Page 1038 - Week 03 - Thursday, 10 March 2016

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Racing industry—finances
(Question No 668)

Mr Smyth asked the Minister for Racing and Gaming, upon notice, on 11 February 2016:

(1) For the three categories of racing covered in 1b of the response to Question on Notice No. 7 from the Standing Committee on Public Accounts inquiry into Annual and Financial Reports 2014-15 approved by the Minister for Racing and Gaming on 4 December 2015, what was (a) the total amount of Government funding provided for prize money and (b) the percentage of Government funded prize money for each event within each category.

(2) In relation to the amounts reported in 2a of the Minister’s response to QON No. 7, (a) what does the racing industry use these funds for, (b) what conditions or guidelines are prescribed by the Government in relation to the racing industry’s use of the Government allocated funds, (c) what governance and accountability processes are exercised in relation to the allocation and use of these funds and (d) how much of the funding is used for staff remuneration or staff benefits.

Mr Gentleman: The answer to the member’s question is as follows:

(1)

a. The ACT’s racing industry was historically funded through payments from the former ACTTAB. In 2009, in light of concerns about ACTTAB’s competitiveness and ability to continue supporting the industry, the Government agreed to cease ACTTAB’s industry payments and instead provide direct financial support to racing clubs. The then Racing Development Fund was replaced with budget funding. In its response to recommendations from a subsequent Independent Competition and Regulatory Commission report into the racing industry, the Government agreed to provide greater funding certainty to industry.

Government provides funding to the racing industry through CPI-indexed Budget appropriations. Industry funding was set at $8.022 million (2014 15) and $8.226 million (2015-16). There is no specific allocation for prize money.

In 2014-15, $6.017 million was provided to the Canberra Racing Club. In 2014-15, $1.003 million each was provided to the Canberra Greyhound Racing Club and the Canberra Harness Racing Club. Funding supports a range of racing activities.

b. As advised in the Government’s response to Question on Notice No. 7 from the Standing Committee on Public Accounts inquiry into Annual and Financial Reports 2014-15 (1c), prize money values are set by the racing club conducting the event. Information is not collected on the percentage of government funding that contributes to the prize money value of each event.

(2)

a. Funding to the industry supports a range of racing activities. Funding contributes towards industry support for wages to local staff, purchasing of goods and services, repairs and maintenance of infrastructure, club administration, and promotional activities etc.


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