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2013 Annual Report

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2013 Annual Report ANNUAL REPORT 2013 CONTENTS MISSION Chairman’s Report 2 Chief Executive’s Report 3 STATEMENT Industry 8 To establish a dynamic NSW Regulatory 12 Thoroughbred Racing Industry Integrity 19 which advances participation, ensures integrity and delivers Veterinary Services 22 quality racing at all levels. Australian Racing Forensic Laboratory (ARFL) 24 RICG Report 26 BOBS 27 VISION Appeals 29 Provide a committed, user-friendly, Industry Training 31 professional and cost-effective administration which uses best Jockey Welfare 33 business practice in serving all Marketing, Media & PR 34 aspects of the NSW Thoroughbred Insurance 37 Racing Industry. Information Technology 41 Provide Leadership and Strategic Direction to ensure the NSW NSW Group & Listed Winners 42 Thoroughbred Racing Industry Financial Statements 46 achieves revenue growth, profitability and greater returns to Owners and Front cover: Sydney’s champions for Industry Participants. last racing season – It’s a Dundeel (NSW Provide a Racing Product that appeals Horse of the Year); (L-R): Nash Rawiller to all demographics, and takes all (George Moore Award); Chris Waller (TJ actions necessary to guarantee Smith Award & Bart Cummings Medal) integrity and confidence in the sport. and Sam Clipperton (Theo Green Award) Maximise betting turnover on NSW thoroughbred race meetings by accommodating punters’ needs and desires, and work with Tabcorp to promote new wagering products that reflect changes in demand. CURRENT MEMBERS OF THE BOARD J M Messara AM (John) Ms N Sparks (Naseema) R Balding AO (Russell) A F Brown (Alan) CHAIRMAN DEPUTY CHAIRMAN Appointed 19 December 2011 Appointed 19 December 2011 Appointed 19 December 2011 Appointed 19 December 2011 Attended 12 Meetings Attended 9 Meetings Attended 12 Meetings Attended 10 Meetings K M Brown AM (Ken) The Hon K P Greene (Kevin) A G Hodgson AM (Tony) P N V’landys (Peter) Appointed 19 December 2011 Appointed 19 December 2011 Appointed 19 December 2011 RACING NSW CHIEF EXECUTIVE Attended 11 Meetings Attended 12 Meetings Attended 12 Meetings Appointed 23 February 2004 Attended 12 Meetings FUNCTIONS OF THE BOARD Under section 13(1) of the Thoroughbred Racing Act and welfare of the horse racing industry in the State (NSW) 1996, the Board has the following functions: and the protection of the public interest as it relates to the horse racing industry, a) all the functions of the principal club for New South d) functions with respect to the insuring of participants Wales and committee of the principal club for New in the horse racing industry, being functions of the South Wales under the Australian Rules of Racing, kind exercised by the AJC on the commencement of b) to control, supervise and regulate horse racing in the this section, and such other functions with respect State, to insurance in the horse racing industry as may be b1) such functions in relation to the business, economic prescribed by the regulations, development and strategic development of the horse e) such functions as may be conferred or imposed on racing industry in the State as are conferred or Racing NSW by or under the Australian Rules of Racing imposed by this Act, or any other Act, c) to initiate, develop and implement policies considered f) such functions with respect to horse racing in New conducive to the promotion, strategic development South Wales as may be prescribed by the regulations. Annual Report 2013 1 CHAIRMAN’S REPORT John Messara AM Chairman The Hon. George Souris MP major initiatives which will provide significant benefits Minister for Tourism Major Events Hospitality and Racing, for the industry. These included: and Minister for the Arts ●● Finalisation of negotiations for the aggregation of all Level 30, Governor Macquarie Tower media rights for NSW and Victorian thoroughbred 1 Farrer Place race meetings; Sydney NSW 2000 ●● The restructure of the Sydney Autumn Racing Carnival; and Dear Minister ●● Negotiations with your Government for the provision of additional funding for the above carnival and the n accordance with Section 29 of the Thoroughbred revitalisation of the industry. Racing Act 1996, I am pleased to submit to you the As required under the Thoroughbred Racing Act I17th Annual Report of Racing NSW covering the 1996, the Board has continued to hold meetings with period 1 July 2012 to 30 June 2013. the Racing Industry Consultative Group (RICG) and the Board meetings were held on 12 occasions during advice provided by that body has been most appreciated the year and I again acknowledge the invaluable and has ensured that the Board develops its policies in a contributions of my fellow Board members whose manner which best suits the needs of the industry and expertise, business acumen and detailed knowledge of its participants. the thoroughbred racing industry have enabled Racing On behalf of the Board I thank and acknowledge NSW to undertake its functions and responsibilities to the Chief Executive, Peter V’landys, and the entire the highest levels staff of Racing NSW for their dedication, support and Racing NSW continued to pursue policies aimed achievements during the year. at improving returns to owners and to improve the I would also like to thank you and your staff, incomes of those many participants who rely on the particularly Frank Marzic, as well as your Departmental industry for their livelihoods. To this end, Racing NSW Officers for your assistance and support during the year funded prizemoney increases from July 2012 totaling and confirm that we are looking forward to working with approximately $29 million annually. you over the coming years to further the welfare of the In addition Racing NSW oversaw the many thousands of participants who are involved in the commencement of a major capital development program NSW Thoroughbred Racing Industry. for the State’s racecourses. This program, which is being financed with accrued funds generated from Yours Sincerely Race Fields fees, is focused on improvements to racing surfaces and training facilities at major provincial and country racecourses throughout the State. We also continued to work closely with the Australian Turf Club in the construction of the new grandstand and associated facilities at Royal Randwick. Construction of this grandstand is completed and it is now open for business. I believe that the state of the art facilities contained in the structure are the equal of any grandstand anywhere in the racing world and I am confident that the grandstand will prove to be a John Messara AM major attraction for Sydney and will result in increased Chairman interstate and overseas tourism. During the year we have progressed several other 2 Annual Report 2013 CHIEF EXECUTIVE’S REPORT Peter V’landys Chief Executive 2012/13 was a year in which the industry was able to funding possible future liabilities. The total amount capitalize on Racing NSW’s successful defence of the allowed for future liabilities is $47,558,178 (gross challenge to the validity of Race Fields Legislation. This before the reinsurance recoveries). This includes a 20% resulted in the collection of $59 million per annum in Race prudential margin as a buffer to ensure the fund has Fields fees from wagering operators throughout Australia sufficient funds to pay its possible future liabilities. plus interest earned of $7.4 million. The increased revenue allowed the payment of record levels of prizemoney and returns to owners as well as Workers Compensation the introduction of an Australian first with the payment During 2012/13 the Racing NSW Workers Compensation of a percentage of prizemoney to licensed stable staff to Fund experienced a 7.6% decrease in the incidence of new reward them for the success of their respective stables. In claims compared to 2011/12. In the 2 year period from addition, the release of $102 million in accrued Race Fields 2010/11 the incidence of new claims has reduced by 13.2%. fees allowed us to commence a major capital development This is a very beneficial outcome which bears testimony program at racecourses throughout the State including to the continuous commitment to improving safety across developments at the Randwick, Newcastle, Hawkesbury, the industry. Additionally, the reduction in new claims has Scone and Muswellbrook racecourses. occurred despite the increase in both the number of races It was also very exciting to see the opening of and starters over the corresponding period. the magnificent new grandstand at Royal Randwick Actuarial assessment at 30 June 2012 forecast the racecourse, which was funded by Racing NSW selling to gross liability of the Fund at 30 June 2013 to be $47,558,178 TAB its 17% share of the virtual racing game, Trackside, (gross before the reinsurance recoveries). In an excellent for $150 million. outcome, the net liability of the fund at 30 June 2013 In addition, Racing NSW was able to introduce or has been contained to $40.4 million which represents a further enhance a number of programs and initiatives reduction of $3.4 million on the forecasted net liability. which will provide significant benefits for the NSW The Fund experienced an operational surplus of $1.6 Thoroughbred Racing Industry. million for the year ending 30 June 2013. This surplus was Complete details of the operations of Racing NSW are largely the result of continuing strong claims and injury outlined later in this report. However, I have identified and management practices which focus on the early, safe expanded on the major issues below. and sustainable return of the injured worker to pre-injury or other suitable employment. All surpluses go towards funding future liabilities. Operational Costs and Administrative Charge Racing NSW reported an operating surplus of $2,883,851 Race Fields Fees before the Race Fields funding of Capital works at NSW During the year, 337 wagering operators throughout Racecourses of $7,358,079.
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