Rtrua Racing Club Submissin t the Cmmerce Select Cmmittee On the Gambling (Gambling Harm Reductin) Amendment Bill Rtrua Racing Club P.O. Bx 1445 Rtrua 3040 Phne: (07) 348 2024 Email: racingrtrua@trac.c.nz
INTRODUCTION Thank-yu fr the pprtunity t cmment n the Gambling (Gambling Harm Amendment) Bill. The cmmittee f the Rtrua Racing Club have cnsidered the prpsed amendments t the Gambling Act and have cncluded that if they are passed int law in there present frm they will be extremely detrimental t the New Zealand thrughbred racing industry as a whle; t the Rtrua Racing Club in particular; and t cmmunity and business grups in the Rtrua district. We therefre ask that yu cnsider the pints made in this submissin carefully when making yur recmmendatins. We agree with the principle intentin f the bill I which is t reduce the harm caused by gambling via gaming machines (pkies) but we believe that the measures prpsed will nt help reduce prblem gambling in New Zealand. The intrductin f pkies int New Zealand in 1991 has been extremely detrimental t the racing industry and Clause 5 in the bill will cmpund this effect. We therefre submit that Clause 5 be remved frm the bill entirely r amended as utlined belw. RECOMMENDATION TO SELECT COMMITTEE That Clause 5 as it relates t authrised purpse be amended t mit all reference t race meetings, including stakes. This wuld ensure that all aspects f racing wuld remain within the definitin f authrized purpse and therefre racing clubs wuld cntinue t be eligible fr gaming grants subject t the discretin f each gaming trust. THE ROTORUA RACING CLUB The Rtrua Racing Club has been perating fr 130 years and frm its present Arawa Park site since the 1890 s. The club has currently apprximately 430 members wh elect a cmmittee f 12 at ur Annual General Meeting t manage the club affairs. The Rtrua Racing Club is a partner in TRAC which is a cnsrtium f racing clubs in ur district (Tauranga, Taup, Matamata, Te Arha, Thames, Rtrua) which cnducts all the race meetings in the area and then returns the the prfits (r lsses) t the member clubs t an agreed frmulae. Cmmittee members are unpaid. The club emplys an Office Manager, a Racecurse Manager, tw full-time track wrkers, several part-time track wrkers, and in partnership with the ther TRAC clubs, a Spnsrship manager and an Events Manager are als based in ur ffice at Arawa Park. ARAWA PARK Arawa Park has sme unusual features which make it unique in the New Zealand racing industry. 2
Lcatin Arawa Park cmprises apprximately 40 acres near the centre f the Rtrua city with the main entrance frm Fentn Street, the main Nrth-Suth street running thrugh the centre f the city. The park is therefre an extremely visible and valuable piece f land right in the centre f the city. Histry and Ownership Apprximately half f the Arawa Park estate is wned freehld by the Rtrua Racing Club. The remainder is wned by the Rtrua District Cuncil n lng-term lease t the racing club. The leased prtin f the park was riginally part f a blck f land that belnged t six hapū f Ngāti Whakaue. In 1891 the current land nw knwn as Arawa Park was identified as a site fr a new racecurse fr Rtrua. Ngāti Whakaue generusly dnated substantial areas f land t help establish the new twn f Rtrua and the Arawa Park land was included in these generus gifts t the new twn. The land was purchased frm Ngāti Whakaue and became a recreatinal reserve under the Lands Department t be used as a racecurse. Any change in use f the land needs t be apprved by Ngāti Whakaue. The land was later transferred frm gvernment t Rtrua District Cuncil wnership. The Rtrua Racing Club and Ngāti Whakaue have had a clse relatinship fr ver 100 years and this relatinship remains strng and valued t the present day. Gethermal Arawa Park is situated in a gethermal area which must be a unique situatin fr a racecurse. While the club benefits by having the cheap heating, the acidic atmsphere accelerates crrsin and degradatin f these facilities and results in large repairs and maintenance csts. BENEFITS TO ROTORUA COMMUNITY AND OTHER PARTIES Our club cnducts 10 race meetings each year. The Rtrua-BOP Hunt Club als runs a race meeting at Arawa Park in September each year. These meetings attract many hundreds f visitrs t Rtrua which brings benefits t lcal htels, mtels and restaurants that wuld nt therwise ccur. The meetings als prvide very welcme casual emplyment pprtunities fr lcal peple by way f attendants, waiters, bar peple etc. The club s land is used by hundreds f Rtrua citizens weekly fr recreatinal and sprting activities. There are 5 ftball fields in the centre f the track which are used Saturdays and Sundays in winter fr age-grup ftball. The club takes the view that this is a cmmunity service and d nt charge fr use f the land. Access t Arawa Park is pen t the public at all times and a large number f citizens take advantage f this pprtunity t use the track and 3
