The New Zealand Minster for Racing John Carter has defended his position over industry appointments, and in particular his recent re-appointment of a New Zealand Racing Board member.

Carter, speaking at the Harness Racing New Zealand annual conference in Christchurch on Friday, commented in his speech on his re-appointment of Liz Dawson to the board.

"I have found, with my recent re-appointment of Liz Dawson to the racing board that board appointments are never going to please all the people, all the time," said Carter.

"There are a variety of considerations when Ministers appoint people to boards. There are guidelines in the Cabinet Manual and directives from the Cabinet Office, including that the government wishes to see a more diverse range of people appointed to government bodies.

"I would also like to note that Cabinet approved this appointment.

"Liz Dawson’s background in sport is particularly valuable given the growth in sports wagering with the TAB at a time when wagering turnover has been falling.

"I am pleased that Liz Dawson is available for a second term on the board and I am comfortable that this appointment followed the appropriate process," he said.

The full text of the speech follows:

Chairman Pat O’Brien and Harness Racing New Zealand board members, club delegates, and invited guests, thank you for the invitation to address Harness Racing’s annual conference.

I would like to acknowledge the other speakers here today, New Zealand Racing Board chairman Michael Stiassny and chief executive Andrew Brown; as well as Geoff Want, from Harness Racing Australia.

I would also like to acknowledge Kristy McDonald and Guy Sargent and to note Jim Wakefield’s retirement as the New Zealand Trotting Owners’ Association representative on the Harness Racing New Zealand executive.

Jim is a respected racing stalwart who has contributed significantly to racing’s leadership as a former chair of Harness Racing New Zealand, representative on the New Zealand Racing Board and as a member of the committee that drafted the current Racing Act (2003). Thank you Jim and I wish you all the best.

Today I’d like to cover off some issues that have been raised with me, as well as some of the positive things happening in racing.

It seems too easy for people in this industry to focus on the negative. From where I am sitting it feels like the industry has an attitude of “can’t do”, rather than having the “can do” attitude New Zealanders are so renowned for.

This seems contradictory to the fact that you are involved in racing because of your love of horses and your passion for the thrills of the racetrack.

Interestingly, those who race horses expect them to go out onto the racetrack and rise to all challenges; to be winners.

The racing industry faces many challenges. How you choose to meet those challenges will determine the future shape of your industry.

I’m going to start with the positive and I’m sure you’ll have some questions for me at the end regarding some of the issues.

I believe the work being done around integrity across the racing industry is vitally important in positioning racing for future investment and participation.

At a meeting I called in Wellington in June, leadership from the New Zealand Racing Board and the three racing codes agreed to develop a new model of integrity services. There will be one integrity unit covering all codes.

This will give independence to the “policing” of racing across the industry.

This new independent integrity unit will be governed by an independent board, made up of four people independent of the racing industry. That board will be appointed by a panel made up of the chairs of the three racing codes and the New Zealand Racing Board chair.

The racing integrity unit board will appoint a general manager, who will in turn, appoint employees to undertake the unit’s duties and responsibilities. These duties and responsibilities include investigating and prosecuting breaches of the rules of racing.

Separating responsibility for making the rules, and responsibility for policing those rules, removes any possible conflicts of interest.

Completely separating the responsibilities for racing’s rule-making, enforcement and judicial functions mirrors what happens with law and society. Simply put, laws are made by Parliament, enforced by the Police and adjudicated through the Courts.

This new integrity services unit should be up and running early next year.

People will not invest in an industry – with time or money – if they don’t believe in its integrity.

As we in politics know, perception can be everything. You don’t have to agree with the perception, but if it is the majority view, you have to take it seriously.

A survey the New Zealand Racing Board did recently, through Nielson, showed that nearly half of participants had a negative impression of racing and betting on racing in New Zealand. Most of the negativity centred around gambling. Associations between the industry and drugs and corruption need addressing.

Andrew will detail this survey more in his presentation.

A high level of integrity makes marketing racing as fun and exciting, and making a positive contribution to the New Zealand economy, more viable.

