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John & Glenda meeting - September 8

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Racing: Wheeler highly critical of NZRB costs

 

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By Matt Smith on Thu, 28 Aug 2014

 

http://www.odt.co.nz/sport/racing/314014/racing-wheeler-highly-critical-nzrb-costs

 

 

John Wheeler has been in the thoroughbred racing industry for decades but he has finally has had enough of what he describes as out-of-control spending by the New Zealand Racing Board.

 

And by speaking out about frivolous spending, Wheeler hopes the industry leaders listen up.

 

Wheeler - who has prepared racing cult heroes such as Rough Habit, Veandercross, Poetic Prince and St Steven - is part of the New Zealand Trainers Association executive. He originally aired his frustrations in the Sunday Star Times earlier this month, and reiterated those sentiments on Tuesday night.

 

''I've always had concerns about the New Zealand Racing Board,'' Wheeler told the Otago Daily Times.

''It's a government body but other than Winston Peters, we've never had a racing minister that gives a toss about racing. Yet racing is one of the most vital industries in New Zealand, equivalent to the wine industry and fishing industry in terms of GDP [gross domestic product].

 

''But no-one seems to care - the Government doesn't care, the politicians don't care, the average Joe Blow on the street doesn't care.

 

''What the difference is in Australia is that the politicians support racing.''

 

Wheeler felt moved to speak after the board was forced to readjust its forecasts of returns to the racing codes - part of which he said could be put down to spending.

 

Of particular concern to Wheeler is the number of New Zealand Racing Board staff on six-figure salaries.

 

Annual reports available online reveal the number of employees earning a total remuneration package of more than $100,000 at the end of July 2007 was 33, but by the end of July 2013, that number had risen to 72.

 

''It tells you how wrong the whole thing is,'' Wheeler said.

 

''Trainers like Lisa Latta and Michael Pitman - our last two premiership leaders - they couldn't take $100,000 off their balance sheet. They'd have nothing left.''

 

The trickle-down effect of rising costs within the racing board inevitably led to less money for stakes to be paid out at code level.

 

''The funding system is all wrong,'' he said.

 

''They [the NZRB] spend what they want to spend and what's left is given to the codes to keep racing going.

 

''But it's the wrong way round - they should determine what the codes need, whether it been galloping or trotting or greyhounds - and cut their cloth to suit.

 

''Since the departure of chief executive Graeme Hansen in May 2009, the NZRB has employed Andrew Brown and Chris Bayliss in the top role, with several other employees filling the role while the board searched for a new chief executive.

 

''It would be the only major company in New Zealand that has had anything like six CEOs in the last six years and four different chairmen in the last four years,'' Wheeler said.

 

''That in itself is testament to how dysfunctional the whole outfit is.''

 

Wheeler said the comparison between the New Zealand Racing Board - with running costs at 41% of revenue - and Australia's Tabcorp's figure of 23% of revenue for running costs may not be like for like, but the discrepancy was considerable.

 

New Zealand Racing Board chair Glenda Hughes admitted costs were too high when she was interviewed on TAB Trackside Radio yesterday shortly after Wheeler was interviewed by Peter Earley.

Hughes, who became chairwoman of the board last August, said costs needed to be reined in.

''He is right that some of the costs are too high,'' she said.

 

''I have already said quite publicly I intend to unwind a lot of those costs. I couldn't disagree that massive hotel expenses et cetera for staff travelling around the country is not acceptable, especially when our stakeholders are currently having to tighten everything. I can't argue with John Wheeler on that, and I have to say it's up the top end of the board to do that.''

 

Hughes said the board would assess expenses across the business and look to ''unwind'' where possible.

 

Wheeler said he, along with several other trainers' representatives including trainers' association head Tony Pike, had been invited to meet Hughes on September 8.

 

''We will wait and see what that brings, but hopefully she just doesn't put her own spin on things.''

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Well here is the chance many of you on here have been looking for.

Document your concerns and questions ,along with any supporting facts and figures , give them to one of the trainers who are meeting with GH. ,and get them tabled at this meeting.

One would assume that she will commit to answering anything tabled.

The trainers will need to be organised in their approach and not just a bunch of individuals worried about "my stable" issues.

This is your chance !!

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1. what has been the revenue benefit from all the social media managers hired in recent years?

 

2. how can you justify a 50% increase in salaries from 2008 when betting revenue only rose 4%? (that is the revenue after dividends - not turnover totals).

 

3. where is my app?  And what is the expected ROI?

 

4. how can you talk about capability building when your staff management churn is so high?

