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Horse Sense & GOVERNMENT Nonsense Public-Private Partnerships Are Not Subsidies

The government’s THE COMEDIAN GROUCHO MARX ONCE COMMENTED decision to end the Slots that: “Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” That observation may well describe at Racetracks Program the Ontario government’s decision to abruptly end the Slots at Racetracks Program, a has a detrimental effect successful revenue-sharing program that has, for almost 15 years, mutually benefited for Ontario’s vibrant the government, the horseracing and equine industries and many small towns in rural Ontario. horseracing and equine industries. The vehicle for the Ontario government’s unexpected decision was its March 27, 2012 Budget when Finance Minister rose to his feet at Queen’s Park and unveiled the document entitled Strong Action for Ontario. It outlined how Premier Dalton McGuinty’s Liberal government would eliminate the province’s massive $15-billion deficit within the next five years. Ontario horsemen, jockeys,

30 OTTAWALIFE AUGUST 2012 PHOTO: COURTESY RCR Since its inception in 1998, the breeders, equine suppliers, black- smiths, saddlers, veterinarians Slots at Racetracks Program earned Ontario roughly and farmers had no that contained within the 332-page a billion dollars in revenue every single year. document was a proposed initiative named Modernizing the Ontario Lottery and Gaming Corporation (OLG), industry and a calculated conclusion thought we could play off of one which would eliminate the Slots at based on social perception. another, allowing both horseracing Racetracks Program by March 31, 2013, (through bets placed on ) and threatening the sustainability of In the 1990s, knowing that slot the slot machines to be profitable. We the industry and a large segment of machines were a crucial source felt that it would even out, because Ontario’s agricultural industry that it of revenue, the OLG and the whatever revenue the industry lost supports. government needed to find an through reduced wagers placed on appropriate venue to expand the use horses due to the presence of the Since its provincial government- of slots beyond Ontario’s numerous slot machines would be offset by initiated inception in 1975, the OLG pre-existing casino facilities. Social the share of revenue kept from the has been the Crown corporation perception made this a difficult task, slot machines.” And, as the results responsible for Ontario’s since many Ontarians were reluctant demonstrate, these two competing gaming industry, ranging from the to have new facilities forms of gambling were able to “play sale of lottery and bingo tickets to the anywhere near where they lived. The off of one another” for quite some oversight of Ontario’s many resort province’s racetracks soon came to be time. casinos. Betting on the horses has been seen as the appropriate place for the a time-honoured practice in Ontario excess slot machines. As Ian Russell Since its inception in 1998, the Slots since before Confederation, but, with – president of Canada’s largest equine at Racetracks Program earned Ontario the introduction of the Slots Program supplier, Greenhawk Harness and roughly a billion dollars in revenue in 1998, horseracing became more Equestrian Supplies Inc. – explains, every single year, most of which was closely tied to the gaming industry. “[the] racetracks are already located in gladly accepted by the province to The Budget initiative’s plan to socially acceptable places for gambling help pay for essential services. In fact, remove slot machines from racetracks to occur.” Ed McHale, who serves between 2001 and 2011, after OLG will undoubtedly loosen those as director of the National Capital commissions and expenses were ties. But why would their removal Region Harness Association deducted, the program delivered over deliver such a crippling blow to the (NCRHHA), offers the - $9 billion in revenue to the province. horseracing and equine industry, the area perspective on this same issue by Each year, hundreds of millions of second largest sub-sector of Ontario’s noting that: “Nobody wanted the slots dollars from the horseracing indus- agricultural economy? The answer anywhere and they decided that the try’s portion of the lucrative revenue- can be found in first identifying why best place (because they had nowhere sharing agreement were reinvested in OLG and the Ontario government else to put them) was the racetracks.” the horseracing community. In 2010 put slot machines at the racetracks Yet there was another reason that alone, the industry received $334 in the first place and also how the the province’s newly expanded slot million from its share of the Slots program functioned for the past facilities found what many thought Program. That $334 million was split 14 years. would be a permanent home at the down the middle between the horse province’s racetracks: a compromise owners, racers, trainers and breeders Under a revenue-sharing agreement, with the horseracing industry. on the one , and the racetracks profits from slot machines located on the other hand. at the tracks were split among Anna Meyers, president of the the government, the horseracing Breeders of Ontario However, the $334 million pales in and equine industry and the Association, identifies the compro- comparison with the approximately rural municipalities where the mise offered to the industry $2.3 billion the industry spent in slot machines were located. The by the OLG in 1998 by stating that Ontario that same year. Most of government received 75 per cent of “we knew with the introduction of the $2.3 billion was spent in rural every dollar spent at a provincial track slot machines at racetracks, there communities, stimulating the local and the industry got 10 per cent for would be some cannibalization of the economy through the of wages and employment purposes. An wagers placed on the horses involved services like training and grooming additional 10 per cent was distributed in horseracing, but we also knew or goods like , trucks, trailers to the racetracks to augment the that the revenue-sharing element of and gasoline. All of these essential purses of prize money, to maintain the Slots at Racetracks Program could goods and services, part of the cost of the tracks and for renovations. The also raise a lot of money both for doing business in Ontario’s thriving final 5 per cent went to the rural the horseracing industry and the horseracing and equine industry, municipalities. The subtext of the province.” provided additional tax revenue for initial implementation of the Slots at Ontario. But with the delivery of the Racetracks Program reveals a financial Or, as John Macmillan, executive Ontario Budget on that cold day in olive branch offered to the horseracing director of NCRHHA, puts it: “We March, and its passage on the first day 31 OTTAWALIFE AUGUST 2012 SPECIFIC ACTIVITIES HELD AT RCR Gloucester Fair (Last 13 years) Spartan Races (7,000 participants) 1000 Wishes: World's Biggest Golf Event fundraiser 1812 Military Celebrations 3’2 Company Night at the Races Fundraiser 3s Company Aboriginal Day at the Races Académie catholique Ange-Gabriel Fundraiser Fundraiser Alta Vista Veterinarian Aphasia Centre of Ottawa Arnprior Night at the Races Arts Court Night at the Races Fundraiser Association Emiliana Fundraiser Australia Aware (Animal Wellness Awareness Rescue Education) BARK – Bytown Association for Rescued Kanines Beckwith Township Night at the Races Big Bike for the Heart and Stroke Foundation Bikers Against Brain Cancer Fundraiser Birch Haven Rescue and Rehabilitation Services Black Canadian Scholarship Fund Blossom Park Night at the Races Boys and Girls Breast Friends Club Weekend to End Breast Cancer Fundraiser Brinston Night at the Races Bruce House Bust a Move Fundraiser Bytown Storm Triathalon Fundraiser Canadian Blood Services Canadian Federation of chefs and cooks Canadian Guide Dogs for the Blind Canadian Nurse Foundation Canadian Showtime Chorus Canadian Showtime Chorus Fundraiser Candle Lighters Caribbean Soiree Carleton Place Night at the Races Carleton Russell Holstein Club Carp Lynx Fundraiser Casselman Night at the Races Centre Pauline Night at the Races Fundraiser Centre Pauline- Charron CESA-EO Fundraiser CHBO – Canadian horse Breeders of Ontario CHEO PKU – CHEO Phenylketonuria Chesterville Night at the Races Christina Polifroni CIBC Run for the cure

