The following is a Discussion Paper on Identification of the Drought
Issues affecting the Australian Harness Racing Industry.
Warren Truss, MP, Federal Minister for
Agriculture has responded this paper in a letter dated 22nd June 2003.
Click here to view.
Senator the Hon Helen Coonan, Federal Minister
for Revenue and Assistant Treasurer has also responded in her letter of 23rd
June 2003. Click here to view.
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Rod Pollock
Chief Executive
Australian Harness Racing Council
February 2003
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Index - Scoping Paper |
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COMPOSITION OF THE DROUGHT WORKING PARTY
- Helen Boyd (Chair), Deputy Chairperson, QHRB
- Rod Pollock, Chief Executive AHRC
- Kevin Neilson, Chief Executive HRTas
- Tony Collins, Registrar, HRA NSW
- Duncan McPherson, General Manager,
Strategic Planning & Product Development, HRV
Note: Dr Diane Ryan (Deputy
Chairperson, HRNSW) retired from the position of Chair of the Working Party
upon the appointment of the new Board of the Harness Racing Authority, New
South Wales in early February 2003. Helen Boyd (Deputy Chairperson, QHRB) then
took up this role.
EXECUTIVE OVERVIEW
1. The Scope of the Drought is limited geographically to
parts of Victoria and New South Wales.
2. The cost of feed inputs and transport logistics have
escalated considerably.
3. The Trend is to breed less standardbreds and
there are less foals born. When combined with wastage future supply of the
existing race product at the current level is unrealistic given the current
future implications of the drought on breeding.
4. State Controlling Body Funding is limited and fully
committed at this time of the financial year so any short term solutions are
not capable of implementation.
RECOMMENDATIONS
(i) Harness Racing must pursue the Federal Government to
gain Primary Industry status and Taxation deductibility for all industry
participants similar to other livestock industries and be eligible for similar
Federal and State Government Drought Assistance mechanisms.
(ii) All key External Stakeholders must recognise and
encourage the breeding and racing cycles of the standardbred together with
acknowledging the economic dimensions of the equine industry to foster its
medium and long term maintenance as a traditional wagering industry as lack of
numbers will threaten its existence as a "preferred" wagering and
gaming product.
(iii) The Administrators of Harness Racing must devise
innovative and novel methods through programming and handicapping to encourage
returns to the owners and breeders of all standardbreds to promote
participation in breeding, racing then breeding again irrespective of
racetrack performance ability for the supply of racing product.
(iv) Each State Controlling Body must evaluate their
existing Breeding Scheme to consider its future impact on the delivery of
increased breeding numbers and take positive steps to incent Owners/Breeders.
(v) Research is required on breeding efficiency (Services to
Foals), Training Methodology (Foals to Starters) together with the development
of profiles on breeders and owners with a view to identifying areas and
issues, which can be evaluated.
(vi) An integrated marketing and incentive plan at a range
of levels specifically targeting breeders and owners then requires preparation
and implementation with a specific dedicated Budget arrangement at the State
Controlling Body level. Principal and other Clubs should be actively
encouraged to also participate in this initiative.
(vii) A specific mechanism which allows breeders and
broodmare owners(s) to meet, combine and "do a deal" should be
designed with limited administrative impediments to encourage breeding and
remove "verbal" deals.
(viii) Various specific and detailed areas are incorporated
in the Report and should be evaluated for implementation.
