Herald Editorial on Messara

[hesi]

Editorial: Messara report on racing offers familiar answers

4 Sep, 2018 5:00am

 3 minutes to read

Racing industry reviewer John Messara acknowledges he is proposing the same solution recommended as long ago as 1965 by the Reid Committee and endorsed in 1970 by the McCarthy royal commission. Photo / Getty Images

NZ Herald

 

 

 

 

 

 

 

 

 

 

The report on the racing industry commissioned by its minister, Winston Peters, and released last Friday, is one New Zealanders have read many times before.

Peters' industry reviewer, an Australian racing administrator and breeder, John Messara, acknowledges he is proposing the same solution recommended as long ago as 1965 by the Reid Committee and endorsed in 1970 by the McCarthy royal commission. Namely, that New Zealand has too many race tracks.

The theory is that with fewer tracks there would be more money in the industry to improve prize money, providing better returns for the owners, breeders and trainers of race horses and giving New Zealand a stronger bloodstock industry.

Yet more than 50 years after this theory was advanced, there are still nearly 50 thoroughbred racecourses in New Zealand, many of them in small towns and holding just one or two meetings a year. And they are no more willing to close now than they were 50 years ago.

 

Messara notes that racing clubs are not the owners of the land they use and suggest these assets should be vested in racing's regulator for the benefit of the thoroughbred industry. About 20 of tracks could be sold, he suggests, generating sufficient capital to renovate the remaining racing venues, few of which are up to the standard he believes racegoers and punters expect.

Maybe so, but it seems a draconian solution to impose on small racing clubs that might not be the legal owners of the land but their local community regards it as their racecourse, which is how so many have survived. They may hold only one or two meetings a year but those race days are usually big events on the town's calendar, attracting visitors from near and far.

Across all New Zealand courses, the average is 6.7 meetings a year which is only one fewer than the average for Australian courses. Messara prefers a comparison with Ireland, with a similar population to New Zealand, which has half the number of courses, an average of 13.7 meetings a year on each track and a thriving thoroughbred industry.

The reason New Zealand's industry is in decline, producing fewer foals each year, probably lies deeper than the number of race tracks. As Messara observes, racing has become a largely off-course betting and entertainment attraction. His most controversial suggestion is likely to be outsourcing the TAB to an international betting operator to add to the TAB's products, upgrade its technology, improve its customer services and offer New Zealand punters, "a compelling global product".

An industry financed by gambling will struggle to find favour with the present Government and a foreign takeover of the TAB might not appeal to Peters, but those are not reasons to resort to public funding and additional tax breaks.

Industries need to find strength within themselves for sustained success. New Zealand's breeders and trainers have a good reputation in a global industry, they should look offshore for more of the returns they need. That would wake up local clubs and the TAB.

 

 

Racing should not be relying on a politician for direction. It must stand on its own four legs.

 

[hesi]

What I don't get, is that previous reports talked about there being too many racecourses being the problem.

The Messara report is saying the same thing, but for a different reason, that being the need to reduce racecourses, is to generate 190 mil to upgrade the remaining 28 courses

[Kopia]

Maybe Mr Messara should re-consider Counties track being viable?  Just read that the meeting tomorrow is off due to the track being stuffed...jeeze bring on a solution, someone/anyone..

[Reefton]

1 hour ago, Kopia said:

Maybe Mr Messara should re-consider Counties track being viable?  Just read that the meeting tomorrow is off due to the track being stuffed...jeeze bring on a solution, someone/anyone..

Transfer it to Avondale John.

Oh thats right you closed Avondale down

Transfer it to Ellerslie then

Oh thats right it is in the middle of renovation(and will no doubt be a disaster when they do race there again)

Te Rapa then

Oh thats right hat is a debacle and unraceable as well

eff it lets head to the healesville greys

[Justamugpunter]

1 hour ago, hesi said:

What I don't get, is that previous reports talked about there being too many racecourses being the problem.

The Messara report is saying the same thing, but for a different reason, that being the need to reduce racecourses, is to generate 190 mil to upgrade the remaining 28 courses

Back in '95, I had total access to the NZR Conference Library (is that what it was then?) I read every report that had been. Regarding the 70's report, it has to be set in the 'economic reality of that time', the 50's had been a massive growth period for NZ,  after the 2nd WW NZ had 100% access to GB regarding the selling of Sheep, the 50's had been great time for the working class in NZ because of the Pounds flowing in from GB!  "we" had the 3rd highest living standard in the world at that time!