the area within fr recreatinal activities like walking the dg, practising glf, and fitness training. Majr cmmercial exhibitins such as the Frest Industries Exp that attracts 10,000 visitrs t the city Fund raising activities have included truck shws, vintage car shws, animal shws, cycle meets, etc Eight lunges f varius sizes are available fr hire fr cmmercial users, sprting and cmmunity grups and individuals fr weddings, birthdays etc. Our plicy is t charge just sufficient t cver csts f cleaning etc. One flr f ur grandstand is let at peppercrn rental t the Rtrua Club.. One f ur buildings is n lng-term lease t a church at a discunted rate. The Rtrua plice have a permanent lease f ne lunge fr training peratins. They als use the centre f the curse fr dg training. This year a funeral directr is using ne lunge fr funerals while he builds a new chapel. Our gethermal bre prvides steam fr heating ur buildings. Excess steam is piped t three mtels and 12 huses in the vicinity at n prfit t us. Rtrua is nt a majr hrse training centre but a small number f trainers use ur facilities fr readying their hrses fr racing. These training activities prvide emplyment fr track riders and cmmercial pprtunities fr vets and suppliers f hrse feed, equestrian equipment etc. All these activities mean that the racecurse is a very busy place which demnstrates the imprtance f the racecurse fr a large segment f the Rtrua cmmunity. The high activity places an unusually large, fr a racing club, demand n ur staff in making sure these events are prperly run and enjyable fr participants. SUMMARY The abve examples shw that ur club and the facilities we prvide benefit a wide range f businesses, cmmunity and sprting rganisatins and individuals in Rtrua and surrunding districts. Mstly ur facilities are ffered either free r at dicunted rates. Maintaining ur prperty and buildings in gd rder is very cstly and especially s at Arawa Park due t ur unique situatin. With ur prperty being right in the centre f the city ur cuncil rates are high and ur repair and maintenance csts are much higher than fr ther equivalent racing clubs due t the gethermal envirnment. In year 2010/2011 we spent $275,272 n ur prperty. This is a reductin frm $399,317 spent the previus year as we culd nt affrd t renew a prgrammed maintenance cntract 4
plus thankfully the cuncil granted us a rates discunt fr prviding much needed services t the city, but nevertheless it is a lt f mney fr ur small club t find in rder t keep ur facilities up t an acceptable standard. Finding the mney t maintain ur facilities in presentable rder is a cnstant prblem fr ur cmmittee. Our club receives incme frm fur main surces: (i) Betting cmmissins. We receive a percentage f bets placed by patrns attending ur race meetings - ur racing activities currently break abut even. (ii) Spnsrship by lcal businesses. Rtrua businesses are generus in their supprt f ur club but spnsrship has been getting harder t btain due t the current ecnmic envirnment facing lcal businesses, (iii) Incme frm renting ur land and facilities. (iv) Grants frm pkie trusts. Our club can just survive getting incme frm the first three surces but nly by reducing spending n much needed repairs and maintenance prjects. Any grants we are able t secure frm the pkie trusts are a bnus which enables us t carry ut ur maintenance and imprvement prjects, nt just fr ur racing guests at the 11 racemeetings at Arawa Park but fr the several thusand ther citizens that utilise ur facilities thrughut the year. If we are excluded frm applying fr these grants as intended by Clause 5 f the bill, we will have t cnsider taking a range f ptins in an attempt t balance ur bks. These wuld include: (i) (ii) further reducing maintenance spending which is unsustainable lng-term. As we are right in the centre f twn and highly visible it is imprtant fr Rtrua s image that we present ur prperty apprpriately. Reduced maintenace als means less wrk fr lcal businesses. increasing charges fr using ur facilities t clser t full cmmercial rates and intrducing charges fr uses that are currently free. This wuld ppse ur aim f getting mre cmmunity grups t use ur facilities. (iii) ceasing hrse training peratins at Arawa Park which are currently heavily subsidised by the club. This wuld be a pity as it wuld remve the lcal element fr ur sprt and jbs wuld be lst. We cntend that racing clubs are n different frm ther sprting clubs and sprting rganisatins such as rugby unins and sprting franchises, cricket assciatins etc. We run racemeetings fr the prfessinals in ur industry s they can make a living, just like many ther sprts bdies, and patrns cme alng t enjy the entertainment. They can bet n the utcme f the events, in the same way as supprters f ther sprts can d via the TAB. Our club has a very substantial vluntary input. Just like many ther sprting clubs thrughut the cuntry, dedicated cmmittee members give their time and expertise at n charge t try and prgress the club. As utline abve, the citizens f Rtrua will be the biggest lsers if ur club is prevented frm applying fr grants frm the pkie trusts. The Cmmittee Rtrua Racing Club 19 June 2012 5