GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
GREYHOUND RACING ACT
2017 STATUTORY REVIEW
  SECTION 1 SUBMISSION
             SEPTEMBER 2020
GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
CRADLE TO

 COUCH
GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
A proud tradition – An exciting future

 Section 1 Submission to the Statutory Review of
         the Greyhound Racing Act 2017
This submission provides feedback to the Statutory Review of the Greyhound Racing
Act 2017 (NSW) (‘the Act’) on behalf of the NSW Greyhound Breeders, Owners and
Trainers Association Limited.

The Association welcomes the opportunity to contribute to the review of the Act. The
Act, in both its current and future form, impacts greatly on the racing operations of
the Association and its members, and we believe that it is the cornerstone to strong
regulation and appropriate and fair commercial management to ensure sustainability
of the industry into the future.

Since 2017, the industry has made significant progress in improving the welfare of
greyhounds, upgrading track safety standards, enhancing regulation, all contained
within a strong governance and compliance framework. These fundamentals should
be built upon to create the central pillars of the industry and augurs well for a healthy
and sustainable future.

The Association’s focus remains on creating an industry with the highest welfare and
safety standards in the world, in addition to being totally sustainable – both on and
off the track.

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
EXECUTIVE SUMMARY

 •   The NSW Greyhound Breeders Owners and Trainers Association has worked
     in partnership with the governing bodies to ensure that the greyhound racing
     industry over the past three years has made significant progress in improving
     the welfare standards of greyhounds, track safety standards, and has
     implemented strong governance, regulation and compliance within the
     industry.

 •   These important welfare improvements can be seen through the development
     of the Greyhound Welfare Code of Practice, which sets the highest minimum
     welfare standards across Australia; improvement in minimum track safety
     standards; reduced injury rates; significantly reduced rates of catastrophic
     injury; reduced rates of unnecessary euthanasia, more balanced breeding
     levels, and an overall increase in rehoming capabilities, resulting in increased
     rates of successful placements.

 •   Funding and financial stability of the industry remains a serious issue, and the
     Association will deal with this in a separate submission.

 •   The current penalties, offences and investigative powers available to the
     Commission are adequate to enable the Commission to do its job and appear
     to be working. However, the Association is concerned regarding the length of
     time it takes to conduct enquiry and investigation from the time of charging of
     the offence to when the discipline is handed down. This takes an enormous
     mental and emotional toll on participants and their families and should be a far
     more efficient process.

     Additionally, consideration needs to be given to treating prohibited substance
     charges for cobalt, arsenic and calcium differently to performance enhancing
     substances. Cobalt, arsenic and calcium are naturally occurring substances
     found in food given to greyhounds, as well as soil and water. Currently, these
     substances are treated in the same vein as other actual performance
     enhancing substances, contributing to reputational risk and integrity issues for
     both participants and the industry.

 •   Issues around exports have been virtually eradicated with the introduction of
     new processes regarding the export process introduced by Greyhounds
     Australasia. The Association recommends these processes continue to be
     managed by Greyhounds Australasia as the national peak body of greyhound
     racing.

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
•   The Association remains concerned regarding the ability for the Greyhound
    Welfare and Integrity Commission to introduce a participant funded breeders
    or puppy bond, which may have a serious commercial impact on the industry.
    The industry has seen a much more reduced and balanced breeding effort
    from the industry over the past two years. Therefore, the Association
    recommends that the ability for the Commission to set such a participant
    funded bond should be removed from its functions. If this is not acceptable,
    and circumstances arise where the Commission feels it is appropriate to take
    steps to curb breeding, the Association recommends that any bond introduced
    be modest, capped, and consideration be given to exploring commercial
    funding of the bond prior to imposing the bond on participants.

•   Under Section 24J of the Act, that Greyhound Racing NSW must adhere to
    certain principles and transparency prior to exercising their power to appoint
    an administrator of any greyhound racing club. The circumstances under
    which these powers can be exercised need to be agreed with and understood
    by all racing clubs.