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NATIONAL
REGISTRATIONS
1990 - 2002 |
back to top |
|
Season |
Trainers |
Sires |
Services |
Foalings |
Horses
Named |
NZ
Imports |
US
Imports |
NZ
Exports |
US
Exports |
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1990-1991 |
7697 |
763 |
13464 |
10205 |
7170 |
400 |
21 |
56 |
26 |
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1991-1992 |
7551 |
667 |
12198 |
9185 |
6575 |
430 |
9 |
15 |
9 |
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1992-1993 |
7319 |
608 |
11906 |
8666 |
6209 |
453 |
18 |
41 |
11 |
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1993-1994 |
7180 |
607 |
11797 |
8369 |
6635 |
531 |
26 |
38 |
11 |
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1994-1995 |
7069 |
567 |
10425 |
8233 |
5457 |
545 |
14 |
33 |
12 |
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1995-1996 |
6791 |
529 |
10729 |
7204 |
5702 |
549 |
8 |
31 |
10 |
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1996-1997 |
6268 |
509 |
9378 |
7737 |
5224 |
552 |
14 |
27 |
18 |
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1997-1998 |
6383 |
467 |
9891 |
7309 |
4569 |
679 |
6 |
42 |
15 |
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1998-1999 |
6144 |
443 |
9774 |
6927 |
4861 |
775 |
7 |
36 |
35 |
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1999-2000 |
5778 |
402 |
9544 |
6843 |
5674 |
705 |
8 |
87 |
48 |
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2000-2001 |
5890 |
371 |
9002 |
6543 |
5172 |
641 |
11 |
58 |
141 |
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2001-2002 |
5503 |
354 |
8871 |
6149 |
4892 |
655 |
13 |
81 |
165 |
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Source: Compiled by AHRC from State
Controlling Body Information. |
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OBJECTIVE
This is an exercise in Issues
identification to highlight areas of future investigation and research to focus
investigation and resources for the Australian Harness Racing Industry. It is
designed to identify and compliment what each State jurisdiction is doing for
its own industry participants.
K EY
STAKEHOLDERS
- All Members of the Australian Harness
Racing Council, particularly State Controlling Bodies because of their
Regulatory Role.
- Emphasis on Breeders, Owners and
Trainers whose encouragement is critical to the provision of current and
future breeding and racing stock.
- Totalisator Agency Boards and Commercial
Entities for the usage of the harness racing product for wagering purposes.
- All Industry Participants who rely on
employment, gain or entertainment/participative engagement in conjunction
with the Standardbred for their athletic achievement.
- State and Federal Governments whose
commercial and regulatory environments condition the industry and provide
employment etc.
KEY IMPLICATIONS
- Considerable and selective reduction in
the breeding and preparation for racing (breaking in etc) areas of the
standardbred herd in Victoria (parts) and New South Wales. (Not able to be
quantified at this stage because of lack of comprehensive Herd registration
numbers and Death Notification advices to SCB’s).
- Considerable reduction in this season’s
breeding in the above geographic areas. (Not able to be quantified at this
stage but will be when the Sires Summary Sheets are returned (due end March
say early May 2003).
- Lack of retention by trainers of
marginally performing standardbred racehorses with high consequential
wastage rates.
- Reduced ability to either put a
standardbred racehorse "away in a paddock" or allow to age, mature
and develop.
- Reduced further capability to provide
breeding stock and racing product in future seasons.
- Various industry participants maybe
exiting the important roles of owner, breeder and trainer from our industry.
- Significant escalation in all cost
inputs for our industry.
STOCK, FIRE, FEED and WATER ELEMENTS
| STOCK |
Standardbred herd in survival
mode in certain geographic areas. |
| STOCK |
Significant reduction in
breeding program with a difference between wet and dry mares utilised. |
| STOCK |
Culling as horse welfare issue
through lack of feed, pasture etc. |
| STOCK |
Minimal "dogged"
value incapable of promoting replacement value for investment stock in
the future. |
| STOCK |
Escalated price structures as
demand rises despite livestock herd culling and export fodder supply
increases. |
| STOCK |
Inability of owners, breeders
and trainers to retain stock. |
| FIRE |
Bushfire – widespread
occurrence with consequent herd losses and loss of pasture availability
for agistment. |
| FEED |
Lack and cost of Agistment
availability |
| FEED |
Grain cropping and seed stock
diminished significantly. |
| FEED |
Fodder in various forms having
limited availability at high demand prices. |
| FEED |
Increased travel and logistics
arrangements to provide feed to areas where it is required. |
| WATER |
Lack and cost of water as it
is a key input in many segments of both the breeding and racing
operational areas. |
| WATER |
Restrictions on availability
of irrigated water in traditionally irrigated areas. |
| WATER |
Lack of rainfall in
traditional high ground pasture and consequent summer dry-off |
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KEY QUESTIONS
FOR THE LONGEVITY OF OUR INDUSTRY
- How can we encourage retention of the
standardbred breeding herd?
- How can we foster information on
obtaining the feed inputs for our industry?
- Should our industry adopt and promote
a stance on manufactured or other processed feed alternatives e.g.
bagged pellets etc to natural fodder and roughage products.
