The Transition Panel has released their interim report in response to the announcement to end the  slots at race track program.  Very importantly it concludes that the “right” answer for Ontario’s economic well being is not an out right cancellation of the program with an offer of a $50 million transition fund.

Specifically, the Panel does NOT recommend status quo; the Panel rejects the proposed $50 million over 3 years as a transition bridge to sustainability; and the Panel recommends a new partnership between the Province and the Industry.  The Panel has concluded that “Horse racing generates expenditures, jobs, exports and tax revenues. Moreover, horse racing is a cultural asset for Ontario communities. Given the significant public good derived from horse racing, the province should pursue a gaming strategy that includes horse racing as a key component.”

So why is King Council paying attention to this issue?  I provided some perspective in an earlier posting but here is more data.  A 2008 Ministry of Agriculture reports that in 2006 the equine industry had an annual economic impact of $13.3 million in King; that investment in fixed assets by the equine industry in King was $136 million.  We don’t know what portion of the equine industry is directly affected by horse racing but we do know that there is a trickle down impact on all the industry.  The economics of veterinarian services, farriers, tack, transport, feed suppliers will be impacted by the demise of the horse racing industry.  At the 8/15 Equine Forum we heard loud and clear from breeders, trainers, feed & tack suppliers that King businesses will be seriously affected by the demise of horse racing.

In addition, beyond the availability & cost of farriers and beyond the challenge of the unemployed there is the question of who/what is going to work & live on the land.  88% of King’s land mass is rural/agricultural.  About half of that (i.e. the land which is not in the villages and hamlets) is prime agricultural land capable of producing food (per the Canada Land Inventory classification system); and the other half is not.

Given the need to protect the Moraine’s ecological and hydrological features and functions  there are not many productive uses for all that land (~14,900 ha or 36,900 acres).  The equine industry can live on and work that land; they do and they can be good stewards.  Other industries who could make use of the Moraine’s landscape (i.e. aggregate and developers) will be challenging the restrictions of the Oak Ridges Moraine Conservation Plan in 2015; resisting them will be only tougher if the landscapes are empty and not used and not creating employment. 

The Panel’s report is really interesting and well written; I urge anyone with the slightest interest to read it here.  They clearly acknowledge the risk associated with the Province’s original decision to simply cancel the program.

Here are some sound bites from the Transition Panel’s Report.

“Without slots revenue or a new revenue stream, the horse racing industry in Ontario will cease to exist.”

“If the industry were to shut down, the implications for thousands of people and thousands of horses would be dire.”

“It is clear that the usual supports for unemployed workers would not be effective for most of the horse racing industry employees who stand to lose their jobs. Innovative programs would be necessary to help those without basic skills, near retirement or in remote areas.”

“If the industry closes, the panel has received expert advice that provision should be made for the humane dispatch and disposal of 7,500 – 13,000 horses in early 2013.”

“Though it is outside our mandate to comment on the merits of the government’s decision to cancel SARP, we will nevertheless do so …….It is the panel’s view that continuing SARP would be poor public policy. The program has contributed to a fractious industry that has lacked accountability, transparency, a common vision and a proper focus on the consumer. It would be possible for the government to simply reduce the share of slots revenue going to the industry, but this would not solve the underlying problems. Further investment in this program would not be a wise use of public funds, and in the long run would not benefit the industry. Continuation of SARP would allow the industry to keep evading the competitive challenges of today’s entertainment marketplace.”

During the Association of Municipalities of Ontario (AMO) Conference in mid- late August discussions took place with Minister of Agriculture on this issue and the Minister committed to convening a workshop where Minister McMeekin along with Minister Wynne, Municipal Affairs and Housing (MAH) would meet with municipalities impacted by the cancellation of the slots at racetrack program (SARP). Clearly this needs to be done with urgency as the industry is already starting to down size and our businesses are being affected.