Tisch Lindsay: Racing Bill — Instruction to CommitteeCWH In Committee 
Tisch Lindsay: Racing Bill — Instruction to CommitteeCWH In Committee 
[Volume:606;Page:3962] 
LINDSAY TISCH (NZ National—Piako) 
: 
 Part 2 is a very important part of the bill and I draw members’ attention in particular to clause 15(3). I have Supplementary Order Paper 282 in my name about this clause which relates to the distribution of profits. Clause 15(3) states: “Unless each of the racing codes otherwise agrees in writing the amount referred to in subsection (1) must”—I ask members to note the word “must”—“be distributed among the racing codes in the same proportions that the Board considers are the proportions to which the codes contributed to the New Zealand turnover of the Board for that racing year.” 
There is a lot of dispute in this area. There was much discussion at the Government Administration Committee as the members of that committee will know. There have been huge increases in the turnover on overseas thoroughbred racing. I have the figures from 1 August 2001 through to 31 July 2002. The turnover from overseas gallops is referred to as being $276 million which is an increase over the previous 12 months of $21.5 million or 8.4 percent. In terms of overseas harness racing the figure is now $32.4 million—an increase over the previous 12 months of just over $6 million. The figure for overseas greyhound racing overseas has increased by $583000. Those are huge increases. 
My point—and I ask the Minister to respond on this—is that the overseas gallops are contributing 89.3 percent to the profits from overseas racing. But if we are to base the distribution of surpluses to the codes on their New Zealand turnover—and this is the important point—the gallops in New Zealand are returning 62 percent. Let us just make it very clear that there have been huge increases in local people betting off shore. In fact the last figures that I have as at 31 July last year show that thoroughbred racing has contributed 89.3 percent to the overall overseas total. The New Zealand domestic figure is 62 percent. The bill states that the distribution of offshore profits is to be based on the New Zealand turnover—the domestic turnover. That means that all the extra money that is coming in from overseas will only be allocated out to the thoroughbred racing code on the basis of its New Zealand turnover average which is 62 percent. It makes up 89 percent of the offshore total and 62 percent in New Zealand. 
The point I am making here and I ask the Minister to take a call on this point is that in my Supplementary Order Paper I state that the board should determine the distribution of surpluses. We should not put a payout formula in this legislation. We do not do that for the dairy industry or anywhere else. There is no flexibility. When we put a formula in legislation there is no discretion and no flexibility. I tell members that if the racing industry is falling over and we put in place a formula that is set in concrete as this bill states it will be then that will rest on the votes in this Chamber. I say we should give flexibility to the industry. That is what my Supplementary Order Paper provides for. It is very very clear. It simply states: “The amount referred to in subsection (1) must be distributed among the racing codes in such proportions and on such basis as the board from time to time determines.” Let the board have the flexibility to determine the payout and make those distributions rather than this Committee setting in legislation what the formula should be.