SpeechRACING INDUSTRY BILLSecond ReadingRt Hon WINSTON PETERS (Minister for Racing): I move That the Racing Industry Bill be now read a second time. Racing has a long and proud history in New Zealand and this bill closes the circle started by Sir Thaddeus McCarthy with his royal commission report in December 1970—this is the report here. As an industry racing is seriously important to our communities and regions and past studies say it contributes $1.6 billion to the economy each year. There are 14000 full-time racing industry jobs and nearly 58000 jobs which participate in the industry in some shape—from bets to equipment suppliers. There are 15000 owners 800 trainers and 200 jockeys. Not only is New Zealand bloodstock world class it's a significant export earner. The world-class quality of this industry has no better example recently than the Cambridge Stud horse Hello Youmzain winning the Diamond Jubilee Stakes at the Royal Ascot this week. That was a genuine world-class result.Yet it's been well-documented our racing industry has been underperforming over recent years. Addressing and reversing this decline has been my focus as Minister for Racing given weight with racing policy being part of the coalition agreement. The Government's first step was to commission the Australian expert John Messara to conduct an industry-wide review. We then formed a ministerial advisory committee which pulled together our own domestic experts to examine next steps. These measures led to the precursor Racing Reform Bill which passed through this House last year creating the first meaningful change this industry has seen in a long long time.Significantly the New Zealand Racing Board was replaced with the Racing Industry Transition Agency (RITA) to start a reform programme. Officials also worked on developing further the Messara recommendations. And now we have before us the Racing Industry Bill the substantive legislative response to the Messara report. This bill revokes the Racing Act of 2003 and it provides a new governance structure for the racing industry. It creates TAB New Zealand as the sole betting provider for racing and sport and empowers the three racing codes to take responsibility for the future growth of their respective industries. The bill also establishes the Racing Integrity Board as an entity independent from the racing codes which is responsible for all integrity functions for the industry.When introduced we said we would listen to sound submissions. In order to address historical property issues that have contributed to the industry's decline the bill introduces provisions to ensure that surplus racing property is vested back into the industry to enable its future growth but the provisions related to racetracks have been carefully considered and are well balanced. They ensure there's good progress and process and protection for community interests. The Transport and Infrastructure Committee received written submissions from 922 submitters. That was supplemented by many oral submissions; the vast majority expressed general support for this bill. The committee has unanimously reported the bill back to the House with proposed amendments and I thank them. The Government has accepted these amendments. We always believed that if we listened to the submitters we could have an improved legislative product. The interest and productive contribution submitted to the members of the select committee are welcomed and my parliamentary colleagues should be thanked for their consideration of these matters.This Minister has been vigilant with following the progress of this bill both listening carefully to industry and also receiving a consistent stream of advice from officials. The Government's objective has always been to achieve racing legislation responding to the intent of the Messara review and to respond to the feedback of the industry and this Government has delivered that with a bill which reflects the Government's sense of direction. The Government believes the racing codes need the tools to better manage their own destiny rather than be bound by legislative impediments. The Government also welcomes the provisions for Racing New Zealand within the bill to be a collaborative entity of the codes. The Government also supports reduced ministerial involvement in the industry as many in the industry have called for. The overarching intent of the bill is to be able to create the opportunity for the clubs codes and TAB to foster their own future.It's important to advise the House that since the select committee reported back further amendments have become necessary as a result of COVID-19. The required changes will be addressed by the Government through a Supplementary Order Paper at the committee of the whole House stage. The Supplementary Order Paper will amend the bill as reported back to allow the current RITA board to remain as the inaugural TAB NZ board until such times as new appointments can be made under the new legislation. This recognises the delays to the passing of the bill caused by COVID-19 would have meant that appointing a new board would occur in the pre-election period. I'll leave the decisions on the substantive appointment to the TAB NZ until after the next election. The Supplementary Order Paper will also temporarily extend the Minister of Racing's transitional powers currently provided for in the Racing Act to allow the Minister to give direction to TAB NZ for the immediate post-COVID recovery period.As you will be aware the Government has delivered a significant rescue package for racing in the wake of COVID-19. This investment has created a similar period of industry adjustment in which a closer degree of Government involvement is appropriate given the scale of taxpayers' investment. While the use of these powers may not be required their retention allows the Minister to assist the TAB NZ board by providing clear directions through what may be a challenging time. This provision is temporary and time-locked to the COVID response. The Supplementary Order Paper also makes minor technical changes to the bill that have come to light since the select committee process. These are all within the intent of the bill and the changes made by the select committee.In conclusion let me commend this bill to the House. It amends urgently required reforms it gives industry the tools it needs to revitalise itself and it's a catalyst for a better future for the racing industry. In short it closes the circle after 50 long years since December 1970. Many of these reforms in the Thaddeus McCarthy report are in the Messara report and they are in this bill. We cannot afford to waste another 50 years to try and fix this industry up. We need to fix it up right now this week. To accept the status quo and to do nothing would only lead to a notable decline. This bill will turn the industry around and get racing back on track.I'm pleased to note that the industry is already responding and good work is under way to achieve these goals. And by the way we got a marvellous letter today from all the codes that shows that collaboration and cooperation has broken out across the whole industry and a letter was written to me today dated 23 June 2020 which I'm happy to make available to the media of this country. Accordingly and early I commend this bill to the House.