| I have something of a different take on performance, where I consider the core business of racing, underpinned by effective financial management, to be the overriding objective. That is not to say that other objectives such integrity, welfare and compliance are not important. They are a given, but having these and no business doesn't cut it. I'll start with financials, because its a little more obvious what the issues are.
Last 3 years
2017 - $5,939,000 loss
2018 - $5,351,000 loss
2019 - $1,944,000 loss (which has benefited by the new wagering tax income of $1,994,000)
So at least the trend is going slightly the right way. But what we see is perpetration of a spending pattern where costs now consistently exceeding income. Unfortunately, the focus of costs seems to building a bureaucracy rather then building the industry. Exemplified by
- Employee numbers have doubled over the last 4 years, which creates a cost base that is difficult to reverse without some hard decisions, rational commercial thinking or a smarter way of operating.
- Returns to participants static, with prize money having dropped behind NSW & Qld. This reflects lack of focus on the core business, and an internally focused spending approach. Investments are funding the operations to the tune of about $5 million a year. The position is not sustainable, and not reflective of focused commercial management. (Board, management or both?) Perhaps go on to racing, and look at decision-making. Given the responsibilities for industry promotion and operation under the Racing Act, the spending capacity available by an upward income trend, and getting to 5 years after the live baiting situation, one would expect positive industry development by now. So I would expect positive responses to the majority of the questions listed below. - Understanding of the interaction & interdependencies between breeding, training, & training infrastructure
Is there proper consideration of participant input?
Is there a real expectation that recent slight increase in breeding will soon solve the racing numbers issues, or is this just a blind hope?
What is the reasoning behind the recent appointment of a Breeding Containment Manager?
Is there proper consideration of the impact of the national breeding trends on Victoria?) - Understanding or consideration of the impact of grading decisions on racing
Does overly complex grading create good racing/wagering propositions?
Do grader decisions regarding composition of races for clubs improve the racing nominations situation & participant viability? - Understanding or consideration of training issues or of the consequences
Is there any reconsideration of food rewards issue to improve the effectiveness of training?
Why is Victoria different to other States in this regard?
Is there any impetus for training infrastructure development?
Is there any encouragement of private trial tracks?
Is there any consideration for improving training techniques?
Is dog development hindered by eliminating qualifying trials?
Why is a lower % of dogs bred making racing?
What are the causes of more & more bad racing?
Are injuries reducing because less dogs are racing?
What is the reason for increased fail to chase & marring offences? - Consideration or recognition of the increasingly unviable participant involvement at grassroots level
Iis there an industry model on which decisions can be based?
What is the impact of GRV decisions on participant costs?
Is there any recognition of participant cost trends against prize money?
What are the flow-on effects of low prizemoney to others in the industry? - Participant confidence in GRV
Is there an increasing divide between GRV and participants?
Why are there low attendances at workshops?
What input of the Industry Consultation Group has been acted upon?
Is there any Board member conflict of interest through associated consultancy appointments? - Risk management
Is there a strategy to addresses the quite foreseeable risk that there will be significant non-compliance with the new welfare code, which could be used as a basis for industry opponents to threaten the future of the industry? - Future development
Is there any action to develop junior participation?
Is there any action to address the high trainer age profile?
Is there any encouragement of private investment the industry?
Is there any attempt to seek co-operative funding at National level to minimise costs and promote uniformity? With the funds available from the additional funds provided by increasing income, there would be no need to ask these questions. They would be non-issues. My view, though a bit limited by unavailability of all relevant information, is that by corporate standards, the core business is not performing, spending is not sufficiently directed at the core business problems, and current spending is draining the reserves. And without a significant change in approach, many of the problems underpinning the questions will get worse. And someone will ultimately have to unbundle the bureaucracy. But perhaps I just work to higher expectations and standards.
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Do you have questions about greyhound racing?
