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Industry update - Outcome of inaugural RITA Board meeting


Chief Stipe

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17 July 2019
NZ Trotting Owners’ Association Inc
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NZ Jockeys Association
NZ Thoroughbred Breeders’ Association
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NZ Standardbred Breeders’ Association


The Racing Industry Transition Agency (RITA) Board met in Wellington for the first time on Wednesday, 10 July.


The agenda was extensive covering progress with the implementation of the recommendations in the Messara Review; the development of regulations necessary to give effect to the provisions of the Racing Reform Act; and a detailed discussion about distributions next season in the context of the ongoing development of the RITA budget for the 2019/20 year.


I am pleased to confirm that on the basis of that discussion the Board agreed that:

  • Distributions to the Codes for the 2019/20 season will be held at the current level of $151.6 million. This will enable Codes to continue to pay stakes at the same level as this season and deliver the agreed racing calendar.
  • RITA will increase the amount of money available through the Industry Enhancement Fund to $4.0 million in the 2019/20 year, to be applied across Stakes, Infrastructure, Youth and Promotion of Racing.


A working group, to be chaired by RITA CEO, John Allen and comprising DIA and RITA representatives has been formed to progress as a matter of priority for the industry, the regulations required to give effect to the new revenue streams established under the Racing Reform Act. We are making good progress in dealing with a range of complex issues in relation to the regulations and will provide a further update in the next few weeks.


There are, as you will all be aware, continuing challenges with the sports’ margin in RITA’s betting business. While the management team is confident that this will normalise over time the Board has required further work to be undertaken to reduce expenditure so as to increase confidence in our
ability to support the agreed distribution level for next season. This work will be reviewed at our next meeting on 23 July, and we will report further on progress.


This is just the start. There is a great deal to be done over the next few months. The passing of legislation and the establishing of the RITA Board puts us in a unique position to implement the changes required to sustain the industry in the long-term. Completion of the regulations and the finalising of the second Bill are now firmly in our sights.


Yours sincerely,
Dean McKenzie
Chair

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  • Distributions to the Codes for the 2019/20 season will be held at the current level of $151.6 million. This will enable Codes to continue to pay stakes at the same level as this season and deliver the agreed racing calendar.

How are they managing to keep the distributions at the current level with the drop in revenue?

Also weren't we promised INCREASES?

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46 minutes ago, Chief Stipe said:
  • Distributions to the Codes for the 2019/20 season will be held at the current level of $151.6 million. This will enable Codes to continue to pay stakes at the same level as this season and deliver the agreed racing calendar.

How are they managing to keep the distributions at the current level with the drop in revenue?

Also weren't we promised INCREASES?

I think we were...somewhere...but given the performance of the TAB platform only the seriously deluded would have believed that, surely?.....and perhaps the RITA board were able to negotiate a further term of borrowings.....

Edited by Freda
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1 hour ago, Chief Stipe said:

There are, as you will all be aware, continuing challenges with the sports’ margin in RITA’s betting business.

I thought the new betting platform was going to improve margins!

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1 hour ago, Hedley said:

Dean McKenzie will be rubbing his hands together now that the time for closing and selling up tracks is nigh..this has been his wish for the last 20yrs

Considering he is a Southlander, you would think he would be supporting the regions...that's sad to hear....but as you know, you can't sell what you don't own.

Edited by Freda
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11 minutes ago, Freda said:

Considering he is a Southlander, you would think he would be supporting the regions...that's sad to hear....but as you know, you can't sell what you don't own.

They are going to try Freda, perhaps thats where they are getting the $$$ to keep the distributions at the same level.

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Shouldn't think so, that will take a long time - if ever - to get their hands on club assets.

I'm not saying some rationalisation shouldn't happen, but at gunpoint doesn't seem the way to me.

Just a thought - the ' world class facilities ' spoken of by some would be better expedited by selling off the rest of Riccarton Park ( which is a park no longer ) to go with the area already flogged off for housing, and develop from scratch out further, West Melton way or out more, on light, free draining soil.

The funds garnered by forcing country areas to give up their assets would be peanuts by comparison.

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22 hours ago, Hedley said:

Dean McKenzie will be rubbing his hands together now that the time for closing and selling up tracks is nigh..this has been his wish for the last 20yrs

Can you provide factual back up for this  comment or is it just a personal observation. I have seen no evidence from any report or group he has been involved with that says what you are saying above. I look forwards to your reply

 

Greg

Edited by JJ Flash
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1 hour ago, JJ Flash said:

Can you provide factual back up for this  comment or is it just a personal observation. I have seen no evidence from any report or group he has been involved with that says what you are saying above. I look forwards to your reply

 

Greg

he was on a forum televised about 15yrs ago and stated  of the afirmative To this. Campbell Moncurr also spoke in the afirmative on the same forum.

That's all you're getting from me you Hotshot!

