Freda Posted May 12, 2020 Share Posted May 12, 2020 53 minutes ago, curious said: You are a bit more optimistic than I am after that Freda. They are losing money. Can not get any further credit if I heard correctly. Need 26m of the 50m grant to pay bills by Friday which leaves 24m. I'm thinking if I'm going to win another race, I better do it in July and hope they can keep going till then without the lenders taking action. What a bloody mess. Yes. And the leaping around of excited people who think this is going guarantee security for years to come is astounding. 20 mill each for two allweathers? Ffs, how divorced from reality can we get? Quote Link to comment Share on other sites More sharing options...
pete Posted May 12, 2020 Share Posted May 12, 2020 Here's Barry Lichter's take on Winnie's announcement: $72.5 million emergency support package for racing with RITA only days away from default By Barry Lichter • 12 May 2020 Minister for Racing Winston Peters has announced a $72.5 million emergency support package for the racing industry, $26 million of which will go to paying outstanding bills. “There has been a dramatic plunge in revenue while costs have remained fixed, and the bills have been backing up,” Peters said in delivering his speech in the Beehive. “RITA’s lenders also advised they could no longer extend credit. It means RITA faced the risk of defaulting on it’s supplier commitments by this Friday.” Peters said he could not gild the lily and the result would have been devastating for many in the regions. “The racing industry has experienced several years of financial under-performance and been hit by the perfect storm of COVID-19 while in a weak financial state and in the midst of a reform programme,” Peters said. “As a result, there is a genuine risk of insolvency and the industry losing the future gains of its reforms.” Peters said Treasury engaged PricewaterhouseCoopers to provide a financial assessment of RITA. “The analysis underlined that RITA had a very weak equity position and that an immediate grant was the most effective means to prevent default. “PWC also advised close consideration should be given to recapitalising RITA and this work will proceed over the next three months. “The Government has a respond, recover, and rebuild strategy for COVID-19. This announcement is the first step towards a long term restoration of racing,” Peters said. Support package The support package consists of: * A $50 million relief grant for the Racing Industry Transition Agency (RITA). * Up to $20 million from the Provincial Growth Fund to construct two new all weather racetracks at Awapuni and Riccarton Park. (A new one at Cambridge, costing $6.5 million, is nearly finished.) * $2.5 million for the Department of Internal Affairs to fast track work on the online gambling revenue, and address loss of revenue impacts on community and sport groups. “Of the immediate grant, $26 million will be used by RITA to pay its outstanding supplier bill which it hasn’t been able to do because of strangled revenue. The other share of this package will ensure RITA, and each of the racing codes, can maintain a baseline functionality and resume racing activities,” Peters said. “The racing industry is seriously under-estimated for its economic contribution. “Past studies indicate racing contributes $1.6 billion to the economy each year. There are 15,000 full time racing industry jobs and nearly 60,000 jobs which participate in the industry in some shape – from vets to equipment suppliers, and owners. There are 15,000 owners, 800 trainers and 200 jockeys. New Zealand bloodstock is world class and a significant export earner.” “Over the next three months officials will assess recapitalisation options. Ministers will need to be assured industry reforms are making progress to ensure any such future investment is well directed,” Peters said. Cambridge Jockey Club CEO Mark Fraser-Campin with the new synthetic training track behind him.Synthetic tracks On synthetic tracks, Peters said compelling arguments existed for them because they reduced the number of cancelled events due to weather or poor surfaces. “In the 2018 year there were 32 races (sic. meetings) abandoned which cost the industry millions of dollars. “Synthetic tracks offer consistency and reliability, they sustain a higher workload for both training and racing and they are safer for the horse. That translates to retaining income, and not losing it. “We not only want to save the industry we want it to have viable assets for the future.” “COVID-19 has also impacted on funding available to community and sport organisations which receive a share of gambling revenue. There has also been an increase in New Zealanders gambling offshore through online platforms. “Both trends are concerning. For that reason the government is fast tracking a programme of work by the DIA to re-evaluate the gambling framework of our community, sporting, and racing groups. “If there is going to be gambling by New Zealanders then it is our country that will benefit, not another. “And in doing so, we will be better able to address harm minimisation, and make sure our community benefits.” Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 The Herald is reporting this extra bit as well that Lichter did not seem to put in his report He said the package wasn't a bailout for the betting industry as it was "the same approach" taken to the small business funding and media package, both of which he supported. Peters said they'd "had enough of old men leaning against the rails, scratching their derrieres and blaming everybody else" in the racing industry. Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 Government Support Package - Statement from Executive Chair, Dean McKenzie 12 May 2020 RITA welcomes the Government’s announcement today, and particularly, the tireless advocacy of the Racing Minister, Rt. Hon Winston Peters during this time. Covid19 has presented the racing industry with one of its greatest challenges in its 150 year lifetime. Without today’s announcement, the industry faced the serious prospect of confining all those years of New Zealand culture to the history books. With TAB customer numbers down 35 percent, monthly revenue down almost 50 percent frompre-Covid forecasts and continued uncertainty for a full resumption of racing and sport, the support provides a much needed lifeline to ensure the TAB can come out of this and continue to generate critical revenue for racing and sport in NZ. Most of the country only sees the glitz and glamour of racing - the reality is that this industry contributes $1.6 billion to New Zealand’s GDP and supports 14,000 grassroots jobs behind the scenes, with many based in our regional economies. The money to sustain this comes from the TAB and animal owners. Ultimately, all industry participants are dependent on the confidence of animal owners to continue investing. Today’s announcement will be received by the sector as a welcome boost of encouragement, and with positive ramifications for all those drawing their livelihoods from racing. However today’s announcement doesn’t change the fact that Covid19 has highlighted some serious underlying structural issues within the industry. In line with the direction of the Government’s reform programme, more tough decisions will be required going forward, and the industry must continue reforming now more than ever in order to be sustainable. RITA will be continuing to consult with staff on critical proposals aimed at ensuring the sustainability of the organisation and developing it into becoming a more commercially focused, leaner and more efficient business, so it can continue to fund racing and the wider NZ sporting community Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 1 hour ago, Freda said: Yes. And the leaping around of excited people who think this is going guarantee security for years to come is astounding. 20 mill each for two allweathers? Ffs, how divorced from reality can we get? It's 20m total for 2. 10m each. 1 Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 The National Party's health spokesperson Michael Woodhouse said the Government had approved more funding for racing than Pharmac which got a $10 million boost for the next financial year. "There is going to be increased pressure for medicines as a result of the Covid-19 crisis and we need to be prepared. It is insulting to give more money to horses than health during a pandemic," Woodhouse said. In Parliament this afternoon, Finance Minister Grant Robertson said there wouldn't be more funding for racing than Pharmac in the Budget Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 Might be back to this .... Castlepoint Beach Races The thundering of hooves across wet sand and the cheering of the crowd... that's the sound of the Castlepoint Beach Races, an annual Wairarapa Event held each year in March, depending on beach conditions, and tides. The beach races date back to 1872 when local farmhands would race each other for bottles of rum and stray coins. Today, thoroughbreds have replaced farm hacks and the day is as much about picnicing and family as it is about horses. Betting is allowed but you'll be allocated a horse at random, for a ticket price of $2 1 Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 (edited) 1 hour ago, Hesi said: The Herald is reporting this extra bit as well that Lichter did not seem to put in his report He said the package wasn't a bailout for the betting industry as it was "the same approach" taken to the small business funding and media package, both of which he supported. Same approach - then $72.5m of funding - due to Covid-19. On a GDP basis then, I can only assume there will be $14b of industry focussed funding (not including wage subsidies and other generic assistance). That's going to put a hole in the budget, just related to Covid-19 industry support. Edited May 12, 2020 by mardigras 1 Quote Link to comment Share on other sites More sharing options...
