Howard Hamilton
ANOTHER YEAR has come and gone and we are no where nearer to the restructuring of the racing industry than we were some 30 years ago. In the mid 1970s the then chairman of Racing Promotions Limited - Mayer Matalon, recognised the need for the relocation of the race track because of housing needs in that area and the environmental problems that were beginning to surface.
I was a member of the board then and recall that a site near to the Ferry Police Station was being promoted as an ideal site for relocation. We went so far as to employ a project manager - Mr. Alva Anderson whose task was to put together the business plan for prospective investors. Unfortunately for racing the government changed in 1980 and, as is customary with changes of government, projects initiated by the previous Government are put on the back shelf. The potential of the racing industry was never appreciated and the result is the mess which we have now.
Expectations were high with talks of private sector financing and a restructuring of the industry. We started the year full of enthusiasm and all horsemen were excited about the prospects of moving the industry so that it could achieve its potential in the entertainment and sports sector. Initiatives in the tourist sector showed exciting prospects and everybody was anxious to move on.
FRUSTRATIONS
The year has, however, come and gone and the frustrations are now even greater. The credibility of this Government has been seriously questioned. Also, there seems no hope and horsemen continue to operate in sub-standard conditions - poor drainage with frequent flooding of the stable areas; lack of security with the stable areas being a free for all and sundry; inadequate facilities; broken down seats; no dining facilities - you name it, all the features of an industry that is about to die are around you.
I continue to feel strongly that racing will get nowhere until Government's involvement is reduced to a regulatory function only. The Ministry of Finance is not the proper department for fulfilling the true potential of this activity. One only has to reflect on the recent proposed taxes to see how insensitive they, in that ministry, are as to the problems of the industry.
Governments wonder why people react disruptively when their frustrations reach breaking point. There is a level to which we will sink but beyond which reaction based on hopelessness can become most destructive. Horsemen are quickly reaching that point and the consequences of their action will rest fully on this Government because of their refusal to recognise the potential of the industry and the need for major investment and restructuring.
How does the Minister of Finance expect people to react when, in the middle of divestment negotiations, additional taxes are imposed - taxes that were never part of the original request for proposals?
I suppose people are so pre-occupied with their 'campaign for prosperity' that they have forgotten their own role in failing to develop programmes that can generate prosperity.
The racing product was the major topic at a recent symposium put on by the University of Arizona Race Track Improvement Programme. It was good that the chairman of Caymanas Track Limited attended since he was able to network with racing interests with similar problems to ours.
LEVEL OF INCOME
What became clear is that, while slot machines were an added revenue stream, the level of income to the industry was directly related to Governments taxation policy. What has proven to be the most sustainable area of added revenue is an increase in customers. Simulcasting has been the saviour to a number of tracks. We met with the South Africans who now market their product all over the world and now have a very profitable industry.
We need to expand our customer base from an average of 10,000 punters to some 500,000 - 1,000,000 This can be achieved quite easily by simulcasting our product to places like New York, Miami, Toronto - wherever there is a receptive Jamaican presence. To achieve this there has to be a major restructuring of our product:
a) Reducing the payout to a maximum of 20 per cent (now 30 per cent).
b) Starting races on time every time.
c) Getting Daily Race Forms to redo our programme to their international format.
None of the above is difficult to implement - all it needs is the will and the passion to bring our industry into the 21st Century.
We anxiously watch to see what developments will unfold in the next couple of weeks.
Howard L. Hamilton C.D., J.P. is a former chairman of Caymanas Track Limited. He is the current president of Thoroughbred Owners and Breeder's Association. He can be contacted at howham@cwjamaica.com.
