THE Bob Bentley Board has denied claims that Racing Queensland was left ‘financially fly-blown’ when they resigned in the wake of the LNP election win.
Former Board members including Chairman Bentley, his deputy Tony Hanmer, Labor heavyweight Bill Ludwig and Wayne Milner are incensed by industry suggestions that the cupboard was bare when they left RQL in April.
They claim it is impossible to get their side of the story across in the mainstream media because of the close ties between new RQ Chairman Kevin Dixon and Courier-Mail Racing Editor Bart Sinclair.
In a pre-emptive strike, designed to prepare the industry for what they claim will be a ‘passing of the buck’ for the financial picture painted of RQL in the annual report, the Bentley Board has defended its financial administration of RQL.
Peter Cameron, one of the most high profile racing writers in Queensland for many years, questioned what the real financial picture was at RQL in an article this week in the Gold Coast Bulletin.
Letsgohorseracing prints their version as provided by the former Board in the interests of fair play – they certainly aren’t receiving it from the mainstream racing media. We offer the new RQL Board of Kevin Dixon unedited right of reply but don’t expect it will be forthcoming.
This website also questions what happened to the LNP Government audit of RQL finances soon after the election. Many months have passed and nothing has been forthcoming. One side of the fence claims the place is ‘fly blown’ and the other says it was ‘cashed up’ when they left.
Kevin Dixon and his Board has been accused of pumping funds into the Brisbane Racing Club and financing a costly reversal of the ownership deals that the Bentley Board implemented to take equity in several major clubs.
Across the board prizemoney increases, desperately needed as Queensland lags further behind Victoria and New South Wales, continue to be blamed on a lack of funds and a poor TAB Privatisation deal.
Perhaps more will be revealed when Racing Minister Stephen Dickson takes legislation to Government, hopefully in October but it seems to be getting delayed every month.
Here is the message that the Bentley Board is desperate for the industry to hear and which the mainstream racing media, if they were doing their job, would be only too keen to publish:
‘The constant and continuing misrepresentation of the financial position of Racing Queensland prior to the change of Board directors needs to be examined.
The facts not the spin is the issue that the racing industry should be allowed to examine.
The previous directors, the majority of whom resigned on the 30th April, did not leave "the cupboard bare" as the current directors and their spin doctor would like the racing industry to believe.
The current Kevin Dixon-controlled Board must be accountable for the financial decisions taken since taking control.
The following is the factual financial position of RQL for the nine months ending the 31st march 2012, tabled at the Board meeting on the 16th April.
The date of change of directors and control took place on the 30th April, however the previous Board went into caretaker mode following the elections on the 24th March and the poll declaration in the first week of April.
The date of change of control is important as decisions taken by the incoming Board will have a significant impact on the final accounts for the year ending June 2012.
Extract from the RQL accounts to 31st March 2012
----------------------------------------------------------------------
YEAR TO DATE SURPLUS $4,300,000
YEAR TO DATE SURPLUS AGAINST BUDGET $2,900,000
CASH ON HAND 31st March 2012 $13,047,000
NET ASSETS as at 30th June 2010 $96,912,000
[Revaluation to take place June 2012
[RQL assets have increase by $75milion since 2003]
FUNDING GRANTS HELD [cash] $5,800,000
[Third cushion track for Gold Coast Turf Club to be commenced June 2012]
INFRASTRUCTURE PLAN GRANTS HELD [cash] $13,602,986
December 2011
[Held by RQL for reimbursement of planning expenditure
and to commence construction for Beaudesert,Cairns ,Logan Greyhounds,
Gold Coast, and Mackay]
Beaudesert $3.900,000
Cairns $750,000
Mackay $7,442,986
Rockhampton $110,000
Logan $1,400,000
The Board advice as sourced from the Board papers:
"All funds which have been received for signed funding agreements have been invested and have separate bank accounts for each project."
The Board report went on to detail the overall status for funding for all the business cases and the indicative start and completion dates for all infrastructure projects.
The Government infrastructure funds approved and released by the Cabinet Review Committee were for specific projects at designated venues as set out in the individual business cases, and not for any other purpose.
