Faafoi KrisHon KRIS FAAFOI (Minister of Broadcasting Communications and Digital Media): In April of last year Mr John Messara who is an Australian thoroughbred racing expert was commissioned to conduct an independent high-level assessment of the state of our racing industry. Mr Messara's report confirmed that racing in New Zealand is in decline and as a consequence the economic and the social benefits New Zealand receives from the industry are at risk. The Government's first legislative response to Mr Messara's report the Racing Reform Act came into force in July of this year and it created the Racing Industry Transition Agency or RITA to lead a programme of change for the industry. It's always been the intention to have this second bill for the next tier of reform. This bill creates the new Racing Industry Act amalgamating the existing provisions of the Racing Act 2003 with policy decisions agreed by Cabinet in November of this year. It will have a refreshed purpose that focuses on minimising the harm from gambling and provides a high-level overview of that industry. It recognises the need to take a more commercial orientation. The Government's view has been that the status quo could not prevail in the racing industry. Simply to do nothing would lead to continuing towards an inevitable decline. Following the advice of RITA and departmental officials Cabinet has taken a range of steps to prepare the industry for the future which is reflected in the bill that is before the House. In terms of governance the bill provides the post-transitional governance structure of the racing industry with the creation of TAB New Zealand as the sole betting provider for racing and sports. The bill also empowers the three racing codes to effectively govern clubs venues and participants as it prescribes the high-level racing functions to the codes. The bill also establishes the Racing Integrity Board which is responsible for all integrity functions and oversees a compliance arm and an adjudicative arm that operate independently of each other. In terms of property it is worth emphasising here that the preferred approach for property decisions is negotiation and for the community interests to be recognised. The bill introduces a suite of changes to resolve historical property issues that have contributed to the decline of the industry. Two property objectives are introduced to guide decision making by the industry: first the value of racing property should be retained in the industry and used for maximum industry benefit and two statutory provisions are introduced to support negotiations between clubs and codes on using surplus venues. The bill also introduces as a backstop a statutory decision-making process for the Minister for Racing to recommend an Order in Council to allocate property to the code. Provision is also made for payments to the club and community where it is warranted. In terms of wagering the bill introduces an approval mechanism to consider the introduction of new betting products. This change will support opportunities to increase revenue and support the financial sustainability of the racing industry. This proposed approach balances the need for new revenue from wagering products with the need to minimise and prevent harm from gambling. In terms of other matters within the bill it is deemed wise to direct the select committee to consider amendments allowing the industry to reach better voluntary commercial arrangements on the offshore charges regime. These amendments will be sent to the committee when the House resumes in the new year. This bill contains a series of balanced and considered measures which get the industry back on track. It is opportune to thank both the RITA and Department of Internal Affairs officials for their work to get this bill to the first reading and for the support of Government and other partners. Accordingly we commend the bill to the House.