Revised New Zealand racing industry bill reflects concerns
Following several months of discussions, road show meetings, select committee submissions, a government bail-out, Racing Board “adjustments” and track closure announcements, the latest revised New Zealand Racing Industry Bill is much closer to its second reading and appears to reflect some of the concerns raised by the industry and its participants.
It seems a long time since John Messara completed his report, suggesting wholesale changes to the industry if it were to survive. Messara was the exclamation point when making the final submission to the select committee in March. The first iteration of the Racing Industry Bill failed to include significant parts of Messara’s bold but necessary plan.
Comprising 124 clauses plus five schedules and running to more than 100 pages, the original bill has been revised in more than 30 general areas which indicates that the select committee has listened to the industry.
Code representation, intellectual property rights, track closures and betting via an offshore agency were some of the points raised during the roadshow.
Code Representation
January saw multi-location meetings throughout the country discussing the first version of the bill. Within the thoroughbred code there were major concerns regarding the bill’s apparent shut-out of the very people who know most about the business. However, version two looks to have addressed that concern.
As recommended by Messara, the three codes (thoroughbreds, harness and greyhounds) will now each make their own appointment, making up three of the seven member board which is due to be re-named “Racing New Zealand” when the bill becomes law.
Intellectual Property Rights
Intellectual property rights are now to be owned by the codes, whereas the original bill had the TAB owning exclusive rights within New Zealand and Australia.
This topic went against the Messara Report recommendations and the revision has removed that clause on the grounds that as a commercial matter IP should be determined by agreements between the TAB and the codes.
Track Closures
Track closures, several of which were announced recently, have been the most discussed points in the Messara Report. The revision finds that a club surrendering its venue to the code could, in some cases, be unjust and therefore proposes requiring the minister to consider special circumstances.
These may include venue ownership; how the code intends to use the venue once transferred; whether the venue is a training facility and wider community use.
The minister will now appoint a reviewer to carry out investigations, seek submissions and apply the considerations before recommending which action to take.
The revised bill also provides an appeal process to clubs whose venues are deemed “surplus” by the code, allowing them to take their case to the High Court if in dispute with the code.
Given its potential value, the closure of the Avondale track is going to be very interesting.
Offshore Betting
People who bet with offshore agencies and agencies that take bets on New Zealand racing “must pay charges in New Zealand relating to their betting operations.”
The original bill had operators seeking permission from the Department of Internal Affairs. However, as the IP will now be owned by the codes, it becomes a commercial arrangement and negotiations must be with the relevant code.
The House of Representatives has yet to vote on the bill. If the vote is successful the bill then goes to committee, a third and final reading, a final debate then the final vote. If passed, it can then be signed into law and becomes an Act.