O'Connor Damien: Racing Bill — Third Reading 
O'Connor Damien: Racing Bill — Third Reading 
[Volume:606;Page:4076] 
Hon DAMIEN O'CONNOR (Associate Minister for Racing) 
 on behalf of the 
 Minister for Racing 
: I move  
That the Racing Bill be now read a third time 
. The Racing Bill is an industry-driven initiative. In 2000 the Racing Industry Board TAB New Zealand the New Zealand Thoroughbred Racing Inc. Harness Racing New Zealand and the Greyhound Racing Association developed a proposal for reform that they presented to the Government in the form of a draft bill. The key element of the industry’s proposal was to simplify the governance of racing by merging the Racing Industry Board and the TAB. 
Mr SPEAKER 
: I wonder whether the Government whips could have a chat to their members who are right behind the Minister. I cannot hear what the Minister is saying. 
Hon DAMIEN O'CONNOR 
: Consultation with the wider industry revealed overwhelming support for a merge of the TAB and the Racing Industry Board and this formed the mainstay of the Racing Bill that the Government was pleased to introduce in mid-2001. The Racing Bill repeals the Racing Act and replaces the two existing boards the Racing Industry Board and the TAB with a single body called the New Zealand Racing Board. The famous TAB brand will not disappear from New Zealand’s High Street though as the bill protects the name for the exclusive use of the new board. 
The board will be responsible for both the administration of racing and the provision of race and sports betting services. Its objectives will be threefold: firstly to promote the racing industry; secondly to facilitate and promote race betting and sports betting; and finally to maximise its profits for the long-term benefit of New Zealand racing. The bill gives the three racing code bodies greater responsibility whilst strengthening their accountability to the board. The codes will have the responsibility for distributing betting profits to their constituent clubs. Each code will receive a share of betting profits and will have the freedom to make its own decisions about expenditure. However the board will have the right to withhold funding from a code if it does not approve the code’s statement of intent or its business plan. This is one of a number of accountability features introduced by the Government Administration Committee that are intended to protect the interests of the public and those whose livelihoods are derived from racing and there are many thousands of those. 
Another significant accountability mechanism proposed by the industry is that the rules of racing and the board’s betting and procedural rules will be deemed regulations with the potential for disallowance by Parliament. The bill is also explicit that no rule of racing may conflict with any other legislation. The Racing Bill does not affect the industry’s ability to offer certain types of gaming products or its responsibilities in respect of problem gambling initiatives. These are issues that the House will consider in the context of the Responsible Gambling Bill. 
Members are aware that many reports have been written on the racing industry. Over the years racing has been scrutinised by two royal commissions task forces performance and efficiency audits and numerous reports. I am pleased that all of those recent reports audits and studies have supported the mainstay of the bill—that is the merge of the Racing Industry Board and the TAB into a single board. 
In 2002 the Minister for Economic Development and the former Minister for Racing the Hon Annette King commissioned PricewaterhouseCoopers to undertake an industry-scoping study as part of an economic development strategy for racing. PricewaterhouseCoopers’ main conclusion was that the industry should be restructured using a rules-based commercial model. The Racing Industry Board subsequently established a working-group under the chairmanship of Bill Falconer to develop that idea. The working-group published its report late last year. 
I have heard some critics say that the Government should have held up the Racing Bill’s progress and reviewed options in the light of the working-group’s reports. [ 
Interruption 
] If Mr Tisch would just wait a moment I will explain why we have not done that. Firstly there is a pressing need to replace the Racing Act. It was enacted in 1971 as I stated earlier and while it has served its purpose today it is hopelessly out of date. Secondly I tell Mr Tisch that the Racing Bill before the House has widespread industry support and he knows that. Thirdly the working-group’s proposals have not met with overwhelming industry support and the Government is not willing to force change on the industry—unlike the previous Government the National Party with producer board reform where it forced change. 
Fourthly should the working-group’s proposals prove to be robust and eventually gain industry support they could be implemented at a later date and we would be willing to facilitate that. In any case many of the working-group’s proposals could be implemented without recourse to further Government intervention. 
The Government is prepared to support further reform that has widespread industry support. However industry bodies must be challenged to take the initiative on the working-group’s proposals. As the report notes that will require very strong leadership; nevertheless it will be possible for the new board to implement many of the report’s proposals without further legislation. The working-group has made some challenging recommendations and I am confident that with strong leadership the racing industry can advance these matters. 
During the Committee stage of the bill the House considered a Green Party amendment proposing the introduction of a statutory complaints procedure. I feel it is important to explain the Government’s reasons for not supporting that amendment. The select committee debated the issue at length but decided instead to recommend a series of changes to specific sections of the bill to improve accountability and to establish robust processes to safeguard the interests of the industry participants. The Government supports the committee’s decision. It was a sound one. A statutory complaints procedure would undermine the board’s ability to make difficult decisions in the best interests of the whole racing industry. If there were to be an appeal mechanism the appeal body would end up making all the contentious decisions that are vital to the industry’s future. The Government believes that it is preferable that a board that is accountable directly to the industry and expert in racing issues make those vital and often contentious decisions. 
To conclude the underpinning policy objective of the Racing Bill is improved administrative efficiency. It provides a modern framework for key industry bodies to work together for the betterment of the New Zealand racing industry. This bill may not be the final answer to all the industry’s problems. However many within the industry are confident that it is an important stepping stone towards a better future. It is expected that the Racing Bill will commence and be in full swing by 1 August this year coinciding with the beginning of the new racing calendar. 
I would like to express my thanks to all those involved in developing this legislation particularly my parliamentary colleagues on the Government Administration Committee. Under Dianne Yates’ leadership they made many positive changes that enhanced this bill. I also thank the former Minister for Racing my colleague the Hon Annette King who did a considerable amount of work to get the bill into the House and who is very committed to the well-being and growth of the industry. 
Finally as well as thanking all the officials involved as I have said I would like to acknowledge the work of the current Minister for Racing the Hon Mark Gosche who regrettably cannot be with us today for family reasons. This bill will be received positively by the racing industry. It is desperately needed. I now challenge the industry to move forward and make the industry the kind of success that will make this country proud of horse racing.