- Should regulatory controls on feed,
substances etc be reviewed, as contamination is feasible as a
consequence?
- Is our national transport
wholesale/retail distribution and information communications system
capable of delivering information and value to industry participants
at the operational level? Surety of supply through normal
channels of distribution, which is a valuable logistics chain.
- What is the degree of State based
Lobbying of State/Ministerial Parliamentarians by State Controlling
Bodies on this important issue?
Demand/Supply Notation:
Racing competes actively against other livestock herds
for feed and water inputs in the same geographic markets.
In addition, corporate enterprises in the human
consumption food manufacturing areas have already executed significant
forward purchase contracts to suppliers for production inputs domestically
and internationally. They have significant cash provisions to ensure that
their business continues. Individual industry participants have difficulty
equalling access, volume pricing and future commitment. Industry pooling
arrangements would have created higher demand and prices escalated if such
arrangements contemplated in this competitive corporate environment.
BRIEF
OUTLOOK OF CURRENT GOVERNMENT and CORPORATE ENVIRONMENT |
- Current Federal Government regulatory
and taxation regimes inhibit the positive encouragement of the
equine racing codes ability to compete effectively. Similarly, the
State Governments should recognise the same proposition whether it
is a business or not as primary production for our industry.
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o Lack
of Recognition as a Primary Industry and as an agricultural/farming
livestock industry with access to Federal Drought Relief Assistance. |
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o Lack
of Positive Taxation Incentives/Deductions for all industry
participants (including "hobbyists") of a broadly focussed
nature e.g. Income and GST Tax Regimes unless established as a business
entity. |
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o
Recognition of the importance of owners and breeders as key generators of
economic wealth and employment creation throughout Australia by
non-allowance of taxation deductions against income/revenue unless
established as a business entity. |
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Further recognition, funding and resources for industry specific training as
creation of competency/skills for this sector through ANTA etc. |
- Taxation treatment on various taxation
takes from TAB wagering when compared to other federal corporate
taxation rate alternatives by past negotiated agreements with State
Governments upon privatisation. Racing provides a significant revenue
stream in this area, which State Governments benefit from extensively.
Racing has a number of key positive ingredients attractive to
government. It has a clean, green, animal friendly primary livestock
industry "image" in characteristics. The traditional focus
of wagering is one of skill, knowledge and interpretation of racing
information rather than the image created of Casinos and gaming with
its reliance on chance and mathematical probability. Racing has a
further "good citizen" image as a result, given the
widespread community proliferation of gaming machines, their
addictiveness and adverse social impact. However racing, other than
significant events, are not high priorities within our social
community.
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- The effect of the refocussing of
Totalisator Agency Boards as shareholder driver organisations under
various privatisation agreements and towards gaming alternatives as
opposed to racing/wagering, a traditional "economic mature"
industry providing a basic core to their activities.
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o
Reassessment of the promotion and encouragement of the Racehorse –
Standardbred and Thoroughbred. |
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o
Reassessment of dedicated research development of the racehorse breeding
through the Racing Cycle to retirement. |
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o
Assistance with economic/demographic research modelling on the racing
industries. |
- Advancing the argument basis that a number of key TAB
organisations and governments have specifically dedicated Community
Service Obligations to the Racing Industries in view of their current
contribution to the national economic productivity and employment.
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- Government Primary Industry specific recognition is
currently limited to traditional agricultural livestock primary
industries such as cattle, chickens, pigs, sheep etc. This
recognition allows participants in these industries to gain
government incentives e.g. fuel incentives, subsidies e.g. export
promotion subsidies and other regulatory measures e.g. access and
use of specific drug administration protocols. Assistance criteria
preclude racing participants from programs.
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- Government action within the
current national drought arrangements has focussed on the
traditional primary agricultural industries, which share common
economic inputs with the equine (racing) industry unless they are
categorised as farmers. A difficulty, which is evident in
considering the inputs of water, fodder, grain and their allied
logistics/transport support together with horse welfare research.
Anecdotal information suggests that access to drought assistance is
difficult to obtain and subject to eligibility criteria even within
the Primary Industry Livestock areas for farmers.
