CAYMANAS TRACK Limited (CTL) is discussing with the Government, financing for a "critical" programme of capital investment, says Minister of State in the Ministry of Finance and Planning, Errol Ennis.
He said that the nature of the racing industry dictated sizeable investments, capital infrastructure and equally costly capital outlays, to deliver the racing product to the local and foreign markets.
The company's capital budget of $137.2 million for the year 2000/ 2001 would seek to address some of the needs. These include: Construction of a jockeys' room and saddling barn complex, 60 new stalls, road and drains and phase 2 of the boundary wall; renovation of stabling buildings and additional toilets; provision of track equipment and property development, satellite uplink equipment, new patrol camera, video and communication equipment.
He said that subsequent to the presentation of the budget, the CTL board has been considering the refurbishing of the club stands and patio areas, including rest-rooms, lounge and recreation room, kitchen bar and the provision of an hydraulic elevator, railing and furnishings.
To finance the projects, CTL has committed its estimated funds from profits of $91 million (before depreciation and bad debt provisions) and will need to identify additional loans or grants to finance the shortfall of $67.2 million. The company is currently servicing a $70 million loan from the NCB (balance $40.83 million). The option of additional loans will place a further burden on the cash flow and also reduce the company's ability to generate expected profits.
Mr. Ennis said that for 1999/ 2000 the company showed a $59.8 million profit, compared with $55.8 million last year and $1.1 million in 1990.
Turning to the Jamaica Racing Commission (JRC), he said that during 1999/2000 the Commission issued permits to persons in the occupational groups in the industry as follows: Trainers - 137; assistant trainers - 60; jockeys - 87; grooms -434; exercise riders - 33; and, stable assistants - 5.
He said that a major concern among these groups, insurance coverage, had been addressed with the launch in April of the Racing Industry Insurance Scheme.
Under the scheme, all licensed personnel in the occupational groups are required, as a condition of their permit, to contribute approximately 30 per cent of the annual premiums. CTL and the JRC have been paying the rest of the premiums. However, the Government has agreed to allocate a portion of the bookmakers' levy to assist with the funding of the scheme, he said.
Benefits range from $1 million for trainers to $250,000 for grooms, exercise riders and stable assistants.
