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Friday, May 31, 2013


May 30, 2013

PROVINCE INTRODUCES BUDGET IMPLEMENTATION BILL THAT WOULD REDUCE PUBLIC SUBSIDIES TO HORSE RACING

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Legislative Changes would allow $5 million in Subsidies to be Redirected to Priorities of Manitoba Families: Ashton, Struthers
Bill 47, the budget implementation and tax statutes act (BITSA) was introduced today, which would implement various provisions of Budget 2013 including reducing public subsidies to horse racing by $5 million annually, Finance Minister Stan Struthers has announced.
To achieve these savings, the bill would eliminate the existing Manitoba Jockey Club video lottery terminals (VLT) agreement, which provides 100 per cent of VLT revenue to the Manitoba Jockey Club in the form of commissions and grants for its annual operations, Struthers said.  The Manitoba Jockey Club (MJC) would still have the opportunity to retain the 140 VLTs presently located at the Assiniboia Downs, on the basis of the same VLT commission structure as other regular commercial establishments, such as bars and restaurants, he added.
“The current agreement with the Manitoba Jockey Club is simply not good for Manitoba taxpayers,” said Infrastructure and Transportation Minister Steve Ashton, minister responsible for lotteries.  “We believe the right thing to do in these uncertain economic times is to redirect funding from horse racing into priorities like health care and education.”
Ashton said the bill includes legal protection for taxpayers against civil claims brought by MJC.
“We are not going to leave taxpayers on the hook as we end this agreement and offer the jockey club the same share of VLT revenue that other businesses receive,” he said.
“The horse racing industry in Manitoba must be sustainable and less dependent on public subsidies,” said Struthers.  “Gaming revenues support the services that Manitoba families depend on.  The courts have already agreed this revenue is no different and can be redirected through legislation.”
The bill would also make changes to the Pari-Mutuel Levy Act in order to dedicate 15 per cent of levy revenue to the consolidated fund, which would now be used to support the rural harness racing circuit in communities throughout the province.  The remaining 85 per cent of levy revenue would continue to be available through the Manitoba Horse Racing Commission to continue to support the horse racing industry including thoroughbred racing, Struthers said. 
“The Great Western Harness Racing Circuit is pleased to benefit from Manitoba’s continued support for rural racing,” said Roland Rey, president, Manitoba Standardbred Industry.  “These events provide tremendous benefit to many communities and support Manitoba’s homegrown horse breeding industry.”
Struthers said today’s legislation would come into effect in two phases:  changes to the VLT agreement would take effect 60 days following royal assent and changes to the Pari-Mutuel Levy Act would be effective for the 2014 racing season.
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