Racing industry told it will have to wait

The racing industry won't see the full benefits of the new Point Of Consumption tax for more than 12 months, according to Tasracing chief executive Paul Eriksson.

"In 12 months we will be looking for a very hefty increase in stakes," Eriksson said in an interview on Melbourne radio station RSN.

"We will be paid (our share of) the POC money in arrears and the tax has only been in place since January 1.

"We'll see the first flow-on in September but there has been a reduction in race field fees so that will be a balancing act.

"In August-September 2021 we'll see a full year of POC revenue and that's when we'll be looking for a significant increase in prizemoney."

Racing Minister Jane Howlett last week announced a $660,000 increase in prizemoney for next financial year which does not include any POC money.

In August-September 2021 we'll see a full year of POC revenue and that's when we'll be looking for a significant increase in prizemoney. 

Tasracing chief executive Paul Eriksson

Tasmanian Racing Club chairman Andrew Scanlon described that increase as disappointing, given the State Government's announcement in February that 80 per cent of POC revenue would be invested directly back into the racing industry and that would amount to $4 million a year.

That figure was based on an estimate of how much the POC would raise – an estimate considered by many to be very optimistic.

Only time will tell but, regardless, Eriksson's comments made it clear that the industry will just have to wait for whatever money is forthcoming.

NO STAND DOWNS DURING SHUTDOWN

Tasracing did not stand down any employees during the COVID-19 shutdown – in contrast to many businesses – but Eriksson defended the decision.

He said the number of employees on the payroll was reduced by natural attrition.

"No-one was made redundant – we didn't need to," he said.

"Of our 35 to 36 office staff, there were about six positions – held by people who had moved on in the couple of months prior – that we did not fill."

Eriksson acknowledged that Tasracing needed to cut costs in the future.

"We are going to run a bit leaner," he said.

"There are some roles that we won't be filling – we will be looking at that and will manage it."

Eriksson was also questioned about a document currently circulating that purports to show that the percentage of industry revenue actually being paid out in prizemoney has dropped significantly.

The document states that in 2011, 69 per cent of total revenue was paid out in code allocations but by 2019 it had dropped to 54 per cent.

At the same time, there had been a 58 per cent increase in employee benefit costs, 110 per cent increase in marketing costs and 66 per cent increase in raceday expenses.

Eriksson said he would need to check the figures but pointed out that there had been a considerable increase in costs such as welfare spending and jockeys' workers compensation and Tasracing had also taken on board other costs in recent years.

"We are looking at all costs at the moment," he said.

FIELD LIMITS ARE BACK TO NORMAL

Tasracing has rescinded the 10-horse field limit introduced to meet COVID-19 requirements, allowing up to 14 runners at Elwick on Sunday.

The 95 final acceptors were accommodated in eight races, with only two relegated to emergencies.

Harness racing will also return to normal field sizes in Hobart and Launceston this weekend.

The Launceston Pacing Club has advised participants that the kiosk in the stabling area will be open on Sunday night.

The kiosk was closed at last week's thoroughbred meeting, resulting in a backlash from participants who quite rightly said they should have been warned.

Greg Mansfield

Reprinted with permision of The Examiner