Twenty minutes with the NZ Racing Minister

With the New Zealand election campaigns in full swing, we thought it was paramount we caught up with the political leaders responsible for New Zealand harness racing and the other associated codes that form the NZ Racing.

It had been 12 months since we spoke to the current Minister of Racing, Rt Hon Kieran McAnulty, who took time from his busy schedule campaigning in his local electorate of the Wairarapa.

*We have scheduled interviews with the spokespeople for National, Act and New Zealand First which will follow in due course. 

Thanks for making time available while you are busy on the campaign trail, Minister.

Talk to us a bit about what the last 12-18 months have been like since taking over the ministerial portfolio?

There has been a lot going on with the likes of the Cyclone, but it’s incredible where and how quickly 12 months have gone. But it’s also incredible that in such a short space of time there has been such a shift in optimism in the industry so long may that continue.

It’s been a massive privilege, it’s the dream job for me and there is still a lot I want to do to get the industry set up and get the settings right so that it can take off.

I believe there is the will and certainly the expertise to do that. But we have got to give it a fair crack. What’s been clear over the last wee while is that the New Zealand racing industry hadn’t been given a fair crack and because an industry of our size was competing against some massive global players, it was only heading in one direction.

I vividly remember one of the first meetings I had as Racing Minister where the TAB was given three years to live. It’s clear and obvious that the direction the TAB is headed, so too does the New Zealand Racing Industry so I thought I better be doing something about this.

The Entain partnership with the TAB ensued and has stemmed that tide to a large extent and what was really quite remarkable to me was attending the NZTR Horse of the Year awards. It was a chance to enjoy the success of the past 12 months in their code and you could just see the optimism.

It was easily sensed and people felt that things had turned around in such a short space of time and they felt like they were getting a fair go. I just came away from that thinking that’s awesome. We’ve gone from anxiety and real concern about the future of the industry to some confidence and that is fantastic.

Speaking to the Entain deal, can you speak to some of the inner workings and how that came about?

A credit needs to go to the guys that put the work in and put it out to tender, assessed the deals and identified the Entain partnership was the one that was going to bring the most benefit to the New Zealand Racing Industry.

Then it was on me to get the support that I needed too in government to sign it off and was behind it 100%. I wanted to see this through because I could see the benefits, but also had to make sure that I was satisfied that it met the statutory requirements. And it does.

I was able to negotiate a bit of my own flavour through it such as a two year guarantee for all those employed by the New Zealand TAB because they needed to have certainty and confidence as well. If anything I think this will lead to more New Zealand based jobs, but we needed to draw a line in the sand and say everyone keeps their jobs for aforementioned time, that’s where it stays. It gives time for the new partnership to be embedded in, demonstrate the potential of racing in New Zealand and build from that.

I don’t expect there to be job cuts in two years’ time, I expect there to be more recruitment and certainly the early indications are only positive. But I think the key thing is it retains its brand in New Zealand and it wasn’t a back door way for an overseas player to come into the market here. They are providing a service to the TAB but it still keeps it’s kiwi identity and its sole purpose for contributing back to the industry which is why it existed in the first place.

A common misunderstanding is the partnership being referred to as a sale. The ownership remains with New Zealand Racing and it’s a 25 year deal so at the end of that deal, if the TAB and Racing Codes didn’t want to continue with Entain they could change tact in the future and carry on as they did originally.

Part of the appeal for the new partner was obviously the prospect of Geo-blocking being brought in to stop the leakage of wagering revenue offshore, where are we at with that and is it likely to be something that gets signed off in the near future?

Geo-blocking is only one possible avenue we are exploring to extend the TAB monopoly that exists on-shore to online as well. We are still looking at whether it viable or not as people can still get around it via VPN blockers and the like. We just want to make sure that we have got all possible avenues explored there and there are another couple of options we are looking into.

I am absolutely determined if I am able to stay on as Racing Minister to get that across the line because we are leeching hundreds of millions of dollars to overseas operators who are returning a fraction back to the codes in New Zealand. If we can get that tidied up, then that is the final component that will really let New Zealand racing fly.

If industry people want that, they will have to vote for Labour because the opposition parties have indicated they won’t do it. But we are determined to do it, it will be in our manifesto and there will genuinely be a commitment to see it through.

You mentioned the opposition which brings me to my next question. Some of their taxation policies have obviously come under fire recently and one of them extended to the use of gaming revenue and the taxation of it. Your party were pretty adamant they had their numbers wrong here as well?

There are two things there, the reason we were able to point out the commercial hole in the plans was because we had been looking at this very issue from the time I became Minister. We had a massive handle on the numbers and what the potential benefits would be.

From a racing perspective, I think any racing fan should be concerned. They don’t see reform and online gambling as an opportunity to give back to New Zealand racing, they see it as an opportunity for tax revenue for the Government. They are looking at it completely the wrong way.

