Racing Queensland 5 Year Infrastructure Strategy
A Prosperous Racing Industry for Queensland
December 2013 1 5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Our Vision, Mission and Values Our Vision A Prosperous Racing Industry for Queensland The vision for the Queensland racing industry involves the achievement of the following;
High participation, engagement and skills – Increase participation and skills in the industry and form strategic partnerships with key stakeholders directed at improving the overall performance of the industry;
Safety, integrity and sustainability – Ensure a high standard of safety, integrity, risk management and a sustainable industry;
Fit for purpose, quality infrastructure – Achieve appropriate racing infrastructure for facilities;
Enhanced product and intellectual property – Achieve and maintain a high quality, competitive racing and wagering product with supporting information, services while optimizing the commercial returns for it and the industry’s intellectual property; and
Industry viability – Achieve an economically efficient, competitive and viable industry.
Our Mission CARE Racing Queensland’s focus remains on taking the industry forward through the implementation of our mission statement to CARE;
2
Collaborate – Working together for the benefit of the racing industry;
Assist – Providing assistance and services to encourage people in the industry to be self-sufficient and viable ;
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Regulate – Regulating the industry to ensure integrity and compliance with standards, policies and rules; and
Enable – enabling the industry to participate in racing.
Our Values The values that underpin the behavior of people at Racing Queensland are;
Professional and ethical – We will at all times be professional and ethical in our dealings with stakeholders and colleagues;
Results-oriented – We will ensure that our day to day activities are consistent with and contribute to achieving goals; Teamwork – We are committed to working as a team to deliver the best solutions for our stakeholders, recognizing and rewarding both team and individual contributions;
3
Stakeholder service excellence – We will strive to serve our customers with excellence; and
Balance between professional and personal life – we recognize that people are our main asset so achieving a balance between professional and personal time is in the best interest of individuals and the organization.
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
CONTENTS Overview
5
Key Elements of the Strategy
6
Workplace Health and Safety
6
Race Club Classification
7
Optimum Racing Schedule
7
Racetrack Maintenance Funding
8
Industry Infrastructure Strategy
9
Club Sustainability
11
4
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Overview In October 2012, Racing Queensland prepared a “Proposed Approach to Industry Infrastructure Strategy” providing the framework for identifying racing infrastructure which was of major strategic importance for three (3) codes of racing. Clubs have been carrying the burden of industry viability for some years. Clearly, it was never intended that clubs be relied on to be able to invest in the major infrastructure necessary to address whole of industry viability or growth. This is the clear responsibility of the recipients of the major revenue streams, namely Racing Queensland and the State Government of Queensland. Notwithstanding, most clubs have been making some infrastructure improvements to the extent that they are able. These investments have been primarily funded through the use of cash reserves and/or sale of assets, with investment focusing on a micro level instead of taking into consideration the industry as a whole. As part of the Newman Government’s proposed approach to Industry Infrastructure Strategy, Racing Queensland has developed a five (5) year infrastructure strategy and set forth in doing so in January 2013, when a process of consultation was undertaken across the state.
During this period a number of submissions were received from clubs which related to individual infrastructure requirements taking into consideration;
WH&S; Imperative for racing; Integrity; Compliance; and Training
This strategy is the first of its kind for thoroughbred, harness and greyhound racing in Queensland as it sets out a five year infrastructure strategy for the state and provides clubs, trainers, owners and industry participants with a clearer understanding of the future direction for capital investment in infrastructure across Queensland.
Racing Queensland will undertake a yearly review of each club’s circumstances, financial performance and general club development to determine future infrastructure requirements.
The rolling five (5) year strategy will be subject to clubs delivering of various standards including; presentation of training facilities, track preparation standards, performance at race meetings, commitment to WH&S and adherence to guidelines for the use of capital funds. 5
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Key Elements of the Strategy The strategy which will be updated annually includes;
Workplace Health and Safety Optimum racing schedule Racetrack maintenance funding Industry Infrastructure Strategy Club sustainability
Workplace Health and Safety Following a state review of industry infrastructure and subsequent meetings with race clubs, Racing Queensland has developed Minimum Venue and Equipment Standards for non-TAB thoroughbred race clubs across the state as well as TAB thoroughbred race clubs.
TAB and Non-TAB venue standards for all three (3) codes are currently being prepared along with an industry review of existing Non-TAB (thoroughbred) standards to ensure best practice.