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EXPORT
FACILITATION
- Consideration must also be made to the
growing volume of exports to the United States and Canada. The
difficulty in this area, which is developing, lies in the
alternative to encourage the extensively trained local horse to go
to another international jurisdiction as opposed to our aim of
fostering its continuing racing in Australia. The latter means that
currently produced racing product leaves without an adequate
replacement because of the drought and the time required to develop
another horse. The continuing development of New Zealand exports and
consequent reliance by Australia for their racing product is
significant when compared to the USA/Canada exports. The weakness of
the Australian and New Zealand dollar promotes the continual
relocation of our horses to the American continent. However the
principle source of revenue for State Controlling Bodies is betting
commission through the TAB’s. It is considered that this area
requires economic modelling at some future point to accurately
dimension the impacts.
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- These exports are now a regular
feature to the American continent. The breeding integrity issue of
utilising Maxxam Analytics for parental genotyping will only enhance
Australia’s breeding reputation. The consolidation of the
Australian Registry with that of the United States Trotting
Association and Standardbred Canada with a common service provider
is a key integrity element for future breeding stock.
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- Australia’s racing and breeding
stock are principally of the pacing gait similar to the composition
of the American standardbred herd. The regulatory controls in place
in Europe inhibit the development of Australian exports given that
the principal gait is trotters in this international area. Together
with the recognition of quality bred stocks (in their terms) however
the usage of quality imported frozen semen from Europe and the
American continent will mitigate this. Australia is a low cost
production area by comparison to these environments given our
currency relativity with other international jurisdictions.
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- A carefully planned export program
fostered by Government incentives, where possible, requires careful
planning for the standardbred export industry. Within the primary
industries this is regarded as a normal process and one, which
requires investigation when resources are available for, export
facilitation. This must be encouraged despite our need for current
and future racing product given that the above normal returns
through export sales provide an ideal opportunity for reinvestment
in future local racing and breeding stock. What government export
assistance and incentives are available? The drought in our herd
numerically significant States of Victoria and New South Wales will
in the short/medium term effect supply.
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CLIMATIC CONDITIONS FORECAST
- The Bureau of Meteorology has recently
stated in the press that a number of indicators disclose that the El
Nino climate conditions affecting Australia are weakening.
Apparently this effect tends "to break down" in late
summer and autumn. It is expected that a clearer forecast picture
will be available at the end of February and will be reassessed in
late May. Some rainfall is now occurring in Victoria in February.
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- Noted climatologist Roger Stone was
also reported as saying that this El Nino effect had a 20% to 30%
chance of recurring this year again. Dr Stone is a Director of the
Queensland Centre for Climatic Applications at the Department of
Primary Industries and is a Professor at the University of Southern
Queensland. Whilst this is a minority view based on the
international forecasters at the United States National Oceanic and
Atmospheric Administration (part of the National Weather Service)
and the Japan Weather Association. Consequently, it should be
incorporated into any planning and noted. (Source: From an
Article by M. Sequeira, Stock & Land, January 2003)
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- It would therefore appear that the
drought, and its effects, will be with us for sometime.
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PAST
EXPERIENCE
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NATIONAL
STATISTICS, NSW FOCUS
Tony Collins, Registrar, Harness Racing Authority
NSW has provided a brief statistical assessment of the impact of the current
drought on the breeding industry in NSW. This has been based on National
statistical information relating to the last two major drought years in
Australia, in an attempt to give an overview of the likely reduction in the
number of foals, which will be bred in the current year.
In assessing the information, he has listed the
percentage drop in the number of stallion services recorded, and the number of
foals registered as a result of those services, for each of the drought years of
1982/83 and 1994/95. To provide some perspective and balance to these statistics
he has also included the same statistics for the breeding seasons immediately
preceding those drought years, in both cases.
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Non
Drought Year 1981/82 |
|
Drought
Year 1982/83 |
| 0.65% drop in number of services
recorded. |
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12.25% drop
in number of services recorded. |
| 1.15% increase in number of
foals registered as a result of those services. |
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18.81% drop in number of foals
registered as a result of drought year services. |
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Non
Drought Year 1993/94 |
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Drought
Year 1994/95 |
| 0.91% drop in number of services
recorded. |
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11.63% drop in services
recorded. |
| 1.62% drop in number of foals
registered as a result of those services. |
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12.50% drop
in number of foals registered as a result of drought year services. |
As can be seen from the above National figures, the percentage
drop in stallion services and foals registered was negligible in the seasons
immediately preceding the drought years. However, the figures for the drought
years disclose a completely different picture.
