Will Racing Die

[Midnight Caller]

6 minutes ago, Maximus said:

if youre a really nice bloke you could PM me

😧

That's between  you and Barry😁

[mardigras]

Hesi, I see your mates at the herald are trying to give some air to the racing industry. As much as the industry is in strife, reporting the numbers from a report that is not just the racing industry is some form of scaremongering? Wouldn't you agree.

It's like the reporting on the virus, if enough people believe what they write, it will act as a catalyst for something (whether you agree with that or not). 

People will think the government should front up with more money - because of the way it is reported. 

But as opposed to those reports on the virus - I am sure that many in the racing industry are happy to have things reported that way. 

https://www.nzherald.co.nz/sport/news/article.cfm?c_id=4&objectid=12327458

 

[Hesi]

Michael Guerin: Winston Peters losing patience with racing's infighting as ruling body set to make dramatic cost cuts

2 May, 2020 6:00am

 4 minutes to read

The Racing Industry Transition Agency have been under attack from many sectors. Photo / Getty

NZ Herald

 

By: Michael Guerin

 

 

 

 

 

 

 

 

 

 

COMMENT:

The boss of New Zealand racing — Deputy Prime Minister and Minister of Racing Winston Peters — has finally spoken out and it would appear he is losing his patience with the industry's relentless in-fighting.

Peters has kept his public comments about the racing industry brief during lockdown but suggested this week there could be Government support for the struggling industry in coming weeks, possibly announced as part of the May 14 Budget.

Peters has put his weight behind the Racing Industry Transition Agency (RITA, the board running the TAB) even though they have been under attack from many sectors.

 

Those attacks eased, for a while at least, on Thursday when the codes were able toannounce satisfactory stakes levels for the remainder of the season. The stakes are not great but about the best that could be hoped for in the middle of a worldwide crisis.

The nonsensical talk of $5000 stakes, the TAB being insolvent and trainers striking may disappear for a while. The racing industry has many problems and one of the worst is constantly publicly shooting itself in the foot.

Peters is the single most important person standing between racing recovering and then improving, or basically being stuffed. Correspondence obtained by the Weekend Heraldshows he is firmly backing RITA's actions and thinks the industry has been living beyond its means.

A respected industry employee wrote to Peters three times over recent months and received a reply on Thursday signed by the Minister which leaves little room for argument about where his loyalty lies.

"RITA inherited a structure which frankly has been living beyond its means for a number of years," wrote Peters.

"It faces the unenviable task of addressing that issue while negotiating all the implications of the Covid-19 crisis.

 

 

 

"Unfortunately some voices in the industry blame RITA for the problems they have inherited.

"This is unproductive. And we don't intend to stand by silent to such criticism when that criticism lays properly somewhere else.

 

"The Government will provide the industry with all the necessary tools to determine its future. However, collaboration and leadership from all levels of the industry are needed ..."

 

Minister of Racing Winston Peters has thrown his support behind RITA as he tires of the industry's infighting. Photo / Trish Dunell

The letter also backs the directors of RITA and suggests the Racing Bill could be back in front of Parliament before long.

Weekend Herald sources are suggesting it could be passed into law before the election which would, depending on the amendments suggested by the select committee, give racing more power to get things done.

So Peters is clearly not in the mood for the tail to be wagging the dog and its appears those who are, at best questioning or at worst undermining RITA, are also going up against the minister.

Two of the key issues for RITA, apart from the obvious lack of money and a worldwide pandemic, has been poor communication and outrage from industry participants over their staff levels and therefore expenditure.

Both are justified.

A recent letter from the Trainers' Association to RITA was handled poorly and often communication to the industry has been so complicated and full of corporate jargon. The people it is aimed at informing have no idea what it means.

RITA have also been purposely vague so as not to annoy other political forces while the racing industry applies for a support package. If that is granted, it isn't to prop up RITA, but support the codes.

It would be a prudent idea for the racing industry to present a united front as they are asking for Government help. And as for RITA's top-heavy expenses, it is now certain there will be a significant reduction in costs, including many redundancies inside the business.

RITA bosses are refusing to comment but it is definitely going to happen, with heads of departments already reporting on how they can achieve those savings, including staff cuts.

As for the hot-button issue of out-sourcing?