Clarence Rockland Night at the Races HILL STUDS LTD PHOTO: TARA Crohns and Colitis Foundation of Canada After Hours Fundraiser Cornwall Night at the Races Fundraiser for Cumberland Jr. Grads Hockey Fundraiser Easter Seal Society Team Cornwall Cumberland Ward Night at the Races Eastern Ottawa Resource Centre Corporation de la cite de Clarence-Rockland/ Dine ‘n Dash for Dom Edwardsburgh-Cardinal Night at the Races City of Clarence Rockland District A-4 Lions Club Fundraiser Embrun Night at the Races Corporation of the Town of Perth Down syndrome Association & Capital City Family Fun Day Cougars Condors Fundraiser Federal Liberal party Fundraiser Night at the Council of with Disabilities Early Childhood Partnership Races Fundraiser East Ottawa Chamber of Commerce Business Findlay Creek Community Association Findlay Creek Night at the Races Navan Night at the Races Fundraiser Friends of the Canadian War Museum Nepean Night at the Races Run for Military Families Fundraiser Fundraiser Nepean Raiders Hockey Russell Curling Club Fundraiser General Dynamics Nick and Jennie Concur the Volcano Fundraiser Russell Raiders Soccer Gloucester Rangers Hockey Team NMHA Minor Peewee "B" Red Raiders Sailors Night at the Races Gloucester South Gate Night at the Races Fundraiser Saltos Athletics Fundraiser Gloucester South Nepean Night at the Races North Gower Night at the Races Save the Children Canada Going to the Dogs Fundraiser North Grenville Night at the Races Shawville/Pontiac Night at the Races Greely Community Association Nothing but a Child Shepherds of Good Hope GreelyCelebrating Night at the Races Operation Go Home Smart Vest for Sabrina Orleans Night at the Races Smiths Falls Night at the Races for Humanity Nicaragua Fundraiser ORMHA – Osgoode Rideau Minor Hockey Sons of Scotland Horseman's Auction Association Huntingtons50 Years OS Financial Institution for Cancer South Dundas Fundraiser Indigenous Golf Summit OSFI - Office of the Superintendent of Financial South Gloucester United Church Innes Ward Night at the Races Institutions South Ottawa Race Day Cancer Foundation Innovative Community Support Services Osgoode Minor Hockey Fundraiser Spartan Race Irish Societyof CommunityOsgoode Ward Night at the Races Spencerville Night at the Races Osteoporosis Fundraiser Stand up for Kids Fundraiser Journey to Czech Rebublic Night at the Races Ottawa Centre Fundraiser Steve Clark Mpp Night at the Races Julianne’s Recovery Family Christmas Ottawa Coalition of Community Houses Stittsville Night at the Races FundraiserService Ottawa Fury Ottawa Kaboom; Build A Park Fundraiser Ottawa Gaels Gaelic Football Club Team Diabetes Kanata Oldtimers Hockey Association Ottawa Humane Society The Arthritis Society Kars NightOttawa’s at the Races Rideau CarletonOttawa Raceway Independent Living Resource Centre The Black Canadian Scholarship Fund Kemptvilleis celebrating Campus University its of Guelph50th AnniversaryOttawa Irish in 2012!Rugby Club The Glebe Centre Fundraiser Ottawa Little Theatre Night at the Races The Irish Society KemptvilleWe District would Hospital like Foundation to thank the 120+Fundraiser community The Men’s Project Kiwanisorganizations Club and charities fromOttawa the Orleans National Liberal Fundraiser The National Institute of Jamaican-Canadians Knights Of Columbus Ottawa Rotary Home The OK Clean Water Project La maisonCapital Mathieu-Froment-Savoie Region that Fundraiser have beenOttawa a part Soccer of the The Pearl Ladies Night familyOttawa since South Conservative1962. Association The Royal Canadian Legion – Manotick Leeds Grenville United Way Ottawa South NDP Riding Association Fundraiser Lena LingWe – Nationalappreciate Capital Regions your Womensupport andOttawa look South forward Race Day The Weekend to end Women’s Cancers Shelter to our next 50 years in business.Ottawa Horseracing Survivor The Wish Lamp Fundraiser Liberty Shots and Cougars Concurring Cancer Australian Football Club Town of Mississippi Mills Fundraiseris flourishing in Ontario as anOttawa exciting, Swans Australian Football Fundraiser Township of Beckwith Light the Night for Bill Watson Fundraiser crowd-pleasing sports spectacle.Our Lady More of the Angelsthan Parish Fundraiser Township of Drummond-North Elmsley Lisa MacLeod Breakfast Out of the Gate Ottawa Football Honour Roll Township of Lanark Highlands Lisa Macloed60,000 MPP Ontarians Night at the Races are employedPerley by & Ontario’s Rideau Vetrans Health Centre Township of Leeds and Thousand Isles Lisa’s Fund for Cystic Fibrosis Fundraiser horseracing and horse breedingPerth industry,Night at the Races Township of Locks of Love Philippine Township of North Dundas Make amaking Wish Golf