The minimum standards ensure effective management and sustainability of racing venues and include; track, infrastructure and equipment, thus ensuring the provision of optimal track surfaces and suitable safe facilities and equipment for all industry participants.
In developing the minimum standards for racing and training the following key areas were identified;
Racing and training surfaces; Rails and fencing; Crossing/access points; Swabbing and veterinary facilities (animal welfare provisions); Saddling/parading enclosure; Raceday officials and jockey/driver facilities; Tie-up stalls/kennels; and Raceday equipment.
Compliance with other additional statutory requirements remains the responsibility of each Non-TAB race club, with clubs providing information to Racing Queensland as required.
6
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Race Club Classification A new set of meeting classifications has been established to reflect the specific nature of each type of race day – these being; Thoroughbred
Metropolitan – Brisbane Racing Club; Provincial – Gold Coast Turf Club, Toowoomba Turf Club, Sunshine Coast Turf Club, Townsville Turf Club, Rockhampton Jockey Club, Mackay turf Club; Country TAB – Beaudesert Race Club, Warwick Race Club, Dalby Jockey Club, Kilcoy Jockey Club, Gatton Jockey Club, Cairns Jockey Club; and Country Non-TAB – all other clubs
Harness
Metropolitan – Albion Park Harness Racing Club (Saturday); Provincial – Albion Park Harness Racing Club (mid week), Redcliffe, Kilcoy and grass tracks; and Non-TAB - Marburg
Greyhound
Metropolitan – Brisbane Greyhound Racing Club; Provincial – Ipswich Greyhound Racing Club, Rockhampton Greyhound Racing Club, Townsville Greyhound Racing Club; and Non-TAB – Capalaba Greyhound Racing Club, Cairns Greyhound Racing Club and Bundaberg Greyhound Racing Club.
Optimum Racing Schedule To optimize racing performance in Queensland the following racing schedule has been developed. Thoroughbred
Harness
Greyhounds
Monday
N/A
P
P
Tuesday
P
P
P
Wednesday
M
P
P
Thursday
P
P
M
Friday
P
P
P
Saturday
M, P, C1, C2
M, N
P,N
Sunday
P
P/N (if programmed)
P
* Thoroughbred - M = Metropolitan, P = Provincial (TAB), C1 = Country-(TAB) & C2 = Country (Non-TAB) 7
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
** Harness – M = Metropolitan, P = Provincial (TAB) & N = Non-TAB *** Greyhound – M = Metropolitan, P = Provincial (TAB) & N = Non-TAB
Racetrack Maintenance Funding Following a review of the submissions received and feedback from meetings with clubs and participants, a tiered approach is being implemented for the future funding of maintenance at racetracks across the state over the next five (5) years.
Tier 1
Industry Funded Capital Works Plan
Venues/Clubs will be provided via application with capital works funding for WHS, racing, training, race day officials and integrity infrastructure. This funding is “one off grant” to clubs from a proactive capital works improvements plan which relate to the key strategy elements, with a particular emphasis on provincial and country Tab clubs. Examples of a capital funded grant could be new plastic rail for thoroughbreds, replacement of starting boxes for greyhounds and a new mobile for harness races. From the five (5) year infrastructure strategy RQ has developed a schedule and financial plan for the delivery a capital works program commencing FY14. The main emphasis of this industry strategy will firstly focus on Work Place Health and Safety items. The table below provides the financial plan for the period FY 14 to FY18 Code Thoroughbred Harness Greyhound Total
Tier 2
FY 14 700,000 150,000 150,000 1,000,000
FY 15 840,000 180,000 180,000 1,200,000
FY 16 840,000 180,000 180,000 1,200,000
FY 17 950,000 200,000 200,000 1,350,000
FY18 1,000,000 250,000 250,000 1,500,000
Ongoing Industry Funded Maintenance Plan
The Industry Funded Maintenance Plan could be seen as a hybrid of the Industry Funded Capital works where, venues/clubs will have access to a maintenance funding plan on an on-going basis as a result of reactive maintenance which falls outside of the key strategy elements. The areas that the maintenance funding plan will assist could be the result of un-foreseen elements such as flooding/fire/drought or providing funding for special events. RQ would manage and assist all three codes via applications, planning, delivery and funding. Code Thoroughbred Harness Greyhound Total
8
FY 14 100,000 30,000 30,000 160,000
FY 15 100,000 30,000 30,000 160,000
FY 16 120,000 40,000 40,000 200,000
FY 17 120,000 40,000 40,000 200,000
FY18 130,000 50,000 50,000 230,000
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Tier 3
Training Track Subsidy
Training track subsidy will be subject to operating conditions including an annual review of facilities and starter numbers. This is reflected through current training track subsidy payments.
