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 Slots at Racetracks - just a further eroding of unions

No country has ever achieved widespread prosperity and created a large middle class without strong unions.

If the Ontario government goes through with its plan to wipe out Slots at Racetracks, putting 51,000 people out of work, it will result in further reducing the impact of unions in Ontario.  It's a form of union-busting. 

Union density in falling in Canada, the gap is widening between rich and the poor. The fallout from losing Slots at the Racetracks will be felt across Ontario but in particular our rural communities: trainers, breeders, growers, farmers, retailers, wholesalers, seed companies,veterinarians, farriers, fencing, transport, harness and saddle makers, trucks and trailers, building supplies, etc.

Since 1975, OLG lotteries, OLG Slots & Casinos and Resort Casinos have generated more than $28 billion for the benefit of the Province of Ontario.  That sentence was taken right from OLG's website. Twenty-eight billion dollars.

"Generations of hard-fought union struggles brought Canadians the eight-hour day and the weekend; workplace health and safety legislation and employment standards; income supports for new parents and training for unemployed workers; public pensions and minimum wages; protections for injured workers and equal pay for equal work.


"The international evidence shows unequivocally that where unions are strong they reduce the pay gap between workers and management, men and women, racial minorities and other workers. All over the world unions are a major force in reducing inequality and poverty, and broadening access to basic supports for everyone.

"But decades of watering down rules for capital investment and eroding workers’ statutory rights, combined with rapid globalization and technological change, has steadily shifted the balance of power towards employers.

"As a result, median wages and incomes of those working full-time full-year are today no further ahead than they were in the late 1970s, taking inflation into account. The economy may have more than doubled since, but many workers without a collective voice have lost ground. Their numbers are rising.

Today, CEO pay packages swell by double digit increases every year – in good times and bad – even while Canada’s bosses put downward pressure on wages, pensions and benefits.

The future of the middle class is anything but assured, particularly for younger workers and newcomers who work in parts of the economy where unions have made little headway in organizing.
The stakes are huge, the path ahead uncertain.
(For the full article, go to:  http://www.policyalternatives.ca/publications/commentary/why-unions-matter)

Will closing Slots at the Racetrack affect 2 By-election outcomes?

Three in Four Ontarians want the Slots-at-Racetracks Program Decision Reviewed; Only 17% support the McGuinty Government's Decision to Cancel the Program

TORONTO, Aug. 16, 2012 /CNW/ - In a significant rebuff to Premier Dalton McGuinty and Finance Minister Dwight Duncan, a new Abacus Data Poll conducted for Racing Future finds that most Ontarians think the provincial government should rethink its decision  to shut down the Slots at Racetracks program at Ontario's racetracks.

The poll comes as the McGuinty Liberal Government faces two by-elections that will determine whether or not Ontario will continue with a minority Liberal government or if the Liberals will be thrown out of office. If the government wins one seat, it will continue to govern - if it loses both, the Liberals could be out of office. (The current standings are Ontario Liberal Party: 52, Progressive Conservative Party of Ontario: 36, New Democratic Party of Ontario: 17, with two vacant seats to be decided in the by-elections).

The Abacus Data poll - Evaluating the Slots at Racetracks Decision - was undertaken to measure public response to the Ontario government's decision to cancel the Slots at Racetracks program. The survey asked respondents if they were aware of the Slots at Racetracks program, if they supported the McGuinty Government decision to cancel the program, and if they thought the government should review and revisit the decision.

The Slots at Racetracks program was an agreement between the Ontario Lottery and Gaming Corporation (OLG) and 17 horse racing tracks across the province that saw slot machines installed in the race tracks.
Race tracks received 20% of the revenue from the slots for hosting the slots in the facilities, while the local municipality received 5%. Each year, the provincial government received about $1.1 billion in revenue; the racetracks received $345 million, while municipalities received about $86 million.
In March, the McGuinty government and OLG announced they were cancelling the program without any consultation or notice with their partners in the equine industry.

The racetrack and horse industry employs 55,000 people in Ontario. Horse industry stakeholders were also shocked when the program was described by Finance Minister Dwight Duncan as a subsidy when it is a lucrative partnership agreement with the government.

Respondents were asked whether or not they were aware of the program before the date of the survey.
A majority of Ontarians were aware of the Slots at Racetracks program; this awareness was virtually identical among urban, suburban and rural residents. Respondents were asked whether they supported or opposed the McGuinty government's decision to end the program, based on the description provided and any existing knowledge they possessed.

Only a small minority of respondents (17% overall) supported the government's decision, while 41% were opposed and 43% were indifferent.
Demographically, Liberal supporters were most likely to support the decision (29%), while PC supporters and rural residents were most likely to oppose it (55% and 49%, respectively). Although Liberal supporters were more likely to support the decision, a plurality still opposed it (29% in support versus 41% opposed). Despite the fact that the program's cancellation was most likely to affect rural Ontarians, pluralities of respondents living in suburban and urban communities opposed the decision.


Respondents were asked: "Do you think the government should review its decision to end the program?" A large majority of respondents (76%) believed that the government should review its decision. Support for such a reevaluation was consistently high across political and regional demographic subgroups.

Partnership or Subsidy?
The survey also tested whether the public views the Slots at Racetracks program as a subsidy or as a partnership between OLG and racetracks across Ontario.  respondents were asked: "Some people consider the Slots at Racetracks program a government subsidy, while others believe it is a partnership between the government and the horseracing industry. Based on what you know, do you think the Slots at Racetracks Program is a partnership or subsidy?"

Overall, respondents were more likely to consider the program a partnership rather than a subsidy (40% partnership, 25% subsidy). Another one in three respondents (36%) were unsure of which better described the program.

Responses were relatively consistent across demographic subgroups.  However, PC supporters were most likely to see the program as a partnership (55%) and register the lowest unsure scores (23%).

Revisit Decision?
The survey commissioned by Racing Future and was conducted online with a representative sample of 502 respondents living in Ontario using an internet survey platform. A random sample of panelists was invited to participate in the survey from a larger internet representative panel of over 150,000 Canadians.  The survey was completed from August 10-12, 2012.

The data was statistically weighted by age, gender, region, and education level according to census data.
Since the online survey was not a random, probability based sample, a margin of error could not be calculated. The margin of error for a survey of 2,099 respondents using a probability sample is +/- 2.2%, 19 times out of 20.
SOURCE: Toronto Partners Inc.

For further information: about the results or Racing Future, please contact Dennis Mills at 416-587-1716.
For more information about the survey methodology, please contact David Coletto, CEO at david@abacusdata.ca or 613-232-2806.