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PRESIDENTS REPORT


Updated - 20 April, 2007

   

 

Presidents Reports

Mike Becker  TBA President (Elected 13/04/2007)

  

 

 

Presidents Occasional Reports

Richard Turnley  TBA President (Retired 13/04/2007)

 

I have headed this report as occasional deliberately so that no one will be under false impression that I will be contributing on a regular weekly basis but rather when issues arise or time permits.

 

OUTGOING PRESIDENT FAREWELLS TBA

19/04/2007 

Last Friday, I retired as President and as a director of Thoroughbred Breeders Australia after some 15 years association. It seems to me that is a good time and place to say thank you to the many people that I have met and who have helped me especially in my lengthy term as President. I will also indulge myself in some reminiscing on this site which I helped establish some 8 or 9 years ago, and which is so widely used in Australia and overseas.

 

Let me first start at home. Australian thoroughbred breeding has changed so much over the past 15 years that friction and problems were inevitable. The number of stallions has reduced by more than 60% and there has been an influx of overseas shuttle stallions that has been coupled with aggressive and persuasive advertising that many former stallion studs have been swept away. The emphasis on overseas marketing of Australian yearlings has been extensive and a new mentality and modus operandi have been introduced into the industry. The racing industry has become a slave to the various totalisator authorities and, in the desire to maximize returns, the traditional bush racing has been minimalised. That has meant that many established breeders who bred for country racing have disappeared. In the commercial area, the number of vendors at yearling sales has reduced significantly. The ability of most breeders in the industry to operate even at a small profit has reduced but we have seen the increased wealth of the major studs. Quite frankly, I preferred things as they were before.

   

 

Against that scene, which is probably common in many countries, it has not been easy to work for the good of all breeders. It has been difficult to encourage them to either join or remain in an industry where the odds have swung against them. However, the TBA has done its best and has tried to make the breeding of thoroughbreds as enjoyable and as equitable as possible. The Association works for stallion owners and mare owners and for commercial breeders and for owner breeders and it is for this reason it is an important body.

 

I took over as President at a time when the Association had no officer and no operating premises and had withdrawn from most local and overseas bodies. I am indebted to all the people who have served on the TBA with me, and who have helped me rebuild the association. The process has not been without a few problems but today we have an association that has a very good base to go forward. The President of the Victorian branch, Mike Becker, takes over from me and I am very happy with that, as he has been a wonderful vice president for many years.

 

I am delighted that, at my last meeting I signed the Heads of Agreement that enabled Aushorse to take a position on the TBA.

 

Australia is a major breeding country and needs a marketing authority and it is good that that body should be part of the TBA. There have been concerns by many breeders that a few major commercial studs in NSW may have undue influence on the industry if they took a unique position on the TBA. It has taken some time to negotiate an Agreement that ensured that these concerns were met but I believe that a good balance has now been struck.

 

 

In Australia, I have been most fortunate to had very good working and personal relationships with the various Chairmen of the VRC and the AJC who own the Australian Stud Book and also with the Keepers of the Stud Book. This was a great help to me and I would like to thank them all. The relationship between the ASB and the breeders is most important and at times, the ASB is put in very difficult situations by the demands of some specific groups. I believe the close relationship between the TBA and the ASB has been most important in ensuring that there have been fair outcomes for all types of breeders. The VRC and the AJC have been very good custodians for all breeders.

 

On the overseas front, I have attended, as a delegate of the TBA, nearly every Asian Breeders Conference and International Breeders Meeting since 1991. I have had the good fortune to meet many wonderful people and to have made many presentations about our industry.

 

 

During my term with the TBA, I saw the Australian Racing Board established and for about 15 years, I served on the Australian Pattern Committee, 7 years as Chairman. This has always been a very hard working committee that has been hampered by it’s lack of independence. It was a great pleasure to lead this group when it totally overhauled the processes of allocating black type in Australia. This was against the most bizarre opposition from Queensland. My battles with the ARB were always on the basis that they should have let the Pattern Committee do it’s work and only be involved if the criteria was being flouted. Never the less, the TBA and the ARB executive have worked well together and Andrew Harding has been able to serve his masters without too much compromise.

