I guess it's a case of putting panels together until you get the results you want. The results of a new government-appointed panel has been announced.  Unlike the panel appointed in 2008, which unanimously supported Slots at the Racetrack Program (SARP) and took a year for their consultations, this panel says to cancel SARP - after barely two months work.  I'm totally surprised because I believe OMAFRA to be one of the best government bodies in Ontario.  If you're so inclined, you can read the report here:  http://www.omafra.gov.on.ca/english/about/transition/interimreport08172012.htm#slots

In 2007, the province appointed a 3-person strategic planning panel to develop a strategic vision for the Ontario Horse Racing and Breeding Industry.  “The Panel was charged with the task of examining the state of the horse racing and breeding industry (hereinafter referred to as “the industry”) and the development of a strategic vision and direction that identifies the challenges and opportunities that the industry faces, within the current gaming environment, in order to best ensure its continued growth in the future.”

While suggesting some change, the report said: “The Panel fully supports the continuation of the Slots at Racetracks Program at a minimum level of 20% of the revenue generated from slot machines at the racetracks. However, we also recommend that the Program be adjusted to better meet the objectives of enhancing wagering on Ontario product and enhancing the breeding of Ontario racehorses.”

Nowhere was it suggested that Slots at the Racetrack be canceled.  So what happened in the interim?

That government-appointed “Panel consulted with industry stakeholders, government ministries and agencies and other interested parties for input on all of the Terms of Reference and on any other matter that the Panel should consider. Without exception, all parties exhibited an unwavering commitment to the well being of the industry and its future within the broader gaming and entertainment markets.” (All bolding and Italics are mine.)

When the Ontario Horse Racing Industry Assoc (OHRIA)was created in 1994 it was estimated that there were 24000 jobs related to the industry, and was the 3^rd largest sector in the overall agricultural economy of Ontario.  It was also known that these jobs were largely unskilled labour and would be difficult to replace.  So, consider the comments that these people, who have never known another job, could be retrained for something else, and that the government would allocate $51million for re-training.  If we extrapolate that amount for the 51,000 minimum who will be affected today, that translates to $1000 per person.  I can’t imagine the kind of training that would provide.

 “While the stated objectives of the Slots at Racetracks Program (the “Program”) referred to the enhancement of live racing, sustaining the agricultural sector and the generation of revenue for general provincial purposes, clear benchmarks were not put in place to monitor its benefit to the industry. Rather, the government rushed forward to open slot facilities at racetracks as quickly as it could.”  So, rather than put benchmarks in place, rather than renegotiating the agreement, the government has decided to cut the program entirely and put an estimated 51,000 people out of work, thus destroying a vital rural agricultural economy.  

My grandmother would have called it cutting off its nose to spite its face.

THE IMPORTANCE OF THE HORSE RACING AND BREEDING INDUSTRY ON THE ECONOMY OF ONTARIO

“The most recent analysis by HLT Advisory (January, 2008, Vol. II, Sec. 3) used the spending of revenues minus operating expenses approach to measure the economic contribution of the industry. Overall, the industry had net revenues of $641M, including revenues from slots, available in 2006 for initial expenditure.”

This next is a very long quote but bears inclusion: “It should be recognized that many of these jobs are part-time in nature. As such, many more than 24,569 Ontarians count on the industry for part or all of their livelihood.  

"In a recent study by Economics Research Limited (ERL), September 2007, it was estimated that between 25,000 and 30,000 Ontarians are engaged in the ‘equine side’ of the industry on a paid or unpaid basis. These full time equivalent jobs equate to 48,750 full time, part time and casual opportunities. ERL also concludes that with employment from the slot operations at the racetracks included, 40,040 Ontarians owe their permanent full-time jobs to the industry and its associated activities. 

ERL calculates that when part-time and casual labour is included, over 65,000 Ontarians rely on the industry and its related activities for some or all of their employment. Using this model, the approximately 24,500 full time equivalent jobs cited in the HLT report would equate to a total of approximately 40,000 full time, part time and casual jobs. Were one to include the employment sustained by the slot operations at the racetracks, approximately 55,000 Ontarians have jobs in the industry and its related activities.

Again, it’s worth repeating, those stats are for 2008.  The numbers would have to be much higher in 2012.

Read the whole report here: http://www.ontla.on.ca/library/repository/mon/22000/283847.pdf

Closing racetrack slots will devastate the economy

To the Ontario Government and those running in upcoming elections.  I am writing to say I cannot support a regressive program with the potential to devastate the rural economy.

I am writing in support of the horse racing and breeding industry in Ontario to provide you with the facts on why the province should leave the industry’s partnership with OLG alone. The revenue that the industry receives is not a subsidy, it is a revenue-sharing partnership between the OLG and the horse racing industry which provides the Government of Ontario with an increasing amount of revenue to the tune of more than $1 billion a year.

Premier McGuinty clearly mis-spoke when he referred to the "subsidy" to the horse racing industry.  In point of fact it was a revenue-sharing agreement between the government and the horse-racing industry: 75% of net revenue from the slots to the province, with remaining revenues split between track owners (10%), horse owners (10%) and host municipalities (5%).  Make no mistake - there will be a huge impact on the Town of Milton.

The Slots at Racetracks Program is the biggest contributor to the OLG’s profits, which are used to fund healthcare, education and municipalities in Ontario. The government owned, stand-alone casinos are losing money while the horse racing industry shares the burden of increased competition to its wagering dollar. Any change to this revenue sharing partnership, would not only have a negative effect on the horse racing and breeding industry, it could virtually end the successful revenue stream to the province, costing the government of Ontario $1.1 billion dollars per year.