That is still on the horizon but with so much global uncertainty the major potential partners won't be negotiating hard deals any time soon. Implementation of any out-sourcing deal, if it happens, would be at least two years away and only if the Government of the day has an appetite for it.

But what Peters seems to have more of an appetite for is racing presenting a united front, especially as it joins the long queue of struggling industries seeking help.

[Hesi]

50 minutes ago, mardigras said:

Hesi, I see your mates at the herald are trying to give some air to the racing industry. As much as the industry is in strife, reporting the numbers from a report that is not just the racing industry is some form of scaremongering? Wouldn't you agree.

It's like the reporting on the virus, if enough people believe what they write, it will act as a catalyst for something (whether you agree with that or not). 

People will think the government should front up with more money - because of the way it is reported. 

But as opposed to those reports on the virus - I am sure that many in the racing industry are happy to have things reported that way. 

https://www.nzherald.co.nz/sport/news/article.cfm?c_id=4&objectid=12327458

 

They are the only numbers available, everyone seems to use them

[mardigras]

3 minutes ago, Hesi said:

They are the only numbers available, everyone seems to use them

Are you supporting the use of them? Everyone seems to use the same numbers for Covid.

[Hesi]

6 minutes ago, Hesi said:

Michael Guerin: Winston Peters losing patience with racing's infighting as ruling body set to make dramatic cost cuts

2 May, 2020 6:00am

 4 minutes to read

The Racing Industry Transition Agency have been under attack from many sectors. Photo / Getty

NZ Herald

 

By: Michael Guerin

 

 

 

 

 

 

 

 

 

 

COMMENT:

The boss of New Zealand racing — Deputy Prime Minister and Minister of Racing Winston Peters — has finally spoken out and it would appear he is losing his patience with the industry's relentless in-fighting.

Peters has kept his public comments about the racing industry brief during lockdown but suggested this week there could be Government support for the struggling industry in coming weeks, possibly announced as part of the May 14 Budget.

Peters has put his weight behind the Racing Industry Transition Agency (RITA, the board running the TAB) even though they have been under attack from many sectors.

 

Those attacks eased, for a while at least, on Thursday when the codes were able toannounce satisfactory stakes levels for the remainder of the season. The stakes are not great but about the best that could be hoped for in the middle of a worldwide crisis.

The nonsensical talk of $5000 stakes, the TAB being insolvent and trainers striking may disappear for a while. The racing industry has many problems and one of the worst is constantly publicly shooting itself in the foot.

Peters is the single most important person standing between racing recovering and then improving, or basically being stuffed. Correspondence obtained by the Weekend Heraldshows he is firmly backing RITA's actions and thinks the industry has been living beyond its means.

A respected industry employee wrote to Peters three times over recent months and received a reply on Thursday signed by the Minister which leaves little room for argument about where his loyalty lies.

"RITA inherited a structure which frankly has been living beyond its means for a number of years," wrote Peters.

"It faces the unenviable task of addressing that issue while negotiating all the implications of the Covid-19 crisis.

 

 

 

"Unfortunately some voices in the industry blame RITA for the problems they have inherited.

"This is unproductive. And we don't intend to stand by silent to such criticism when that criticism lays properly somewhere else.

 

"The Government will provide the industry with all the necessary tools to determine its future. However, collaboration and leadership from all levels of the industry are needed ..."

 

Minister of Racing Winston Peters has thrown his support behind RITA as he tires of the industry's infighting. Photo / Trish Dunell

The letter also backs the directors of RITA and suggests the Racing Bill could be back in front of Parliament before long.

Weekend Herald sources are suggesting it could be passed into law before the election which would, depending on the amendments suggested by the select committee, give racing more power to get things done.

So Peters is clearly not in the mood for the tail to be wagging the dog and its appears those who are, at best questioning or at worst undermining RITA, are also going up against the minister.

Two of the key issues for RITA, apart from the obvious lack of money and a worldwide pandemic, has been poor communication and outrage from industry participants over their staff levels and therefore expenditure.

Both are justified.

A recent letter from the Trainers' Association to RITA was handled poorly and often communication to the industry has been so complicated and full of corporate jargon. The people it is aimed at informing have no idea what it means.

RITA have also been purposely vague so as not to annoy other political forces while the racing industry applies for a support package. If that is granted, it isn't to prop up RITA, but support the codes.