Tournie it the second largest sub-sectorPhilippine Centre Canadaof Township of North Grenville Manotick Community Association Township of North Stormont Ontario’s agricultural economy.Philippine Community Centre Manotick Night at the Races Phoebe Rose Fundraiser Township of Rideau Lakes Mathieu Froment Savoie Night at the Races PKD – Polycystic Kidney Disease – Cease and Township of South Stormont (Gatineau Region Fundraiser) Decyst Fundraiser Township of Tay Valley Meet the Governor’s Cabinet Plantagenet Night at the Races TROtt – Therapeutic Riding Association of Mercer Relay for Life PMRA – Pest Management Regulatory Agency Ottawa Carleton Fundraising Dinner Merivale Gardens Community Association Quota Club Fundraiser U16-Halifax Fundraiser Fundraiser R.C.M.P Musical Ride United Way Merrickville Night the Races Reach Night at the Races University of Guelph Kemptville Campus Night Metcalfe Curling Club Red Hat Society at the Races Metcalfe Night at the Races Relay for Life Upper Canada Fundraiser Night at the Races Mississippi Mills Night at the Races (Almonte Renfrew Recreation Fundraising Committee Vanier Museopark Fundraiser Night at the in Concert Fundraiser) Richard Patten Fundraiser Races Motorcycle Ride for Dad Prostate Cancer Richmond Night at the Races(Community Vanier Night at the Races Movember Fundraiser) Vankleek Hill Night at the Races Munster Elementary School Council Fundraise Ricky O'Connor Fundraiser Wacca- Walls and Ceilings Associations Night Munster Hamlet Night at the Races Rideau Vanier Night at the Races at the Races National Capital Amateur Football Association Riverbend Motorcoach Resort Night at the Wade Wallace Campaign Fundraiser National Capital Heavy Construction Races WaterCan Association Riverside South Night at the Races Waupoos Foundation National Capital Skin Diseases Foundation RMC Club Foundation- Ottawa Branch Weekend to end breast Cancer Fundraiser RONA fundraiser for CHEO West Carleton March Ward Night at the Races National Institute of Jamaican- Canadians Rotary Home Williamsburg Night at the Races Navan Fair Fundraiser Royal Canadian Legion Branch 314-Manotick Winchester Night at the Races The stakes could hardly be higher or the fallout worse from the sudden removal of the Slots… of summer three months later, the that it requires a tradeoff that is less- Will the modernization initiative’s fate of the Slots at Racetracks Program than-beneficial for Ontario. plan raise more revenue than is was officially sealed. now being generated by the current The Budget speaks of “public sector revenue-sharing program when the The Ontario government and OLG investment” that will be reduced revenue provided by the OLG’s lottery have attempted to rationalize their while still allowing the province’s and bingo operations has remained decision to end the Program on gaming industry to make more largely stagnant and that generated purely economic grounds. They revenue “through shifting day- from charity and resort casinos maintain that it is a necessary first step to-day operations of gaming sites has declined? Nevertheless, OLG’s in the modernization initiative which and lottery distribution to private modernization initiative projects that will promote economic efficiency operations.” Is this realistic? Bear by eliminating the Slots Program, its in the province’s gaming industry in mind that this “public-sector most profitable revenue stream, and by and will help reduce the province’s investment” of about $345 million further developing gaming operations unsustainably high deficit. However, between 2011 and 2012 (and the which have historically returned less the reasoning simply does not add up. cumulative total of roughly $3.7 revenue to OLG and the province, On page 39 of the Ontario Budget, billion that made its way to the net revenues will increase by more it is stated that the modernization horseracing industry from 1998 to than $500 million by 2015. OLG initiative will further benefit the date) is not a “subsidy”, as Dwight spokesman Tony Bitonti explained province since it “will create 2,300 Duncan has said in the past. It how this paradoxical situation could net new jobs in the gaming industry represents the horseracing industry’s be plausible by claiming that: “At the and nearly 4,000 additional jobs portion of the revenue accumulated moment, it may be true that the bulk of in the hospitality and retail sector under the Slots at Racetracks Program, revenue in the gam ing industr y comes by 2017-18.” While this may seem a revenue-sharing agreement, not a from slots, but the demographics are positive, closer examination reveals “subsidy.” changing. More and more people are

