The TAB New Zealand Racing Advisory Committee has released a report calling for reform of the racing industry's structure.
Committee chairperson Sir Peter Vela said the $1.72 billion industry was at its most critical turning point, with thoroughbred foal numbers down 22% over the past decade and 500 breeders having exited since 2015. The industry runs an annual shortfall exceeding $50 million.
On current trends, thoroughbred starter numbers are forecast to drop 18% by 2035, with harness starters declining 32%. The report found $700 million in capital locked in fragmented venue ownership and $91 million in administrative costs, with up to $20 million available for reallocation to participants.
The committee proposed establishing a single governing body, merging venue assets, adjusting tax and regulatory frameworks to support domestic breeding, and updating TAB operations. It also proposed government funding of the Racing Integrity Board to release resources for sector investment.
Racing Minister Winston Peters said government intervention was a last resort and large-scale legislative reform was not an immediate priority with a General Election approaching. He said the industry must "first demonstrate its ability to act collectively and make progress before seeking further legislative change".
New Zealand Thoroughbred Racing board chairperson Russell Wawrick said collaboration was lacking and the industry appeared at an impasse. NZTR committed to maintaining funding at current season levels for the next 3 months to provide certainty while longer-term arrangements are finalised, with the new season starting in 36 days.
New Zealand Thoroughbred Breeders Association chief executive Nick Johnson dismissed the idea that horse racing is a sunset industry but acknowledged tired venues were a barrier to attracting younger attendees. He supported the report's proposal to change tax law for breeders and owners to help reverse falling horse numbers.