“Overstaffed and unacceptably inefficient:” Victorian groups condemn HRV oversight

Representative bodies are demanding change at board level on Harness Racing Victoria after revelation of the industry’s disastrous financial position and the announcement of stakes reductions and cost-cutting measures.

In a joint statement the groups representing the sport’s participant bodies said they had significant concerns as to the management, performance and oversight by HRV.

The Presidents of the Victorian Harness Racing Club (VHRC), Trots Clubs Victoria (TCV), Victorian Harness Racing Trainers and Drivers Association (VHRTDA) and the Victorian Square Trotters Association (VSTA) have also stepped up efforts for a meeting with the state’s Racing Minister Anthony Carbines to discuss their concerns.

“We note that the Government appointed Board of Harness Racing Victoria has been in their roles for many years now.  It is our view that HRV requires new competent, capable and passionate people on the Board (appointed in consultation with the industry) to work with new CEO Matt Isaacs to turn our industry around and deliver better financial outcomes for our hard working participants and stakeholders,” the statement said.

The group said they had jointly written to the Chairman and CEO of HRV in June outlining concerns and requesting an urgent meeting to discuss the HRV’s plans.

“We are extremely disappointed that despite follow up requests and the perilous financial position that HRV finds itself in that such a meeting has not been facilitated by HRV or taken place in the eight weeks since,” the group said.

“We reject the notion that HRV consulted extensively with our kindred bodies in relation to the restructuring of prizemoney leading up to the recent announcement. HRV may have sought out the opinions of individuals within the industry however extensive consultation with the kindred bodies that we represent has not taken place.”

The group said they could not understand how HRV had ended up in such a dire financial position despite receiving substantial financial support from the State Government in recent years.

“This position is not reached overnight, and we question the financial oversight, accountability and lack of earlier intervention by those in charge of the sport that has led our industry to be in such an ominous financial position,” the statement said.

“We have major concerns that HRV has been seemingly overstaffed and unacceptably inefficient with excessive administration costs in comparison to other State Controlling Bodies in recent years.

“In the 2022 financial year, HRNSW had 45 full time employees and employments costs of $5.6M. In the same year, HRV had 100 full time employees and their employment costs (excluding Tabcorp Park, Melton) were $14.1M.

“We question why HRV employment costs are 2.5 times higher (an extra $8.5M in employment costs) than that of HRNSW and why the number of full-time employees under HRV’s control is more than double that of HRNSW?

“It’s obvious that a more efficient administration structure leads to more funds being available for prizemoney with HRNSW having minimum stake levels in the Country of $6,900 and $9,600 compared to HRV’s $4,500 and $7,000 respectively.

“We note that a number of Harness Racing States in Australia and also New Zealand have recently announced positive stake money increases and appear to be on the way up. So, we find it extremely disappointing that now in Victoria, cuts to prizemoney are required when the Controlling Body here has continued to grow its administration base in recent times with seemingly little concern as to the financial position of the industry or the stagnant returns to Industry stakeholders.”

by Terry Gange, for Harnesslink