New Zealand’s racing industry is getting a $72.5 million emergency support package to help offset the impact of shutdowns caused by the coronavirus. The relief funding includes $20 million to build two new all-weather racetracks and $50 million in aid to the Racing Industry Transition Authority (RITA).
Half the RITA funding will go to pay outstanding bills. The rest will go to racing clubs to help them stay afloat during recovery from the pandemic, according to the New Zealand Herald.
Efforts to reduce the loss of revenues from iGaming is being fast-tracked, as are steps to aid sports and community groups whose income have taken a hit due to the closing of pubs and clubs.
“The racing industry has been hit by the perfect storm of Covid-19 while in a weak financial state and in the midst of a reform program,” Racing Minister Winston Peters said. “As a result, there is a genuine risk of insolvency and the industry losing the future gains of its reforms.”
Racing in New Zealand, which in the early weeks of the pandemic continued without spectators, was suspended in March.
“It is well documented the racing industry has experienced several years of financial under-performance,” Peters said. “It was partway through a reform program, then Covid-19 arrived. As one expert put it, this has created the perfect storm.”
He added that the racing industry “is seriously underestimated for its important contribution to our regions and our economy. Past studies indicate it contributes $1.6 billion to the economy each year.
“There are 15,000 full time racing industry jobs and nearly 60,000 indirect jobs participating in some form, from vets to equipment suppliers and owners,” he continued. “There are 15,000 owners, 800 trainers and 200 jockeys. Not only is New Zealand bloodstock world class—it’s a significant export earner. And all facing an unprecedented threat.”
RITA Executive Director Dean McKenzie said Covid-19 “has presented the racing industry with one of its greatest challenges in its 150-year lifetime.” Without financial aid, “the industry faced the serious prospect of confining all those years of New Zealand culture to the history books.”
McKenzie said the industry would continue cost-cutting measures order to ensure long-term financial health. “More tough decisions will be required going forward,” he said, “and the industry must continue reforming now more than ever in order to be sustainable.
“RITA will be continuing to consult with staff on critical proposals aimed at ensuring the sustainability of the organization and developing it into becoming a more commercially focused, leaner and more efficient business, so it can continue to fund racing and the wider NZ sporting community.”
