Gai Waterhouse to Parliament on Rosehill Sale 

I regard myself as the quintessential racing person. I am a racehorse owner of over 50 years standing, I’ve trained thoroughbreds for over 30 years. I’ve been inducted as the only living “Legend” of the Australian Racing Hall of Fame. 

I’ve been an ATC/AJC /STC member for over 40 years, since women were able to join. My father, Tommy Smith, was the champion trainer for over 30 years and a substantial owner. His father, my grandfather, was a trainer and owner. And I’m married to a third-generation bookmaker, my son was a fourth-generation fielder. 

Like most everybody in racing, I’m incensed at the attempt to sell Rosehill and hijack, meaning steal, the proceeds. I’m infuriated by the mendacity of the ATC Board and associates but I exclude from criticism board members Tim Hale and Caroline Searcy, who have behaved more than fairly, having members’ best interests at heart. 

Would we be here today to discuss selling Sydney Cricket Ground or Bondi Beach. No we wouldn’t.

The parallel business case study is Harold Park Trots, which were located at Glebe in inner Sydney, and which in the 1970s attracted bigger crowds on even the coldest, wettest night of the year than any Golden Slipper Day at Rosehill. 

Harold Park was sold, “to secure the trotting industry’s future”, now zero crowds attend “headquarters” at Menangle. Similarly, Melton replaced Moonee Valley in Victoria with the same result. So tragic.

But there is the overwhelming issue, involving the funding of racing – the “elephant in the room”. This is the reaI problem and should be corrected by this Parliament. In ATC chairman Peter McGauran’s words: The ATC has an “unsustainable financial model”.

It has been asserted by Racing NSW, that any proceeds of the sale of Rosehill are ‘industry’ monies – in other words, they belong to Racing NSW. 

This is outrageous: the Sydney Turf Club using members’ money bought Rosehill in 1947, paying £189,955[1]. This sum would have bought 200 homes in Double Bay. In 1947, the basic wage was £5 18s 6d[2].

Importantly, it was “members’ money” not “industry money”. Rosehill is the members’ property.

In response to the Temby Report, the Government legislated in 1996, the Thoroughbred Racing Act[3]  to control and supervise racing. RNSW’s rôle was designed, by the Act, to be merely a regulator. The legislation talks of control, regulate, register, inquire, supervise, investigate, report – as you would expect of a regulator[4]. 

Importantly, the Second Reading speeches speak only of regulatory matters: quote “Essentially, the ‘controlling body’ functions …. governance of the thoroughbred racing industry in this state”[5].

Interestingly, the RNSW CEO was, under the Act, a mere factotum of the Board, with no vote[6]. Also, the RNSW Board was designed to be made up of ‘elder statesmen’ of racing. Today basically non-racing people are on the Board. 

The Act gave no independent income to Racing NSW but allowed it to require fees and charges from the Clubs to make its ends meet. 

Clubs used to receive all revenue from the betting on races.

All this changed in 2012. Racing NSW had legislation enacted to collect fees from the new corporate online bookmaking industry and this was confirmed by the High Court.

Last year, Racing NSW received $512M in betting fees, of which $335M was from the Corporates, in which the clubs don’t share. Racing NSW additionally received $70M from the Government from the Point of Consumption Tax. Nothing for the Clubs!

Racing NSW, while forcing prizemoney increases on the Clubs, only distributes to the Clubs part of the prizemoney, much of it by way of loan.

It has assumed the rôle of a massive property investor, having bought a large array of eclectic properties.

Because much of what is received by the Clubs from Racing NSW is by way of loan, consequently Racing NSW has effective control over the Clubs.

The Australian Turf Club is “broke”, owing Racing NSW, I believe, over $200M, hence the need to sell Rosehill. In ATC chairman Peter McGauran’s words: The ATC has an “unsustainable financial model”.

Racing NSW should be returned to being just the regulator and nearly all funds must go freely to the Clubs. This is the big and overriding issue for you, with which to deal.

In conclusion

To deal with the immediate issue, the ATC should drop totally the prospective sale of Rosehill or conduct the “members’ vote”, which would end the issue.