•   The Act should outline the circumstances and processes that Greyhound
    Racing NSW must undertake prior to exercising their power to cancel or
    suspend a greyhound racing club’s registration under Section 54, to ensure
    the overall integrity and transparency of the commercial body.

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
INTRODUCTION
Section 102 of the Act states a review must be undertaken as soon as possible three
years after the date of assent (11 April 2017) to determine whether the policy
objectives of the Act remain valid and whether the terms of the Act remain
appropriate to achieve those objectives. In particular, the review is to examine and
report on:

  a) any improvements in the welfare of greyhounds
  since the enactment of the Act

  b) the appropriateness of a target for unnecessary
  euthanasia of greyhounds

  c) the adequacy of compliance and enforcement
  powers in relation to greyhound racing

  d) the appropriateness of the terms of an Operating
  Licence granted to GRNSW

  e) the appropriateness of penalties and offences

  f) the funding and efficiency of the Commission

  g) any impact on the export of greyhounds since the
  enactment of the Act.

The Association submission will address each of the point outlined above, as well as
provide feedback on a number of specific points including:

   •   Participant funded owner / breeder bond (‘puppy bond’)
   •   Section 24J – GRNSW power to appoint administrator
   •   Section 54 – GRNSW power to cancel or suspend licence of a greyhound
       racing club
   •   Section 41 – Prohibition on keeping of animals
   •   Ability of GRNSW to own or acquire racetrack land

The Association notes that this submission will not address any issues around
funding. The Association has prepared a second submission wholly dedicated to the
funding component which will be submitted separately.

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
a) Any improvements in the welfare of greyhounds since the
     enactment of the Act
   The functioning of the Greyhound Welfare and Integrity Commission has seen
   marked improvement in the welfare of greyhounds since the enactment of the Act.

   In particular, the Commission has undertaken a range of projects and policy
   enhancements which have contributed to the welfare of greyhounds, such as
   amendments to the Hot Weather and Race day Hydration Policy; the population
   project which has identified and determined the number of greyhounds in NSW;
   whole of life cycle tracking enhancements; upgrades to online registrations and
   improved data collection.

   Code of Practice

   Recently, following extensive industry consultation, the Commission finalised its
   Greyhound Welfare Code of Practice, which is set to be introduced on January 1,
   2020, and provides the highest standards of animal welfare across Australia.

   The Code of Practice provides an outstanding platform on which to build a vibrant,
   sustainable, exciting, rewarding and strong industry and one that has true
   engagement and solid support from the community.

   As with any major set of principles or standards, there are some standards which
   have been identified as requiring interpretation to ensure trainers understand the
   standards correctly, and in this regard, the Commission has undertaken some
   valuable work to produce industry practice guides to assist participants.

   Breeding Levels

   Prior to the introduction of the Act, concern remained regarding the high number of
   pups being bred annually. Pleasingly, and very importantly breeding levels have
   adjusted significantly since the introduction of the Act. In 2014/15 the number of
   greyhounds whelped was 8048, with the last two years showing levels at 3,976 and
   3,747 respectively, a fall of more than fifty percent.

   The halving of the number of greyhounds bred over the past six years is reflective of
   a new industry culture where the welfare of the greyhound is paramount and is at the
   forefront of all decision making.

                        Pups whelped annually in NSW
10000                                                                             Industry dedicated
                          8058   7964                                             to whole of life
                 7471
 8000    6906                                                                     cycle management
 6000
                                         4415            3975
                                                                                  (Source: Greyhound
                                                                 3747    3693     Welfare and Integrity
 4000                                            3056
                                                                                  Commission, August
 2000                                                                             2020)

   0
        2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
                                                                                                          5
GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
Injury Management
Currently, the industry is seeing its lowest rate of catastrophic injuries since reporting
began in 2016, with only 10 greyhounds suffering catastrophic injuries in Q2 of
calendar 2020. This equates to a rate of just 0.5 per 1000 starts. This decline is
consistent with an overall decrease in catastrophic injuries since 2017/18.