ngakonui grass Posted May 12, 2020 Share Posted May 12, 2020 52 minutes ago, curious said: The National Party's health spokesperson Michael Woodhouse said the Government had approved more funding for racing than Pharmac which got a $10 million boost for the next financial year. "There is going to be increased pressure for medicines as a result of the Covid-19 crisis and we need to be prepared. It is insulting to give more money to horses than health during a pandemic," Woodhouse said. In Parliament this afternoon, Finance Minister Grant Robertson said there wouldn't be more funding for racing than Pharmac in the Budget Only recently Pharmac back tracked on a plan to fund the lung cancer drug KEYTRUDA saying that they could no longer afford it. 1 Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 5 hours ago, mardigras said: Potentially. It's like he thinks that would mean punters would bet here. If I couldn't bet off-shore, I'd do one of three things 1) give up betting 2) leave NZ 3) find a work around and I wouldn't do number 4 4) bet with NZ providers Which means - no money to NZ economy, and less from punting, since my punting incurs race fields fees paid to NZ currently and they wouldn't happen I see our advocate for things like moving the guineas races North is for once making a little bit of sense. "If I understand Winston correctly it looks as if they will introduce to ring fence and stop betting with overseas agencies. ( can someone give Mardigras aka Kim a lift to the airport." As above, if they introduced such a policy, I would do one of my three options above. Luckily for me, I can do all 3 of them easily - even number 2, as I am an Australian citizen. Only problem I see, is that I fail to see where this will benefit NZ and the local racing industry. Perhaps ATA is keen to keep stakes low. Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 Surely as part of this bailout, Peters will have emphasized to RITA the levity of a balanced and achievable budget for 20/21. So looking at it very simply, there are 3 elements, revenue, costs and funding to the codes Revenue looks like it will be hard to achieve(348 mil for 18/19) Just how far they get costs down(211 mil 18/19) Payout to the codes including RIU(166 mil 18/19) Something has got to give Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 I like the idea of returning to things like Castlepoint races as being the 'norm'. The job cuts indicated etc are just superficial and in the aim of presenting the façade that something is happening (imo), and is why none of this had happened pre-covid. There has been no cost/benefit analysis done by RITA - if there had been, they would have chosen to shut the operation down - since none of what they do has cost/benefits that are justifiable (as evidenced by being insolvent). RITA doesn't do them, and neither did NZRB. Which is why we ended up with Commingling, Fixed Odds and a new betting platform delivering nothing. It's easy to claim that RITA inherited this mess - and they did. But after inheriting it, they've been delivering in exactly the same fashion. Anyone defending their efforts, is a supporter of individuals or similar - and unable to form an unbiased opinion. And now tax-payers are coming to the rescue - again. To further support the notion of no accountability - safe in the knowledge that the government can be hoodwinked again for more money. Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 3 minutes ago, Hesi said: Surely as part of this bailout, Peters will have emphasized to RITA the levity of a balanced and achievable budget for 20/21. They've never been accountable for anything in the last 17 years - why would this year be any different? Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 9 minutes ago, mardigras said: They've never been accountable for anything in the last 17 years - why would this year be any different? I suppose because that if they don't balance the books, there is no more money. Not balancing the books therefore is not an option Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 Just now, Hesi said: I suppose because that if they don't balance the books, there is no more money. Not balancing the books therefore is not an option They didn't balance the books this year - and there looks like there is more money! Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 9 minutes ago, Ashoka said: Hesi... "...levity of a balanced and achievable budget..."