Present double edged

The Winston Peters Budget present to racing has turned out to be something of a dual-edged sword.

With final announcements almost ready to be made on stake levels in Group One racing in the new season, the codes are still coming to grips with the $9m over three years Peters managed to extract from the Government. It was in addition to tax relief he arranged after the 2005 election which has given the industry a huge boost.

However, Peters made an unscheduled announcement of the new funding at a private function and this was quickly seized on by the news media.

A New Zealand Trotting Cup stake of $1.2m, which is already widely known but as of last week had not yet been actually signed off, was one result of Peters' surprise announcement.

The other bad news is that the codes have to match the grants with an equal amount of their own money raised by sponsorship or other means. In a fading economy with betting turnover falling like the American dollar late in the season, this could put the heat on leading clubs who will have virtually all the funding.

Harness racing will receive $750,000 it was revealed by the Harness Racing New Zealand executive at its June meeting but the industry must find as much. A sharp rise in starting costs for the biggest races looks a certainty as a result.

Canterbury Racing chief executive Tim Mills says he is in no position to confirm or deny that the Christchurch Casino Two Thousand Guineas will go to a rumoured $1m, saying industry leaders are still wrestling with the level of funding for various races.

It is understood that thoroughbred racing, with the lion's share of the pool of money but with the task of matching it, could take a little longer to finalise their figures.

The impact of the big lift in stakes has been compromised by speculation and what appears to be some indecision.

The Peters grant seeks to lift the top New Zealand races to Australian levels. Whether this is an achievable long-term goal, given the population difference of the two countries is a moot point.

However, while it lasts it will be an exciting time for owners.

- © Fairfax NZ News