Once again, political considerations have affected the administration of the racing industry. It is interesting to reflect on the various boards of directors who have guided the affairs of this industry since 1980. From that time to now, we have had 10 different boards of directors headed by nine different chairmen.

Prior to 1987, the chairmen were appointed by the directors who were, in turn, recommended by the racing associations, i.e., the Jockey Club, the trainers' association, the breeders' association, the jockeys' association, and the grooms' association. This had been the structure since the formation of Racing Promotions Limited (RPL) in 1975. The political philosophy of the government elected in 1980 did not favour this level of "worker participation" at the board level and relationships became strained.

Unsustainable tax levels

The government refused to address the problems of the unsustainable taxation levels nor was there any understanding of the lack of income to the promoters from bookmakers who controlled some 70 per cent of the sales generated by the promoters' activities. Taxation levels and bookmaking activities have been a constant problem ever since the move to Caymanas Park in 1959. It is interesting to note the levels of taxation which were in place at that time:

Licence to Operate Racecourse - $5,000 per annum

Entertainment Duty (On-Track/Off-Track) - 10 per cent of sales

Entertainment Duty (Gate Tax at Track) - 16 2/3 per cent of admission

Bet Winnings Tax (On/Off Track/Racing pools) - 10 per cent of winnings

Pool Betting Duty (Racing Pools only) - 15 per cent of stakes

The cash flow of the operation was totally inadequate to meet these levels of taxation, and attempts to seek some alleviation were ignored. The decision had to be taken as to whether RPL paid the taxes and ceased operating or resisted paying the taxes and provide an income to the grooms, jockeys, trainers, owners and breeders whose participation was essential to RPL's existence.

The directors decided that the interest of stakeholders was paramount and the company stopped paying the taxes. Relationships became even more strained, and there were frequent appearances in court. Management was under severe pressure.

Things came to a head when the Ministry of Finance blocked RPL's attempt to lease a new tote board from United Tote through the National Commercial Bank, which held a mortgage with the company for J$3.750 million. The bank felt threatened by these developments and their exposure. Because of this, it put in a receiver/manager in 1985. The receiver/manager concluded his assignment at the end of April, 1987, and RPL was refused a license to promote racing on the ground that it was insolvent. No one sought to relate the insolvency to a taxation regime which was not sustainable.

The shareholders were forced to lease the assets of RPL to a new company, Horseracing Promotion Limited (HPL). The government pressured shareholders to hand over their shares and although there was some resistance the government eventually 'acquired' the assets of RPL. These assets included 194 acres of land, all buildings and infrastructure thereon, and a company with an annual turnover of J$62.0 million, and sales through bookmakers of J$139.0 million from which RPL received no income.

Forced acquisition

At the time of this forced acquisition, there was no valuation or any attempt made to compensate the shareholders for their efforts to build the business over the years. The debt owing to the government which prompted the acquisition was J$34,691,363. We are sure that were the current contractor general around at that time, he would have had a field day.

Since then, the promoting of racing has become a political football. There are some stakeholders who revel in this situation and regard this as a false sense of security and a source of 'power'. They boast about how many boards of directors they have removed. This is no way to develop an industry in which the livelihood of thousands is dependent. Those stakeholders who have invested substantial sums of money in the industry face a future of uncertainty, and the current shareholders seem quite unconcerned.

Stakeholders in the industry had high expectations in 2007 when a new government was put in place, but they have proven to be as inept as previous governments.

No meaningful change

Once again, the industry has ano-ther board, and (quite frankly) none of the major investors expects any meaningful change. Nonetheless, the stakeholders wish Tony Hart and his fellow directors well, and pledge their unqualified support. He must quickly come to grips with those who are the negative forces in the industry, and seek to nullify their activity immediately.

Stakeholders are heartened by the return of Chris Armond, easily the most knowledgeable racing person in the Caribbean. It is hoped that his talents will not be wasted in a boardroom, but that he be appointed to an executive position, preferably with responsibilities for operations and promotions. Randall Soth and he should make an excellent team. Welcome back Chris, and we wish you well. Things are not the same as when you left, but we feel assured that if anyone can fix the problems, it is you.

Howard Hamilton is a former president of Racing promotions Limited, and Caymanas Park Limited. He is currently the president of the Thoroughbred Owners and Breeders Association, and may be contacted at howham@cwjamaica.com