? Please explain your intended meaning. Thank you. Wrong word Ashoka, seemed right at the time of writing, lets just say stressing the importance of Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 4 minutes ago, mardigras said: They didn't balance the books this year - and there looks like there is more money! Last time ever surely, they cannot continue as a subsidised industry, and as the industry must continue, there have to be draconian steps Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 2 minutes ago, Hesi said: Last time ever surely, they cannot continue as a subsidised industry, and as the industry must continue, there have to be draconian steps You've got more faith in that than I. I think the money will run out again, and the hands will be put out. 1 Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 4 minutes ago, Ashoka said: Hesi, I agree with you. However, the word "levity" led me to believe that you might be making a joke regarding the believability of anything that RITA or Winston Peters say about the matter at hand. Don't forget about the wire ropes at dawn Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 2 minutes ago, mardigras said: You've got more faith in that than I. I think the money will run out again, and the hands will be put out. Surely that cannot happen, the cacophony of protest would become so loud, especially if the industry tries running million dollar races Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 40 minutes ago, mardigras said: You've got more faith in that than I. I think the money will run out again, and the hands will be put out. To what extent should we accept, that RITA inherited a lemon from previous NZRB regimes, and therefore have some faith in the RITA management team, that in time, they can put in place sustainable practises Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 5 minutes ago, Hesi said: To what extent should we accept, that RITA inherited a lemon from previous NZRB regimes, and therefore have some faith in the RITA management team, that in time, they can put in place sustainable practises I would have more faith, if the communication from them, and the evident actions was suggestive of an approach that was different to the past. So why no communication or releases around staff being culled/other expenses culled due to the need to make the organisation like a commercial enterprise focused on profit? Like we have seen since Covid? I smell a rat and the aroma is unpleasant. Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 1 hour ago, mardigras said: I see our advocate for things like moving the guineas races North is for once making a little bit of sense. "If I understand Winston correctly it looks as if they will introduce to ring fence and stop betting with overseas agencies. ( can someone give Mardigras aka Kim a lift to the airport." As above, if they introduced such a policy, I would do one of my three options above. Luckily for me, I can do all 3 of them easily - even number 2, as I am an Australian citizen. Only problem I see, is that I fail to see where this will benefit NZ and the local racing industry. Perhaps ATA is keen to keep stakes low. Same options apply if they bring in a PoC tax for mine. Quote Link to comment Share on other sites More sharing options...
Sandpiper Posted May 12, 2020 Share Posted May 12, 2020 5 hours ago, mardigras said: You've got more faith in that than I. I think the money will run out again, and the hands will be put out. Inevitable and the talk of future recapitalisation started approx 10 seconds after the bailout, from the same mouth!! 1 Quote Link to comment Share on other sites More sharing options...
Sandpiper Posted May 12, 2020 Share Posted May 12, 2020 6 hours ago, mardigras said: I like the idea of returning to things like Castlepoint races as being the 'norm'. The job cuts indicated etc are just superficial and in the aim of presenting the façade that something is happening (imo), and is why none of this had happened pre-covid. There has been no cost/benefit analysis done by RITA - if there had been, they would have chosen to shut the operation down - since none of what they do has cost/benefits that are justifiable (as evidenced by being insolvent). RITA doesn't do them, and neither did NZRB. Which is why we ended up with Commingling, Fixed Odds and a new betting platform delivering nothing. It's easy to claim that RITA inherited this mess - and they did. But after inheriting it, they've been delivering in exactly the same fashion. Anyone defending their efforts, is a supporter of individuals or similar - and unable to form an unbiased opinion. And now tax-payers are coming to the rescue - again. To further support the notion of no accountability - safe in the knowledge that the government can be hoodwinked again for more money. Those with the skills needed (i.e. from overseas) to make a go of operating NZ betting systems have already shown how easy it is to tickle the soft underbelly. Why get involved in administration when you can clip the ticket 17 million p.a!! Bottom line, hard to see how NZ racing can be offered as an internationally comparable attractive betting proposition. I have always thought if training and racing could be centralised to two regions with an awesome AWT each we could build a good product but that's not culturally possible. We have to field proper group racing not the worse-every-year fare thats been the story the past 10+ years. If you have a product then you can promote it and grow revenue. Cutting hunks of flesh out of it and hoping for growth is an odd gameplan. 2 Quote Link to comment Share on other sites More sharing options...
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