Catastrophic injuries are the injury type that is most concerning to the industry, and
we have seen a decline of 58% over the past four years.

Recently, the industry also recorded its lowest total injury rate since 2018, with a
total injury rate of just 28.1 per 1000 starts for Q2 2020, a decline from a high point
of 34.2 per 1000 starts in Q4 2019, after readjusting for re-categorisation of minor
injuries.

                   2.00
                                   Catastrophic racing injuries trend
Average quarerly

 per 1000 starts
  catastrophic
    injuries

                   1.00

                   0.00
                            2016/17                   2017/18                   2018/19          2019/20

                          Safety of the racing greyhound a key focus of the industry
                             (Source: Greyhound Welfare and Integrity Commission, August 2020)

The decline in the injury rate can be attributed to a range of policy and operational
developments that have been made by both the Commission and GRNSW,
including, but not limited to improved track inspection and maintenance standards;
improved decision making matrix and support for on track treating veterinarian’s; the
introduction of the Race Injury Rebate Scheme by GRNSW, and the separation of
the welfare and integrity functions of the industry from the commercial functions.

Additionally, to support injury management, in 2019, the Commission established the
Race Injury Review Panel to provide a consistent mechanism for systematic review
of serious and catastrophic injuries to greyhounds racing on tracks, so as to provide
a better understanding of the underlying causes of racing injuries.

Minimum Track Standards

The implementation and maintenance of minimum track standards has already had a
positive effect in contributing to the reduction in catastrophic injuries across all NSW
tracks.

The GRNSW Strategic plan includes substantial investment in safety at greyhound
racing tracks in NSW. GRNSW has demonstrated its commitment to the Strategic
Plan, having already invested more than $7M from the Safety and Welfare Capital
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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
Grants Program into NSW tracks over the past two years. The funds have been used
to upgrade, rebuild and remediate tracks to meet new and higher standards for
greyhound welfare and safety.

GRNSW has recently been engaging and consulting with tracks on the track strategy
to invest the remaining $23M in funds to upgrade and rebuild and remediate tracks
to meet the new standards for greyhound safety and welfare.

Track safety standards, and the welfare of the greyhound has been, and remains an
important and vital key focus of the industry.

Strengthened Rehoming

By far one of the biggest improvements in the overall welfare of greyhounds has
been the stronger rehoming requirements introduced by the Commission.
Greyhound owners are now responsible for rehoming any greyhound that they do
not wish to retain. Owners are required to meet strict requirements in attempting to
rehome greyhounds, and there are strong disciplinary actions available for the
Commission to deal with any greyhound owner who fails to meet these obligations.

              Industry culture focused on the whole of life cycle of its greyhounds

                  (Source: Greyhound Welfare and Integrity Commission Annual Report, 2018/19)

Both GRNSW and the Commission have introduced several policies and programs
to assist owners to rehome their own greyhounds. GRNSW have increased their
capacity to provide pathways for industry dogs to be rehomed, providing an increase
in the number of greyhounds being rehomed
each year.

The GRNSW Rehoming Assistance Schemes
introduced by GRNSW, which provides for up to
$950 of veterinary care costs for desexing,
dental care and general check-ups to be paid to
an owner who is rehoming their own dog. This
scheme is available to all owners rehoming their
own dogs, as well as other rehoming
organisations and members of the public who
take on retired industry dogs.

GRNSW have expanded the capacity of the Greyhounds as Pets program, including
increasing assessment days; the roll out of regional greyhounds as pets rehoming

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GREYHOUND RACING ACT 2017 STATUTORY REVIEW SECTION 1 SUBMISSION - SEPTEMBER 2020 - GBOTA
program, engagement with external adoption and rehoming organisations; and
investment in marketing to improve the awareness of the breed and the adoption
programs.

