Messara Report link plus 17 key recommendations

[hesi]

https://www.dia.govt.nz/vwluResources/Racing-Report-August-2018/%24file/Review-of-the-NZ-Racing-Industry-Report.pdf

 

Recommendations

1. Change the governance structure, so the NZRB becomes Wagering NZ with racing responsibilities devolving to the individual Codes. This will sharpen the commercial focus of TAB operations and improve the decision-making and accountability of the Codes.

2. Establish Racing NZ as a consultative forum for the three Codes to agree on issues such as entering into commercial agreements with Wagering NZ, approving betting rules and budgets for the integrity bodies, equine health & research, etc.

3. Change the composition and qualifications for directors of regulatory bodies.

4. Request that a Performance and Efficiency Audit of the NZRB be initiated under section 14 of the Racing Act 2003, with particular emphasis on the operating costs of the NZRB.

5. Amend the Section 16 distribution formula of the Racing Act 2003 to a more equitable basis for fixed 10-year terms.

6. Initiate a special review of the structure and efficacy of the RIU and allied integrity bodies, to be conducted by an independent qualified person.

7. Begin negotiations for the outsourcing of the TAB’s commercial activities to an international wagering operator, to gain the significant advantages of scale.

8. Seek approval for a suite of new wagering products to increase funding for the industry.

9. Confirm the assignment of Intellectual Property (IP) by the Clubs to the Codes.

10. Introduce Race Field and Point Of Consumption Tax legislation expeditiously. These two measures will bring New Zealand’s racing industry into line with its Australian counterparts and provide much needed additional revenue.

11. Repeal the existing betting levy of approximately $13 million per annum paid by the NZRB, given that the thoroughbred Code is a loss maker overall, with the net owners’ losses outweighing the NZRB’s net profit.

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 funds 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.

15. Construct three synthetic all-weather tracks at Cambridge, Awapuni & Riccarton with assistance from the New Zealand Government’s Provincial Growth Fund. Support the development of the Waikato Greenfields Project.

16. Introduce robust processes to establish traceability from birth and the re-homing of the entire thoroughbred herd, as the foundation stone of the industry’s ongoing animal welfare program.

17. Increase thoroughbred prizemoney gradually to over $100 million per annum through a simplified three-tier racing model, with payments extended to tenth place in all races.

Edited August 30, 2018 by hesi

[curious]

What a complete waste of time and money. Aside from stating the obvious and things that will never happen, the industry should get a review from someone that understands wagering and that makes recommendations that will enhance revenue. I doubt that things like synthetic tracks will do that. Probably the reverse.  Improving prizemoney in recommendation 17 is a great idea, but no genuine suggestions where the money will come from for that except from the taxpayer. It's a joke.

[hesi]

If the RB becomes Wagering NZ and the racing responsibilities are devolved to the 3 codes, and they seek to outsource the TAB's commercial activities, then this makes the RB redundant and a Performance and Efficiency Audit of the NZRB  with particular emphasis on the operating costs of the NZRB, irrelevant

[curious]

True but the codes can do that now can't they and possibly should have a decade ago.

[mardigras]

Not wanting to just focus on the negatives, but the Peters/Messara big bang looks remarkably like a Tom Thumb.

[Poisoned Dwarf]

where is the list of all the tracks that will close ?

[Chief Stipe]

A bit disappointing this report and the recommendations.  Only about three things they need to do.

1. Slash costs at the NZRB;
2. Outsource the TAB function to more than one provider - tote and bookies;
3. Stop investing in IT projects at NZRB.

There's $20-50m a year for a start.

The rest is BS unless it truly is a "long term" plan and I'd suggest you leave the clubs as is.  Forcing what races we have left to race on less tracks is lunacy.

Handing over club ownership to bodies that have to date failed the industry is suicidal.  Isn't Te Rapa a classic example - a favoured club - favoured with race days, favoured financially with stakes and funding, all the "experts" in the world, "professional" management and the support of the breeding and racing luminaries.  Where is it now?

Or is where Te Rapa now at a strategy?  A new track to be built in Cambridge - Te Rapa and other racing club assets within 150km get sold and a $150m new race track gets built.  Yes it will cost north of $150m to build a new track with modern training and stabling facilities plus amenities for spectators.

Now a greenfields site (which is being suggested) in Cambridge is not a bad idea - let's face it Te Rapa is stuffed as are many racecourses that are near to it.  So selling those assets is a no brainer particularly with the transport infrastructure that is now in place in the Waikato.  However there are not caveats to supporting that option and they are:

1. We need professional management of a new facility starting with the track upwards and outwards.  I don't believe any of the incumbent management regime should be let near a new facility.  They have had their day and failed;
2. It should not be subsidised by any other region or club outside the Waikato in terms of capital investment nor ongoing operating cost.  It needs to be self sustainable in it's own right otherwise all we have done is bought time at a great expense. 