Furthermore, the Ontario horse racing and breeding industry employs more than 31,000 people full time in our province.   Canada has been steadily losing full-time jobs.  The number of people who have to resort to low-paying, part-time work because they can't find full-time employment, has been escalating.  Losing 31,000 full-time jobs will be a major loss.  More than $1.5 billion dollars a year are paid in wages by the horse racing and breeding industry.

The industry spends approximately $2 billion a year in expenditures, 80% of which is spent primarily in rural, agricultural communities. An effort to save $345 million of well invested revenue, it will cost the government $1.1 billion in annual OLG profit and cripple the rural economy when more than $2 billion in horse racing and breeding industry expenditures disappear.

Rural Milton is an example of the success of the Slots at Racetracks Program:  a great economy has been built around the horse racing industry:  breeding programs, training facilities, feed growers and vendors, etc.  Taking away the Slots at the Race Tracks is a totally regressive step, and will hurt farmers and farming, and the local economy, throwing thousands of people out of work.

Slots facilities are also a way for Tracks to create a year round operation, allowing them to diversify, impossible without the presence/attraction of Slots.

The economics of this proposal just don’t add up. I urge the provincial government to take some time to understand just how beneficial the Slots at Racetracks Program is for the government and the people of Ontario and to leave the horse racing and breeding industry alone.

Sincerely,
Jan Mowbray

No good business sense in closing slots at racetracks

Taking a stand on the future of Ontario’s horse industry

This article appeared on the July 31st Editorial page of the Guelph Mercury.  It was written by Susan Farrelly, a Mercury Community Board Member. 

It takes a lot of courage when an individual, group of individuals or a corporation stand up for something they believe in, especially when it involves raising public awareness.
I witnessed this recently through the actions of my friend, Christie (Powell) Portwood, who wrote a moving letter to the editor of the Guelph Mercury, published on July 11, about the impact of ending the slots-at-racetracks program in Ontario. She has since become a very strong local advocate on this issue, using social media as a platform, further educating myself and her extended network of contacts on this important issue.
As we know, it sometimes takes a “village” to impact positive change.
During the day, I work for the County of Wellington. I am proud to say the county is taking a very strong stance, and leadership role, in educating the public and the provincial government against ending the slots program.
On May 29, a public meeting was hosted by the county for individuals concerned about the future of horse racing in Ontario and the impact of the slots removal from the racetracks on local industry. More than 250 people attended this meeting, led by Warden Chris White. At this meeting, Robert Wright, a veterinarian and renowned horse specialist, made a presentation on the economic impacts of horse racing provincially and in Wellington County.
The county moved forward in compiling the information obtained at this meeting and preparing a report on the impacts of cancelling the slots at the racetracks program. A five-minute documentary film (which will be screened Tuesday at 2:30 p.m. at the Bookshelf cinema in Guelph) was also created, showing the human side of what is going to happen if the slots are removed from the racetracks in Ontario. Local individuals and business owners were interviewed for the film, including breeders, veterinarians, trainers, a café owner, a local mechanic and more.
Make no mistake, the province of Ontario will have much to lose if it moves forward with this initiative.
Over the past 14 years, the horse-racing industry in Ontario has benefited from the Ontario government’s several revenue-sharing agreements. Through these agreements, the government receives back 75 per cent of the net revenue from slots, with the remaining revenue being split between track owners (10 per cent), horse owners (10 per cent) and host municipalities (five per cent). Since 2004, as a result of the revenue-sharing agreement, Wellington County has received proceeds in excess of $3.5 million, and Centre Wellington Township, where the Grand River Raceway in Elora is located, has received proceeds to date of more than $12,344,000. The provincial government has received millions of dollars in tax revenue from these agreements to date, funding programs such as health care and education.
Ending the slots-at-racetracks program does not make good business sense.
Of the biggest concern locally is how much the residents of Ontario, and specifically the rural areas in our region, will have to lose if the slots are ended at the racetracks. There is so much money infused into Wellington County due to the strength of the horse-racing industry. Local businesses experience the benefit of having an influx of visitors to the area, investments are made in horses and infrastructure, and local businesses benefit both in hospitality and businesses ancillary to the horse-racing industry.
If the government moves forward with ending this slots program, businesses will close, jobs will be lost, families will suffer.
Ontario will lose.
After Tuesday, the county-developed documentary Restore the Programme, along with the report, will be available on the county’s website at www.wellington.ca. The county will be sending the documentary on disc, along with the written report, to all MPPs in Ontario.
View the video. Educate yourself. Share the video with your extended network. Raise awareness. Contact your local MPP, and remember: It takes a “village.”

Canadian Way of Life Under Threat

There are serious concerns about the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) Click here for the top ten reasons why CETA is bad for Canada.

The potential impacts to our society are huge - long-ranging and far-reaching. Interested in shopping local?  Our municipal, provincial, and federal procurement policies will be seriously at risk. 

Every level of government could be impacted by this legislation and that's why I've sent emails to Milton councillors, Ontario Premier McGuinty's office, Bob Rae's office, MPP Ted Chudleigh, MP Lisa Raitt and the Milton Canadian Champion.

If CETA is so good for the country, why is it being negotiated in the dark.   We must shine the light on CETA, and have fair discussion on all its ramifications before it's passed.  Once passed there will be no going back. We will be unable to un-do this action.

My signature on all my outgoing email says:  The distance is nothing; it is only the first step that is difficult.
If we make this single step (passing CETA) easy for the federal government, it will change our country as we know it.  Every step after that will be difficult.

We as a nation need to make a decision:  do we want to have control over our policies and programs or do we surrender this sovereignty to multi-national corporations and foreign governments? 

Our Canadian way of life is under threat as it never has been before.