GRNSW have also made funds available to outside adoption groups and have
recently purchased land in the Hunter Valley area to further increase capacity of
rehoming, and the pathways available to owners for rehoming assistance.

b) The appropriateness of a target for unnecessary euthanasia of
   greyhounds
A number of strong and critical steps have been taken by the industry to reduce the
unnecessary euthanasia of greyhounds, and this has contributed significantly to an
overall decline in euthanasia.

                                                      Monthly average
         Reason                                                                    % change
                                                  Before             After

         Failure to Re-home                     3.0            1.9                     -38%

         Behaviourally Unsuitable               9.8            1.4                     -85%

         Medical Euthanasia - Illness           15.4           16.0                    + 4%

         Medical Euthanasia - Injury            20.0           13.1                    -34%

         Total                                  48.4           32.4                    -33%

                   (Source: Greyhound Welfare and Integrity Commission, August 2020)

The Commission has been instrumental in introducing the Greyhound Rehoming
Policy, which is intended to maximise opportunities for rehoming greyhounds that are
retired from or otherwise unsuitable for racing; eliminating unnecessary euthanasia
of healthy greyhounds; and ensuring that where it is necessary to euthanise, this is
conducted humanely.

Complementing this, GRNSW have also introduced a number of rehoming
assistance programs, and an injury management rebate scheme, to support the care
and rehoming of greyhounds who are not able to continue racing.

Overall, these objectives have led to a significant decline in unnecessary euthanasia,
and we should continue to see the downward trend as we work towards zero
euthanasia.

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Whilst zero euthanasia should remain the industry goal to work towards, there also
needs to be acknowledgement and acceptance of the rare circumstances where
euthanasia may need to be considered as a necessary option, after all other options
have been exhausted.

An example of this would be in cases of severe injury or illness, or an emergency
where a veterinarian is of the professional opinion that the greyhound cannot be
treated, or treatment would expose the greyhound to cruel and prolonged pain.
These circumstances are now covered under Section 9.5 of the new Greyhound
Welfare Code of Practice.

Additionally, there remains uncommon circumstances where a greyhound has
displayed extreme personality or behavioural issues that have already caused, or are
at an extremely high and immediate risk of causing injury to a person, and a
professional deems that it is unlikely that the
greyhound will be able to be rehomed safely.

However, it is clear the industry remains focused
on reducing these circumstances, with the new
Code of Practice concentrating efforts on the
whole of life cycle of the greyhound, from the
time it is born, through to its retirement to pet life.
The Code of Practice now provides standards for
the socialisation of pups and young greyhounds
within their rearing and education periods to
provide them with the best possible foundation to
becoming a race dog, but also success as a pet
in their post racing life.

c) The adequacy of compliance and enforcement powers in relation
   to greyhound racing
There has been a dramatic improvement in the visibility and efforts of the
Commission towards compliance and enforcement, which the Association believes is
acting as a deterrent to those considering breaching the rules. The Association
believes that the current compliance and enforcement powers of the Commission are
adequate to enable it to do its job.

The Association is concerned regarding the timeliness of inquiries and disciplinary
decisions, and the way in which certain offences regarding prohibited substances are
dealt with, which will be further discussed under (e) the appropriateness of penalties
and offences.

d) The appropriateness of the terms of an Operating Licence
   granted to GRNSW
The Association is unaware of the terms and conditions of the Operating Licence
granted to Greyhound Racing NSW so is unable to provide comment on this.
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e) The appropriateness of penalties and offences
The Association believes the current penalties and offences are adequate and are
assisting to achieve the desired outcomes.

However, one recurring issue is the way in which the Commission deals with
prohibited substances, where the use of performance enhancing drugs is treated in
the same vein as benign substances such as cobalt, calcium or arsenic, which are
also on the prohibited substances list.

Cobalt and calcium are naturally occurring substances found in the food eaten by
greyhounds, with a degree of doubt still in existence as to the scientific basis for the
substance being prohibited. The finding of cobalt or calcium in the system is
ordinarily due to husbandry practices, or specific foods that have been provided to
the greyhound for nutritional purposes.