To give you a good example of how well off the working class in NZ was! in 1956   (lol I studied that year as it was the year I came to be!!!) there were 80,000 job vacancies!!!  Every year the Govt balanced the books! Feb/March was a massive times in the economy even more so that Dec as all the Govt Depts had to spend what money they had left!  or their budgets would be cut for the next year! 

Now during the early 60's GB decided their future was to be found in the EU, and their economic trade outlook switched to being able to get access to the EU market!  This slowly but surely started to have a effect on the trade and access for NZ to GB. All this meant that the profit from the sheep trade became less and less, which of course resulted in less disposable real wages for the working class, which flowed on to less being spend on betting etc, which lead into the 70's report!

If you now look at the economic history of racing say from 50's to now then the % of disposable income for the working class (wc = around 70% of workers) it mirrors the decline in racing.

You can move the chairs on the titanic as much as you want! but it's still going down!

One thing that is amusing about the economic reality of things racing is very few actual owners ever make money!!!  anyone that does proper   due diligence wouldn't touch ownership with a barge poll!

It has Always been about the Status of getting the Winning Top horse!  If you manage to get one then you get written into the history books!!!

The class of modern owners are crying crocodile tears! They just want others to be paying for their hobby!

Edited September 3, 2018 by Justamugpunter
spelling / grammer

[Reefton]

11 minutes ago, Justamugpunter said:

Back in '95, I had total access to the NZR Conference Library (is that what it was then?) I read every report that had been. Regarding the 70's report, it has to be set in the 'economic reality of that time', the 50's had been a massive growth period for NZ,  after the 2nd WW NZ had 100% access to GB regarding the selling of Sheep, the 50's had been great time for the working class in NZ because of the Pounds flowing in from GB!  "we" had the 3rd highest living standard in the world at that time!

To give you a good example of how well off the working class in NZ was! in 1956   (lol I studied that year as it was the year I came to be!!!) there were 80,000 job vacancies!!!  Every year the Govt balanced the books! Feb/March was a massive times in the economy even more so that Dec as all the Govt Depts had to spend what money they had left!  or their budgets would be cut for the next year! 

Now during the early 60's GB decided their future was to be found in the EU, and their economic trade outlook switched to being able to get access to the EU market!  This slowly but surely started to have a effect on the trade and access for NZ to GB. All this meant that the profit from the sheep trade became less and less, which of course resulted in less disposable real wages for the working class, which flowed on to less being spend on betting etc, which lead into the 70's report!

If you now look at the economic history of racing say from 50's to now then the % of disposable income for the working class (wc = around 70% of workers) it mirrors the decline in racing.

You can move the chairs on the titanic as much as you want! but it's still going down!

One thing that is amusing about the economic reality of things racing is very few actual owners ever make money!!!  anyone that does proper   due diligence wouldn't touch ownership with a barge poll!

It has Always been about the Status of getting the Winning Top horse!  If you manage to get one then you get written into the history books!!!

The class of modern owners are crying crocodile tears! They just want others to be paying for their hobby!

Fair comment

I have a share in a $600k earner - I reckon we have had $200,000 distributed (and there is nothing in the kitty I know that!)

I also had a share a few years back in a nag in one of the very prominent stables - despite winning $100000 it still cost $150000(net) to race it for three and a half years(ie total cost $250000)

The 18 to 44 year olds are going to love those odds especially when they are wondering how they are going to pay the mortgage(or save enough to even think about having a mortgage)

 

 

[Justamugpunter]

15 minutes ago, Reefton said:

Fair comment

I have a share in a $600k earner - I reckon we have had $200,000 distributed (and there is nothing in the kitty I know that!)

I also had a share a few years back in a nag in one of the very prominent stables - despite winning $100000 it still cost $150000(net) to race it for three and a half years(ie total cost $250000)

The 18 to 44 year olds are going to love those odds especially when they are wondering how they are going to pay the mortgage(or save enough to even think about having a mortgage)

 

 

Hench anyone that doesn't have a proper  insight into the actual costs! and can't rite off the adventure quickly gets a brutal kick in the back pocket!  be they lucky enough to actual get a horse to the races or god forbid that it can win a couple  of races each preparation!

As I  have said in another post! Propaganda Rule$  which is great until it's trumped by Reality!

Life has thought me better to be struggling away with what is real! not what is made up!  

As the great philosopher Kenny Rogers told us "You've got know when to hold them,! Know when to fold them! and to know when to walk away!" 

