In Budget Estimates hearings today, the ACT Greens challenged $41 million of public money given to the horseracing industry.
Under a Memorandum of Understanding (MOU), the ACT Government will pay $41,144,000 to the Canberra Racing Club and Canberra Harness Racing Club over the next four years – a Budget measure the Greens oppose.
The ACT horseracing industry receives four times as much money as professional sports like the Brumbies and the Raiders, 800 times as much as community sports grant recipients, and 177 times as much as the luckiest Amp It Up grant recipients, said Jo Clay MLA, ACT Greens Spokesperson for Animal Welfare. It has lower attendance than key events like Floriade, which get 500,000.
Ms Clay believes it is not in the public interest to provide $41 million of taxpayer funds to the horseracing industry.
“The ACT Greens have clearly stated our opposition to public funding for the horseracing industry, and we know that the majority of the Canberra community feels the same,” she said.
“We welcome the transparency of this latest MOU which has been made public for the first time. But we do not support $41m of taxpayer money being handed over to the horseracing industry, especially when we are dealing with COVID, climate change, and homelessness.”
In Budget Estimates today, Chief Minister and Treasurer Andrew Barr told Ms Clay that the ACT horseracing industry was not owed MOU funding under the terms of the ACTTAB sale agreement from 2014 (not a public document), she reported.
Mr Barr told her that funding the horseracing industry was assessed against the Economic and Social Connection Wellbeing Indicators.
Mr Barr also told her that a tax on ACT horseracing, which generates less than $250,000 per year, is not a strong reason to provide an $8 million public subsidy, she stated.
“The horseracing industry has spoken a lot about how much revenue the Point of Consumption Tax the ACT horseracing industry generates towards the ACT Budget bottom line,” Ms Clay said.
Earlier this month, Canberra Liberals MLA Mark Parton, Shadow Minister for Gaming and Racing, called on the ACT Government to return a reasonable portion of the Point of Consumption tax (POCT) revenue to the racing codes. On 1 July, the Betting Operations Tax was raised to 20 per cent; Mr Parton estimates this will generate more than $20 million a year.
- Mark Parton: Return revenue to racing (3 August)
The ACT is the only Australian jurisdiction where the government does not return a portion of the POCT to the racing industry. Queensland and Tasmania return 80 per cent of POCT to racing; all other states and territories return varying amounts, except the ACT.
“With the increase in the POCT, the Labor-Greens government becomes the highest taxing jurisdiction in Australia, while at the same time returning the least of those profits back to the codes,” Mr Parton said at the time.
“A budget is about priorities and delivering in line with the public interest,” Ms Clay said today. “At a time like this, how does the horseracing industry add up to $41 million of priority for the ACT taxpayer?
“Over 11 years ago, the Independent Competition and Consumer Regulatory Commission recommended that the ACT horseracing industry should be self-sufficient…
“The ACT horseracing industry is still being funded year after year by the ACT taxpayer. Thoroughbred Park currently receives half of its operating revenue from the ACT Government. It is clearly not in the public interest to provide this taxpayer subsidy. It’s time to transition out. Giving $41 million to the horseracing industry is simply not in line with community expectations.”
