelvie: Encouraging people into racehorse ownership, and to achieve this, people need to have fun and be able to have the anticipation of some return, both through better stakes and a strong international horse market. Our recently announced racing policy will assist the industry to move with some urgency to address these factors and ensure the industry has the people and infrastructure in place to move forward confidently.
3. Do you agree with the proposed centralisation of racetracks, including the closure of some racetracks predominantly in the regions?
Peters: Yes. Back in 1970, the Royal Commission into Racing by Sir Thaddeus McCarthy called for race track consolidation. Messara identified consolidation as essential. And the industry has been working on this as part of its future venues plan. Racing has been in a battle for survival, and for too long, it has failed to address or take hard decisions. Of course, the Government's financial support for all-weather tracks is an important component.
Robertson: The future viability of tracks around the country has been a topic of conversations for decades within the racing industry and the racing industry has said that some tracks are unsustainable. We need to ensure we have a racing industry that is financially viable into the future. RITA was established to help lead this work. It is important to note that any track closure is a decision made by the racing codes and clubs.
McKelvie: This is entirely a process for the industry to manage and the recent Racing Act puts in place a process that the industry can use if it wishes to pursue this rationalisation. The recent challenges facing racing will inevitably mean that this will evolve at a much greater pace than has previously been the case.
4. Do you believe Avondale racecourse should be closed for the financial benefit of the thoroughbred industry?
Peters: It depends. And what will it cost to bring Avondale up to the mark? As minister, I want to see racing booming in Auckland, with excellent events. All rational options to achieve that objective should be investigated.
Robertson: We have heard views from locals who are concerned but it is important to note that any track closure is a decision made by the racing codes and clubs. The Avondale Racecourse should be working closely with the overall codes.
McKelvie: Again, I believe this is a decision the industry must work through to produce the best possible outcome for the future of racing in the Auckland region, and on the face of it, the region probably struggles to economically maintain three courses. I do not believe this is a decision for politicians to make.
5. Do you ultimately see TAB NZ being outsourced to an overseas betting partner or a major joint venture being entered into to maximise returns to the racing industry and New Zealand sports?
Peters: If the second option's numbers stack up as a business proposition in the best interests of the New Zealand industry, then yes. It certainly needs to be examined.
Robertson: We believe the TAB should remain in New Zealand and would not want to see the TAB being outsourced to an overseas betting partner or a major joint venture.
McKelvie: I believe the critical factor facing the industry right now is to ensure the appropriate skills are appointed to the TAB board. If the board can access the best possible mix of skills, then this will enable them to make the best decision for the future of racing and the TAB as we move forward. If outsourcing is the best outcome, then so be it.
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