[Freda]

56 minutes ago, Reefton said:

Transfer it to Avondale John.

Oh thats right you closed Avondale down

Transfer it to Ellerslie then

Oh thats right it is in the middle of renovation(and will no doubt be a disaster when they do race there again)

Te Rapa then

Oh thats right hat is a debacle and unraceable as well

eff it lets head to the healesville greys

All the abovementioned clubs - inc Counties - have been the recipient of extra funding  at the expense of those beleaguered ' small ' clubs ...and yet we are supposed to trust,  and blithely hand over assets to the management culture that has produced these continued cock-ups ?

[hesi]

2 hours ago, Kopia said:

Maybe Mr Messara should re-consider Counties track being viable?  Just read that the meeting tomorrow is off due to the track being stuffed...jeeze bring on a solution, someone/anyone..

Just noting this from the report

The main reasons for proposing the retention of each of these 28 racecourses, and the major capital projects required, are set out below. Note that rebuilding a course proper could mean up to 2 years without racing, a reconstruction 12 to 18 months without racing and a renovation 6 to 12 months without racing.

The retained venues are:

Ellerslie – Venue with 18 race meetings in 2017/18. Best racecourse venue in New Zealand. Excellent location in Auckland. No training. Requires rebuilding of course proper,(2 years) some general facility improvements and landscaping. Freehold.

Matamata – Venue with 14 race meetings in 2017/18. Good location. Major training centre. Requires improved facilities and landscaping, and renovation of course proper.(6-12 months) Freehold.

Te Aroha – Venue with 14 race meetings in 2017/18. Good location. Key jumping venue. Training. Requires improved facilities and landscaping, and reconstruction of course proper.(12-18 months) Freehold.

Pukekohe – Venue with 15 race meetings in 2017/18. Good location. Training. Requires general facility improvements and landscaping. Freehold.

Yet nothing for Pukekohe, that is probably regarded as the worst track in the north, current abandonment after 20 mm of rain overnight, extremely wet and inconsistent nature of the track.??

[curious]

Did I see someone mention cock-ups? This looks like potentially the biggest one and if they don't steal the assets to fix all those tracks and the revenue to sustain them the whole show will probably fall over. Soon I suspect. We are basing a strategy on recommendations from the 70s? Really?

[hesi]

So the lateral drains every 5 m, for the total circumference of the course at Ellerslie, will be a total waste of money.

I suppose if the report recommends a rebuild of the course proper, there is some hope that a properly constructed Strathayr track is on the cards

[Kopia]

26 minutes ago, curious said:

Did I see someone mention cock-ups? This looks like potentially the biggest one and if they don't steal the assets to fix all those tracks and the revenue to sustain them the whole show will probably fall over. Soon I suspect. We are basing a strategy on recommendations from the 70s? Really?

Well the industry still has....Ellerslie? NO....Counties....NO.....Avondale......NO ( on the way out).....Te Rapa...NO ( stuffed by staff) Te Aroha...NO......Rororua......NO ( on the way out )....Thames....NO ( already gone) Te Awamutu.....NO ( on the way out)    Does anyone live in Paeroa? hows that looking?

[Reefton]

42 minutes ago, hesi said:

Just noting this from the report

The main reasons for proposing the retention of each of these 28 racecourses, and the major capital projects required, are set out below. Note that rebuilding a course proper could mean up to 2 years without racing, a reconstruction 12 to 18 months without racing and a renovation 6 to 12 months without racing.

The retained venues are:

Ellerslie – Venue with 18 race meetings in 2017/18. Best racecourse venue in New Zealand. Excellent location in Auckland. No training. Requires rebuilding of course proper,(2 years) some general facility improvements and landscaping. Freehold.

Matamata – Venue with 14 race meetings in 2017/18. Good location. Major training centre. Requires improved facilities and landscaping, and renovation of course proper.(6-12 months) Freehold.

Te Aroha – Venue with 14 race meetings in 2017/18. Good location. Key jumping venue. Training. Requires improved facilities and landscaping, and reconstruction of course proper.(12-18 months) Freehold.

Pukekohe – Venue with 15 race meetings in 2017/18. Good location. Training. Requires general facility improvements and landscaping. Freehold.

Yet nothing for Pukekohe, that is probably regarded as the worst track in the north, current abandonment after 20 mm of rain overnight, extremely wet and inconsistent nature of the track.??

