Canberra racing industry needs to be more self-sustainable, ACT Chief Minister Andrew Barr says

The Canberra Racing Club moved quickly to get ACT government reassurance on Monday after the industry's funding fuelled more Legislative Assembly debate.

Greens MLA Jo Clay attempted to put pressure on Barr about the reasons why the industry was given a $41 million, five-year funding agreement until 2027.

Barr said the government was standing by the memorandum of understanding with the Canberra Racing Club and Canberra Harness Racing Club to commit $8 million per year to the industry.

The Greens are seeking a reduction in racing funding in the short term and an end to all funding in the long term, but their amendment is expected be rejected in the Assembly.

Barr reiterated his commitment to the funding, but also said the windfall from residential development along Flemington Road would need to be used as a "long-term endowment" to fund racing.

Asked his plans to fund the racing industry when the deal expires in 2027, Barr said: "I would say that my preference would be for the industry to become more self-sustaining.

"But I recognise the way that will be achieved is through realising the value through a variation through part of their lease.

"One of the rationale behind supporting that in addition to providing more land for housing along the light rail corridor would need to be that revenue that the racing club enjoyed.

"That windfall gain from a rezoning, or partial rezoning, would then need to be retained by the racing industry with a view that it was their long-term endowment and they would be more self sustaining.

"The exact nature of that is obviously subject to a lot more detailed work. [But] that is my view [as] the potential pathway forward that would resolve the issue of no longer needing public funding off the budget."

The Canberra Racing Club is seeking a variation to the territory plan to allow high-density residential development at its Lyneham base.

The vision for to build accommodation for almost 5000 people along the light-rail corridor would give the club a major cash injection, which would then need to be used to ensure its long-term viability.

"We made a commitment at the 2020 election to continue the MOU. The discussion we have had in cabinet and and with the racing industry is that they do need to transition over time to a more sustainable set of operations.

"The only that will occur is by better utilising the land asset that they hold."

But the racing industry privately fears the Greens will force the government to end all funding arrangements ahead of the next ACT election in 2024.

Clay, the Greens spokesperson for animal welfare has been leading the calls for the funding to stop, claiming: "the majority of the Canberra community feels the same."

Barr confirmed the government received about $250,000 per year in point of consumption revenue for betting on racing within the ACT, but that figure did not account for betting revenue at races around Australia involving Canberra horses.

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"We do not support $41m of taxpayer money being handed over to the horse racing industry, especially when we are dealing with COVID, climate change and homelessness," Clay said.

"The Independent Competition and Consumer Regulatory Commission recommended that the ACT horse-racing industry should be self-sufficient. That was a decade ago.

"The ACT horse-racing industry is still being funded year after year by the ACT taxpayer. Thoroughbred Park currently receives half of its operating revenue from the ACT government. It is clearly not in the public interest to provide this taxpayer subsidy. It's time to transition out."

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