Similarly, arsenic is a naturally occurring substances which is found in some foods
fed to greyhounds, such as sardines, and has also been proven to have been found
in soil and Sydney water in a previous case.

At the present time, all of these breaches are treated in the same vein, including
being listed on the Commission’s website as a ‘prohibited substance’ charge. This
remains an industry reputational risk, providing other participants, owners, and the
general public with the perception the trainer is guilty of a serious performance
enhancing issue, or in simpler terms ‘drugging’ their dog.

Additionally, the time taken for participants to have charges dealt with, in some
cases has been months, or even over a year between the charge, the process of
enquiry and investigation, and the handing down of a disciplinary decision. This has
an enormous impact on the mental health and wellbeing of both the participant and
their family members, as they deal with long periods of uncertainty.

Whilst it is important to have a process of natural justice, in circumstances where the
Commission is dealing with a charge related to a benign substance such as cobalt,
arsenic, calcium or other low-level offence, the process should be streamlined to
ensure it is efficient.

In the absence of cobalt, arsenic, calcium or other benign substances being removed
from the prohibited substances list, consideration should be given to breaches in
relation to these substances being dealt with quite differently than the breaches for
actual performance enhancing drugs.

The benign substance offences, or other low-level offences may be able to be
resolved more efficiently through a different process such as an enforceable
undertaking that could be negotiated early and efficiently after detection. The
administrative process of dealing with such matters would then be lessened, leaving
the Commission to concentrate its efforts on dealing with the more complex charges.

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f) The funding and efficiency of the Commission

The Association will address this issue in a second submission to be submitted
separately.

g) Any impact of the export of greyhounds
The statistics indicate a dramatic reduction in exports since 2017, with only 36
approved greyhound exports in 2018 – 2019.

Primarily, this has been the result of rules introduced by Greyhounds Australasia to
introduce stringent processes regarding the export of greyhounds, including making
it an offence for participants to export a greyhound without a passport.

It is clear from the reduction in exports, that the rules that have been put in place are
successfully addressing this issue, and greyhounds are no longer being exported
without passports.

The Association continues to support the process of regulating the export of
greyhounds for breeding, racing and as pets, as long as this is undertaken in a
responsible manner. The industry should not be restricted or discouraged from
exporting animals to countries with acceptable welfare practices.

The Association supports the process of Greyhounds Australasia, as the peak
industry body, continuing to regulate this process, with any changes made to this
process being undertaken by Greyhounds Australasia at a national level and then
adopted by each State greyhound regulatory body.

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PARTICIPANT FUNDED OWNERS / BREEDERS BOND
The Association remains concerned regarding the ability for the Greyhound Welfare
and Integrity Commission to make a rule to apply a bond on breeding or owning a
greyhound (“puppy bond”).

Whilst this has not yet been introduced in NSW by the Commission, the legislation
continues to permit the Commission to introduce a bond at any time within its powers
to make rules under Section 55.

The Association strongly believes that the introduction of a puppy bond would be
detrimental to the growth and development of the industry.

Background

The need for a puppy bond in New South Wales is one of the 122 recommendations
made by the Greyhound Industry Reform Panel:

    Recommendation 84.

    Owners should be required to pay a modest upfront bond to the integrity
    commission, no later than four months after whelping, that is
    transferable with ownership. This should be paid by the breeder if they
    still own the greyhound at four months. This should be supplemented by
    annual payments, made by the person responsible for the greyhound,
    while the greyhound is registered with the integrity commission. Industry
    may develop a scheme to fund these payments.

   (Recommendations of the Greyhound Industry Reform Panel February 2017).

It is important to note that the Reform Panel, as part of its terms of reference, was
tasked with assessing the recommendations of McHugh in the Special Commission
of Enquiry into the Greyhound Racing Industry in New South Wales (June 16, 2016).
Within this report, McHugh recommended:

    Recommendation 48.