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34 OTTAWALIFE AUGUST 2012 becoming interested in table games.” with mismanagement, led to an satellite industries which employ Maybe so, but the OLG’s own data inability to generate sufficient revenue about 55,000 Ontarians in full-time, seems to show that the resort and through diversification and the part-time and seasonal jobs. The charity casinos that provide a cross- subsequent bankruptcy of Attractions government position is perplexing section of slot machines and table Hippiques. The horseracing and since the modernization initiative has games continue to see their revenue equine industries disintegrated almost already caused 560 layoffs when the decline. overnight. Today, there remains only slots operations in Sarnia, Windsor about 13 per cent of the pre-2006 jobs and Fort Erie were closed down in Perhaps the answer can be found in Quebec’s horseracing and breeding April. in the cautionary tale of Quebec’s industry. While VLTs were found in experiment with revenue restruc- 6 per cent of Quebec’s tracks, slot When speaking about the direct turing in its gaming industry which machines are now present at (but will implications of the McGuinty led to a nightmare scenario that shortly be removed from) 100 per government’s sudden decision, Sue could be repeated in Ontario — but cent of Ontario tracks. The stakes Leslie – president of the Ontario at a higher risk of 55,000 jobs lost. In could hardly be higher or the fallout Industry Association 2006, Quebec’s horseracing industry worse from the sudden removal of (OHRIA), the organization which undertook a revenue-restructuring the slots, because 10 per cent of their is the voice of horseracing in the initiative that resulted in the total revenue had been kept by each track province – captured the urgency of collapse of the province’s horseracing under the Slots Program. the situation by stating that “there’s industry and a near-death experience an absolute genuine possibility that for the province’s equine industry The OLG and Ontario government there will not be horseracing in two years later. The plan was to predict that the modernization Ontario in two or three years from privatize the horseracing industry by initiative will increase job now.” John Macmillan from the allowing a private sector company opportunities for the gaming and NCRHHA elaborates on the fallout called Attractions Hippiques to install hospitality industries. This is an of the government’s decision by Video Lottery Terminals (VLTs) in attempt to divert attention away from noting that “there has been almost restaurants and bars while removing the fact that, by adding some 6,000 no investment in horseracing in many of the existing VLTs from the jobs in five or six years’ time, Ontario Ontario since the ending of the Slots province’s tracks and restricting Off- risks sacrificing its horseracing and at Racetracks Program was announced Track Betting. These actions, coupled equine industries, as well as their in March.”

