The Minister for Racing, Michael Aird, said the racing industry, both nationally and internationally, had changed dramatically in recent years and the reforms would allow the industry in Tasmania to grow and flourish.

"The racing industry wants change and to do nothing has the potential to hamstring the industry to the point where it will stagnate," Mr. Aird said.

"The Government has listened as the industry has told us that from both a commercial and integrity perspective it must adapt and evolve in order to grow.

"The proposed governance reform will deliver a framework that fundamentally strengthens both the commercial and integrity sides of Tasmanian racing.

"It will position the industry to overcome the inter-code rivalry that has constrained commercial development for decades and help pursue a clear and unified vision.

Harness racing in Tasmania has developed to a stage where it has the opportunity to take the next major step towards cementing its future as a major player on the national stage.

"Racing in general (thoroughbred, harness and greyhounds) is on the verge of an exciting new era and these reforms will provide the industry with a new level of business and customer focus, which will see the development of better products with greater appeal to punters locally, nationally and globally," Mr. Aird said.

"Under the Racing Regulation Amendment (Governance Reform) Bill 2008 a new Tasmanian Racing Board will take over the powers and functions of TOTE Tasmania in relation to governance and administration."

TOTE Tasmania has held the reins of racing in Tasmania for the past five years but along the way, and more so in recent times, key industry participants have called for more ownership of the industry claiming TOTE had too much control and that it would be better served to concentrate more on developing its wagering business.

"The seven-member Tasmanian Racing Board will allow the racing industry to take control of its own destiny and will be an independent, skills-based commercial board," Mr. Aird said.

"It will develop a vision and plan to sell Tasmanian racing to new and emerging markets and make decisions in the best interests of the entire industry.

"The three racing code councils will be abolished with their existing powers and functions transferred to the new Board and the Director of Racing."

Mr. Aird said under the reforms an Integrity Assurance Board would also be created to adjudicate appeals arising from the statutory decisions of the Director of Racing.

"In performing its functions as an independent statutory authority, the Integrity Assurance Board will deliver better checks and balances in the regulatory process as they relate to the integrity and probity of the industry," he said.

Mr. Aird said there would be no change to the present funding arrangements of the industry.

"I can assure the industry that there will be no change to the present funding arrangements.

The Government is committed to providing funding to ensure the ongoing sustainability of the State's racing industry.

"Over the next 12 months, a long-term funding model, which also looks to future capital requirements, will be developed in close consultation with industry and TOTE."

He said the industry was keen for the new Tasmanian Racing Board to become a State-owned company and that would happen as soon as practicable.

"The industry has identified that a State-owned company may be a more appropriate model for the Tasmanian Racing Board in the longer term, given its strong commercial focus."

If approved by Parliament the new racing governance reforms will be effective from 1 January 2009.

Peter STAPLES