Comparatively, the drought this year has been at least as bad
as the one in 1982/83, and certainly more severe than the 1994/95 drought.
Therefore, extrapolating this statistical information, then it would appear that
the number of mares serviced this season on a National basis, will be down by
about 12% on last year’s figure, giving us an estimate of about 7,800 mares
served this season (8,871 last season). Likewise, the number of foals to be born
next season as a result of those services, will be around 5,400 and possibly as
low as 5,000 (6,149 last season). Information will be available in early May
2003 to validate the above.
Of course, it remains to be seen what effect this reduction in
numbers will have on the viability of 2 year old and 3 year old racing across
the country, in seasons 2005/06 and 2006/07. However, one possible side effect
is that owners may seek to bolster any shortfall in numbers by importing numbers
of horses from overseas.
While naturally occurring phenomenon such as droughts will
always have a devastating effect on all livestock industries nationally.
Following a number of years of declining foal numbers in NSW, the introduction
of initiatives such as Transported Semen and the Statebred Bonus Scheme, were
beginning to have positive effects on the industry, with foaling numbers on the
increase for the last two breeding seasons in succession. This positive trend of
growth will unfortunately be suspended next season, as the full effects of the
drought impact.
However, on a more positive note, our industry’s history
shows us that the breeding industry invariably bounces back following a drought,
with increases in foaling numbers of between 7.00% and 11.00% being experienced
in the years after the 1982/83 and 1994/95 droughts if the past is an indicator
of the future. This is one aspect of the current drought where the industry in
this country will no doubt be hoping that history does repeat itself.
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INDUSTRY
INTERNAL FACTORS FOR ASSESSMENT
Consideration of the
National Breeding Environment
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o State Breeding Schemes
(Participant or other Industry Funded) |
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- Currently
being examined by another AHRC Working Group. |
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o Identification of the
Standardbred Herd. Are current Schemes workable? Achieving desired
outcomes? |
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- Breeding
Segment |
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- Racing
Segment |
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Inactive/Retired Segment |
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o SCB Registration Processes. |
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o Continued use of technology and
organisational restructure to revise fixed cost structures of the
national registration activity. |
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o Commonality of Tariffing and use
of subsidies to encourage specific policies. |
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o Consideration of the National
Handicapping System. Currently being examined by another AHRC Working
Group. |
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o Geographic Location of the
Standardbred Herd. |
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o Currency of Stable Returns from
Trainers |
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o National and State based
Computer System |
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- Currency
of Data |
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- Purging of
expired data |
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- Future
processing and review |
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o Consideration and relaxation of
Regulatory and Racing Rules, Guidelines and other policies e.g.
Qualifying Times. |
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o
Key Considerations |
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Is how to incent key
specific industry segments to provide standardbreds without escalating
cost inputs? |
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- The
"carrot of incentive" must be focussed on the racing standardbred
through either incentives at qualifying time or "trailer" bonuses to
breeders to cover current/future cost structures. |
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- Can a
breeders/broodmare interchange marketplace be created whereby these
parties can come together and interact to allow a breeding contract to
be executed to produce a foal? Is this feasible? This was recognised by
the use of a "breeders lease" in South Australia in the past to
encourage breeding. Verbal deals should be formalised between Studs,
Breeders and Owners. |
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STATE CONTROLLING BODY EVALUATION
- Whilst the drought and its impact has
been developing throughout the season its impact and implications in
all States have been considered. However, the State Controlling
Bodies’ capacity to respond is currently limited.
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- The timing and continued extent of the
drought and its implications has meant that whilst individual owners
and breeders have been able to decide or defer breeding decisions
there is limited availability of SCB discretionary funding. The most
affected States of Victoria and New South Wales have already
committed their Budget priorities on expenditure for this financial
year. As a result, unless other already committed programs are
abandoned, curtailed or deferred drought assistance funding is
unavailable.
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- As with any program there are equity
allocation difficulties in the affected States as solutions raised
through consultation are not able to be universally implemented
throughout different geographic areas internal to the State.
Accordingly, the emphasis is to maintain existing breeding and race
result based schemes at the present.