I think we all know Mr Messara did not write the close racecourses section of this report.  One would think significant portions of it were written by or under the supervision of a Mr E or Mr C(the latter of whom was the problem 20 years ago when they last tried to shut down a heap of courses.

 

[Freda]

13 minutes ago, hesi said:

So the lateral drains every 5 m, for the total circumference of the course at Ellerslie, will be a total waste of money.

I suppose if the report recommends a rebuild of the course proper, there is some hope that a properly constructed Strathayr track is on the cards

If the total rebuild is dependant on funds from capital asset acquisition methinks there could be a long wait.

[Freda]

1 minute ago, Reefton said:

I think we all know Mr Messara did not write the close racecourses section of this report.  One would think significant portions of it were written by or under the supervision of a Mr E or Mr C(the latter of whom was the problem 20 years ago when they last tried to shut down a heap of courses.

 

I've got Mr C...but Mr E..?

[curious]

Just now, Reefton said:

I think we all know Mr Messara did not write the close racecourses section of this report.  One would think significant portions of it were written by or under the supervision of a Mr E or Mr C(the latter of whom was the problem 20 years ago when they last tried to shut down a heap of courses.

 

Are you saying this might not be an independent report as indicated Reefton? Perhaps even informed by 20 year old failed ideas?

[Reefton]

31 minutes ago, curious said:

Did I see someone mention cock-ups? This looks like potentially the biggest one and if they don't steal the assets to fix all those tracks and the revenue to sustain them the whole show will probably fall over. Soon I suspect. We are basing a strategy on recommendations from the 70s? Really?

And the problem is they won't fix them.  They will bugger about and bugger about and eventually have to give up.

Maybe Messara has that planned so his Tab Corp gets the majority of NZ betting when the inevitable happens

I knew we should trust Aussies

[Chief Stipe]

Pukekohe is mentioned - it needs landscaping.  Horse's run better when there are roses planted.

[Reefton]

1 minute ago, curious said:

Are you saying this might not be an independent report as indicated Reefton? Perhaps even informed by 20 year old failed ideas?

indeed!  that part is the same solution as they offered 20 years ago and it has the fingerprints of the same authors all over it.  The racing has become so much more internationalised since then.  In those days we never thought about having a punt on Betfair or William Hill.

The way breeding has gone Messara(Arrowfield) himself must be under threat surely?  He would not have the firepower to compete for the top international stallions either?  Coolmore and Goldophin rule the world and for those holding Ireland up well both have major operations there.  Ireland as a shining example anyway - look what happened to Ireland(business wise) in the GFC for Gods sake!

[Reefton]

8 minutes ago, Freda said:

I've got Mr C...but Mr E..?

five letters wink wink!

[Reefton]

8 minutes ago, curious said:

Are you saying this might not be an independent report as indicated Reefton? Perhaps even informed by 20 year old failed ideas?

I do not often agree with my brother these days Mr Curious but he is writing an awful lot of sense on this issue over on the dark side. This report is a massive disappointment to me(not just because of the track closures and the nationalisation of the properties.

What did Winsome Win say the other night 'we're not in Communist Russia yet' or words to that effect.  It looks effing like it to me Win!

[curious]

20 minutes ago, Reefton said:

five letters wink wink!

c'mon Freda....wake up?

[Poisoned Dwarf]

19 hours ago, Chief Stipe said:

Pukekohe is mentioned - it needs landscaping.  Horse's run better when there are roses planted.

And they are champions when they have blinkers on so they can run for the roses !!   Eh Thomass ?

[Thomass]

I've never read so much negative whinging and moaning since Cindy got pregnant...

...Democracy is at fault here...every Jo Blow has to have their tuppence bit worth and poor Winn has to listen to all the dribble 

He needs to annex everything now...just like they do in HK...for the greater good

Were in this pile of crap now because every Tom Dicko has been listened to

Well that's worked well hasn't it..

No...BENEVOLENT DICTATOR time I'm afraid

And Sir Winn's your man..sit back and enjoy whingers 

[Poisoned Dwarf]

19 hours ago, Kopia said:

Well the industry still has....Ellerslie? NO....Counties....NO.....Avondale......NO ( on the way out).....Te Rapa...NO ( stuffed by staff) Te Aroha...NO......Rororua......NO ( on the way out )....Thames....NO ( already gone) Te Awamutu.....NO ( on the way out)    Does anyone live in Paeroa? hows that looking?

Hey man, you forgot Helensville and Whiriwhiri tracks !