FUTURE FUNDING MODEL KEY CHALLENGE FOR FUTURE OF QRL

THE racing industry faced many challenges with one of the key ones being the future funding model, chairman Bob Bentley told today’s annual general meeting of Queensland Racing Limited.

“Developing technology and the rapid adoption and worldwide reach of the internet has led to a significant change in the wagering landscape and the traditional funding model is under stress and challenge,” Mr Bentley said.

“QRL has worked side by side with the Queensland Government to position the industry so as to not to be disadvantaged by these changes with the introduction of race information legislation.

“While similar legislation is being tested in the courts and the final outcome is yet to be known, QRL has commenced collecting fees from corporate bookmakers and betting exchanges.

“It is pleasing to note that at this point thoroughbred racing in Queensland will in fact experience a positive funding impact under this scenario due to our position as a net exporter of racing product for wagering.”

Mr Bentley said: “However large and significant racing is, the industry faces many challenges and the road ahead will not be easy. The industry is coming to grips with one of its biggest challenges, that of poor facilities and tracks that have long passed their use by date.

“This issue is critical, both in terms of safety and integrity, and because the quality and presentation of our racetracks is crucial to the maintenance of our revenue streams.

“QRL has been proactive in addressing urgent infrastructure shortcomings in a number of areas, but with the state’s industry so geographically spread and the pressing need to keep prizemoney at competitive levels, we have only scratched the surface on renewing our infrastructure.

“Much has been written about the vital place racing occupies in Queensland’s cultural and community life. The racing industry produces substantial employment and a significant contribution to GDP year in and year out and the size and importance of the industry to Queensland’s economic well being needs to be recognized.”

Mr Bentley said it was a little known fact that more Queenslanders attend a race meeting annually than a game of rugby league.

“This year, the three codes of racing received a report by an independent research company, IER Pty Ltd, into the size and scope of racing in Queensland. The report clearly illustrates the economic value of racing in Queensland, providing a detailed analysis of the expenditure generated by participants and customers, and in particular highlights the taxation revenues generated and employment impacts in Queensland.

“Based on the clear importance of racing to Queensland and Queenslanders, we are in discussions with the Queensland Government on a way forward to recognize and sustain the value contributed by the industry.

“In the last two years the industry has seen the installation of new Cushion Tracks at Corbould Park, Caloundra and Clifford Park, Toowoomba. This has been made possible with the support of the Bligh Government with a grant of $4 million per track towards total costs.

“New lighting installations at both Corbould Park and Clifford Park to service future twilight and night racing have positioned Queensland to be included in international broadcasts into the future. The approval of stable construction at Caloundra will deliver 256 stables which are due for completion on July 1, next year. So as to cater for the influx of horses from New Zealand and southern states, 2 barns, or 64 boxes will be available earlier, on May 1.”

Mr Bentley told the AGM that the 2008/09 financial year had been a difficult one for our industry recovering from the effects of Equine Influenza (EI) and impacted by the global financial crisis.

“However, QRL continued to implement strategies to strengthen the industry to ensure a prosperous future.”

He said the inaugural QTIS 600 sale was held in late March at the Gold Coast and proved to be an exceptional success. This initiative was introduced to assist the Queensland breeding industry to compete with southern breeders and to promote racehorse ownership.

“The sale was recognized as achieving the best outcome for a sale of its type in Australia averaging $18,424 per horse sold with a clearance rate of 81%. This high clearance rate coupled with an unprecedented prizemoney bonus scheme of over $16.754 million should translate into increased participation and profitability in the coming season.

“After the disastrous effects of EI the Queensland Government contributed $546,000 to assist the racing industry to entice people back to the track via a marketing campaign and so the ‘it’s actually more fun if you’re actually there’ campaign was born. The campaign succeeded with significant increases in attendance, bar sales, gate takings and on course wagering.

“The reformatted Winter Carnival was heralded a success with two Super Saturdays’ being run. Further testimony of the success was the interstate and New Zealand participation rates both up strongly over the previous year and of particular note the fact that all eight Winter Carnival Group 1 races were won by visiting trainers. Attendance figures were heartening particularly the two secondary status TA B meetings held at Rockhampton and Townsville with crowd numbers of 4,172 and 11,858 respectively, an outstanding result for the clubs.:”

Mr Bentley said 2009 had seen the merging of the Brisbane Turf Club (BTC) and Queensland Turf Club (QTC) into the new Brisbane Racing Club (BRC), a merger that took place over three years and that had been talked about for nearly half a century.

“This merger will have far reaching positive effects on metropolitan racing and the BRC’s self funding development is an extremely exciting project. "