    A significant fee should be imposed
    upon the breeder of any greyhound
    which is transferable and
    recoverable by the last person who
    has the care and control of the
    greyhound before it is rehomed or
    has been retired as a pet of an
    industry participant. In the latter
    case the fee should not be
    recoverable for a period of two
    years.

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At the time the McHugh Report was undertaken, McHugh held concerns
that:

   •   Breeding levels in place at the time and the capacity of the industry to
       manage these breeding levels whilst also maintaining animal welfare
       responsibilities to all greyhounds on a whole of natural life basis.
   •   Accurate whole of life tracking data was not in place as a consequence of
       inadequate data collection systems.
   •   An industry culture that was less focused on post racing and retirement
       responsibilities than it needed to be and;
   •   The inadequacy of the NSW greyhound industry commitment to rehoming and
       eradication of unnecessary euthanasia.
Much has changed since McHugh formed his recommendation. Indeed, his primary
concerns have or are being aggressively addressed by the industry regulator and
industry stakeholders.

   •   Breeding levels have adjusted significantly with the number of greyhounds
       bred in 2017/18 at 3,976 and the number of greyhounds bred in 2018/19 at
       3,747.
   •   The Commission continues to prioritise its efforts to achieve whole of life cycle
       tracking of greyhounds bred in NSW.
   •   GRNSW has a strategic planning process in place that is deeply committed to
       the development of properly resourced rehoming facilities that are managed
       with forward planning that is in line with the demands arising from breeding
       and racing pool levels of prior years. GRNSW has recently purchased land to
       further improve the rehoming capabilities of the industry.
   •   Industry participants have clearly committed to sensible reform. It would be
       unreasonable and untrue to suggest that the culture McHugh believed to be in
       place is in any way representative of current behaviour.
   •   Strong regulation and rules surrounding euthanasia have reinforced owner
       responsibility on a whole of natural life basis.
The Association believes that McHugh made his recommendation in the belief that
the industry was over-breeding and would continue to do so. In addition, it seems
that he lacked confidence in the data around
industry euthanasia levels and felt that
greater focus by owners toward post racing
and/or retirement responsibility was required.

The current industry operating environment is
significantly different to that which McHugh
surmised was in place. Currently, breeding
levels are managed, best practice animal
welfare standards have been adopted, the
Code of Practice has been introduced and
will become central to the industry’s operating
culture, unnecessary euthanasia has dramatically declined, the post racing rehoming

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principles are deeply imbedded in our owners minds, and total lifecycle management
remains a priority of the industry.

The introduction of any participant funded bond would have a significant impact on
the delicately balanced current breeding and participation levels. Given the
commercial impacts of such a decision, the Association strongly submits that the
ability to introduce a bond should be removed from the functions of the Commission.

Connectivity between breeding levels, wagering model and funding of reform
The Australian greyhound industry is committed to a future that is ethical and
sustainable, an industry that manages its breeding levels in line with the demands of
the commercial racing phase and ensures that all of its animal welfare
responsibilities are met.

Viewed in supply chain terms, the challenge of the greyhound industry is to ensure
that its breeding activity is maintained at a level that is sufficient to meet and
maximise the industry’s earning capacity during the racing phase but not excessive
to the industry’s capacity to manage retirement costs.

With both NSW and national breeding levels currently being less than half of what
they were in 2014/15, it is unknown as to whether current levels will be adequate to
meet racing pool/programme demands of 2021 and 2022. Indeed, we have already
been seeing supply issues within the racing pool over the past twelve months as a
result of reduced breeding.

The impost of a participant funded bond prior to optimum breeding levels being
determined magnifies the risk that currently applies. The industry – via the combined
considerations of GRNSW and GWIC – will continue working toward determining
optimum breeding levels, including interventions that improve breeding outcomes,
bred to race ratios, increase racing opportunities and career length for all
greyhounds. In addition, work is still to be undertaken with regard to fully
understanding the national breeding optimum level. This is complex but necessary
task given the migration of greyhounds across State boundaries prior to racing and
certainly during their racing careers.