35 OTTAWALIFE AUGUST 2012 Why are the Ontario Liberals and the OLG cancelling a product that generates close to $1 billion in profit to bolster a product which is losing $100 million annually?

The Slots at Racetracks Program partnership with the OLG is a win-win for the Province of Ontario • Generating more than $14 billion in revenue OLG’s 2012 Modernizing Lottery and Gaming for the Province since its inception in 1998. Strategic Business Review and Advice to Government • Ensuring the viability of the Ontario horse Cancels the Slots at Racetracks Program racing and breeding industry which generates to expand the resort casinos operated by $2 billion in annual expenditures and is a major private operators model. contributor to the rural economy. “OLG should expand private • The horse racing and breeding industry sector participation in the efficient, employs more than 60,000 Ontarians and effective delivery of casinos...... provides all three levels of government with The result would be regulated more than $730 in annual revenue. private operators selected to run • A total of $1.5 billion in wages and salaries existing and new sites.” - Page 15, Modernizing are sustained annually by the Ontario Horse Lottery & Gaming in Ontario Racing and Breeding Industry.

Stop the proposed ending of the Slots at Racetracks Program on March 31, 2013 until a detailed analysis of the economic impact of ending the Program has been completed by a joint government-industry panel

The Ontario Horse Racing Industry Association 416-679-0741 • [email protected] 36 OTTAWALIFE AUGUST 2012 www.value4money.ca

OHRIA - OttawaLife.indd 1 6/25/12 12:55:12 PM (Ontario horseracing) is an industry that represents a huge valuable export market for Canada in terms of horses, trainers, equipment and expertise. Dennis Mills, former Liberal MP Dennis Mills and Sox

This is a serious problem with major veterinarian for Equine and and the sales of yearlings have ramifications. Dennis Mills, the Alternative Livestock at the Ontario dropped off more than 40 per cent former Liberal MP whose web site Ministry of Agriculture, Food and since the program’s termination was Racing Future builds awareness of Rural Affairs and publisher of the announced, according to Robert Ontario’s horseracing and equine Horse News and Views web site, Wright. Anna Meyers explains that industries, points out that the industry explains: “Horse owners receive their not only have breeders’ sales been cut is considered to be one of the top three share of the Slot revenue through in half, but clients are refusing to pay in the world. He states that: “Our money added to the purses and they stud fees and many of the mares that province has a horseracing industry reinvest these winnings in the local were boarded in Ontario have left the that is of similar calibre to that of the economy, purchasing everything province for safer breeding markets United States (home to the renowned from feed and bedding to vehicles and with sire stakes programs. ) and (which trailers.” Owning and maintaining a hosts the world-famous Royal Ascot).” single horse costs upwards of $20,000 A similar story can be told of Ontario’s High-profile Canadian races like annually and “a reduction in purses veterinary industry. Like doctors, the Queen’s Plate, North America’s trickles down to lower spending veterinarians have different specialties longest-running annual horse race, power.” As a result, certain rural and areas of practice. Because of are broadcast and webcast worldwide communities that depend on this the stature of Ontario’s horseracing with betting from all corners of the spending for their existence will industry, Ontario has some of the globe. Furthermore, Ontario has likely disappear. most sophisticated and renowned become the world’s premier harness equine veterinarians and veterinary racing destination. As a result of this Ending the long-standing program faci l ities in Nor th A mer ica. However, importance, Ontario horseracing “is also threatens the viability of the after the Slots Program is discontinued, an industry that represents a huge many industries that help support things may very well change. valuable export market for Canada in the horseracing industry. The most terms of horses, trainers, equipment immediate of these is the heart As Dr. Garth Henry, a long-time and expertise,” Mills states. and soul of the equine industry: practicing equine veterinarian who the breeding industry — and it is owns the Russell Equine Veterinary Terminating the Slots at Racetracks particularly hard hit by the decision Service located just outside Ottawa Program threatens the very existence of to end the Slots Program. Anna Meyers in Russell and owner of Hamstan this enviable industry. As Jane Holmes (of the Standardbred Breeders of Farm, one of the premier horseracing – vice-president of corporate affairs at Ontario Association) captures the training facilities in eastern Ontario the Woodbine Group, essence of the problem by stating that explains, “access to equine veterinary owner of the “with the government’s decision, treatment in the province will in – states: “You may see there will be a ripple effect that will decline substantially” as a result of horseracing survive in Ontario, but it be felt across the province.” But that the government’s decision. There will certainly will not be the international ripple effect will likely be first felt simply be a much smaller demand sport that it is today.” There will also by Ontario’s horse breeders since, as for the services provided by equine be a negative impact on the purse she explains: “Breeders need almost veterinarians. Dr. Henry states that for races. Holmes says that even “if five years of lead time to respond to this will lead to a “mass exodus of we have enough money to survive, changing market forces.” Because the Ontario’s equine veterinarians,” the purse for the surviving races breeders were not forewarned about the majority of whom will likely be will simply be too small to sustain the cancellation of the program, they forced to relocate their practices to the sport.” Put differently, without did not have the required lead time American states like Kentucky, New the program, the purse money will to compensate for the sudden lack of Jersey and Pennsylvania which are not cover the high costs associated demand for race-ready horses arising less likely to discriminate against the with breeding, training, feeding, from the cancellation. To make horseracing and equine industries. maintaining and racing a horse in matters worse, “breeders in Ontario Ontario. This is crucial... because are sitting on roughly three years The farming industry in Ontario over 60 per cent of the horseracing of horses due to the timing of has also suffered from the Liberal industry’s take from its share of slot the birth to yearling sales to racing government’s sudden cancellation of machine revenue is used to pay for process.” the Slots at Racetracks Program. Mark purses. Wales, President of the Ontario Because of the prevailing climate Federation of Agriculture (OFA), As Robert Wright, the former of uncertainty, the breeding of states that “a lot of our members

