Latest / 360 with Katie Woolf / Thoroughbred Racing NT chairman Syd Stirling says the Darwin Turf Club is not immune to the rising cost of living, and the claw back of the grandstand grant money would cripple them

Transcript

Thoroughbred Racing NT chairman Syd Stirling says the Darwin Turf Club is not immune to the rising cost of living, and the claw back of the grandstand grant money would cripple them · 360 with Katie Woolf

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  Speaker 1: But on Friday, during the week that was you may
• 0:02
  Speaker 1: recall that I'd read the statement out from the Chairman
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  Speaker 1: of Thoroughbred Racing here in the Northern Territory, Sid Sterling.
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  Speaker 1: He's called on the new Northern Territory Chief Minister and
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  Speaker 1: the new Racing Minister to show some personal courage and
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  Speaker 1: independent thinking to reverse this decision to recall the twelve
• 0:19
  Speaker 1: million dollars the Darwin Turf Club grant. Now, mister Sterling,
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  Speaker 1: Sid Sterling joins me in the studio right now. Good
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  Speaker 1: morning to you, Sid. Good morning Katy, thanks so much
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  Speaker 1: for your time this morning. Now, Sid, why does the
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  Speaker 1: Northern Territory government need to reverse this decision to recall
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  Speaker 1: the twelve million dollars?
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  Speaker 2: Okatie, It's a simple mathematical equation. You try to take
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  Speaker 2: twelve million dollars off the dar And Turf Club, it
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  Speaker 2: would absolutely cripple it as an ongoing entity. If we
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  Speaker 2: lost Darwen Racing, we would lose the territory industry, territory
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  Speaker 2: racing industry across the board, and the long, rich history
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  Speaker 2: and legacy that racing has bequeath the Northern Territory. It
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  Speaker 2: will be a disaster.
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  Speaker 3: Now I know that. You know obviously the callback of
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  Speaker 3: this money.
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  Speaker 1: It's going to have an impact on the Darwin Turf
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  Speaker 1: Club and you know the Darwin Cup Carnival. But when
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  Speaker 1: we talk more generally about the impact that it will
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  Speaker 1: have on thoroughbred racing in the Northern Territory, SID, can
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  Speaker 1: you give me a bit more detail on that.
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  Speaker 2: We had an economic impact studied done late last year
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  Speaker 2: by a reputed company, EIER. They estimated that of the
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  Speaker 2: seventeen point eight million that flows into the territory industry
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  Speaker 2: one way or another by both government input and TAP agreement,
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  Speaker 2: that that spins off about one hundred and thirty million
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  Speaker 2: dollars industry wide in expenditure in the Northern Territory. Now,
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  Speaker 2: easy equation to break that down, that's about thirty million
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  Speaker 2: dollars worth of GST expenditure. In that we get a
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  Speaker 2: little over four times the relativity of GSD, So that
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  Speaker 2: returns to the Northern Territory probably between fifty and sixty
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  Speaker 2: minus million dollars. Now that's a worst case scenario. If
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  Speaker 2: we've lost the industry altogether, the territory taxpayer and the
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  Speaker 2: Territory treasury would be worse off. To the turn of
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  Speaker 2: between fifty and sixty million dollars. So I'm putting a
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  Speaker 2: worst case scenario. But all industry at this time, with
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  Speaker 2: the increasing costs and CPI as it is, are vulnerable,
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  Speaker 2: including the racing industry.
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  Speaker 4: It's okay, it.
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  Speaker 2: Can survive, but you take a put a whack like
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  Speaker 2: that on it, you're really risking across the board the
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  Speaker 2: whole industry.
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  Speaker 1: I know that there is definitely going to be people
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  Speaker 1: listening this morning who are thinking, oh, come on, you know,
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  Speaker 1: the Darwin Turf Club has plenty of money.
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  Speaker 3: All you've got to do is go for a walk
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  Speaker 3: through Silks, or all you've.
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  Speaker 1: Got to do is, you know, have a walk around
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  Speaker 1: on the weekend when you see plenty of people there
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  Speaker 1: for various different races.
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  Speaker 3: You know, to those that are listening that are thinking that,
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  Speaker 3: what would you say to them.
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  Speaker 2: Well, simply this Silks has been an outstanding success and
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  Speaker 2: quickly established itself as a quality venue people, particularly for
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  Speaker 2: luncheon dinners. But the fact is that the funding arrangement
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  Speaker 2: with the banks was predicated. It was a risky deal
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  Speaker 2: for the banks in the sense this is on Crown land,
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  Speaker 2: so banks can't readily sell it on if it went bad,
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  Speaker 2: so banks needed a pretty strict deal in the sense
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  Speaker 2: that all profits accruing to Silks would have to go
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  Speaker 2: back to repayment of debt and to get that debt
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  Speaker 2: down as quickly as possible. And that's good practical commercial
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  Speaker 2: sense from the turf club. It's a good agreement to
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  Speaker 2: be but that means there's simply no money free in
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  Speaker 2: whatever Silks makes in terms of profit, because it all
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  Speaker 2: goes back to the bank to pay off the loan
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  Speaker 2: and the money that was borrowed to build it. So
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  Speaker 2: you can't go anywhere near there to repay this twelve million.
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  Speaker 1: See it was reported on the weekend that two more
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  Speaker 1: people have stood down from the board of the Darwin
