21/5/02
The State Government has announced an overhaul of the governance structure of the racing industry in Western Australia that will include the establishment of a new body called Racing and Wagering Western Australia (RWWA).
Racing and Gaming Minister Nick Griffiths said State Cabinet had given approval for legislation to introduce a single controlling body for all three codes of racing in WA following the Racing Industry Review, chaired by Mr Ray Turner.
Mr Griffiths said the new body would assume principal club functions currently exercised by the WA Turf Club, the WA Trotting Association and the WA Greyhound Racing Authority.
RWWA would also take over the WA TAB and absorb the functions and funding of the Racecourse Development Trust.
"The new system will be a more efficient and effective model of governance and will provide savings for the racing industry in WA," the Minister said.
"The review committee identified problems in the existing structure, such as the lack of cohesion and strategic direction between the three racing codes."
Mr Griffiths said the Government was elected on a commitment to reduce TAB turnover tax and undertake a comprehensive review of the industry.
"We cut TAB turnover tax by 10 per cent last year, delivering an extra $4.2million to the racing industry," he said.
The Minister said the recommendations resulted from the review of the racing industry aim to provide the level of direction and effective management needed to secure the industry's future in WA.
"The new controlling authority will be an independent body established by statute," he said.
"It will not be subject to ministerial direction and will be able to perform its role in a highly competitive market.
"The new body will be self-funded from wagering and other industry revenues and no significant increase in the cost of industry management is expected.
"It will be more efficient and the Government expects that money saved from the abolition of the Board of the TAB, the Betting Control Board and the Racecourse Development Trust will help to offset the establishment cost of RWWA."
Mr Griffiths said the duties and responsibilities of RWWA would include:
- foster the development, promote the welfare and ensure the integrity of metropolitan and country thoroughbred, harness and greyhound racing;
- manage the distribution of TAB profits and determine TAB coverage of race meetings;
- establish policies for stake money levels and race conditions;
- co-ordinate access to training for apprentices;
- liaise with interstate and national racing bodies; and
- co-ordinate whole-of-industry issues, such as insurance.
The Minister said RWWA would also be responsible for controlling and supervising the conduct of racing, including steward and drug testing activities.
The board of RWWA would consist of a chairman appointed by the Racing and Gaming Minister; two members nominated by the thoroughbred racing bodies; one member nominated by the harness industry bodies; one member nominated by the greyhound racing bodies; and, four members nominated by an independent selection panel for their business skills.
"The review report identified a need for a closer relationship between the TAB and the racing clubs to overcome the lack of cohesion and strategic direction," Mr Griffiths said.
"By transferring the powers and functions of the TAB to RWWA we are bringing the role and function of the TAB and the three racing codes into one to promote a more effective and structured approach.
"In terms of TAB distribution for the period until July 31, 2005, it is proposed to maintain the current arrangements for the distribution each year of the first $50million of off-course totalisator race betting profits, at 55.26 per cent for thoroughbred racing; 29.76 per cent for harness racing; and 14.98 per cent for greyhound racing.
"During this period, the distribution of profits in excess of $50million, plus fixed odds race betting net profits, would be at the discretion of RWWA.
"In this way the three codes will have some certainty of income in the initial years, while incorporating some flexibility for RWWA to act as the review committee envisaged."
Mr Griffiths said that from August 1, 2005, racing clubs could expect to receive the net profits generated from off-course betting on their own race meetings, with net profits from betting on other race meetings, favourite numbers and sweepstakes to be distributed at the discretion of RWWA.
He announced further changes approved by Cabinet:
- the WA Turf Club, WA Trotting Association and the WA Greyhound Racing Authority, will relinquish principal club status and become independent clubs responsible for managing racing and associated activities at their own venues;
- the Racecourse Development Trust will be abolished and its role and funding from unclaimed TAB dividends will become part of RWWA's responsibilities; and
- the Betting Control Board and the Gaming Commission is to be amalgamated into one body, called the Gaming and Wagering Commission.
Mr Griffiths said an implementation team - comprising representatives from the TAB - and the three racing codes would be established to oversee the establishment of RWWA and the transfer of responsibilities from principal clubs.
The Minister expects to introduce the legislation into Parliament later this year.
Minister's office: 9222 8950
