In late December, I wrote to a small group of thoroughbred industry members regarding the strategic direction of NZRB, our priorities, and to reaffirm our desire to work with the industry, across all three codes, to build a sustainable future for all.

While this letter was initially just shared with this group, I believe it would be of interest to all in the industry to also hear this message.

The Board of the NZRB are aware the issues facing the industry are significant. As you know this is not a new position, it is one that has been faced by all of the past Boards of NZRB and goes back well over a decade.

The position we find ourselves in has escalated over this time, due in a large part, to a lack of decision making and ongoing disagreements between stakeholders as to what the perfect fix would be. Quite simply, there is no perfect fix; but there are ways forward, and we accept that there will always be disagreement as to the methodology when facing into these issues.

There have been numerous meetings between the Board, myself and our CEO John Allen, and with all of the Code Chairs and CEOs, to assess the priorities for NZRB and the industry.

As the Board has advised at these meetings, decisions now have to be made and we must be able to move as quickly as possible, without the many legal and legislative roadblocks that can occur when endeavouring to make such significant change.

The first priorities which all stakeholders emphasised, and which have been agreed with by the Board, are to: a) ensure the Race Fields legislation is enacted (I would like to note here that this is the first time the NZRB has been able to get this legislation before cabinet); and b) partner with world class organisations to ensure that we can keep up with the speed of and scale of change and innovate in this rapidly changing environment.

It is worth noting here that when I took over as Chair and we were assessing the technology, we found that that not only were we lagging behind in the innovation space but that the NZRB lacked a fallback position for our technology.

The cyber attack we suffered over the Christmas holidays two years ago was able to take the TAB out of the game almost completely during our busiest time of the year due to this lack of a back up.

Minimising the potential risks we faced, especially in this time of uncertainty around earthquakes, was a key priority. I am pleased to inform you that the Optimus technology programme has mitigated the major business continuity risk NZRB would face in the case of further cyber attacks and/or earthquake.

The strategic plan we are progressing is not prohibitive nor restrictive to other activities. We are focussing on the critical areas where we can make the most tangible improvement over the next two-three years. However, as both John and I have noted numerous times, it is critical that our industry is aligned and focussed on delivering a sustainable long-term future for all. There is simply not time to endlessly re-litigate this.

The message we are getting from all corners is that people want us to get on and start delivering. This is what the Board has charged the management of NZRB to do, and what they have already been doing over the past year. With regards to the strategic pathway chosen by NZRB, our most recent Statement of Intent 2017-2019 sets out a very clear direction, including the estimated financial investment required and the benefits we anticipate these activities will provide once fully implemented – an estimated increase to annualised Net Profit for Distributions of $50-$55 million.

The Board agrees that NZRB needs to have the capability and resources to deliver these projects.

They are not small undertakings. This is why the Board recently commissioned an independent review (by KPMG) of the NZRB’s ability to deliver those projects. Their report was presented back to the Board in December, and I am pleased to advise that it was positive.

NZRB has been very open and transparent regarding our strategic plans, and the benefits we anticipate they will bring to the entire racing industry of New Zealand. We have also committed to working with the wider industry, including stakeholders from the Thoroughbred, Harness and Greyhound codes, as we move through these projects, particularly those which directly involve the industry, such as our Optimise the Calendar initiative.

We can assure you that we have noted the industry’s concerns and desire to ensure the future for racing in New Zealand. We share this desire, and wish to see all of New Zealand racing, across all three codes, succeed and flourish. 

Yours sincerely,

Glenda Hughes, Chair, NZRB