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- Any further initiatives can only be
deferred for consideration and consequent implementation can only
occur in the next financial year as a result.
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AFFECTED
INDUSTRY PARTICIPANT SEGMENTS
- Studmasters, Stallion
Stations and Agistment Facilities
o Fodder is
one of the key inputs affecting the cost of operating these facilities. As a
consequence of increased prices the cost of agistment to both the studmaster/operator
increases which in turn is passed on to the owner/breeder.
o Discussions
with members of the ASBA have disclosed that the impact of semen
transportation has resulted in a change to and growth of stallion and/or semen
stations from the past operations of traditional studmasters. The later are
still the majority but breeding activity has decreased. Further the economic
reach of larger "semen transportation" enterprises, both locally and
internationally, has increased into all areas of the Australian market to the
detriment of smaller locally based traditional studs. Refer to Council’s
discussion paper on Artificial
Insemination and Semen Transportation for the statistical dimension of
this activity.
o As a
consequence of the above factors interstate broodmare owners have taken
"boarding" broodmares from long term agistment arrangements home to
locations near the owner/breeder.
o The
capital land resources often surrounding these facilities are no longer
required for agistment, fodder production etc as the feed requirements are
increasingly bought in rather than grown internally to the enterprise as an
indicative trend. Therefore, traditional land usage previously committed to
this is being reallocated and financial capital released.
o Importantly,
this segment must also purchase or produce forward supplies of fodder for the
coming winter to carry them through. This adds additional demand pressure to
an already difficult fodder market.
- Individual Owners
& Breeders
o Personal
situational analysis required of each individual enterprise(s).
o Identification
of all resources and assessment of current inventory of horses.
o Consideration
of the effects of significant sell down or culling on the individual’s
capacity to respond to future personal growth decisions without current
resources. Core breeding stock will require current and medium term access to
grain, fodder and roughage.
o Consideration
of standardbred resources, which should be retained, and what resources
(financial, expertise etc) are required to implement this decision.
o Consideration
of property, water and future feed/fodder will be necessary, together with
effective improvements in all current processes.
o The
ownership research done by Council will require revisiting and further current
analysis given the future supply of standardbreds.
o
The
Victorian Government has put counselling resources in place to assist affected
eligible persons in declared drought areas.
- Personal
destruction of livestock as a result of bushfire
- Financial
consequences as a result.
o
The
demand for racing/training stock will not be satisfied to meet racing product
demands without considerable future planning.
o The lack
of horses and increased costs will force trainers to reconsider their industry
position whether they are professionals or hobbyists.
o Given the
number of available horses for racing purposes trainers will need to re-think
their traditional methods of obtaining horses. They will need to re-think
relationships with those who breed standardbreds.
o Extensive
focus group panels are required to both consult and enquire on areas/issues
impacting on their environment.
o Operation
of Public/Private Training Facilities with their requirements of resources,
funding, maintenance and access to Club operating facilities.
o The
Federal Government has implemented programs utilising Centrelink’s Job
Network with benefits and income support. Phone 132 316 or
www.centrelink.gov.au. The alternative area is in Work for the Dole, Drought
Force through a local Community Work Co-ordinator or the Drought Force Hotline
on 1800 004 226.
- Conducting Clubs,
Training Tracks & Private Track Facilities
o Has the
drought caused a change in the pattern of usage of conducting clubs where
training is undertaken and/or horses are stabled on-course or in close
proximity. Is there a move from private to public facilities? Research can
ascertain if a migration of training location has occurred, if necessary.
o Has the
local availability of race and horses in training changed significantly?
o As Clubs
have the closest proximity to our Trainer and Driver industry participants,
they have the ability to best communicate
the localised
effect of the drought. This information can be collected through each State’s
Industry Advisory Council or Club Association. Information provided by
individual Club’s follows the key issue identified by those Clubs who
responded to Council’s request for impact information.
o Clubs need
to consider and access water usage as an integral part of their operations.