 

5. how is the strategic plan execution delivering?  It seems that the only turnover growth is from a few elite customers and offering more fixed odds options.

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The most immediate action they can take in order to have a positive financial outcome is to address the expense explosion. This is something that is identifiable, can't be hidden or denied and more importantly, can have an immediate effect. But this can't be done by the current regime. Why not? Because it would have been done long ago if they had the will. Ms Hughes has been in the Chair long enough to have recognised this and acted whilst new. She should put an immediate order out to each Departmental General Manager that they have 2 weeks to present a plan to her on how they are going to cut expenses by 25% with "everything" on the table. Not 20% and not 24% but 25%. All travel overseas is suspended. All accommodation will be in approved motels and not 5 star establishments. That's a start!

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Overcheck she will probably write her press release before the meeting.Look out for platitudes like-full and meaningful discussion/we are on the same page/common goals/positive future strategies.I am not into pulp fiction so I will probably not read her report.

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Should they be staying in motels?

 

 

Wouldn't it be more economical to rent accommodation in the form of an apartment, unit or house on a long term basis?

 

How much has been spent at & claimed for for hotel accommodation & for what purpose?

The most immediate action they can take in order to have a positive financial outcome is to address the expense explosion. This is something that is identifiable, can't be hidden or denied and more importantly, can have an immediate effect. But this can't be done by the current regime. Why not? Because it would have been done long ago if they had the will. Ms Hughes has been in the Chair long enough to have recognised this and acted whilst new. She should put an immediate order out to each Departmental General Manager that they have 2 weeks to present a plan to her on how they are going to cut expenses by 25% with "everything" on the table. Not 20% and not 24% but 25%. All travel overseas is suspended. All accommodation will be in approved motels and not 5 star establishments. That's a start!

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It needs to be established what does xyz role consist of?

 

What does as an example the Talent person do all day?

 

All the jobs at NZRB must be scrutinized & those there should have to be made accountable in 15 minute blocks & provide a full & complete record of what they do, just like other firms do to ensure best value for money & good time management.

 

  All jobs should be scrutinized & questions must be asked if they realistically should even exist & if applicable terminations should happen asap.

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What is the policy in place for using NZRB electronic communications devices for personal use?

 

Do they have one?

 

With all the hacking going on of various services worldwide & private emails we would expect this to be a top priority to be addressed.

 

How secure is the information in peoples Tab accounts, taking into account who all have access to this info, including IT technicians & those that service the hardware room?

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Anyone using the word "unwind" for reduce gets no respect from me. Shows she is in the fantasy world of the arty fartys.

 

Should they be staying in motels?

 

 

Wouldn't it be more economical to rent accommodation in the form of an apartment, unit or house on a long term basis?

 

How much has been spent at & claimed for for hotel accommodation & for what purpose?

 

It needs to be established what does xyz role consist of?

 

What does as an example the Talent person do all day?

 

All the jobs at NZRB must be scrutinized & those there should have to be made accountable in 15 minute blocks & provide a full & complete record of what they do, just like other firms do to ensure best value for money & good time management.

 

  All jobs should be scrutinized & questions must be asked if they realistically should even exist & if applicable terminations should happen asap.

Maybe unwind is the Latt,e term for effect redundandcies and cut expences...hope so anyway.

Whats wrong with skyping / E-Mail anyway?...why all the travel and accomodation?

If they work in windy welly...stay there...plenty of coffee shops. 

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Well the meeting is apparently happening tomorrow.

 

All of those on here who feel they have the answers, solutions etc and have serious questions which need to be answered should be providing them to the Trainers.

 

More effective than ranting on here methinks.

 

I believe JWheeler is being joined by TPike and NTiley .

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:ph34r: What does as an example the Talent person do all day?

 

All the jobs at NZRB must be scrutinized & those there should have to be made accountable in 15 minute blocks & provide a full & complete record of what they do, just like other firms do to ensure best value for money & good time management. :lol::D

 

 

. . . . . . . . . . . . . . . . . . . . . . . . :rolleyes:

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It needs to be established what does xyz role consist of?

 

What does as an example the Talent person do all day?

 

All the jobs at NZRB must be scrutinized & those there should have to be made accountable in 15 minute blocks & provide a full & complete record of what they do, just like other firms do to ensure best value for money & good time management.

 

  All jobs should be scrutinized & questions must be asked if they realistically should even exist & if applicable terminations should happen asap.

Very little I suspect Meomy....that should be the first role jettisoned given the performance of the "talent" to date.....;)

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