By Brian de Lore
Published 24 May 2019
The burning question of who is running racing in New Zealand five weeks before RITA replaces NZRB may leave you scratching your head.
If you go strictly by the Racing Act 2003, then NZRB is in charge, and as CEO John Allen has been telling his staff, it’s BAU (Business As Usual). Is this why he and his highly paid executives are touring the country with seven venues listed for yet another round of ‘Industry Conversations’ with a footnote on the NZRB webpage that says further venues may be added.
Is this a serious attempt to rally industry support, or an attempt to find out if Hokitika and Riverton actually exist, or can it be construed as ‘gardening leave’ as the end of Allen’s tenure as CEO nears? Perhaps it’s a farewell tour but as The Optimist pointed out last week, these conversations which may more appropriately be called ‘Nonsense to the Nonagenarian’ speeches cost in the vicinity of $8,000 to $9,000 a time – diligent use of industry finances you might not say.
Whatever’s analysed and said about NZRB’s use of industry funds, from an industry stakeholder viewpoint, it can’t be complimentary. And the verdict on the rhetoric NZRB has been spinning the industry for the past four years; it will not it be complimentary either.
The Racing Act of 2003, as mentioned above, may have been a good idea in theory, but in practice, the Act has received only cursory respect from NZRB. No organisation was in place to mediate it or ensure it be followed as a non-contestable piece of legislated law. Over the years, the three codes have failed to stand-up strongly enough for the rights of the stakeholders.
Take clause 9 (1) under Functions of the NZRB Board, as an example. It says:(a) to develop policies that are conducive to the overall economic development of the racing industry, and the economic well-being of people who, and organisations which, derive their livelihoods from racing.
Also, under Functions of the Board Clause 9 (h), it says: to use its resources, including financial, technical, physical, and human resources, for purposes that, in the opinion of the Board, will directly or indirectly benefit New Zealand racing:
Very poorly written legislation with the use of the word ‘opinion’ and can any stakeholder in racing honestly raise their hand and say ‘yes,’ they have received benefits? Or can any of the organisations it refers to – the owners, the trainers, and the breeders raise their hands and say ‘yes’ that has happened? No. they cannot; none of that has happened to any extent and protestation by all these organisations to the treatment handed down by NZRB has been only soft.
Not enough fight in the dog – Poodles when they needed to be Rottweilers. The passing into law of new legislation in the weeks ahead will, therefore, only be as good as the people appointed to enforce it and perhaps the addition of an ombudsman for its enforcement – the latter might be wishful thinking.
Participants at the coalface of racing only want a fair go. They need a reason to remain in the game because the anecdotal evidence suggests its tougher for owners, trainers, and breeders in 2019 than it’s ever been in the history of thoroughbred horses in New Zealand
Racing Minister Winston Peters didn’t announce the full make-up of RITA (Racing Industry Transitional Authority) at last week’s May Sale at Karaka, but he did after making his speech confirm that the existing five people that make up MAC (Ministerial Advisory Committee) are the five that will transition into RITA with the addition of two new members for a board of seven. Who these two appointments are will be is crucial to code fortunes over the next 12 months.
And that brings us back to the original question of ‘who is currently in charge of racing? It’s not MAC until it becomes RITA on July 1st. Officially its NZRB but they will be too busy cleaning out their desks. In reality, it’s the Minister, but he’s too busy doing Foreign Affairs and other things and so has delegated the responsibility to his office – does that make sense.
The DIA is involved which means bureaucratically compliant appointments, i.e., the two additions to RITA come under State Services Commission guidelines – the important issue for racing is, are they to be racing people? Will they have an understanding of the industry and drag this business away from a succession of failed Institute of Directors’ appointments that have dogged racing for so long.