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  Speaker 1: Turf Clubs. I know that you're not on that board obviously,
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  Speaker 1: you're the chairman of the of thoroughbred racing here in
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  Speaker 1: the Northern Territory. But are you concerned about what's happening
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  Speaker 1: right now with the dar and Turf Club.
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  Speaker 4: Yes.
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  Speaker 2: Look, I don't want to speak for a dal On
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  Speaker 2: Turf Club on chairman of thoroughbred Racing, but of course
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  Speaker 2: there are a major constituency of ours and I am
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  Speaker 2: concerned at the ongoing pressure I suppose that's been placed
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  Speaker 2: on the day on Turf Club Committee and this fallaut
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  Speaker 2: we know that we had a complete turnover of membership
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  Speaker 2: following originally the Ikak report and the former Chief Minister's
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  Speaker 2: wish that the Turf Club Committee be rolled over. It was,
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  Speaker 2: but unfortunately we've had this series of resignations. Some some
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  Speaker 2: had signaled that, you know, in the case of Barry Kola,
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  Speaker 2: he believed his.
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  Speaker 4: Time was up and.
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  Speaker 2: He had been you know, he's had a great input
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  Speaker 2: to racing over the years, and a couple of others
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  Speaker 2: in that vein. But we're seeing a little bit of
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  Speaker 2: a revolving door now. That's not good for the club
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  Speaker 2: and it's not good for a dar On Turf Club,
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  Speaker 2: particularly on the eve of our major carnival.
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  Speaker 1: Is there any concern that the Darwin Cup Carnival won't
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  Speaker 1: go ahead or will not be able to go ahead
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  Speaker 1: in all its glory?
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  Speaker 4: No, No, I'll put that to bed.
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  Speaker 2: Look, there's management in place that we'll see a tremendously
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  Speaker 2: successful carnival. The place is booked out, ticket sales went
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  Speaker 2: very early and I'll be predicting a bumper Cup carnival.
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  Speaker 1: What impact is the payback of this twelve million dollars
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  Speaker 1: going to have those seed.
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  Speaker 2: Well, well, simply, I mean everyone's talking about CPI and
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  Speaker 2: the cost of work. GOTE estimates that probably over the
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  Speaker 2: past eight years, that's about twenty four percent. Now, the
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  Speaker 2: racing industry hasn't had an increase in stake money since
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  Speaker 2: twenty sixteen, so that's already going on for six years.
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  Speaker 2: Under the current agreement, we're trying to get out a
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  Speaker 2: five percent to increase in state money across the board,
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  Speaker 2: but that's five percent against you twenty twenty five percent
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  Speaker 2: increases over the past five eight years. So yeah, we're
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  Speaker 2: pushing against the tide. Strong battlers, big hearts in the
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  Speaker 2: racing industry and you have to have big heart, two
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  Speaker 2: bell and survive. But they're doing it tough and they're
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  Speaker 2: entitled to know a decent return on their income and
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  Speaker 2: their labor.
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  Speaker 1: Now, when do you do to catch up with the
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  Speaker 1: minister and what are you hoping that will be achieved?
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  Speaker 3: Following on from this meeting.
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  Speaker 2: The CEO of Thorobo, addressing myself will meet with Chancey
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  Speaker 2: Paker tomorrow. I'm somewhat more confident that both Natasha as
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  Speaker 2: Chief Minister and Chancey have a good handle on racing
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  Speaker 2: industry and what it contributes to the Northern Territory economy.
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  Speaker 2: I get that they see the impact it has in
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  Speaker 2: an economic sense and they want that to continue. Chance
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  Speaker 2: he is a very avid race follower, race goer. Not
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  Speaker 2: that that means he necessarily has to support our position,
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  Speaker 2: but I think that's where his heart lies.
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  Speaker 4: So we will have those discussions.
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  Speaker 2: Talk is cheap, of course, but that's the only way
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  Speaker 2: you're going to get a resolution here is to.
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  Speaker 4: Talk it through.
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  Speaker 1: See do you ever think to yourself, Jesus, I wish
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  Speaker 1: this grindstand had never happened.
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  Speaker 4: Not at all. It's a fantastic asset. It's safe, it's there.
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  Speaker 2: On Crown Land, and it will continue to pay itself
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  Speaker 2: off over the years ahead, as well as well as
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  Speaker 2: the Silks Club.
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  Speaker 4: But but but.
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  Speaker 2: Give us, give us, give it a chance, and it
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  Speaker 2: will pay itself off in drodes. This is uh, you know,
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  Speaker 2: in terms of uh. You know, an asset for the taxpayer.
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  Speaker 2: It does produce income and will do so, you know
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  Speaker 2: forever in a day. It's a quality asset. It's on
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  Speaker 2: Creme Land, it's not going anywhere. It was a good
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  Speaker 2: thing to do.
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  Speaker 1: Well, seid Sterling, I'll be really interested to hear how
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  Speaker 1: that meeting goes. If you're able to give us a
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  Speaker 1: bit of an update throughout the week, we would very
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  Speaker 1: much appreciate it. I really appreciate your time this morning.
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  Speaker 1: Thanks so much for coming in.
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  Speaker 4: Thank you.