NSW THOROUGHBRED RACING BOARD - Racing NSW

Chief Executive’s Report
Merv Hill
The year ended 30 June 2003 was an
extremely busy and successful year
for Racing NSW, in what was a
somewhat difficult year for the
racing industry generally.
Looking beyond the administrative
side of racing, this was a successful
racing year for most of the clubs,
with metropolitan racing at carnival
times generating a level of interest
that has not been seen for a while.
In the country, the economic
circumstances have been tough,
due mainly to the drought, but
there are the consequences of
population shift impacting on the
regional areas, and whilst the major
regional carnivals and special event
clubs were also very successful,
some significant strategic issues
need to be addressed.
Racing NSW has generated
discussion within the industry
through meetings and the issue of
discussion papers. This process
continues, and whilst change is
inevitable, the plethora of
stakeholders and varying agendas
make it most likely that the
changes that will surely come will
emerge somewhat slowly, and will
be evolution, not revolution.
On the national front, Racing NSW
has been at the forefront of a
number of major issues. Never in
the recent history of racing has
there been a closer relationship
between the principal authorities in
NSW and Victoria.
In conjunction with Racing Victoria
Ltd, and in most cases all other
States and the Territories, we have
pursued a number of initiatives that
seek to capitalise on the combined
strength of the industry, and to
generate cost savings and
efficiencies. The initiatives pursued
include a joint RVL/RNSW system
of Ratings-Based Handicapping,
which will be launched later in 2003
and will include S.A., the
establishment of a Captive
Insurance Fund between NSW, VIC
and QLD which has the potential to
save NSW alone between
$1.5million and $2million each
year, the establishment of an
independent company to
encompass the operations of the
Racing Services Bureau, Trainers
Service Centre, and the Registrar of
Racehorses – the establishment of
that latter company will mean that
for the first time NSW will have an
equity interest in the operations of
managing its data, in conjunction
with the other States and Territories.
Racing NSW was also represented
on the inter-governmental Cross
Border Betting Task Force, and
through the Australian Racing
Board had a deep involvement in
the review of the Commonwealth
Governments Interactive Gaming
Act, and in dealing with the
operations of betting exchanges.
Both cross border betting and
betting exchanges pose very real
threats to the financial viability of
the racing industry, and all ARB
members share this concern, which
is not necessarily shared by all
States and Territory governments.
This year saw the implementation
of the incentive scheme designed
to enhance the attractiveness of
racing horses in NSW. Known as
BOBS (Breeder Owner Bonus
Scheme), the first version was
launched after extensive
consultations, and it was
acknowledged that this was a
foundation on which to build.
Further consultation saw many
improvements to the scheme for its
second year of operation. As
always the scheme has its critics,
but after 5 years of debate it was
time to get a scheme going, and
already after one successful year, it
is clear that the incentive scheme is
here to stay.
Racing NSW has on two occasions
in recent years engaged external
consultants to provide an
independent assessment of the
cost of its operations, and to
identify any potential cost savings.
The year under review saw no
further independent examination,
the last review being current, but
the Board continued to closely
monitor expenditure.
The operations of Racing NSW are
further explained through this
report – Racing NSW is the only
body that is charged with taking an
industry-wide perspective and
responsibility, and it is the only
body that can gain the economies
of scale in such things as insurance,
and it is the voice of NSW in the
national and international forum
through the ARB.
Whilst Racing NSW continues to
carefully monitor its expenditure,
services such as handicapping, drug
testing, stewards, licensing,
Occupational Health and Safety,
stakes payment, industry training,
apprentice schemes, veterinary,
industry insurance, TAB and
government liaison, and
participation in the national
debate, come at a cost.
Again throughout the year, our
colleagues at the Office of Gaming
and Racing have used their
experience to support racing and I
thank them for that. It has been a
year of constant dialogue with
important and useful input coming
from the clubs, associations and
representative bodies, and I also
thank those who have given their
time and expertise.
For the staff, once again it has been
a year of change as our policies and
procedures change to meet new
challenges, to meet the changes in
our environment, and as we strive
to maximise our cost effectiveness.
All that will continue and we look
forward to another successful year
for both racing and administration
in 2003/04.
MERV HILL
CHIEF EXECUTIVE
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