LEGAL fees and consultancies had cost Queensland Racing in excess of $7.5 million over the past eight years according to figures revealed to today’s annual meeting by Chairman Bob Bentley.

In the period from the 2001-02 to 2008-09 financial years, the figures showed costs of $5.3 million on consultancies and almost $2.25 million on legal fees.

Here are a series of questions and answers provided by Mr Bentley to the annual general meeting:

1. 1. Can you outline what consultants were engaged by QRL in the last financial year and how much was spent with each consultant?

1. 2. Consultants in the last financial year compared with previous years?

1. 3. How much did it cost the industry for QRL to defend the Andrews case?

?  At this stage estimated $600,000 total cost

1. 4. What is the cost of the compilation of the history of racing in Queensland?

?  Budget $400K (over 3 years)

?  Cost incurred to date $147K

1. 5. Who has QRL engaged as consultants for the history of racing project?

?  Jim Anderson, Historical advisor and contributor - casual employee of QRL.

?  Mark Oberhardt - advisor and statistical contributor

-               Proposed to pay per hour ($50 P/H) for content delivered. No contract and no payment made as yet.

?  Wayne Wilson, advisor and DVD narrator - $500 for narration and will be credited.

?  Bart Sinclair, advisor and DVD narrator - $500 for narration and will be credited.

?  Inner Sanctum Media (ISM), film producers - contract.

?  Grant Stockwell, script writer - contracted to ISM.

1. 6. It seems to be sometime since prizemoney was increased, when can we expect further prizemoney increases?

Setting aside the 2007/08 financial year, which was the EI financial year, prizemoney including QTIS paid out in the 2008/09 financial year was $78.8 million. This increased from $75.3 million, which was paid out in the 2006/07 financial year.

The Board of QRL will assess its likely income from wagering at, or about, March 2010 to ascertain whether reoccurring income is able to support any prizemoney increases for 2009/10 financial year.

1. 7. QRL cut the administration subsidy to the metropolitan clubs in half. Has a similar reduction occurred with any other clubs?

No not to date. QRL is undertaking a full review of the operational subsidy to be effective July 1, 2010

July 8, 2007, correspondence to Wayne Milner and Bill Sexton The board advised that, “QRL will not continue to subsidise the administration of either the BTC or QTC in their current form beyond June 2009.”

February 23, 2009, correspondence to Kevin Dixon, The Board stated:

Both the Brisbane Turf Club (“BTC”) and the Queensland Turf Club (“QTC”) have been made aware of QRL’s commitment to only one administration subsidy being paid to the BRC. This has been no secret and indeed, it should come as no surprise that the Board has, once again, confirmed its position in relation to this matter.

1. 8. There seems to be a lot of work occurring at the Sunshine Coast Turf Club. What is the total cost of the stables, lights and track, and how has it been funded?

?  Cost of lights $7.2 million funded out of cash reserves

?  Synthetic track $6.3 million partly funded through cash reserves and Queensland Government Synthetic track funding grant $4.32 million

?  Stables $12 million funded through bank loan

1. 9. QRL has invested heavily at the Sunshine Coast, Rockhampton and Toowoomba. Are there any plans to expend funds at either Doomben or Eagle Farm?

?  $1 million for the renovation course proper at Eagle Farm in 2010

Stables

December 19, 2008, correspondence to Kevin Dixon, Malcolm Tuttle stated:

The Board of QRL has agreed that it will not oppose the construction of infield stables at Eagle Farm, on the basis that:

(a) aesthetically they do not detract from the current vision of races conducted at the Eagle Farm racecourse;

(b) the quantum and quality is properly integrated with other stabling developments in South East Queensland; and

(c) the construction of stables at Eagle Farm proves to be financially viable.

April 2, 2009, Kevin Dixon and Paul Williams presented to the QRL Board the concept master plan for Doomben and Eagle Farm.

BRC Development

April 15, 2009, the Brisbane Racing Club, released a number of documents, including the Brisbane Racing Club Master Plan FAQ, The future of Brisbane Racing (media release) and the Fact Sheets on the concept master plan. The following is an extract from the fact sheets:

?  A totally self-funded development costing in excess of $1.2 billion dollars with $400 million dedicated to upgrading racing facilities.

?  No requirement for Government funding of any kind.

?  No requirement of funding from Queensland Racing Limited.

April 15, 2009, media release, Metropolitan racing master plan, Bob Bentley stated that, “the board was keen to obtain a better understanding of the economics of the project and to this end, look forward to receiving an outline of the funding model as soon as it becomes available.”

April 15, 2009, in a Courier Mail, Brisbane Racing Club announces $1.2 billion development of Eagle Farm, Doomben racecourses, Bart Sinclair stated that:

THE incoming Brisbane Racing Club has announced a bold, self-funded $1.2 billion development of the racing precinct covering the Eagle Farm and Doomben racecourses, to be completed over the next 10 years.

April 16, 2009, correspondence to Bob Bentley, Kevin Dixon stated that, “We are confident that the financial model for the development of the Brisbane Racing Precinct is sound and will deliver tremendous benefit to all industry stake holders in Queensland.”

10. We have heard a bit about the proposed development at the Gold Coast Turf Club. What is planned for Bundall?

?  Nothing at this stage, although we are in consultation with the club about upgrading the racing facilities.

11. How many people are employed at QRL and how does that compare to previous years?

?  Full time staff as per note 1 (e) in the annual report, increased from 67 to 69

?  Decreased from 77 in the 2001/02 financial year to 69 in 2008/09 financial year

12. What is the cost of running QRL compared to previous years?

?  FY09 $13m inline with FY08.

?  QRL Contribution to TAB Clubs FY08/09