The Reform Panel recognized this need when forming the following
recommendation:

      Recommendation 63.

      Industry should continue to advocate for a national approach to
      breeding controls for greyhounds.

The Association is deeply concerned that a participant funded bond – no matter how
modest – will impact on breeding and participation levels. This in turn impacts on the
capacity of the industry to meet its commercial responsibilities to the wagering
operators and, any impact on the commercial model, impacts on the industry’s
capacity to fund its animal welfare responsibilities with much of these costs in the
near term being fixed costs associated with infrastructure and property acquisition.
                                                                                    14
As such, our preference is for both GRNSW and GWIC to continue with a strategic
and holistic approach to total lifecycle management that ensures the NSW
greyhound industry is able to deliver a reformed and sustainable industry via
proactive rather than reactionary planning.

On this basis, it is recommended that consideration be given to:

      •      the industry’s cultural shift (including owner responsibility on a whole of
             natural life basis);
      •      the market adjustment and reduction in breeding levels;
      •      the full complexities and interconnectivity between national breeding
             levels, viable racing pool numbers, commercial returns and the
             industry’s future viability and sustainability and;
      •      the progress of total lifecycle management reform
      •      the industry’s progress on retirement and rehoming
and withdraw the ability for the Commission to set a puppy bond within legislation
and provide the industry with the opportunity to consider how industry commercial
returns might be distributed to set up an industry funded retirement fund.

The recommendation to consider how the industry could fund its own retirement was
echoed by the Reform Panel, who recognised that the bond, better described as a
subsidy toward post racing or retirement costs, could be funded at the industry
expense.

The Association notes that the NSW thoroughbred industry currently apportions a
percentage of funds that would otherwise be dedicated to prizemoney to a
thoroughbred retirement fund. Greyhound racing controlling authorities, throughout
Australia, are rethinking how wagering earnings might be dispersed to provide for the
retirement and rehoming needs of the industry.

Given the commercial nature of such a decision, the Association believes that this
function should not rest solely with the Commission.

However, should this not be acceptable, the Association recommends that further
detail be included to provide guidance as to the stage that breeding levels need to
reach before the Commission should look to exercise its power to introduce a
participant funded bond. For example, where breeding levels reach a certain
number.

Secondly, should circumstances arise where the need for a participant funded bond
is considered by the Commission, the Association would suggest that this should be
modest, and that a cap be implemented on such a bond. This was recommended by
the Reform Panel, who proposed that the bond be modest, as opposed to significant,
as the bond, if introduced at unreasonable levels, could impact on the finely
balanced industry breeding and participation levels.

                                                                                      15
SECTION 24 - FUNCTIONS OF GRNSW
The Greyhound Racing Act should outline the circumstances in which GRNSW is
able to exercise the power which provides for it to appoint an administrator to
conduct the affairs of a greyhound racing club (Section 24J), and the process that
must be undertaken in doing so.

Given the significance of the power, and the potential impact on a Club, its members
and participants, a clear outline of the circumstances and processes where
administration is appropriate should be included in the legislation. There have been
two recent examples, at the Richmond Greyhound Racing Club, and the Dapto
Greyhound Racing Club where GRNSW has appointed administrators to those
clubs, without due process.

To ensure the validity of the appointment cannot be called into question, and to
provide Clubs with a fair and transparent process, an outline of the circumstances
and process should be included in the legislation.

   SECTION 54 - SUSPENSION OR CANCELLATION OF
 REGISTRATION OF CLUBS ON COMMERCIAL GROUNDS

(1) GRNSW may suspend or cancel the registration of a greyhound racing club if
GRNSW is of the opinion that—
the greyhound racing club is not, or will not be, financially viable in relation to
participation in the greyhound racing industry, or
(b) it would be in the best interests of the greyhound racing industry to do so.
The Greyhound Racing Act should outline the circumstances in which GRNSW is
able to exercise the power which provides for it to suspend or cancel the registration
of clubs on commercial grounds.
The word ‘opinion’ in Section 54 (1) poses a significant issue, in that an opinion is
merely a judgement formed, not necessarily based on facts or knowledge, and with
no obligation or requirement for GRNSW to go through a formal process to make the
decision, or to disclose its reasons for the decision.