The previous directors were instructed that use of the funds approved by cabinet for any other purpose would be a breach of the Act.
Returning to the financial report, the for3cast deficit for the year was estimated to be $2.2 million and was predicated on a continuation of control, no change to policy direction, full payment of scheduled program of races for all codes and the full recovery of corporate and on course bookmakers fielding and race fees currently outstanding.
The subsequent decision in late March to accept the resignations of key executive staff following the election would have increased the deficit by $1.2 million.
The former directors had resolved at the previously scheduled budget review meeting to meet the forecast deficit from reserves and make the necessary adjustments to the 2012/2013 budget.
The 2012 /2013 budget was formulated on the restructure of administration function following the clause in the amalgamation legislation, that there was to be no redundancies or dismissals of staff during the first 2 years of amalgamation of the three codes.
The restructure would have allowed the orderly reorganization and the resultant savings to eventuate and the 2012 deficit be recouped in the 2012/2013 budget .
A reasonable assessment of the financial position shows beyond doubt that the claim made that RQL was "Running on Empty" is no more than spin and used to smother what could be a deeper seated problem.
The current Board could well be running on empty with an examination of a sample of some of the decisions made since taking control of the RQL Board on the 30th April.
Grant to the Brisbane Racing Club $1,851,000
Grant to Toowoomba Turf Club $350,000
Grant to on course bookmakers $1,500,000
These and other unexplained and unreported decisions will have a profound impact on the reported financial position of RQL when it reports later this month.
The expected reported loss no doubt will be unfairly attempted to be sheeted home to the previous directors. This is of course is an unacceptable course of attack and will not stand even a passing examination of the facts. The Dixon-led Board must be accountable for decisions taken since taking control.
The confusion and misinformation over the infrastructure plan seems to be never ending. It is worth detailing the exact position as at the change of control in April 2012.
The total plan was approved by government in December 2011 for implementation over five years and funded by the redirection of 50% of the Government’s wagering tax. The funds would be forthcoming following cabinet approval of the individual business case for each project.
Project Budget Status
1. Deagon $2,000,000 Business case lodged with the office of racing
March 6th
2. Gold Coast $35,477,647 Business case approved 15th February Funding
Deed signed .First instalment $3.5m Paid
3. Beaudesert $7,271,511 Business case approved February 15th Funding
Deed signed ,First installment $3.9m Paid
4 Cairns $1,966,832 Business case approved February 15th Funding
Deed signed. First installment $750,000 Paid
5. Mackay $7,442,986 Business case approved 15th July 2011. Funding
Deed signed. Full funding received.
6. Rockhampton $1,605,000 Busines case approved 15th february . Funding
Deed signed .First installment paid $110,000
7. Logan Greys $24,000,000 Business case approved February 15th. Funding
Deed signed. First installment paid $1.4m
8. Ipswich $6,000,000 Business case lodged with Treasury
Treasury rejected business case 17th February
9. BRC $750,000 Business case lodged with Office of Racing
March 6th
10. Albion Park $1,706,000 Busines case lodged with Office of Racing
March 6th
11. Townsville Greys $6,000,000 Business case lodged with Office of Racing
March 6th
12. Townsville Turf Club $6,348,584 Business case lodged with Office of Racing
March 6th
The infrastructure grant from Government was approved and was being rolled out.
The spin that it was not approved cannot be substantiated. The industry is desperate for infrastructure funding. That now seems to have gone up in smoke.
The safety issues identified, and were to be addressed in the infrastructure plan, will have to be funded by other means, or other funding streams.
The once vocal industry now remains silent, gagged by a lack of media exposure to scrutinize decisions of the Queensland Racing Board.’
EDITOR'S NOTE: WE REPEAT OUR OFFER TO RQ CHAIRMAN KEVIN DIXON TO RESPOND AND USE AN OBJECTIVE MEDIA SOURCE TO PROVIDE HIS RESPONSE INSTEAD OF THE MAINSTREAM MEDIA WHICH THE INDUSTRY REGARDS MERELY AS A SPIN DOCTOR FOR HE AND HIS BOARD.