37 OTTAWALIFE AUGUST 2012 Horse owners receive their share of the Slots revenue through money added to the purses and cent of what the industry used to be, albeit running more efficiently.” This they reinvest these winnings in the local economy. will likely be difficult to translate into reality given both the time constraints Robert Wright, publisher ofw Horse News and Views and the paltry $50 million allocated for this process. As Anna Meyers notes, supply hay and oats to those who OHRIA: “The panel and the broader “that $50 million doesn’t even begin breed horses in Ontario” and that the provincial government need to to cover the losses that the breeding demand for feed rises and falls with understand that the industry is not industry alone faced this year.” the demand for horses. Mark Wales looking for a way to transition out of notes that many of Ontario’s farmers existence. It is looking for a way to Ian Russell explains why many in will need to adjust their business transition to a more sustainable but the industry view the transition panel models and explains that: “Farmers still profitable business model. (...) I as a toothless paper tiger by stating selling oats, hay and straw for racing don’t see the government reversing that “$50 million is a drop in the will have to switch their crops to sell its position and therefore it will be bucket compared to the billion plus more crops that aren’t as dependent a huge challenge to adopt to this dollars the industry generates for the on the equine industry. This will environment, a challenge which is province every year under the Slots represent a substantial loss of market simply impossible to overcome in a Program.” In fact, Ed McHale of the for hay, oats and straw.” mere three years.” NCRHHA is quick to point of that “the $50 million would be enough Changing the staple crops a farmer Undoubtedly, the horseracing and to cover the purse money at Ottawa’s grows is an expensive process and can equine industry knows that the Rideau Carleton Raceway but not the be particularly difficult for those who stakes couldn’t be any higher. And, other tracks in the province as well.” have specialized in equine-specific as Elmer Buchanan says on behalf of Russell sums up the frustration felt crops and who may lack the skill sets the panel, “we are well aware that by many in the industry when he says and resources required to change. we have a short timeline.” However, that “the panel is merely a way for the Buchanan feels that there should be government to deflect criticism that In June, the Ontario government a new model for the industry whose it is ignoring the consequences its created its face-saving Horse Racing “dependency on the increased slot decision will have for the horseracing Industry Transition Panel in an attempt revenue happened by accident.” and equine industries.” to find a way to ensure the survival of the horseracing and equine industry Ontario’s Minister of Agriculture, Food Although some in the industry are post-March 31, 2013. The panel and Rural Affairs Ted McMeekin hopeful that the panel can reach is chaired by three knowledgeable (now responsible for the phasing out an agreeable, realistic and tenable former politicians representing of the Slots Program) explains what he conclusion and create a business plan the three provincial parties: Elmer sees as one of the biggest problems with input from industry members, Buchanan (NDP), John Snobelen with the current program by stating that remains to be seen. But the (PC) and John Wilkinson (Liberal). that the industry “needs a path that buck stops with the transition panel They are tasked with creating a allows it to function without being because, as Buchanan says: “We’re meaningful dialogue with the artificially propped up by the revenue not going to come out with a Plan Ontario horseracing and equine from slot machines.” Although B.” Aside from the limited funding industry to smooth the transition McMeekin represents the riding of allocated to the panel, each day from the “dependency” of the Slots Ancaster-Dundas-Flamborough- that goes by without a viable new Program to what is deemed a “more Westdale, a riding which is home to plan pushes Ontario’s once vibrant sustainable” business model. many horse farms and to Flamboro industry closer to collapse and the Downs, one of the province’s most Ontarians who work in it closer to The panel has $50 million and three popular racetracks, his description the unemployment line. years to accomplish this task. Yet, of Ontario’s horseracing industry the viable business model in question as being “artificially propped up” is The McGuinty government’s deci- must be implemented before this reminiscent of the flawed reasoning sion to end the Slots at Racetracks September’s yearling sales, without of Finance Minister Dwight Duncan Program has become a political which the remaining 50 per cent of who does not seem to understand football which has been kicked Ontario’s breeding industry would that the Slots at Racetracks Program and forth between the OLG, the likely collapse and the horseracing is a public-private revenue-sharing Liberal government and the NDP industry would be as defunct as program and not a subsidy. (the Progressive Conservatives have Quebec’s. But even if the panel is been on the sidelines due to their able to reach a relevant conclusion, Nevertheless, Minister McMeekin’s decision to withhold support for the what will the horseracing and equine vision for the new business model is Ontario Budget even before it was industry be able to transition to? “a model that won’t require artificially announced), with no one party clearly propping up the horseracing industry w a n t i n g t o d e a l w it h t h e c o n s e q u e n c e s As Sue Leslie says on behalf of the and that will have roughly 60 per that ending the program would have

38 OTTAWALIFE AUGUST 2012 HERE STAND THE FUTURE UNEMPLOYED

Premier McGuinty: Partnerships are not subsidies!

These are the people who will be out of work because of your arrogant and reckless decision, without any notice to shut down the successful Slots at Racetracks Program.

By selling out to corporate gaming interests and large U.S.-style casinos, you will unnecessarily thrust tens of thousands of ordinary, hard-working people into the unemployment lines and will wipe out an industry that directly contributed more than $2.3 billion to Ontario's annual income in 2010.

Horse racing and breeding is much more an industry of ordinary folks. It employs 55,000 people – 31,000 of them full-time – and very few are rich. Many live outside Ottawa in rural areas, running small farms, breeding and boarding horses, or they live in nearby towns, providing veterinary, training, feed and transport services. They work at the racetracks and training centres exercising and grooming horses, keeping the horses healthy and fed and cleaning the horse stalls. Others are running the paramutuals and maintaining the slots. It's honest work, not lavishly paid and they pay taxes, all 55,000 of them.