I also believe there is a place for the likes of the West Coast circuit.  Courses like Reefton are community assets and if the Government (NZ First) is to support the regions then why not invest in multi-purpose facilities on these courses that support regional growth.  

[mumbles]

Anyone heard from the man who implored racing people to vote for NZ First.

[Rowley Mile]

36 minutes ago, Chief Stipe said:

A bit disappointing this report and the recommendations.  Only about three things they need to do.

1. Slash costs at the NZRB;
2. Outsource the TAB function to more than one provider - tote and bookies;
3. Stop investing in IT projects at NZRB.

There's $20-50m a year for a start.

The rest is BS and I'd suggest you leave the clubs as is.  Forcing what races we have left to race on less tracks is lunacy.

Handing over club ownership to bodies that have to date failed the industry is suicidal.  Isn't Te Rapa a classic example - a favoured club - favoured with race days, favoured financially with stakes and funding, all the "experts" in the world, "professional" management and the support of the breeding and racing luminaries.  Where is it now?

Or is where Te Rapa now at a strategy?  A new track to be built in Cambridge - Te Rapa and other racing club assets within 150km get sold and a $150m new race track gets built.  Yes it will cost north of $150m to build a new track with modern training and stabling facilities plus amenities for spectators.

 

Chief, for what it's worth.....this was all a waste of time, JM means well, he is an exceptional business luminary, no doubt, but there isn't the money, the population or the gambling culture to fund all these recommendations.

I knew this was 'gone' when Rogie stood up, he hasn't a clue about the betting platforms, or Racefields legislation, and yet he should. Winston had nowhere to turn, he was stymied, he needed an independent advisor, JM was the man, but it appears he's listened to the same old.......Jackson, Chittick, Ellis etc should have been irrelevant as they have been in a position of market power for years, all, surely should have identified the issues, anyone, anyone, who's been successful in business have run into difficulties, we [our business] included, it's not the problem that's the problem, it's how you trade out, turn it around so to speak.....someone like Richard Branson who's been broke and yet turned it on its head....

The answers are quite clear, you picked them Mr Stipe.......the TAB was a disaster, the NZRB a disaster, fix them and cut the costs and you are nearly there, constructing 3 all weathers is not the answer, the cost of that and relocating disenfranchised trainers will be prohibitive, closing some yes. but the main problem will be a quick fix, decide on that and increased revenue will fund the long term fix......a 20% tax on all exported tried horses for a start, seller pays that, not the buyer!......too many sellers driving around in big new cars, kids going to private schools, overseas holidays, buying larger properties, blah blah......and all this by using industry facilities, such as industry trials to get the horses ready for sale....these horses then do not enter the system to become betting product to generate revenue for  your domestic industry, the trainer must pay a fee out of his cut as should the bloodstock agent. Some extremely wealthy bloodstock agents out there, and they are front and centre of this problem.....John Messara has missed that point, obviously guided away from that course.

I've had my say, we have closed our core business that generated income to cover our non-profitable NZ racing enterprise, so how will our Kiwi horses sustain themselves? the industry has to change, dialogue is needed, and consensus, but not the pile of crock that's gone down for the past 20 years, good luck NZ......My missus and I feel for our Kiwi trainers, we really do, but now is the time for the trainers to stand up, and shout loudly...you need to flick Mr Pike and not listen to Mr Baker, they have not done too poorly out of an ailing industry and failed to raise their voices when it most mattered, to Chris Wood's credit he resigned, he couldn't cop the apathy any longer [Chris's words] on the other channel many years ago

These are my words with the backing of my better half who worked tirelessly these past 4 years to establish a NZ breeding and racing enterprise, not many working couples pay up 10K each month to cover training/racing and Agistment for their 11/nearly 12 horses based in NZ......by coughing up that amount should prove our committment and passion for the NZ racehorse and your industry, we loved living in NZ for the most part, it was the country I was born in and where I learnt my craft, however, what I witnessed within the many spheres of the racing industry, both hands on and white collar made us sad, the policing of the industry is questionable, and unless the wrongs are righted, or at least action seen to be taken, then your industry is doomed, as Winnie suggested.

[Boxie]

I was always told as a young person to sit in the front row!

[mumbles]

If you were a young trainer based a place like Te Awamutu ,would it be a good idea to move now to another training track.It will never be cheaper to buy land than it is now.Get going.

[Nice Option]

1 hour ago, Boxie said:

I was always told as a young person to sit in the front row!

is that opening scene from Cocoon ? 