Section 54 (2) GRNSW may suspend of cancel registration of Greyhound Racing
Club if it would be in the best
interests of the greyhound
racing industry to do so.
Similarly, it provides GRNSW
with the ability to cancel
registrations based on their
own opinions or reason, without
a need for a formal process, or
any disclosure of the rationale
for the decision being made.

                                                                                      16
The suspension or cancellation of any Greyhound Racing Club has significant
impacts on all stakeholders, including staff, members, participants, members of the
public and the general community. A suspension or cancellation may involve the loss
of jobs, impact the income of participants racing in that area, impact the local
community economy, and have a knock on effect to community groups that utilise
the space when it is not being used for racing.

Given the significance of the impacts that such a decision has on all stakeholders,
the legislation should outline the process which GRNSW must undertake in making
such determinations.

The Greyhound Racing Act should outline the circumstances in which GRNSW is
able to exercise the power which provides for it to suspend or cancel the registration
of clubs on commercial grounds.

Given the significance of the impacts that such a decision has on all stakeholders,
the legislation should outline the process which GRNSW must undertake in making
such determinations.

                                                                                    17
CONCLUSION
The important welfare improvements can be seen through the development of the
Greyhound Welfare Code of Practice, which sets the highest minimum welfare
standards across Australia; improvement in minimum track safety standards;
reduced injury rates; significantly reduced rates of catastrophic injury; reduced rates
of unnecessary euthanasia, more balanced breeding levels, and an overall increase
in rehoming capabilities, resulting in increased rates of successful placements.

NSW GBOTA is of the view that the creation of GWIC is a positive for the industry
and this will become clearer overtime. The key issue right now is to fix:

   1. The problem of GWIC’s funding coming from the commercial arm, GRNSW;
      and
   2. The inherent unfairness in distributions of TAB, tax harmonisation and PoCT.

In our view, these problems are best addressed by ensuring GWIC has a sustainable
funding base through Ministerial appropriation and GRNSW receiving funding that
matches that commercial investment our industry and participants deliver through
the wagering revenue delivered to the State of NSW

The Association has a strong belief that the GWIC should be funded outside of the
“racing bubble”, which would go a long way to alleviate the conflicting priorities that
GRNSW must balance when expending their limited revenue streams. Perception
amongst most participants is that the costs of GWIC being funded out of GRNSW
revenue is taking directly away not only from grass root returns, but from essential
greyhound safety and welfare, improved infrastructure, breeding support and
education. Investment in education at all levels will ensure we achieve our industry
goals of “best practice” in all we do.

We make the observation that the major welfare costs and initiatives are in fact
delivered and funded by GRNSW, implemented by owners / trainers and breeders
and “policed / enforced” by the GWIC. Commercial programs such as Greyhounds
as Pets, Injury Rebate Scheme and various Re-Homing Assistance Schemes have
all been pro-actively introduced by GRNSW, embraced by participants and are being
monitored by GWIC for their effectiveness.

We are happy to follow-up with more information or answer any questions. We hope
this submission is useful to your deliberations.

Thank you for the opportunity for the Association to contribute to the statutory review
of the Greyhound Racing Act 2017 (NSW). The Association welcomes any further
opportunities to consult regarding any proposed changes to the Act that arise from
this review.

For further enquiries regarding the Association’s submission, please contact
Membership and Advocacy Manager Kristy Harper on 0459 873 139, or General
Manager Steve Noyce on 0402 428 117.

                                                                                          18
PO BOX 485 GLEBE NSW 2037
         PH: (02) 9649 7166
     kharper@gbota.com.au
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