The TAB was set up to maintain and build on what is a relatively small racing industry that punches above its weight. The only reason it punches above its weight is because it is self-funding and they have completely missed that point.

If I get the opportunity to continue as Racing minister, this will be my first priority and as soon as we get through the elections it will be underway. I just hope I get that chance.

I am aware the New Zealand Standardbred Breeders Association have been in discussions with DFAT around the fact New Zealand domiciled stallions are being imposed an 8% levy by Harness Racing Australia.

Legal advice suggesting this to be in direct contradiction to CER. Feedback from the kindred body suggests discussions haven’t gotten very far. Firstly are you aware of this issue and secondly is an issue like this a priority for you?

I am aware of it and it’s probably not the right time to look into it because I don’t want it to look like it’s an election play but certainly if we can win the election, it is something I am keen to look into.

I don’t have an opinion on it as I haven’t had advice on it yet and obviously with international treaties you need to be careful of what you say, but I am happy to follow that up on behalf of the sector because wherever it lands and whatever the advice is it just gives people certainty because they know exactly where they stand. If we look into it and find out then yes this is legit and they can do that, then they have an answer.

And if we find out they shouldn’t be doing it, we can pursue it. All I can do at this stage is commit to following it up should I get the opportunity .

Another issue you have had to deal with is obviously some of the animal welfare concerns around the Greyhound industry with a formal review undertaken. Where are you at with that?

Our election commitment is that we will see that process through and for it to be done in good faith so I am just going to let that play out.

But there will be two options I take to cabinet. One will be for the industry to continue but under very strict conditions and requirements for reporting etc or the closure, so we are just going to let it play out. I do see improvements that are there, but will need to consider whether there is still room for improvement or whether they have had their chance and not taken it.

A question I also wanted to ask you was how you had found working in an environment where a large part of the racing demographic is typically right leaning or at a minimum centre right and more or less two ticks blue. Has being the Racing Minister in a Labour led government had any challenges?

I have never encountered any aggro or any issues at all. If I didn’t speak to people because they had voted for National in the past I wouldn’t have anyone to speak to at home (laughs).

I’m in it for my region and the industries I represent, not for the votes.

The feedback I get is that regardless of how people vote is that they are pleased to have a Racing Minister who cares and is passionate about the industry.

For too long if you go back over successive governments in the last 20 years, it isn’t hard to find an example of a minister who had this portfolio that didn’t really have an appetite or passion for it. They know that with me, I am really passionate about it, and that’s all they care about but they also have a choice.

If they want this reform process to be concluded, they are going to have to vote for the current government but that is up to them and their choice.

So to that point you made it’s a salient one because I guess for a party that relies heavily on the support and vote of the primary sector, the current opposition have a track record of appointing a Racing Minister that generally speaking hasn’t had the passion for the role we have seen from yourself and the likes of Winston Peters. Is that fair to say?

They have to view racing as a primary industry. It’s an export industry that contributes to the economy to the tune of $1.6 billion dollars and the way we are able to do and demonstrate our product is the domestic racing scene. It’s all connected.

It’s just got to be seen in that bigger picture. If there is a change of government I have no idea who the Minister will be because the current (David Bennett) and former racing spokesperson (Ian McKelvie) for the opposition are both retiring after the election.

I’ve got all the time in the world for Ian McKelvie, he’s a great bloke and passionate about the industry and if we happen to cross paths in the parliament halls it doesn’t take very long for our conversation to turn to punting. If the current government stays in, you can bet your bet your bottom dollar I’ll retain the portfolio and I will continue to fight for the racing sector.

Conscious of your time so just wanted to finish by discussing a highlight or something you are proud of achieving in the time you have had the portfolio. Is there anything that stands out?

The Entain deal is obviously the standout and we have already seen the benefits of it. Stakes are up, owners are keeping their horses in New Zealand and the workforce are choosing to stay in New Zealand instead of going overseas.

This isn’t a harness highlight, but what I love about racing is that anybody can have a go and get involved. Now that we have seen these changes, you have more people with confidence to get involved and invest in ownership.

We have some awesome examples of where ordinary kiwis have taken a punt and bought a share in a horse and they are seeing the dividends. Penny Weka for me is the standout.

Obviously I am a proud Wairarapa man and the connections behind the horse are a Wairarapa outfit. But Jim Wallace has been training for years and had pockets of success but he has now got this horse with about a seventy owner and they have turned up to the New Zealand Oaks, win it against expectations and then go to Australia and win the Oaks over there.

You have these guys who have 1 and 2% shares in this horse who have never really had any experience in the racing industry before and here they are getting the spoils at the highest levels of Australasian racing, it’s just awesome.