Darwin Turf Club has grave concerns for future viability following funding arrangement

The Darwin Turf Club has grave concerns for its ongoing viability following a funding arrangement that will move $6m away from the club over 10 years.

THE Darwin Turf Club (DTC) has grave concerns for its ongoing viability following the recent release of a funding arrangement that will move $6m away from the club.

On Monday, new Racing Minister Chansey Paech revealed the government had outlined a plan that would see $6m distributed to regional racing tracks instead of the DTC.

The arrangement, which also abandons plans to recoup $12m in government grant money, will see Alice Springs ($3m), Tennant Creek ($1m), Katherine ($1m) and Adelaide River ($1m) share in the cash injection.

DTC chairman Richard O’Sullivan said the new funding arrangement would have serious implications on the club from both a financial and a health and safety perspective.

“The safety and wellbeing is paramount with the club expressing severe concerns over the inability to maintain already deteriorating stable and training facilities,” Mr O’Sullivan said.

“With the $6m funding withdrawal impacting on work health and safety conditions and in turn, directly impacting the racing fraternity, its stakeholders and the necessary facilities going forward.

“Over $122m is injected into the Northern Territory economy thanks to the racing industry.

“I cannot stress how important it is to maintain support to an industry that impacts so many, including accommodation and tourism operators, hospitality venues, the retail sector, plus many more.”

NT Racing’s peak body, Thoroughbred Racing NT (TRNT), who will continue to receive $17.88m per annum, is still in constant dialogue with the NT government.

TRNT is currently working through the proposed long-term funding agreement put forward by the minister.

“The DTC is resolute in its support of TRNT in its ongoing discussions and negotiations with the NT government, which all going well, will resolve this perilous situation the club finds itself in,” Mr O’Sullivan said.

“All we seek is to maintain a fair and equitable position and ensure the growth of one of the Territory’s most important industries and associated major events, the Darwin Cup Carnival.”

‘Line in the sand’ drawn on $12m Turf Club grant saga

A “LINE in the sand” has been drawn after the NT government steered $6m in funding over the next decade away from the Darwin Turf Club under a 10-year arrangement, new Racing Minister Chansey Paech says.

On Monday, Mr Paech said the government had outlined a “new way forward”, while continuing to provide $17.88m annually to peak body Thoroughbred Racing NT (TRNT).

It has also abandoned plans to recoup a $12m government grant given to the club in 2019 to build the grandstand.

Former chief minister Michael Gunner had based his claims on recovering the money on previous Independent Commissioner Against Corruption Ken Fleming’s findings of corrupt conduct against former turf club chairman Brett Dixon whose company Jaytex built the grandstand.

However, under the arrangement there would be a “direction” to distribute $6m over the next decade towards regional racing tracks, including Adelaide River.

Racing Minister Chansey Paech said he had to “draw a line in the sand” over future funding for the racing industry. Picture: (A)manda Parkinson

Its annual cup was moved to Fannie Bay in June after the track was ripped up by feral pigs.

“I’ve been acutely aware at some point I have to draw a line in the sand over the ongoing issues when it comes to Darwin Turf Club,” Mr Paech said.

“The $6m over 10 years will be redirected away from Darwin Turf Club into our regions.

“Today is drawing a line in the sand, we need to step over that together.

“This is about certainty for the racing industry. This is a new way forward.

“It’s a step in the right direction. It’s not a cut in any way, shape or form.”

Mr Paech said Alice Springs ($3m), Tennant Creek ($1m), Katherine ($1m) and Adelaide River ($1m) would share in the cash injection.

“These are clubs who do the hard work,” he said.

“They too need much-needed investments in infrastructure.

“I know these tracks inside and out and I know that this investment of $6m over 10 years is absolutely a welcome investment.

“Already today we’ve heard from a number of those country clubs of the sheer excitement of this investment going into those clubs.

“This investment will go a long way in building our regions.”

Mr Paech said he “wasn’t scared about having hard conversations” with the TRNT about the new funding offer, with the peak body to assess the terms over coming weeks.

“Let’s be clear here, this is a grant from the Northern Territory Government, we get to shape the terms and conditions of those grants,” he said.

CLP Racing, Gaming and Licensing spokesperson Marie-Clare Boothby said Labor was trying to fool Territorians with the decision.

Marie-Clare Boothby said the funding allocation was an attempt to draw attention away from the $12m grandstand deal… Picture: Che Chorley

She claimed the Labor government was still slashing $6m in funding from the Darwin Turf Club.

“There has been a dark cloud hanging over the Territory’s racing industry for years, which stems from Labor giving away $12m through an improper cabinet process,” Ms Boothby said.

“The money was given away by the Labor cabinet, the grandstand was built and now the same people who gave it away through an improper process tried to claw that money back.

“Ultimately, what new Racing Minister, Chansey Paech, has done is slash $6m in funding from the Darwin Turf Club and redirect it to the regions.

“If he wanted to support regional racing, he should have adequately funded it in the first place.

“This is an admission Labor has neglected regional racing, and an admission they got it wrong in the first place by gifting $12m without following the proper cabinet process.”

The Darwin Turf Club and TRNT were contacted for comment.

Originally published as Darwin Turf Club has grave concerns for future viability following funding arrangement