SA business group calls on Premier to save racing from ‘slow death’

A group of prominent South Australian businessmen are appealing to the Premier to roll back a gambling tax to save the state’s racing industry from a slow “death”.

• READ BELOW: McEvoy: I’m frightened for the future

A group of prominent state businessmen have made a desperate appeal to Premier Steven Marshall to save the horse racing industry from a slow “death”.

Winemaker Wolf Blass and former Clipsal owner Rob Gerard, have written to the Premier and Racing Minister Corey Wingard for racing to be given a “fair go” as SA trainers and jockeys chase bigger prize money interstate.

They have called for the Point of Consumption gambling tax — the highest of all states at 15 per cent — to be cut to 10 per cent and guarantee a percentage of the takings are reinvested in racing.

The Government’s current revenue from the tax is $16 million a year.

South Australia was the first state to introduce the POC tax on all bets made by SA punters, much higher than Victoria’s eight per cent and 10 per cent in NSW.

The letter, sent on Wednesday, warned that racing in SA was no longer competitive and at grave risk of dying without government support.

Thomas Foods boss Darren Thomas, property developer Harry Perks, Yalumba winemaker Robert Hill Smith and Haigh’s Chocolate supremos, Alister and John Haigh have all signed the letter.

It argued motorsport and cycling received significant government investment for short events each year, but racing was instead being taxed.

“Events that are short-term and Adelaide-focused receive government largesse,” the letter read.

“Racing is year-round, encompasses the whole state and generates continuous employment in all areas — but receives nothing.

“This has to change, and it has to change now.

“Any profit made by Thoroughbred Racing SA is ploughed back into member clubs, local communities and the wider sport. It goes to tens of thousands of real people. It stays in SA.”

It said the playing field was “no longer level and our best horses, trainers, jockeys and owners are being lured interstate” as prize money plummeted in SA.

The Government last year ripped $3 million out of SA’s racing industry when it pulled its sponsorship of the Adelaide Festival of Racing.

Treasurer Rob Lucas did not answer questions as to whether the government would consider reducing the POC tax and instead blamed Labor for introducing it.

He said submissions from racing industry leaders in the next State Budget were being “considered seriously”.

“Most observers will acknowledge problems with the racing industry in SA have been evident for many years with prominent trainers moving interstate,” Mr Lucas said.

Tony McEvoy with his son Calvin at their Kildalton Park stable. Picture: Tait Schmaal

McEvoy: I’m nervous and worried for the future

South Australia’s leading horse trainer Tony McEvoy has long lived by a few chosen words of his late mentor, legendary horseman Colin Hayes.

“The future belongs to those who plan for it.’’

The former jockey from the state’s west coast trained for Lindsay Park before going out on his own, taking over one of the country’s finest thoroughbred facilities by establishing Kildalton Park.

McEvoy has been planning for the next generation with his son. Calvin, by his side as an assistant trainer.

But McEvoy is fast running out of patience and is worried about the future of the sport in SA that generates almost $400 million in annual economic benefits.

“I’m very nervous and disappointed we’re in the position we are in,’’ McEvoy said.

“Two years ago we were growing at 9 per cent, the industry was strong and people’s jobs were secure.

SA remains the only state receiving nothing back from the State Government from the Point Of Consumption Tax (15 per cent on all bets placed), which has left the industry facing an $8m loss in revenue next year.

“With this new tax at the rate it is, it’s made it very difficult to run the business as a profitable and strong business,’’ McEvoy said.

Currently seventh on the Australian Trainer’s Premiership, McEvoy says falling prizemoney is a concern for owners wanting to debut their high-priced yearlings in Adelaide.

He said other states thrive on strong government support.

“I’ve got 60 staff here in South Australia, I’ve got two properties and train 85 horses here,’’ McEvoy said.

“It’s becoming difficult to get my owners from interstate to be a part of what we’re doing here in South Australia.

“If I can’t get them to participate in what we’re trying to do, it means I’m either going to lose those owners, or have to move with them interstate.

“It’s a really awkward position I’m in. I’ve been building this business for nine years and it takes a long time to consolidate a business.

“I’ve got tremendous staff all working really hard for their futures and I’m the driver … I have to supply that for them. I expect the Government to supply that future for me and they’re not holding up their end of the deal’’ he said.

Trainers Lloyd Kennewell and Phillip Stokes have already moved interstate for financial security, along with several top jockeys. McEvoy said it was a crucial time for the industry.

McEvoy’s footprint in Australian racing starts at the yearling sales, where last year he coughed up $14m and has invested another $10m this year.

“This is me going to buy horses to ensure my staff are employed and keep me at a level I want to train at and that’s in the top-end level around Australia,’’ he said. “That’s what we’ve been building towards and I want to continue that.

“What we’re asking for in the scheme of things is minimal and would help get our industry really strong again,’’ McEvoy said.

Thoroughbred Racing SA has asked the Government to reduce the POC Tax to 10 per cent and redirect a proportion of the tax revenues back to SA racing while also asking for a reimbursement for losses in the last financial year.

McEvoy, who also has two runners in the Group 1 Doomben 10,000 in Brisbane, saddles up three runners in Saturday’s $500,000 Group 1 SA Derby at Morphettville and said all three deserved their opportunity in the three-year-old feature.

“Secret Blaze has done a tremendous job, I really liked him from the outset,’’ McEvoy said. “He’s got the benefit of having a run at 2400m under his belt.”