Submission
to
NSW
Members of Parliament
Issue:
Continued
Hardship being Experienced by the NSW Greyhound Racing Participants.
Submitted
by:
The
NSW Greyhound Breeders, Owners & Trainers' Association Limited.
Submission
Date:
November
9, 2007.
Background
•
The NSW Greyhound Breeders, Owners &
Trainers' Association represents Greyhound Racing participants throughout
NSW. The NSW GBOTA comprises in its membership 1200 members and a network
of 30 branches which meet monthly with the intention of discussing business
which may progress the Industry and issues of concern. In turn, their
concerns and proposed actions are forwarded to the Sydney based Board
of Directors.
•
In recent weeks, the central theme behind
feedback from the branches has been agitation and expressions of hardship
regarding the impact of Equine Influenza on the NSW Greyhound Industry.
Issue
•
The NSW Racing Industry (Thoroughbred,
Harness and Greyhounds) receives the vast proportion of its income via
Wagering Earnings from the totalisator licensee, TABCorp. The Wagering
Earnings are distributed to the three codes on a fixed percentage basis
as follows:
•
70% Thoroughbred Racing
•
17% Harness Racing
•
13% Greyhound Racing.
•
An outbreak of Equine Influenza took hold
in NSW in August 2007. For a period, all Thoroughbred and Harness racing
activity ceased and currently a substantially reduced number of race
meetings are being staged by both codes, as compared to their normal
contribution.
•
Greyhound racing has continued to stage
its normal level of racing and has continued to provide 87% of the profits,
in effect, to the Thoroughbred and Harness racing codes. However, due
to the reduced Thoroughbred and Harness racing activity, it is not receiving
the level of funding from profits in those codes that it would in normal
circumstances.
•
As a consequence of the above, the NSW
Greyhound Industry currently estimates that it will, by January 2008
end, be deprived of $2.25m in normal earnings.
•
This reality has placed enormous pressure
on prizemoney levels, the lifeline to viability for Greyhound racing
participants. In reaction, the NSW Greyhound Industry has committed
$1m of reserves funds toward maintaining prizemoney. In addition, the
NSW Government has provided $500,000 to the code as part of a three
code relief package. Unfortunately, prizemoney reductions have still
been required. Stakes have been slashed by a total of 15% until the
end of January. In dollar terms, this has seen:
•
Monday night Wentworth Park race winning
prizemoney reduced from $3,000 to $1,540.
•
TAB winners have been reduced from $750
to $640.
•
Non-TAB or Country clubs are paid a prizemoney
allowance by GRNSW of $347 per race; this has been reduced to $300 per
race.
•
Average Greyhound racing participants
are having their financial viability and lifestyles severely effected
by the prizemoney reductions and struggle to understand why it is happening.
•
A number of leading participants have
announced their intention to depart the Industry and a significant number
of greyhounds have been transferred to Interstate kennels.
•
Further erosion of Greyhound racing participants
and greyhound numbers in NSW will have ongoing negative effects for
the Greyhound Industry and the State.
State
Government Relationship with Greyhound Racing
The
NSW Greyhound Industry makes a significant contribution to the economy
of NSW.
The
IER NSW Racing Industry size and scope report (2004) stated that the
NSW Greyhound Industry provided (a) the equivalent of 6,600 full time
employment positions and (b) $570m of economic benefit to the State.
During
the past three years, the State Government has received an average of
$10.5m in taxation earnings per annum from wagering on greyhound racing.
Conclusions
•
The Greyhound Racing Industry has been
impacted upon by the Equine Influenza outbreak through no fault of its
own.
•
The NSW Greyhound Racing Industry makes
a substantial economic and taxation contribution of the State.
•
The NSW State Government has recognised
the hardship being experienced by Greyhound Industry participants and
has provided some relief but this relief has not been sufficient.
•
Unfortunately, the $500,000 granted has
not been sufficient to avoid a substantial and demoralizing prizemoney
reduction.
Recommendations
•
That the NSW Government again consider
the impact of Equine Influenza as it has impacted on Greyhound racing.
•
That the NSW Government again consider
the importance of the NSW Greyhound Industry remaining viable and the
overall contribution it makes to the State each year.
•
That the NSW State Government consider
providing the NSW Greyhound Industry (via the NSW peak commercial body,
GRNSW) a further $500,000 so as to allow for the immediate cessation
of prizemoney reductions.
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