The factors taken into consideration in determining the funding for these venues includes;
Current status of existing training and racing facilities (TAB and Non-TAB); Opportunity for expansion; Geographic location and population; Proximity to other racing venues; Starters produced and horse population trends; WH&S requirements; Relative cost of funding training per starter produced; Future availability of industry funds to allocate to maintenance and capital infrastructure at all Queensland facilities.
Industry Infrastructure Strategy In conjunction with the Queensland Government $110 million will be invested over the next five (5) years in racecourse infrastructure in Queensland.
The fundamental basis of the Industry Infrastructure Strategy is that the investment be viewed as providing infrastructure necessary to the growth and sustainability of the industry. This includes the infrastructure needed not only to support the actual race day delivery of racing, but also the infrastructure investments needed to ensure the long-term viability of the extended industry, and in particular, provide infrastructure that will stimulate industry growth.
To achieve the above aims, the infrastructure investment must be looked at in this light. Many of the proposed investments will have a side benefit of adding extra/increased revenue opportunities to clubs, as well as profit improvement from decreased maintenance costs of currently deteriorating assets.
The allocation of funding across all three (3) codes is as follows; Thoroughbred Harness Greyhound Total
9
$70 million $15 million $25 million $110 million
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Racing Queensland will manage the capital improvement program and projects at racecourses. Projects will be prioritized on an annual basis for training, racing and customer facility improvements. The factors taken into consideration in determining the funding of these venues includes;
Strategic importance (major, high, medium); Industry viability; High participation, engagement and skills; Safety, integrity and sustainability; High quality infrastructure; Enhanced product and intellectual property
The following infrastructure strategy model has been developed to determine future infrastructure needs; Importance
Driver
Major Strategic Importance
Need driven by substantial revenue and/or viability issues Need driven by the supporting role played to the industry in the total Industry Sustainability Model Need driven the ongoing operational infrastructure requirements of the industry
High Strategic Importance
Medium Strategic Importance
Initiative Expected one off initiated identified Expected highlighted five year plan
to
Funding be and as
to be by the rolling
Expected to be collected and categorized by normal five year rolling plan process
Funding expected to be complex and may involve multiple parties/sources Funding predominately from infrastructure funds, with some local supplementation
Funding from ongoing infrastructure funding as required and funds available
Projects identified for funding through the Industry Infrastructure Strategy during the next four (4) years includes; Thoroughbred Infrastructure 10
Ooralea Park Racecourse, Mackay; Beaudesert Racecourse, Beaudesert; Cannon Park Racecourse, Cairns; Clifford Park Racecourse, Toowoomba; Bundall Racecourse, Gold Coast; Eagle Farm Racecourse, Brisbane; Cluden Racecourse, Townsville; and 5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland
Bundamba Racecourse, Ipswich
Harness Infrastructure
Albion Park Raceway, Brisbane; and Gold Coast Harness Facility
Greyhound Infrastructure
Cronulla Park, Logan; and Bundamba Racecourse, Ipswich
Club Sustainability Club sustainability will be a key performance measure determining the allocation of future race dates and funding. Sustainability test conditions are being established for all clubs including liquidity, attendance, membership and the fulfillment of WH&S standards. All clubs will be reviewed annually against the sustainability test conditions. A strategic asset retirement plan is being developed for portable assets within Queensland. This plan will serve to provide assets from metropolitan and provincial clubs to country clubs such as barrier stalls, starting boxes and running rail. A club cooperation scheme is being developed to enable sustainability of country racing in Queensland. The scheme operates on a buddy basis whereby TAB clubs provide support to non-Tab country clubs. The scheme aims to improve sharing of resources and knowledge across the state. Support is provided in various forms including; equipment sharing, provision of key staff (i.e. bar staff, barrier attendants), consultants and ground/facility maintenance.
11
5 Year Infrastructure Strategy | A Prosperous Racing Industry for Queensland