The Horsemen and Women of Russell County Sponsored by Russell Equine Veterinary Service www.russellequine.com • Hamstan Farm and Cassell Farm

39 OTTAWALIFE AUGUST 2012 The McGuinty government’s past financial boondoggles like eHealth and Ornge Air pale in comparison with the likely long- term loss of revenue and the number of Ontarians who will be forced to rely on unemployment or social welfare programs. for the province. The OLG’s play squandered more than $1 billion in Natyshak responded that, “because is summed up by their spokesman taxpayers’ money on the province’s the modernization initiative was Tony Bitonti, who insists that “the failed initiative to create electronic spearheaded by a government implications for ending it fall into the health records for Ontarians. And, agency, OLG, it did not rear its head camp of the government, since Slots earlier this year, it came to light in the context of the Budget. No at Racetracks is a government policy that Ornge, the province’s not-for- amendments within the Budget could and we’re a Crown corporation, not profit air ambulance provider, lost have been made by us to specifically a government body.” more than $200 million of taxpayers’ address the OLG modernization money through mismanagement. initiative since the details of the The Liberal government’s play is to set Allegations of unsound business initiative were absent and they were up a straw man , presenting practices and questionable invest- the prerogative of the OLG.” itself as making a tough but necessary ments, some unrelated to running choice between continuing to an air ambulance service, were Andrea Horwath and the Ontario support the province’s health care and compounded by the fact that the NDP were prepared to vote against education systems or its horseracing number of patients transported by the Budget over wages for unionized industr y, a clearly fictitious argument. Ornge was steadily declining. But government workers but would Dwight Duncan’s spokesperson Aly the funding Ornge received from the not do the same for the province’s Vitunski captures the government’s Ontario government increased rather horseracing and equine industry pl ay by st at i n g t h at “we a re com m it ted than decreased. The McGuinty because of the OLG modernization to the people in the industry, but government claims that Ontario plan’s lack of clarity and detail. there comes a point when it’s health must act now and choose between, as Instead, the NDP claim to have won a care and education or horseracing. It’s Aly Vitunski said, “health care and victory for Ontario’s horseracing and unfortunate but we have to choose education or horseracing.” Yet, in equine industry by having secured health care and education.” Health the case of Ornge, the government the $50 million funding for the Horse care and education on the one hand was informed of wrongdoing Racing Transition Panel. and horse racing on the other are not long before it was finally forced to mutually . In fact, much of act. One might wonder why the However, many in the industry view the McGuinty government’s 75 per government is now moving so the panel and its $50 million fund as cent share of the revenue generated quickly to terminate a successful little more than an economic band- from the Slots at Racetracks Program revenue-sharing program like the aid and an attempt by the government is allocated to providing Slots at Racetracks Program when it was (and also the NDP) to show that they support for health care and education in no hurry to deal with the Ornge care about the 55,000 non-unionized in Ontario. debacle. industry workers. In politics, per- ception is reality. Across the aisle, The example of one Ottawa-based Andrea Horwath, the leader of the Liberal Minister McMeekin says: “We racetrack demonstrates that the Ontario , in agriculture had nothing to do with “either or” play used by the Liberal delegated the NDP’s play in the Slots the OLG decision. We discovered it government does not stand up at Racetracks political football game about the same time as everyone else to scrutiny. Jean Larose, general to NDP MPP Taras Natyshak, who did.” And so the political football manager of Ottawa’s Rideau Carleton has been the party’s point man on continues to be passed. Raceway, states that: “Since the Slots this issue. Representing the riding Program began, Rideau Carleton of which is closely tied to the Regardless of who assumes respon- Raceway has generated $643 million horseracing industry, Natyshak stated sibility for ending the Slots Program, for the provincial government that is that “the Ontario government’s it is abundantly clear that the issue specifically earmarked to be spent on decision is not a prudent move and as a whole can be seen as symbolic health-care costs for all Ontarians. is fiscally irresponsible.” (...) “The of a predominantly urban-focused That represents the cost of nearly provincial NDP as a whole disagree and urban-centric government being 80,000 hip replacements.” with the Premier and the Ontario unable to understand a predominantly government’s decision.” However, rural-based industry and way of It should also be noted that, on the actions speak louder than words. life. As Dennis Mills puts it, “very issue of health care, the Ontario When asked what exactly this few legislators understand how government has a less than sterling statement meant and why the NDP this industry works because most record. On Premier Dalton abstained rather than vote against legislators are from cities” and they are McGuinty and Finance Minister the Budget if it so strongly disagreed unfamiliar with the horseracing and Dwight Duncan’s watch, eHealth with the government’s decision, equine world. Ian Russell explains 40 OTTAWALIFE AUGUST 2012 JoiningJoining Lisa MacLeod togethertogether toto showshow MPP - Nepean-Carleton “The horse racing industry ourour supportsupport forfor thethe is important to our local agriculture sector. locallocal horsehorse racingracing Close to 1,000 industry people have jobs industry because of the Ottawa Valley Rideau Carleton Large Animal Clinic Raceway and I’m proud to L.A. BUTLER, DVM, M.M. FINE, DVM support them. M. ROCHELEAU, DVM ” 2827 DONNELY DR. RR #4 PHONE (613) 258-5773 KEMPTVILLE, ON K0G 1J0 FAX (613) 258-1238 www.ovlac.ca EMERG (613) 239-4867