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1 hour ago, JJ Flash said:

Can you provide factual back up for this  comment or is it just a personal observation. I have seen no evidence from any report or group he has been involved with that says what you are saying above. I look forwards to your reply

 

Greg

Read attached report.  Recommendation to rationalise the number of racecourses from 48 to 28.  I've extracted the relevant recommendations for you (Page 12 - items 12 to 14 inclusive).  Note further legislation is being drafted to implement these changes.  Read and weep!

12) Clarify legislation to vest Race Club property and assets to the Code regulatory bodies for the benefit of the industry as a whole.


13) Reduce the number of Thoroughbred race tracks from 48 to 28 tracks under a scheduled program. This does not require the closure of any Club.


14) Upgrade the facilities and tracks of the remaining racecourses with funding generated from the sale of surplus property resulting from track closures to provide a streamlined, modern, and competitive Thoroughbred racing sector capable of marketing itself globally.

Review-of-Racing-Paper-1-Overview-of-the-New-Zealand-Racing-Industry-and-Identified-Issues-May2019.pdf

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2 hours ago, Chief Stipe said:

 

 

2 hours ago, Chief Stipe said:

Read attached report.  Recommendation to rationalise the number of racecourses from 48 to 28.  I've extracted the relevant recommendations for you (Page 12 - items 12 to 14 inclusive).  Note further legislation is being drafted to implement these changes.  Read and weep!

12) Clarify legislation to vest Race Club property and assets to the Code regulatory bodies for the benefit of the industry as a whole.


13) Reduce the number of Thoroughbred race tracks from 48 to 28 tracks under a scheduled program. This does not require the closure of any Club.


14) Upgrade the facilities and tracks of the remaining racecourses with funding generated from the sale of surplus property resulting from track closures to provide a streamlined, modern, and competitive Thoroughbred racing sector capable of marketing itself globally.

Review-of-Racing-Paper-1-Overview-of-the-New-Zealand-Racing-Industry-and-Identified-Issues-May2019.pdf 1.22 MB · 2 downloads

Thanks Chief but surely there is nothing in their that says what Hedley posted that the RITA chair wants to close courses down and sell them .

These are recommendations from Government acting on the Messara report. All the board and management of RITA can do is carry out the Minister of Racings wishes.

 

Greg

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On 19/07/2019 at 3:19 PM, Freda said:

Considering he is a Southlander, you would think he would be supporting the regions...that's sad to hear....but as you know, you can't sell what you don't own.

Methinks your closer to the truth than the other poster Freda,

 

Greg

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2 hours ago, JJ Flash said:

Thanks Chief but surely there is nothing in their that says what Hedley posted that the RITA chair wants to close courses down and sell them .

These are recommendations from Government acting on the Messara report. All the board and management of RITA can do is carry out the Minister of Racings wishes.

 

Greg

Connect the dots Greg , you might have to go a fair way back but its all in the pipeline.

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Every single appointee on that RITA board would be supportive of the sale of the club assets , what does that tell you about the future of racing? Nothing has changed with RITA being installed in fact you've got yourself a more prolific,focused and entitled group than you've ever had before . Their focus is top end only not the common racing person, it'll destroy NZ racing and the community that its based on.

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I don’t agree with you. McKenzie is from the Provence’s even though he’s operated in the big Cities, Wellington and Christchurch. 

Riverton will be his test that’s for sure. They have a million in the bank through farming and prudent management yet Saundry and his team think that they should sell up and relocate to Ascot Park, probably so that NZTR can then get their hands on the money. 

I don’t think it will happen!

Beau

P.S. The results from his time at Trentham don’t say that he’s a superstar, so let’s see what unfolds. I actually think that he’s on a hiding to nothing, although probably well paid. 

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14 hours ago, Dark Beau said:

I don’t agree with you. McKenzie is from the Provence’s even though he’s operated in the big Cities, Wellington and Christchurch. 

Riverton will be his test that’s for sure. They have a million in the bank through farming and prudent management yet Saundry and his team think that they should sell up and relocate to Ascot Park, probably so that NZTR can then get their hands on the money. 

I don’t think it will happen!

Beau

P.S. The results from his time at Trentham don’t say that he’s a superstar, so let’s see what unfolds. I actually think that he’s on a hiding to nothing, although probably well paid. 

I sure hope you are right...Riverton is a lovely track, Invercargill a very poor second.

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On 21/07/2019 at 1:02 PM, Mark D said:

McKenzie is the epitome of the modern day CEO - never stays in the job long enough for the chickens to come home to roost although the rumours abound.  Not to be trusted IMO

Listened to him for the first time via the podcast.

Very disappointing. Not a fluent speaker and beats about the bush basically saying nothing. Never nails the topic on the head.

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Let's face it..

..poor McKenzie was being interviewed by a feckless neophyte in Earily....

...he had to get down to Earily's level of gross ignorance on the subject at hand...

..don't worry about Deano...he's got the record behind him...along with the likes of Vella Fella and Dame Christie McDonald close behind...

...if they can't manage the situation no f'ers can...

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