Page 3222 - Week 07 - Thursday, 1 July 2010
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The main changes to the existing funding arrangements were introduced with the race fields product fee system on 1 March this year. The racing development fund has been replaced with a combination of taxpayer funding and revenue raised through the race field product fee system.
Between them, these reforms mean that the ACT racing industry no longer depends on the performance of the TAB. The introduction of an ACT race field product fee system broadens and diversifies the source of funding for the racing clubs. It charges interstate wagering operators for betting on ACT racing and provides the ACT racing clubs with funding. It is a new source of revenue for the ACT racing clubs and one that the industry and government hope will grow over time. The government estimates that the product fee system will generate about $1.5 million for the industry in 2010-11.
The race fields system provides a great opportunity for local clubs to grow their funding through increasing the use of their product by wagering operators throughout the country. It will also help put the industry in a better position if and when a national racing funding scheme is created. We should also note, as I think Mr Smyth alluded to, that the race fields legislation was drafted to minimise the risk of legal challenges. We certainly learned from issues that have been faced by other jurisdictions.
Under the new arrangements, the ACT racing industry in 2010-11 will receive $7.27 million in budget funding on top of the $1.5 million anticipated in race fields product fees. This is an increase compared to what the racing industry received under the old funding model based on ACTTAB turnover. Importantly, the new funding model provides more certainty and encourages self-reliance within the industry through the race field product fee scheme.
Canberra Racing Club will also receive a one-off payment of $500,000 in 2010-11 to assist it in paying off its capital loan. This will further enhance the long-term sustainability of the code in the territory.
This outcome is not all that the industry wanted. There were difficult negotiations and there was compromise on both sides. I would like to thank the industry for their commonsense approach. We certainly had robust negotiations and there was a frank exchange of views, but they did lead to a balanced outcome in the interests of the community as a whole, and I am happy to advise that the industry are pleased with the negotiated outcome. Peter Stubbs from the Canberra Racing Club wrote to me, on behalf of the ACT racing industry and particularly the racing club, wishing to thank me for the time and effort devoted to finalising the agreement to deliver funding to the ACT racing industry. He said:
The funding will allow racing to continue to operate at competitive levels and ensure the future of racing for the next twelve months and the important economic and social benefits it delivers to the community.
In the same correspondence, the CRC indicated that a combination of budget funding and race fields legislation revenue will lead to “a renaissance of the racing industry in the ACT”. These are indeed exciting words.
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