ECONOMIC DEVELOPMENT COMMITTEE Inquiry into the Viability of the Victorian Thoroughbred/Standardbred Breeding Industries Report on the Standardbred Breeding Industry and Associated Industry Issues ORDERED TO BE PRINTED August 2006 by Authority. Government Printer for the State of Victoria No. 210 - Session 2003-2006 Parliament of Victoria Economic Development Committee Report on the Standardbred Breeding Industry and Associated Industry Issues ISBN 0-9751357-5-9 ECONOMIC DEVELOPMENT COMMITTEE Members Mr. Tony Robinson, M.P. (Chairman) Hon. Bruce Atkinson, M.L.C. (Deputy Chairman to 17/5/05) Hon. Ron Bowden, M.L.C. (Deputy Chairman from 1/8/05) Mr. Hugh Delahunty, M.P. Mr. Brendan Jenkins, M.P. Ms Maxine Morand, M.P. Hon. Noel Pullen, M.L.C. Staff Mr. Jonathon Gurry, Research Officer (from 5/12/05) Ms Frances Essaber, Editor Ms Andrea Agosta, Office Manager Ms Mary Pink, Office Manager (from 13/6/06) The Committee’s Address is: Level 8, 35 Spring Street MELBOURNE 3000 Telephone: (03) 9651-3592 Facsimile: (03) 9651-3691 Website: http://www.parliament.vic.gov.au/edevc i ECONOMIC DEVELOPMENT COMMITTEE FUNCTIONS OF THE ECONOMIC DEVELOPMENT COMMITTEE The Economic Development Committee is an all-party, Joint Investigatory Committee of the Parliament of Victoria established under section 5(b) of the Parliamentary Committees Act 2003. The Committee consists of seven Members of Parliament, three from the Legislative Council and four from the Legislative Assembly. The Committee carries out investigations and reports to Parliament on matters associated with economic development or industrial affairs. Section 8 of the Parliamentary Committees Act 2003 prescribes the Committee’s functions as follows: to inquire into, consider and report to the Parliament on any proposal, matter or thing connected with economic development or industrial affairs, if the Committee is required or permitted so to do by or under the Act. ii Contents Members and Staff of the Economic Development Committee......................... i Functions of the Economic Development Committee ...................................... ii Terms of Reference ....................................................................................... vii Glossary.......................................................................................................... ix Acronyms....................................................................................................... xv Chairman’s Foreword....................................................................................xvii Executive Summary ...................................................................................... xix Recommendations .......................................................................................xxix Chapter 1 INTRODUCTION........................................................................1 1.1 Background to the Inquiry .....................................................................1 1.2 Scope of the Inquiry ..............................................................................1 1.3 Focus of the Report on the Victorian Standardbred Breeding Industry .2 1.4 Process for Gathering Evidence............................................................3 1.5 Terminology ..........................................................................................4 Chapter 2 OVERVIEW OF THE VICTORIAN STANDARDBRED BREEDING INDUSTRY ............................................................5 2.1 Introduction ...........................................................................................5 2.2 Evolution of the Standardbred Industry .................................................6 2.2.1 Trotting and Pacing – The Key Differences ........................7 2.2.2 Prospects for Growth..........................................................8 2.2.3 Hobby Breeders .................................................................9 2.2.4 Harness Racing Carnivals ................................................10 2.2.5 Semen Transportation......................................................10 2.3 Administration and Regulation of the Standardbred Industry ..............11 2.3.1 Key National Bodies .........................................................11 2.3.2 Key State Bodies..............................................................12 2.4 Strengths and Weaknesses ................................................................13 2.4.1 The Significance of Wagering...........................................13 2.4.2 The Dominant State..........................................................16 2.4.3 Strengths ..........................................................................16 2.4.4 Economic Casualties........................................................17 2.4.5 The Importance of Supply ................................................18 2.4.6 Weaknesses.....................................................................18 iii Chapter 3 ARTIFICIAL INSEMINATION, SKILLS AND TRAINING.........21 3.1 Origins of Artificial Insemination and Semen Transport.......................21 3.2 Advantages and Disadvantages..........................................................23 3.2.1 Advantages ......................................................................23 3.2.2 Disadvantages..................................................................25 3.3 Adapting to the Challenges of New Technology..................................26 3.3.1 International Use of Artificial Insemination........................26 3.4 Skills and Training...............................................................................27 3.4.1 Skills Shortage .................................................................27 3.4.2 A Specific Curriculum .......................................................28 3.4.2.1 Licensing and Registration ...............................28 3.4.2.2 Options for Implementation of Required Training Courses ..............................................30 3.4.3 Overseas Experience .......................................................31 Chapter 4 INVESTMENT ENVIRONMENT...............................................33 4.1 Introduction .........................................................................................33 4.2 Breeding Incentive Schemes...............................................................35 4.2.1 Vicbred .............................................................................36 4.2.2 Vicbred Breeder Bonuses.................................................38 4.2.3 Funding Vicbred ...............................................................42 4.2.4 Free to Race Policy ..........................................................42 4.3 The Sales Environment in Victoria ......................................................43 4.3.1 The Effect of Vicbred on Sales .........................................43 4.3.2 Yearling Sales in General.................................................44 4.3.3 Return on Investment .......................................................44 4.4 Capital Investment and the Rural Economy ........................................47 4.4.1 The Significance of the Murray Valley Region..................50 4.4.2 Leading Studs ..................................................................51 4.4.3 Industry Consolidation......................................................52 4.4.3.1 Stud Rationalisation .........................................52 4.4.3.2 Track Rationalisation........................................53 4.4.4 Community Consultation by HRV .....................................54 4.5 External Factors ..................................................................................57 4.5.1 Exports .............................................................................57 4.5.2 Drought.............................................................................59 iv Chapter 5 EQUINE RESEARCH...............................................................65 5.1 Introduction .........................................................................................65 5.2 Benefits of Investments in Research...................................................65 5.2.1 Health, Safety and Welfare of Horses ..............................66 5.2.2 Economic Benefits............................................................66 5.2.3 Research and Clinical Skills Development .......................67 5.3 Racing and Breeding Research in Victoria..........................................68 5.3.1 Centre for Equine Virology - Parkville...............................68 5.3.2 Strategic Alliance – Equine Centre, Werribee ..................69 5.3.3 International Collaboration and Visiting Fellows. ..............73 5.3.4 Funding Redistribution......................................................75 5.4 Rural Industries Research and Development Corporation (RIRDC) Horses Research Program..................................................................76 5.4.1 RIRDC Funding ................................................................77 5.4.2 Industry Comparisons and Industry Partnerships.............78 5.5 Australian Horse Industry Cooperative Research Centre Bid..............80 5.5.1 RVL Feasibility Study .......................................................82 5.6 International Comparisons ..................................................................83 5.6.1 United Kingdom................................................................83 5.6.2 Ontario, Canada ...............................................................86