[Rowley Mile]

How many of them stood and took the floor? how many? SFA.......says it all....were they gobsmacked, stunned, speechless, there's a few recognisable faces in that lot, many got rich under the past regimes.......I pity the generation to come after this legacy......do something, incorporate some of the good ideas from John and flick the others, rid the country of NZRB immediately and start saving, clear out Petone and start saving, a time and motion man/woman would have a field day, productivity would gallop instead of trot, but get off your arses and make change happen, for the sake of all those souls gone before us, and those to come, shame Mr Jackson shame, resign. do the right thing and take Glenda with you for a start.......all it takes you know is a no confidence in the board/s motion by all industry participants, all!.....then their hands are forced......go for it! 

[hesi]

RB racing responsibilities to new tri code Racing NZ

New Wagering NZ

Out sourcing of TAB

All points to RB extinct

Clearly Peters and Messara thought not worth persevering with, so what is point of a review

Issue is RB did 350 mil net betting revenue but it cost 200 mil for 150 to racing

Whoever takes it on will have to do a lot better as that is the money needed for a sustainable business model

[curious]

The whole thing is poorly thought out and not well researched Hesi. That's just another stupid recommendation - #4.

4 Request that a Performance and Efficiency Audit of the NZRB be initiated under section 14 of the Racing Act 2003, with particular emphasis on the operating costs of the NZRB.

That is already required by the Act and due. The Minister has oversight of the Terms of Reference under the Act. It can hardly be a recommendation when it's already a legislative requirement.

Completely ridiculous and no help at all. Should already be done.

[hesi]

It was part of NZ First racing policy also

[curious]

2 minutes ago, hesi said:

It was part of NZ First racing policy also

Same

[Freda]

Bang on,  Chief and Rowley.

 

[mumbles]

It's not all gloom and doom.

Shortland Strret is nnow gunna be on 6 nights a week.

Hard to believe really,when they don't have enough of a story line for once a week..

[hesi]

Rather than 6 months of toxic hand wringing why doesn't BOAY put in a response to the 17 recommendations

Obviously some are not open to change and others need more clarification but others such as the track closures are open to informed input

[Gospel of Judas]

Suppose a few people  be regretting voting for Winston Peters and his usually side show about now...

[curious]

It might sound negative Hesi but I don't see the point. It's hard to see who was actually consulted or whether the report was reviewed by anyone. They have never accepted even well reasoned input before, even when it was invited. I thought the DIA was assisting with this and there are a number of smart cookies there so I would have thought they at least would have reviewed this before it was finalised. It doesn't look like it and appears to have been dictated by people who don't know what they are talking about. There are a number of sensible recommendations but most need a lot more work. A number are equally non-sensical. The terms of reference said the report was to be research based but mostly it seems to be hearsay based and is at best lacking any clear rationale in a number of areas.

I can't be bothered commenting on all 17 recommendations, however as examples, while Racefields legislation seems like a no-brainer and probably should have been in place yonks ago, the PoC tax is very debatable, the DIA is not convinced it will even be revenue positive, the taxpayer must have a say whether that revenue should go to racing or government coffers etc. Much of the rationale in the report doesn't even make sense and is certainly not research based as it was supposed to be.. He uses Oz comparisons where convenient, e.g. the betting levy and PoC, but ignores income tax in making the tax comparisons. Then on the consolidation, he throws out comparisons with Oz because he says comparisons with Australia are not relevant as:

.....Australia has too many racecourses but there has not been the economic raison d’etre to close many Australian tracks given the strong financial situation of the Australian thoroughbred racing industry, and particularly in NSW and Victoria, and there have been other priorities as well as political opposition.

Hmmm... yet that same evidence correlates a high number of tracks in a similar environment with a strong financial situation. So he then decides to compare the NZ situation with Ireland, the UK and HK. This is gobbledygook.

To make matters worse, even if all this was implemented and successful, no overall result can be achieved. Significant critical ingredients are ignored. To wit, the handicapping system. Doesn't even get a mention.

As Mardi said, Shortland Street aside, the big bang looks like a fizzer. Frankly, I expected better, much better.

Edited August 31, 2018 by curious

[Hedley]

Curious..it is "One Racing" by a few routes.

[curious]

15 minutes ago, Hedley said:

Curious..it is "One Racing" by a few routes.

Probably right Hedley. The good thing is, I doubt it's going anywhere. The bad thing, nothing is going anywhere.

[mardigras]

I heard that this 'paper' wasn't being paid for. As much as I doubt that, it isn't worth paying for so that would be appropriate. I hope they didn't print it out to distribute to attendees. That would be a waste of paper and ink. The good points are and always were obvious. The rest just hasn't been thought through. As for real sustainability, nothing.