It would be a prudent idea for the racing industry to present a united front as they are asking for Government help. And as for RITA's top-heavy expenses, it is now certain there will be a significant reduction in costs, including many redundancies inside the business.

RITA bosses are refusing to comment but it is definitely going to happen, with heads of departments already reporting on how they can achieve those savings, including staff cuts.

As for the hot-button issue of out-sourcing?

That is still on the horizon but with so much global uncertainty the major potential partners won't be negotiating hard deals any time soon. Implementation of any out-sourcing deal, if it happens, would be at least two years away and only if the Government of the day has an appetite for it.

But what Peters seems to have more of an appetite for is racing presenting a united front, especially as it joins the long queue of struggling industries seeking help.

Usual Peters, best form of defence is attack

Should have happened years ago, fair enough that Peters was not involved then

Why is this taking so long, as it is fundamental to a self sustainability model

[Hesi]

2 minutes ago, mardigras said:

Are you supporting the use of them? Everyone seems to use the same numbers for Covid.

No

[mardigras]

Using those numbers allows RITA/NZTR to defuse their accountability. By presenting the need for the government to step up - due to the costs of not (as the industry is so important), they are being let off the hook.

They know it. People should know it too. Their numbers can be shocking, but saying they should cut costs on one hand - and then saying but the government needs to support them no matter what, on the other hand - means they don't have to do anything. The public will simply support the government handing out more money and they can carry on feathering their own nests.

All based on misrepresented details.

Edited May 1, 2020 by mardigras

[Hesi]

Not a lot different to much of what is happening at the moment with Covid, sector representatives claiming all sorts of doom and gloom, if they don't get Govt help

[mardigras]

7 minutes ago, Hesi said:

Not a lot different to much of what is happening at the moment with Covid, sector representatives claiming all sorts of doom and gloom, if they don't get Govt help

The same scenario has been played out before when Covid didn't exist. They have always ignored the outcry about their costs as they know the people believe the government will need to support them (because they believe they are such a big and important industry).

They now talk about cutting costs. RITA have been going for quite a while already - nothing. Now Covid, something. Political manoeuvring at its finest.

Edited May 1, 2020 by mardigras

[Hesi]

Yes, using Covid to cloud the issue

Mischievous Peters going on the attack, accountability stops with him, and he should have demanded things happen quicker or sack RITA.  This cost cutting exercise, has only been precipitated by Covid, not the need to reform the industry

 

[Maximus]

1 hour ago, Hesi said:

Yes, using Covid to cloud the issue

Mischievous Peters going on the attack, accountability stops with him, and he should have demanded things happen quicker or sack RITA.  This cost cutting exercise, has only been precipitated by Covid, not the need to reform the industry

 

can't quite agree. The proposed legislation was due to be enacted come 1 July, so the wheels were moving forward but too slowly for our liking. The two biggest problems, imo, are top-heavy corporate structure (too many paid too much for too little) and too many vested interests protecting/feathering nests.

[Freda]

35 minutes ago, Maximus said:

can't quite agree. The proposed legislation was due to be enacted come 1 July, so the wheels were moving forward but too slowly for our liking. The two biggest problems, imo, are top-heavy corporate structure (too many paid too much for too little) and too many vested interests protecting/feathering nests.

And,  Peters' criticism of factional squabbling and little support could have been easily avoided with some decent communication.  Just hasn't happened.

These sharp operators that he has charged with implementing the Messara report first presented documents that seemed to bear little resemblance to that report.

And,  how hard would it have been to have sent out regular communique's to all sector groups explaining the aims, where they were at, and how long they felt it might take?

[Hesi]

Also Maxi

A cost review of NZRB as per Messara does not need legislation, yet 20 months down the track, only because of what has been caused by Covid, we see things happening 

 Nothing to report 20 months further on about outsourcing the commercial activities(TAB), which potentially may have been the game changer

What legislation  we have seen drafted includes the Bill to allow for transfer of industry assets as per Messara/NZTR venue plan, to generate the 190 mil to facilitate the needed infrastructure update.  Nice to have  ultimately but won't  help the industry in the short term with its sustainability 

[Hesi]

I see also Dean McKenzie saying costs of 1 mil have been made for the rest of the 19/20 season, that is 3 months.  Annualized that is 4 mil or just under 2% of total  costs, hardly significant

[curious]

1 hour ago, Hesi said:

I see also Dean McKenzie saying costs of 1 mil have been made for the rest of the 19/20 season, that is 3 months.  Annualized that is 4 mil or just under 2% of total  costs, hardly significant

I though that was just in reference to the RIU/JCA costs? Also that 20% across the board for RITA was being put in place. Shame it took a pandemic for that to happen. Peters is going on about the legislation but there's nothing even potentially in there that will reduce costs or improve revenue that I can see. Some of what the codes are doing, e.g. scheduling racing closer to horse populations, levelling stake structures, trying to reduce broadcasting costs etc. is all sensible, if 10 years late. Harness even better with open online entry due to start shortly reducing phone operator costs etc.

