Waverley Cup horse racing. The Racing industry is undergoing legislative changes.
Waverley Cup horse racing. The Racing industry is undergoing legislative changes.
COMMENT
In April 2018 the Minister for Racing commissioned Mr John Messara to assess the state of the New Zealand racing industry.
He produced the review of the New Zealand racing industry report, which confirmed the industry was both in decline and at risk, necessitating intervention.
The intervention began withthe Racing Reform Act 2019 to bring into effect a period of transition along with a number of measures to increase the financial sustainability of the industry.
To realise the full benefits of these reforms, further legislative change is required.
The Racing Industry Reform Bill finalises the post-transition governance structure of the racing industry; enables new ways of seeking approval for betting products; and perhaps most controversially, proposes to create a legislative framework to enable the sale and transfer of property.
On Tuesday, the Racing Industry Reform Bill had its first reading in Parliament.
As National's spokesman for racing I obviously have a vested interest in this piece of legislation.
I can also claim some history and a long-standing interest in racing, having previously served as president of the Rangitikei Racing Club along with my grandfather and great-grandfather before me.
National was happy to support the bill through its first reading to the select committee stage - in order to allow industry participants and interested parties an opportunity to have a say in the future of their industry.
Some of the bill, for example Part 5 which introduces off shore betting charges, is very much along the same lines as the Racefield legislation we introduced in our last term of Government.
Rangitikei MP Ian McKelvie who is National's spokesman for racing.
However, we have some genuine concerns about other sections. In particular the inclusion of Subpart 2 - clauses 21-27, which is clearly the most controversial part of the proposed new legislation and relates to the sale of current industry assets including land.
Clause 22(3) doesn't really force the respective code (NZTR, HRNZ or NZ Greyhounds) to actually give anything back to the community with respect to land and asset sales, rather it seems it is only if they feel it necessary.
While clauses 24-25 are even more concerning in that they allow an Order in Council, as recommended by the minister, to claim these properties if an agreement can't be reached with the local clubs.
While the Government claims there are some mitigations, it is worth noting the code and club are required to pay for the cost of the review should the minister appoint an independent reviewer for any particular case.
National would certainly struggle to support this part of the new legislation as worded. We will await the outcome of the select committee process before determining our final position at the second reading.
The racing industry employs more than 50,000 people either directly or indirectly, and has an economic impact exceeding $1.6 billion a year.
I will continue to take an active interest in the future development of an industry which has a proud history and a promising future in the Whanganui and Rangitikei regions.
I would encourage all interested parties to review the Racing Industry Reform Bill and present submissions to the select committee.
