Magna Carta

[curious]

On 1/20/2020 at 5:10 AM, Freda said:

Your preference for Ministerial selection makes sense in a logical and impartial world....and you seem a very logical and rational person, so entirely understandable.

I have less faith in the ability of most to be impartial, so very many in positions who should be, are clearly not.  Many are also very poorly advised.

 

Sorry, just getting back to this. I think the above is part of the problem that points to the option currently in the proposed legislation. Code appointments are not impartial. Here's the RIS discussion of the two options which says exactly that.

 

Governance of TAB NZ
84. The two options considered in relation to governance of TAB NZ are:
i. that the board of TAB NZ should be (1) similar to the board of the NZRB previously, and (2) following the Messara recommendations, to have three representatives of racing codes, and an independent chair plus three other independent directors. This would mean the board would have a total of four independent directors, plus three directors representing the three racing codes; or
ii. that the board should have directors appointed entirely on a skills basis rather than any being appointed as representatives. In this case, the board would be appointed to reflect the range of specialist skills needed by the board, to govern TAB NZ.
85. Under Option two, skills required would include business, economics, marketing, legal, racing, sports administration, betting/wagering and gambling harm minimisation. These skills reflect that the TAB NZ is an entity that is established to operate as a commercial betting operator, aiming to generate surpluses for the benefit of the racing and sports sectors. This approach could mean that if industry organisations (such as the racing codes) nominate appointees to the board, they would be selected on the basis of their skills, not be dependent on the organisation that nominated them, and be appointees of the Minister.
86. There is a concern that in cases where board directors are appointed by another organisation they act more in the interests of the organisation that appointed them than in the interests of the organisation for which they are appointed. This is a significant failing of the system by which the three racing codes each nominated a director for appointment to the board of the NZRB.
Page 37 of 114
BUDGET SENSITIVE
87. While the desire of the racing codes to substantially control entities such as the NZRB is understood, it is also a concern that these arrangements have tended to result in the NZRB avoiding the resolution of significant industry issues – due to the perceived need of appointed directors to avoid deciding on any issues that negatively impact on their own member organisations – even if such decisions are necessary for achieving overall racing industry growth and development.
88. It is therefore recommended the board of TAB NZ should follow Option 2. It should be made up of the individuals who bring the best mix and range of skills relevant to their roles in governance for TAB NZ and not for the entity that selected them or nominated them. The members of the board would be appointed by the Minister for Racing. The racing codes and Sport NZ would be asked to nominate individuals who they consider had the required skills. However, all appointees would be accountable to the Minister, and none would be seen as direct code appointees.

 

[Freda]

Okay.    Yeah,  makes sense.

[Hesi]

So why the uproar??

Option 1 got the racing industry nowhere, other than poor governance

 

 

 

[Freda]

Bottom line - for me - is,  that having code appointed members on Boards [ whether NZTR or RB ]  hasn't/didn't work well over the last few years.   Non-industry sorts haven't worked well either.   

While, ideally, the appointment of members 'with the best mix and range of skills '  should be a way forward,  I just can't find the level of trust and surety that the 'right mix'  will be found.

I am told that a local club intends to protest very strongly about the outsourcing option.    Curious' analogy about Bernard 'sticking to his knitting'  would well apply here too.

Edited January 22, 2020 by Freda