The key to track facilities including raceday operations is water usage
particularly in periods of hot climatic conditions. As water is often carted
and applied/distributed by water trucks this is a key club expenditure factor
as part of their facilities management program. If a Club does not have access
to artesian or low cost water resources this necessary expenditure has rapidly
escalated as a result of the current drought arrangements. Wind erosion maybe
a distinct possibility if water supply and usage is limited.
o An
ancillary question is the possibility to utilise recycled water, including
sewerage recycled water, in rural areas, if normal supply is currently
restricted. This raises the aspect of environmental concerns as to usage if
this is able to be operationally achieved. Again this is a choice between
alternatives.
o From a
training and horse welfare viewpoint the hardening of training tracks can
contribute to a number of leg and stress injuries as a consequence. Again,
injury management is another factor in the supply of racing product.
o
As the
costs of clubs and training facilities escalate where they are utilised for
both racing, trialling and training cost recovery and/or subsidisation
requests to increase funding from various sources has and will occur to State
Controlling Bodies. This may impact on the ability of clubs to maintain and/or
increase race stakemoney. Accordingly, infrastructure maintenance, replacement
and capital equipment expenditure will possibly be impacted within the
operational Club programmes. As much of this operational work relies on the
volunteer provision of labour (and capital equipment) resources in this area
maybe subject to review.
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CONDUCTING
CLUBS SURVEY
- Key Issues Nominated by Clubs Survey
o Guaranteed
supply of product.
o Regional
and rural New South Wales are central component of product supply. (TAB% of
holdings important).
o Imbalance
between city and non-city stakemoney.
o Club
cost escalation and own volunteer resources.
o Lack of
State assistance and marketing.
· Joint
Industry/TAB Consulting Study
·
Government
Support of industry required
o Starters
levy payable.
o Assistance
for Breeders
o Assistance
to Trainers & Drivers
· Government
Subsidy
o Will
accelerate supply & fodder prices
o Difficult
to differentiate across equine segments
· Consider
establishment of forward purchase products
o Consolidate
industry to establish to volume contractual forwarding purchasing contracts
this warrants scale of operations to hedge on price movements on a
co-ordinated regional approach.
o Limited
options available
· State
& Federal Government Subsidy
o SCB
could consider fee reduction or subsidy
- Foaling
& registration fees
o
Need to
plan out into the future.
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Individual Club Issues Response
Bathurst
Harness Racing Club Ltd (NSW)
o Acknowledgement
of lack of availability and costs of feed and grazing conditions, particularly
in major stud areas.
o Impact will
continue on access to feed grains, processed feed and fodder.
o Feed
availability will continue and impact on racing stock.
o Intensive
competition for grain supply by all livestock sectors.
·
Bendigo
Harness Racing Club (Vic)
o Establishment
of a "fodder" pool of oats and hay to retain until August, when
needed.
· Blayney
A & P Harness Racing Club (NSW)
o
Increasing
cost of feed
- Flow on
training and owner expenses.
o Increasing
cost of agistment for broodmares
- Reduction
in numbers being bred.
- Cessation
of breeding activity.
o Efficiency
in getting mares into foals
- More
difficult in drought conditions.
· Bunbury
Trotting Club (WA)
o Increased
cost of feed and other input costs.
o Reduction
and return of taxation on wagering by State Government.
o WATA to
submit proposal to Western Australian Government.
· Elmore
Light Harness Racing Club (Vic)
o Feed prices
have doubled or trebled in price.
o Water prices
have doubled or water is no longer available. Irrigation providers not providing
full water entitlements.
o Inconsistent
application of drought notification by government.
o Owners not
sending horses to be trained.
· Maryborough
Harness Racing Club (Vic)
o Availability,
cartage and price of acceptable quality hay.
o Problem of
diminishing water supply and the cost of obtaining good fresh water from
contractors.
o Probability
that mare numbers bred will be down.
o Comments
relate to the Maryborough area whereas Ballarat has experienced good conditions.
o Horse
numbers unaffected at this stage.
· Mildura
Harness Racing Club (Vic)
o Escalating
cost of horse feed.
o Deferral of
breeding activities.
o Horses
moving from Mildura district for agistment.
o Escalating
cost of fuel.
· Mooroopna
Harness Racing (Vic)
o Industry
participants, particularly trainers (mostly hobbyists receive "no drought
assistance".
o Irrigation
water, if attainable, currently attracts a price of $500/megalitre on the open
market.
o Professional
trainers can pass costs on to owners whereas the hobbyist trainer cannot.
o Limited
grass available for mares and foals.
o Feed bills
have doubled.
