Thoroughbred R&D Levy Proposal
A Discussion Paper
5. Funding Thoroughbred Industry Needs:
In this discussion paper we present the case for a statutory R&D levy for the Australian Thoroughbred Industry, to provide adequate and reliable funding to implement a new Thoroughbred R,D&E Plan, based on the current RIRDC Horse R,D&E Plan 2011-2016.
The current Horse Plan is the fourth five-year plan, released in 2011 by RIRDC following extensive consultation with industry stakeholders, including Thoroughbred breeders.
The current plan builds on previous plans with a focus on the areas of Research, Development and Extension activities that are of greatest potential value to Australia’s horse industry and where there are capabilities to provide high quality RD&E projects.
The return on industry investment in the Horse R,D&E Program is demonstrated through the following study commissioned by RIRDC:
The RIRDC Project No. PRJ 005655: Economic Evaluation of Investment in the Horse RD&E Program
This RIRDC report presents the results of economic analyses of three clusters of investments within the Horse R,D&E Program, that totalled $1.07 million (present value terms) and produced aggregate total benefits of $3.85 million (present value terms).
The Horse R,D&E Program share of the total investment was 38%. The analyses found all three investments provided positive returns with Benefit-Cost Ratios ranging from 1.8 to 6.2. (RIRDC publication No. 11-011)
RIRDC has provided an overview statement and a list of publications available for purchase or free download for the RIRDC Horse R,D&E Program as an attachment to this discussion paper.
Since 1995 TBA has developed an excellent working relationship with RIRDC and is therefore recommending that the Thoroughbred R,D&E Program continue to be administered through RIRDC.
For the current 2011-2016 five-year plan, RIRDC announced its decision to phase out its core funding contributions to the Horse Program, which will end on 30 June 2013. This means the Horse R,D&E Program budget for the 2013/14 financial year is totally dependent on continuing voluntary industry contributions from the Thoroughbred breeding and racing sectors, and is likely to fall below $300,000 per annum.
Previous R&D planning workshops have identified the need for an annual Horse Program budget of $1 million, highlighting the fact that current funding arrangements are insufficient. For this reason, TBA believes it has become necessary for the Thoroughbred Industry breeding sector to support the proposed move to implement a statutory R&D Levy (which WILL be matched dollar for dollar by the Australian Government up to an approved funding limit) in order to adequately support the industry’s vital R,D&E program.
Q2: Do you have any comments on the future funding of the Thoroughbred R,D&E Program?
Please refer to Attachment 2: Thoroughbred Levy Feedback Form, where you are able to record your responses to the questions raised in this discussion paper.
Included with this discussion paper are: