04 ANNUAL REPORT RACING VICTORIA LIMITED VICTORIA RACING 2004 RACING VICTORIA LIMITED ACN 096 917 930 ANNUAL REPORT 1> ADMINISTRATION 1> CHAIRMAN’S REPORT It is with great pleasure that I present Racing Victoria Limited’s The expansion of ThoroughVisioN™ Pty Ltd (TVN) to include the (RVL) annual report and financial statements for 2004/05. Australian Jockey Club and Sydney Turf Club and the subsequent agreement for the formation of a joint venture between TVN This is RVL’s third reporting year since its establishment in and Tabcorp illustrates how the leading organisations within December 2001 and marks the end of the RVL Board’s first Australian racing can successfully work together to produce term of appointment. outstanding results for the industry. This structure ensures that The introduction of a new governance structure for the Victorian racing not only will control its own broadcasting destiny, but has thoroughbred racing industry was always destined to be a the commercial launching pad to achieve global pre-eminence. challenging task and I consider it is fair to say that, reflecting Similarly, the cementing of Racing Information Services Australia’s back over that three-year term, it is a mission that has been (RISA) control over data rights secures the other main stream of well accomplished. Of course, the transition would not have the industry’s intellectual property and allows us to now pursue been possible without the full support and cooperation of the any third parties that refuse to meet racing’s integrity standards member shareholders, the industry stakeholders and the and revenue entitlements. Victorian Government. Australian racing and wagering took a major step towards a While RVL is now firmly established in its industry leadership true national standing when Tabcorp and TAB Ltd merged into role, this annual report clearly documents that our work is the biggest wagering operator in the country. RVL was a strong by no means done. The challenge of growing and sustaining supporter of Tabcorp’s takeover bid and we expect that this the business of racing is a continual one and is expanding support will be well justified by the financial benefits generated into a broader landscape with every passing day. for Victorian racing through the resultant operational savings, 2003/04 was a year in which the Victorian racing industry co-mingling of pools and expansion into new markets. held to its strategic approach of building positive relationships with the key players of the racing business across Australia. 2 There were many other highlights throughout the year with Racing’s grassroots – our 16 picnic racing clubs – also received two particularly special moments being the inaugural National a significant boost when the RVL Board approved the Specialist Jockey Celebration Day in March and the opening of Champions Racing Strategy to maximise the financial and social benefits – Australian Racing Museum & Hall of Fame at Federation picnic racing generates to local communities and to promote Square in July. Both initiatives are fine examples of a national this ideal point of entry into racing for the general public and approach raising the recognition of our sport’s participants, its for owners, trainers, jockeys and stablehands alike. The 2003/04 rich history and its wide appeal across the community. Likewise, picnic season attracted over 65,000 on-course patrons and 1,750 the wearing of Australia Day and ANZAC Day colours by jockeys starters across the 38 meetings between November and April. riding at race meetings on those respective national public RVL’s achievements throughout the year were ably assisted by holidays was a similarly well received gesture. outstanding government support. Total financial assistance During the year, there was considerable work undertaken in the granted to the collective Victorian racing industry amounted improvement program for jumping racing. New safety measures to $9.7 million across a number of State and Federal Government included a second stage roll-out of better designed, constructed programs in the areas of education, tourism, research and water and located hurdles and steeplechase fences with a particular management. Significant grants in 2003/04 included the special emphasis on cushioned take-offs and more forgiving brush. Victorian Government contribution of $3.8 million towards the Combined with rigorous race qualification and training regimes, relocation of the Australian Racing Museum to Federation Square, we are steadily raising the standards of protection for riders the third annual payment of the EGM Levy Compensation Scheme and horses. A pending epidemiological study of jumping racing of $4.0 million (and the announcement that the payment would accidents will provide a sound basis for measuring the effects be extended for a further two years), a $100,000 grant to RVL from of these changes and identifying opportunities for further the Smart Water Fund and ongoing funding from Tourism Victoria. improvements. At the same time, a strategic plan has been In addition to direct financial support, the Victorian Government commissioned to recommend how this integral part of racing also facilitated legislative changes to enable RVL to implement can be sustained into the future. The plan is being formulated reforms to thoroughbred racing’s appeal processes featuring in close consultation with the jumping racing fraternity. the formation of the Racing Appeals & Disciplinary (RAD) Board and consulted closely on a number of other relevant legislative and policy decisions. 3 Yarra Valley Racing 1> CHAIRMAN’S REPORT RVL greatly appreciates the industry leadership extended by the The RVL Board also underwent change with both Mr George Hon Steve Bracks MP, Premier, and the Hon John Pandazopoulos Corones and Mr James Henderson resigning in the first half MP, Minister for Racing, and the valuable assistance provided of 2004. They were both outstanding contributors to RVL during by their staff and departments. its formative term and I wish them both well for the future. Country Racing Victoria exercised its right to fill George’s vacancy I also acknowledge the continuing support that RVL receives from and appointed Mr Chinka Steel to the position. Chinka, with his its member shareholders – Country Racing Victoria, Melbourne strong record in country racing administration, is a most welcome Racing Club, Moonee Valley Racing Club and Victoria Racing addition to the Board. The four remaining RVL Board Directors Club – and its industry stakeholders – the Australian Jumping appointed by the Appointment Panel decided not to fill James’ Racing Association, Australian Services Union, Australian Trainers’ vacancy given the relatively short period of time until the next Association, Australian Workers’ Union, Media, Entertainment round of appointments to the Board. & Arts Alliance, Thoroughbred Breeders Victoria, Thoroughbred Racehorse Owners’ Association, Victorian Bookmakers’ Association, The appointment of Mr Robert Nason as CEO to replace the Victorian Jockeys’ Association and the new inclusion in our vacancy arising from Mr Neville Fielke’s resignation was the stable of stakeholders, the Australian Liquor, Hospitality & other major RVL personnel change during the year. Robert Miscellaneous Workers’ Union. brings with him a wealth of business experience, an enthusiastic understanding of racing and a tremendous capability to provide Further, I extend RVL’s appreciation for the productive RVL with strong leadership, vision and accountability. relationships we enjoy with the Australian Racing Board (ARB), RVL’s counterpart Principal Racing Authorities around Australia, Lastly, I express my sincere appreciation for the hard working Tabcorp, TVN, RISA, Harness Racing Victoria, Greyhound Racing dedication of my Deputy, the Hon Michael Duffy, the rest of the Victoria, Radio Sport 927, Channel 7 and Sky Channel. RVL Board, the RVL Executive Team and the entire staff of RVL. At year’s end, there are inevitably changes in the industry’s Here’s to a great year of racing. guard and a most significant instance was the retirement of Mr Bob Charley as Chairman of the ARB and his replacement by Mr Andrew Ramsden. Bob has been pivotal in elevating racing’s national focus and the high standing of the ARB. We are fortunate that he has been able to hand over the reins to such an experienced successor. Graham Duff Chairman 5 >1 >2 >3 >4 >5 1> BOARD OF DIRECTORS >1 Graham Duff – Chairman (Age 61) Former Chair, Tripartite Working Party on Labour Standards to Chairman, HOSTPLUS (appointed August 2004) examine ways of promoting labour standards in the Asia Pacific Director, Australian Racing Board Limited Region Board of Governors, International Masters Games Association Former Chair, Trade Sub-Committee of the Joint Standing Director, Mark Sensing Ltd Committee on Foreign Affairs, Defence & Trade Chairman of National Construction Management Services Pty Ltd Federal Attorney General (1990–1993) Former Chairman of Victorian Institute of Sport Minister Trade Negotiations, Member of Cabinet (1987–1990) Former Chairman and Managing Director of John Holland Group Minister Communications (1983–1987) Former Managing Director of Fletcher Challenge Construction Member of the Joint Committee of Public Accounts (1980–1983) (Worldwide) MHR (ALP) Holt Vic (1980–1996) Chairman, Dandenong Youth Employment Project >2 Robert Nason – Chief Executive Officer (Age 49) Board Member, Dandenong Community Advice Bureau Chairman, Australian