Constituency Office: ROONEY FEEDS LTD. 3500 Fallowfield Road, Unit 10 South Gower Ind. Park 40 Dundas Street Nepean, Ontario Tel. (613) 823-2116 #3 Industrial Road , ON K0E 1K0 K2J 4A7 Fax (613) 823-8284 Kemptville, ON K0G 1J0 (613) 652-4382 Follow me on Twitter@MacLeodLisa (613) 258-1567 www.facebook.com/LisaMacLeodMPP www.EquiStation.com

that many legislators who hail from Instead, the government suddenly be forced to rely on unemployment or Ontario’s cities have a preconceived and unilaterally ended a program social welfare programs, given their notion that horseracing is a sport that has allowed the horseracing and industry-specific skills which are not limited to Street investment equine industry to thrive in Ontario. easily transferable. The province’s bankers and corporate lawyers And, as Conservative Senator Bob unresearched and unpredictable who own and race . Runciman points out, “a true cost- decision to terminate the lucrative This is not the case. “In fact, the benefit analysis of ending the Slots at Slots at Racetracks Program will majority of the tracks in Ontario race Racetracks Program has not yet been have lasting consequences. Senator standardbred horses that are owned, undertaken.” He goes on to state that Runciman sums this up by stating trained, managed and raced by salt- the decision “doesn’t make any sense” that “maybe the original contract and of-the-earth, everyday Ontarians,” because when a production line at revenue-sharing agreement should Russell says. an Oshawa automotive assembly have been updated or renegotiated, but plant is shut down with a loss of to blindside everyone by unilaterally Many in the industry adamantly insist about 2,000 jobs, there is blanket ending the program without even the government needs to realize it coverage in the media. Yet, when doing a cost-benefit analysis speaks wrongly assumed that ending the Slots the province’s entire horseracing and volumes about the unpreparedness at Racetracks Program would adversely equine industry, accounting for some and hastiness of this government.” affect only the upper echelon of 55,000 jobs, is placed on life support Canadian society. Or, as Anna Meyers by a hastily implemented government The impact of that questionable explains, “the Ontario government decision, there is very little coverage decision will be felt by more than needs to look at the whole province by the media. the 55,000 Ontario workers who are and not just the urban centres when The reasoning behind this event part of the horseracing and equine it considers the implications for any continues to defy logic. The McGuinty industry with its web of ancillary decision it makes.” The argument government’s past eHealth and Ornge businesses. The province’s horse could be made that this was not the boondoggles pale in comparison with tracks are not just the workplaces of case with its cancellation of the Slots the likely long-term loss of revenue jockeys, trainers, and farriers – nor at Racetracks Program. and the number of Ontarians who will do they simply provide a venue for 41 OTTAWALIFE AUGUST 2012 the leisure of gamblers and spectators. Dennis Mills notes, “there’s no other The tracks also serve as meeting product in Canada that has the global places for people from all walks of sports presence and the tourism reach SUPPORT life. For instance, Ottawa’s Rideau of horseracing in Ontario, but a lot of Carleton Raceway has been the home city people don’t know this.” ONTARIO’S of the Gloucester Fair for the past 13 HORSE years. Every year, the Raceway hosts Many Ontarians who live in rural fundraising events for more than 100 areas are well aware of the importance INDUSTRY charities and businesses, as well as the of the prov ince’s horseracing industr y, annual events of several embassies. the third largest of its kind in North America. Dr. Garth Henry is one It is also worth noting that much of the of those people. He has invested revenue that has been raised from the hundreds of thousands of dollars in 14-year-old Slots Program is being put building and operating his veterinary to use outside the tracks themselves. practice and facility The Rideau Carleton Raceway’s and is very conscious of the negative general manager Jean Larose explains effect that cancellation of the Slots that: “The Slots at Rideau Carleton Program will have for his business and Raceway generated $52 million for for his employees. the City of Ottawa which the city has said helps keep annual municipal Dr. Henry states that when the property tax increases lower.” Thus, program ends on March 31, 2013, even city dwellers will feel the impact “the Hamstan Farm’s training facility of the Slot Program’s termination as will be shut down overnight and more of the province’s horseracing the 13 people who work there will tracks will be forced to call off all be unemployed immediately.” As Farm. It will become the victim of bets and close down. Ultimately, the will doubtless be the case for similar an urban-centric government that termination of the Slots at Racetracks businesses in Ontario’s horseracing is seeking to reduce its $15-billion Program will be a great loss to Ontario and equine industry, the future does deficit at the expense of the Slots at and to Canada as a whole because as not look rosy for the 100-acre Hamstan Racetracks Program. n

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