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Waikato-Times
Horse racing will get a $ 72.5 million raise in funds in a package announced by Racing Minister Winston Peters.
Two new all-weather tracks will be built as part of a $ 72.5 million racing industry Covid-19 emergency support package announced by Racing Winston Peters.
Up to $ 20 million has been set aside for new all-weather tracks to be built at Awapuni in Manawatu and Riccarton Park in Christchurch.
“We cannot brown the lily. The racing industry has been hit by the perfect Covid-19 storm while in a weak financial state and in the midst of a reform program,” Peters said Tuesday.
“As a result, there is a genuine risk of insolvency and the industry loses future profits from its reforms.
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“The government has a response, recovery and reconstruction strategy for Covid-19. This announcement is the first step towards a long-term restoration of the races.”
The support package consists of a
– $ 50 million aid grant to the Career Industry Transition Agency (RITA)
– up to $ 20 million for the two all-weather tracks
– $ 2.5 million for the Department of Home Affairs to accelerate work on online gaming revenue and address the impact of lost revenue on community and sports groups.
“Of the immediate grant, RITA will use $ 26 million to pay its supplier’s outstanding bill, which it has been unable to do due to strangled income. The other part of this package will ensure that RITA, and each of the racing codes , they can maintain basic functionality and resume running activities, “said Peter.
“The racing industry is seriously underestimated for its financial contribution. For this reason, the Government will also consider recapitalizing the industry to help promote a faster recovery and achieve a higher economic result. “
Peters said racing brings $ 1.6 billion to the economy each year.
“There are 15,000 full-time racing industry jobs and almost 60,000 jobs involved in the industry in some form, from vets to equipment suppliers to owners. New Zealand’s blood stock is world-class and a major generator of exports “.
He said officials would spend the next three months evaluating the recapitalization options.
“Ministers will need to ensure that industry reforms are progressing to ensure that any future investment is well targeted,” Peters said.
Up to $ 20 million from the Provincial Growth Fund (PGF) to build the two new synthetic racetracks.
Construction of a runway in Cambridge is already underway after receiving $ 6.5 million in funding from PGF.
Peters said the Covid-19 crisis had also impacted the funds available to sports and community organizations that receive a share of the game’s revenue.
There was also an increase in New Zealand gambling abroad through online platforms.
“Both trends are troubling.
The government was “rapidly following a DIA work program to reevaluate the playing field of our community, sports and racing groups,” Peters said.
MORE TO COME