To get increased participation – from people going to race meetings and betting with the TAB, through to racing horses or making the racing industry their career – the industry needs to raise its profile in a positive way.

You cannot expect everything to go on as it did 20 years ago. No business can.

Now I’d like to talk about economics and the Government’s position on racing.

This Government is focused on limiting the effects of the global recession, putting in place measures to grow the New Zealand economy, and getting the government’s finances into a sound position. We have introduced a growth-enhancing tax system, with personal tax reform and lower company taxes.

The Government expects changes in racing to address economic issues and allow for revenue growth to be industry-led. It is up to the racing industry, not the Government, to determine what change is required.

Racing is not the only business in the world faced with making changes, possibly radical changes, to ensure future viability. Your industry is essentially made up of a whole lot of small businesses and in a tough economy, small businesses have to be smart operators.

As Minister for Racing I am here to support you, not direct you. This is clearly stated in your governing Act, the Racing Act 2003. Wide industry consultation went into writing this Act and in fact, it was largely written by the industry, relatively recently.

The Government makes a financial contribution to racing through the Racing Safety Development Fund, of $1 million per annum. This money is to support racing club projects that improve safety at racecourses.

$1 million has been secured for the 2010/11 season, and I encourage you to think about applying for funding. The current funding round opens this year, on 1 August.

The safety of drivers, spectators, officials and others involved in harness racing, as well as the health and safety of the animals, is imperative. This is particularly important when trying to re-build a positive image for racing. New Zealanders are passionate about animal welfare. So track accidents can have a very negative impact on public perceptions of racing.

Now I’d like to talk about some of the issues and misconceptions. The Government has no silver bullet for racing. We are focused on fixing the economy. How businesses take advantage of that is entirely up to them.

The racing industry has been in decline for at least 20 years. The issues you face are not so different to any other business. The biggest and most debilitating issue I can see, and the one I get the most contact about, is a lack of trust in each other and in your industry’s leaders.

And that doesn’t seem to be a new complaint either. Past leaders seem to have come under exactly the same flak. It’s a complaint that is getting tired, especially given much of that leadership is elected by the industry, from racing club committees through to boards.

I have been working with the four leaders at the top – the chairs of the three codes and the racing board – and I back them. I think it is essential that the industry does too. They all share a passion for racing and they want to see racing flourish.

They want to act. They want to get people back onto racetracks and into the industry. It is ridiculous to suggest they are self-interested when I see how many hours they spend on what can at times be an extremely frustrating cause.

I have found, with my recent re-appointment of Liz Dawson to the racing board that board appointments are never going to please all the people, all the time.

There are a variety of considerations when Ministers appoint people to boards. There are guidelines in the Cabinet Manual and directives from the Cabinet Office, including that the government wishes to see a more diverse range of people appointed to government bodies.

I would also like to note that Cabinet approved this appointment.

Liz Dawson’s background in sport is particularly valuable given the growth in sports wagering with the TAB at a time when wagering turnover has been falling.

I am pleased that Liz Dawson is available for a second term on the board and I am comfortable that this appointment followed the appropriate process.

I have a say in appointing only a few racing leaders; the rest are elected by the industry. The New Zealand Racing Board chair and members are appointed by the Minister for Racing.

In closing I would like to say I believe that negativity is a destructive force. Anyone who spends any time working with me will know I like to focus on the positive.

There is a lot of magic on the racetrack and I want to see more of the great stories of racing in mainstream media. I think Harness Racing is particularly good at doing this I might say and I am impressed with the way you promote your young drivers and your equine stars.

My final comment would be to ask you all to remember why you love racing; why you might get up on a frosty morning and go and do something with horses; or why you might spend many unpaid hours trying to make your race meetings the best they can be.

If you can share that passion and enthusiasm, and forget past woes, you will be well on the way to increasing participation in the racing industry. With increased urbanisation, many young people have never been near a horse. It’s up to you to tell them what they are missing.

Thank you for listening to me and I have time to take a few questions before you hear from the racing board, with more detail on the business side of your industry.

New Zealand Minster for Racing Hon John Carter