[Hesi]

19 minutes ago, curious said:

I though that was just in reference to the RIU/JCA costs? Also that 20% across the board for RITA was being put in place. Shame it took a pandemic for that to happen. Peters is going on about the legislation but there's nothing even potentially in there that will reduce costs or improve revenue that I can see. Some of what the codes are doing, e.g. scheduling racing closer to horse populations, levelling stake structures, trying to reduce broadcasting costs etc. is all sensible, if 10 years late. Harness even better with open online entry due to start shortly reducing phone operator costs etc.

Apologies, my mistake, reading on a small phone, through a gas bubble

[Hesi]

9 hours ago, Hesi said:

Not a lot different to much of what is happening at the moment with Covid, sector representatives claiming all sorts of doom and gloom, if they don't get Govt help

I note from the Restaurant Association

Marisa Bidois, chief executive of the Restaurant Association, said its research indicated 20 per cent of businesses would probably close down over the next 12 months, affecting about 10,000 jobs. April 2020

According to the Restaurant Association of New Zealand's annual state of the industry report, 2739 new hospitality businesses opened last year, the equivalent of seven a day. There are now more than 17,000 nationwide, with the largest numbers of new premises appearing in Auckland (1200) and Canterbury (339).Sep 4, 2018

Molloy said the lockdown had had a severe impact on the hospitality industry. He felt lucky he'd managed to keep all of his 74 staff, thanks to the government subsidy.
 

[Hesi]

I presume that figure of 2739 will go up substantially in the next 12 months.  Life goes on, poor businesses don't survive, new come in to fill their place.

I put that comment in about your mate Curious

Happy to take Govt money to save his restaurant, but will still slag them off big time

[mardigras]

So if as suggested, 20% shut down. 3400. Slightly more than opened in the last year. In an industry I suggested 6 weeks ago was top heavy??? Sounds like a correction with a little extra due to covid border/tourism issues. If it is only that bad, I'd say that's a good result.

[curious]

Not a big set back I'd say if 16% opened in  a year and we lose 20% of them.

Edited May 2, 2020 by curious

[curious]

2 minutes ago, mardigras said:

So if as suggested, 20% shut down. 3400. Slightly more than opened in the last year. In an industry I suggested 6 weeks ago was top heavy??? Sounds like a correction with a little extra due to covid border/tourism issues. If it is only that bad, I'd say that's a good result.

Snap!

[curious]

5 minutes ago, mardigras said:

So if as suggested, 20% shut down. 3400. Slightly more than opened in the last year. In an industry I suggested 6 weeks ago was top heavy??? Sounds like a correction with a little extra due to covid border/tourism issues. If it is only that bad, I'd say that's a good result.

How's your bakery looking?

[mardigras]

3 minutes ago, curious said:

How's your bakery looking?

I'd say pretty good. If business operate in a fashion that allows for such uncertainties, then they should be ok. Business running day to day, week to week - are in strife, and some will fail, although some will continue with the support mechanisms in place.

But how many in business (and individuals) will learn anything? I'd say, very few.

My wife (ex long term tax advisor/accounting professional), has often said that there should be a pre-requisite to starting a business (around business financial management). I don't 100% agree but I also have seen first hand why she says it. An unbelievable number of business start up without having even a clue as to what is a debit, a credit, a balance sheet item or profit and loss. Or even a budget/forecast? It's quite scary.

To qualify her views, she has been a tax advisor to Exxon, has a Masters of Tax through University of Melbourne - and also, I know she knows what she is talking about.

[ngakonui grass]

Some of these Cafes etc must be running close to the wind as far as profits are concerned.

4/5 weeks shut and many are going to disappear.Makes you wonder how they can justify high asking prices when they attempt to sell them.