McKelvie IanRACING REFORM BILLIn CommitteePart 1 Amendments to Racing Act 2003IAN McKELVIE (National—Rangitīkei): It's a pleasure to take a call on the Racing Reform Bill in its committee stage. Ironically New Zealand's playing South Africa at cricket tonight and for those who really want to know New Zealand's paying $1.68 South Africa's $2.14 and Kane Williamson's the $3.50 favourite to be the highest scorer. Now I guess that's pretty relevant in the days when we are talking about a bill that deals with not only racing reform but also I guess not reform to such an extent but certainly some alterations to our ability to have a flutter on the cricket. I want to talk about three clauses really in respect of the bill in front of us tonight. The first one is clause 11 which sets up the membership of the Racing Industry Transition Agency (RITA). It sets out who shall be appointed to the RITA. Basically this bill is based around the activities of the RITA in the next 12 months or so. Clause 8 brings the RITA into being and that replaces the Racing Board and enables the Racing Industry Transition Agency to carry out and restructure the industry as required and directed. We're in favour of that part of this bill. We're in favour of all of the bill of course but we're certainly in favour of that part of the bill because it does give the ability for a new entity basically to take over the running of the Racing Board and its subsidiaries and to make sure that that transition is smooth and operates effectively. I think we can certainly have some confidence in the people that are likely to be appointed to that RITA. I think that will be satisfactory for the industry and there's certainly a general air of acceptance in the industry that that's going to work pretty well. Next I want to just talk about clauses 9 and 10 in Part 1 which are effectively the bits that make the industry work. If we hadn't had the Minister in the select committee this morning I would have been able to ask a couple of questions and now I don't need to because I asked him and I got the answer—well I feel I've got the answer—but I think that this is where the big challenge will be. The big challenge I think for the racing industry part of this bill will be setting up—well the RITA will be set up and the next step is the big challenge. That's how the industry uses the ability that this bill gives it to develop the next steps and that's really what clauses 9 and 10 cover in the course of this bill. I think that that will be the big job the RITA has in front of it and it will be the big job for the industry that follows on as a result of that. Of course the racing industry part of this bill that's affected by this is New Zealand Thoroughbred Racing Harness Racing New Zealand and the greyhounds. They will all have the opportunity to participate in how they might be structured as a result of this bill and in what that might look like going forward. It's very important to the industry that those three bodies not only get themselves restructured in a manner that works for them but also get themselves together because they need to cooperate in the course of this. The other piece of this puzzle that needs to cooperate in the course of this to get the best result for everyone of course is Sport New Zealand and their various entities or the members of Sport New Zealand. It's most important that the cooperation is there and I think we can be confident that that will happen. It's certainly essential that it does. So I think that in the part of the bill that's primarily covered by the need to set up the Racing Industry Transition Agency and the activities it takes I guess we're giving them the leeway to do what we think they'll do properly and I think they will. They are guided by this reform bill on what they can and can't do. I think it will be successful and it's something the industry's been crying out for for some years now. The Minister has been allocated a budget of some $3.5 million to implement these changes and make sure that they follow through—I think we can be confident that will be sufficient. I also think we can be confident that will get a good result for not only the racing sector but also for the sports sector as well. I wanted to talk briefly about the TAB—or what's known as the TAB which effectively is what the Racing Board governs—because I think it's really important and it will be important as we go forward. It's going to be a challenge for the Racing Industry Transition Agency and whatever follows as to how they might manage that. But it's interesting when you look at the history of the TAB. It was formed in about 1952—in fact it was formed when I was quite some time ago—by the racing industry with the help of the Parliament; in other words it was formed by the Parliament really but it was formed at the request of the racing industry. I think one of the great challenges that we're going to have going forward with this whole sector is who actually owns it? I think if you looked at its history that would be dubious but you'd probably suspect the racing industry in its entirety thinking it does own it. That of course signals some of the issues that have followed since. Then of course in 1996 I think it was the TAB was then given by this Parliament the ability to provide for sports betting and that has led to where we're at today.I think the real challenge for us and for the industry going forward—and certainly for the whole of that industry—is going to be how that issue is resolved as to who owns and controls the entity that provides the gambling services to all of those who wish to gamble on sport racing or anything else in New Zealand. Of course this bill in its entirety does enable offshore providers to—and they have been able to in New Zealand for some years of course because we haven't been able to control it. This bill will provide the control on offshore gamblers at least to the extent of being able to recover some levy money and some charges for use of product from those people. The Minister has a Supplementary Order Paper SOP 249 which will deal with one or two of those things; and really it's effectively tidying up some stuff that's a little untidy and that always happens that's to be expected. It's positive in my view and we'll certainly be supporting that. There are a lot of things in this bill that I think are positive. I think the way that the levy is going to be divided and treats the gambling sector particularly through the gambling harm part of the legislation is positive and I think it will assist greatly in where we get to with that. As I said last night there's a big difference in my opinion between having a bit of a bet on what you think—or a flutter as I called it earlier—might be the outcome of something. In other words if you're going to back Kane Williamson to be the highest scorer tonight you're probably pretty safe—well you'd think you would be wouldn't you? But perhaps you're not. But I think that that's a very different thing as I said last night than poking some money into a thing and pushing a button and hoping it comes back out again. That in my view is the critical difference between most of the services that the TAB provides to New Zealanders and most of the things we get out of either sports betting or betting on a racehorse. So that's hugely positive. I just want to very briefly turn back to the issue I raised before and that's the issue of the industry entities getting their structures right and making sure that they're in the position to utilise the ability that this bill and the bill that will follow will give them because it is most important that if those industries have the money that they then have the ability and the will I guess to make the thing work in a manner that should work and make these racecourses work in the manner they should. That of course completely relates back to the critical factor in this whole piece of legislation which effectively is to get our breeding industry in New Zealand and our horse breeding industry in New Zealand working and working well. It's essential that it does because we are one of the best in the world—unquestionably one of the best in the world; we have the best conditions in the world to do it and as a country we should use the things that we're good at to the best of our ability. Also I think the horse's footprint from an environmental impact perspective is very different than many other animals that we might use. So I think that's the other positive part that we will gain out of this bill. I think the fact that we can then enable people throughout the country to put a horse back in their paddock which was the way when we were—well when I was young sorry Madam Chair I didn't mean to include you in that. When I was young every second person had a horse in their paddock or their yard. That's the exciting thing about these animals; they're not related to racing necessarily. It spreads right across the equestrian sector across the sports sector and the recreational sector. So it's most important that that this works. As I said I would have had a couple of questions for the Minister if only we had the opportunity to question him on those this morning. The National Party do support this but there are many challenges for the industry as we go forward from here. There are many challenges for the sports sector as we go forward from here. But it's also in my view a significant opportunity for them all. I think that we're in good order with the bill. A lot of hard work's been done particularly a lot of hard work by members on the Transport and Infrastructure Committee. I just want to congratulate—I didn't last night—Darroch Ball on the work he did to get that bill through and back into the House in such a hurry. So that's my lot Madam Chair. Thank you.