State to provide extra $26m in prize money to avert further stoppages planned at major racetracks on Melbourne Cup day

This article is more than 1 year old

This article is more than 1 year old

The Queensland government has caved in to the demands of the state’s thoroughbred racing industry on the eve of planned strike action, agreeing to give it an extra $26m in prize money over the next six months.

Scheduled TAB race meetings in Brisbane, Toowoomba, Townsville and the Gold Coast on Saturday had already been cancelled. But the deal will avert further stoppages planned at major tracks on Melbourne Cup day.

An alliance of thoroughbred trainers, jockeys, owners and breeders had demanded a better deal from the government from the proceeds of a new 15% point of consumption tax on wagering, which is expected to raise $70m in the first year.

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Racing Queensland, the body that oversees thoroughbred, greyhound and harness racing, was already to receive a $20m grant for new greyhound and harness facilities. The government had also agreed to forgive a $17.8m debt owed by Racing Queensland.

Other proceeds from the tax were to be allocated to the emergency helicopter network, to provide assistance to problem gambling and to community sporting associations.

The government said on Friday afternoon, in announcing the detente, the industry must reform and become sustainable.

“The long-term challenges the industry faces did not arise overnight,” the treasurer, Jackie Trad, said. “There is no quick fix here but what we’ve seen today are some positive steps in the right direction.

“We’ve had some very frank and respectful conversations this morning and there’s now general agreement that industry sustainability can only come from reform. We’ll now work closely with industry to explore what those changes might look like.”

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Cameron Partington, the spokesman for the Thoroughbred Alliance, said the additional prize money was a “great victory” for racing participants. He welcomed the outcome of crisis talks that took several hours on Friday.

“We’ve stood united in our demands and we’re satisfied that today’s outcome will deliver for all participants – owners, trainers, jockeys and breeders, not to mention the thousands of workers employed in the industry.

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“Prize money are the wages of industry and this increase will be music to the ears of our members.”

The Eagle Farm racecourse, once Brisbane’s premiere track, has been closed for refurbishments for more than a year to repair ongoing problems with the surface.