On Page 11 of the 12-page Cabinet Paper 2 for Transitional Governance, it says:
“Governance of RITA
7. agree that the governance provisions for RITA be:
7.1 a Board of up to 7 members;
7.2 that Board members have a strong primary duty to act in the best interest of the Board and the achievement of its goals;
7.3 the Board members are to be appointed by the Minister for Racing for the duration of the transitional period, but subject to reappointment for a finite period if required to manage any residual matters;
7.4 that candidates for appointment to the RITA Board will be required to collectively meet specific skills and experience criteria, including governance and:
7.4.1 industry expertise to effectively manage racing functions; 7.4.2 knowledge and experience of sport at a national level; 7.4.3 commercial and/or legal expertise to manage devolution of assets, functions and responsibilities; and
7.4.4 change management expertise to oversee the transition process;
8. note that Bill No.1 will provide that the terms of serving NZRB Board members end when RITA is created;
9. note that appointments to the RITA Board will be made consistent with the State Services Commission’s Board Appointment and Induction Guidelines;
10. note that the Minister for Racing will consult the Minister for Sport and Recreation to ensure that the board of RITA includes a national level sport perspective;
11. note that the Minister for Racing will submit a paper to the Cabinet Appointments and Honours Committee on the proposed membership of RITA in time to enable governance arrangements to be in place for the intended establishment date of 1 July 2019;
“The RITA Board should be closely accountable to the Minister for Racing.”
A few weeks ago the codes were asked for nominations for the two positions. The Optimist is aware of who the two people NZTR put up for selection, both of which go to the races, have full industry knowledge, are currently in administrative roles in racing. Best not name them here in case they do not make the cut.
The alternative is that the State Services Commission criteria will dredge up relics from the past such as a retired judge or a long-standing public servant with a faultless record in everything but racing. It’s all been tried before, and it has always failed. And under SSC rules all committees or boards are gender equal which requires the two new appointees be either both female or one male and one female.
That makes it tough when the best single appointment the Minister could make would be to bring Messara himself into the fold. That doesn’t appear to be on the cards and nor does the appointment of either of his offsiders who were integrally involved in the revitalisation of Racing NSW including the person who wrote the legislation and made it happen.
Experience in wagering is what’s blatantly lacking in the current five, and a Messara could fill that gap. The legislation should be finished by now if we are to see the Racing Act of 2019 Part One passed by 30 June, and with no time for three readings, it may need to go through parliament under urgency. Should that not happen, then RITA cannot come into existence.
RITA is not the permanent board, though, as its lifetime is expected to be around a year. Once the approved Cabinet papers are transcribed into legislation, and the new ship is up and sailing, RITA’s role is over. With or without new personnel, RITA effectively then becomes Racing NZ.
RITA was created by the Minister to prioritise the Messara Report, and its 123-page Interim Report is testimony to the amount of work this committee has done since late December. That work continues unabated, and as we fast close-in on the end of May and move into June, more of the positives contained in the report will unfold.
One of the focuses of the Report in the Executive summary is the clear and warming statement, “Racing stakeholders must benefit from a new industry model – the industry has been living beyond its means, and for too long.”
It goes on to say in the very next paragraph, “The committee also wants to reverse the historical model where the stakeholders of the business get what’s left after the administrators have taken what they believed they needed to run the industry. The stakeholders can no longer be left at the end of the food train.”
If that statement is not verification of NZRB’s outlandish administration and wastage of industry funds, then what is? – it’s a Muhammad Ali-like combination of knock-out blows all in a few words.
The clue as to what will happen after July 1st when RITA takes control is contained on page 123, the very last page of the Interim Report. It states under the heading of Establishing RITA: “Change will happen quickly…we are looking at a period of months, not years, to shift from the current structures and way of operating to the form and functions outlined in the Messara Report…”
At the top of a RITA four-point bullet-point list under that statement, the first line reads, “supports the Change Management Program.” which may be seen as a vital clue that RITA will make early moves to reduce the overheads with early management changes.’
In a brief statement to The Optimist this week, MAC Chairperson Dean McKenzie said: “MAC is on track to have the final report to the Minister by the due date, being the end of June. Until that point it is a work in progress, extending and updating the work plan and overall direction contained in the interim report.”
RITA will fast become polar-opposites with NZRB which is currently offering 15 new career positions on its website and recently employed a new General Manager of Technology at an estimated salary of $350,000 to $400,000 – the new appointee supposedly scheduled to be relocated from Australia with his family in July.
That’s what NZRB see as BAU (Business As Usual). On the other hand, it could be further evidence of an epidemic of that infectious disease known as Denialism which appears to be rife in the suburb of Petone.
Footnote:
The formation of a steering committee was undertaken at Karaka last week for the express purpose of establishing a publication for racing to fill the void left by the now defunct The Informant. That committee was to have travelled to Wellington for talks with NZRB about the integration of the new weekly with Best Bets. The meeting, for obvious reasons, has now been deferred until July when RITA takes the reins.