·
Newcastle
Harness Racing Club (NSW)
o The problem
of getting feed now but more so in a few months time.
o The cost
increases of feed as supply lessens.
o Water
restrictions, this does not appear to be a major issue in our region but a
number of participants mentioned the effects this was having on other areas that
saw participants having to purchase water.
·
Orange
Harness Racing Club (NSW)
o Spelling
paddocks unavailable with feed.
o Cost of feed
tripled.
o Breeding
impact with 20% reduction in number of mares being served.
o Agistment
costs have substantially risen.
o Lack of feed
stock discloses inability to feed and maintain stock.
o
Trainers
State owners
- Not willing
to take time to develop.
- Race
programming means unable to get to races within timeframe being returned to
owners to feed or slaughter.
- Slow horses
unable to earn being dogged.
·
Shepparton
Harness Racing Club (Vic)
o Significant
increase in cost of lucerne and bale oats.
o Cycle is
that trainers fees increase as a consequence thereby owners will reduce numbers
affecting industry horse supply etc.
o Irrigation
water availability although only 49% of entitlement has minimised impact to
date.
o Communication
required to alert metropolitan area of the plight of the country.
· Young
Harness Racing Club (NSW)
o Increased
feed costs with horse numbers, trainers declining.
o Horses are
being kept in work as being productive.
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INFORMATION
SOURCING
External
Information Sources
o Circulation
of industry groups and clubs for information.
o Tap into
State Controlling Bodies through their Industry Advisory Bodies and Club
Associations on consultation undertaken and provide further analysis for
consideration.
o Request
external Bodies other than Government like Animal Health Australia, RIRDC,
Australian Veterinary Association and others on whether any current work is
being undertaken.
o Enquire
through State Local Government Associations whether any of their Shires,
Cities etc undertaking review or subsidy encouragement.
o Animal
Health Australia
o RIRDC –
Rural Industries Research & Development Corporation
o Australian
Bureau of Agricultural and Resources Economics
o Bureau of
Rural Sciences
o State
Farmers Federation Branches
o Rural
Press Publications (State Specific) Stock & Land, Weekly Times etc.
· Government
Drought Assistance Programs
Federal Government
o Department of
Agriculture, Fisheries and Forestry Australia. (www.affa.gov.au
- click on Commonwealth Drought Assistance).
State Governments
o
Department
of Primary Industry, Victoria (www.nre.vic.gov.au/drought
- Drought Information for Victoria)
o NSW
Agriculture (www.agric.nsw.gov.au -
Natural Resources and Climate - Drought)
o Department
of Primary Industries, Queensland. (www.dpi.qld.gov.au/drought
- Drought - Managing The Tough Times Together)
o Department
of Primary Industries and Resources, South Australia. (www.pir.sa.gov.au
- Managing Drought & Dry Conditions)
o Department
of Primary Industries, Water & Environment, Tasmania (www.dpiwe.tas.gov.au)
o
Department
of Agriculture, Western Australia (www.agric.wa.gov.au)
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INFORMATION AND STATISTICS
REQUIREMENT
- Update of
all national statistics and estimates of herd segments to be undertaken together
with consideration of a National Registration Database and annual registration.
- Preparation
and update of breeding statistics and estimates for the current season when
foaling and service certificate data is returned.
- Forecasting
of trends and assumptions of above data.
- Obtain
State Controlling Bodies Plans and Programs for inclusion and circulation on
State Breeding Schemes.
- Forecasts
on requirements for breeding stock to fulfil racing product provision into the
future together with integration of other statistical information.
- Completed
Identification of key Government Websites and Information on the Drought and
available assistance and communication through National Website.
- State and
Federal Government Drought Policies and Assistance Programs with identification
of specific horse industry segments with further analysis. Correspondence on
awareness to the Racing Ministers.
- Identification
of specific horse and drought information, articles etc and communication
through the Website and State Controlling Body magazines.
Creation and
inclusion of relevant areas on a separate segment of the National Harness Racing
Website. (www.harness.org.au) with
linkages to above.
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Note:
Council
discussed this paper at its Mid Season Meeting (April 2003) and its
recommendations are to be progressed.
Should
you have any further comments or information please send them to the Author for
the Working Party:
Rod Pollock
Chief Executive
Australian Harness Racing Council
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