 

I have never believed that the TBA should be an over aggressive organisation and I do not believe the President should be either. I hope that by proper and decent conduct, more can be achieved. But at times, there are issues where it is necessary to be strong and vocal and I hope that when I may have trodden on a few feet those occasions can be forgotten.

 

Here are a few dot points on various issues and subjects over the period I have been with the TBA and in no particular order.

 

  • I was glad when Australia had a lengthy debate on the legality and the benefits of the ban on AI. I believe our approach was very sound and that the ban is legal and necessary to maintain the genetic pool. I, personally do not support Service reinforcement and my view was unanimously endorsed by the board.

 

  • I am alarmed at the size of the bureaucracy that is now in the racing industry and I know my concerns are similar to those held overseas. It amazes me that a much larger racing industry was controlled by a vastly smaller bureaucracy only a decade ago. The current bureaucracy seems to desire to justify their size by attempting more controls and interference but no more encouragement for the participants.

 

  • When I am constantly offered the opinion by Northern Hemisphere people that Australian racing is inferior to theirs, I boil. These statements can not be supported by any evidence and in fact. it is far easier to prove the reverse. At present, Australia has the best and most diverse line up of stallions in the world, it has an outstanding herd of brood mares and the climate, tracks and the professionalism of the participants are the best in the world. The problem is because of the age differences, the inability of many thoroughbreds in training to travel well and other factors most top Australian do not compete against horses from the other hemisphere. This, for some unknown reason leads to a view that Australian horses must be inferior. Just as our cricketers, golfers, equestrians, rugby players and swimmers are!

 

  • I am delighted that the International Breeders Meeting will be held in Australia in March 2008. I believe that these meetings have reached a point where they can be used to even greater mutual advantage. We will not try to match the Japanese who hosted a gala conference but I am sure the Victorians will do an excellent job in hosting the event. In contrast, the Asian Racing Conferences have become a Las Vegas circus and are, at best, an indulgence.

 

  • We can not turn back the clock and it is not possible for the TBA to interfere with normal commercial business, but I hope that the concentration of stallion ownership and industry income can be halted.

It is very hard work operating a thoroughbred stud on a hands on basis and it is even more difficult when you also are doing voluntary work for the industry. There have never been enough hours in the day and as the years rolled on and as I had a few leg operations, I felt I was slowing down considerably.

 

For a long time, I have not been able to enjoy all the other wonderful things in life and I have a very wide range of interests, which I am now going to pursue. I will now have time to read, learn more languages, attend concerts, look at sporting events and keep my friendships in good repair.

 

I have relocated for much of the year to the Dominican Republic and will lead una vida latina. I take with me many wonderful memories and good friends in both breeding and racing and I hope that all may visit me in my Caribbean paradise.

 

RICHARD TURNLEY

    

AUSHORSE TAKES A SEAT ON TBA BOARD

19/04/2007 

 

Last Friday, Mike Becker and I signed a heads of agreement with Ken Barry and John Messara, representing Aushorse, which cleared the way for Aushorse to take a position on the TBA as a quasi state.

 

I have had quite a few calls from breeders expressing some concerns, so I wish to state some details that I think will stop any anxiety.

 

The thoroughbred industry has changed dramatically over the past 15 years and today we see the commercial market dominated by a relatively small number of breeders, probably less than 40 in the total breeder population of over 7000. These commercial breeders invest enormous amounts of money into infrastructure, bloodstock and labour. They must have good marketing and good sales to make a return on this investment. Aushorse has represented these commercial breeders.

 

The TBA represents all breeders and has branches in each state but the marketing is very generic and broad based, it does not concentrate on individual buyers. It deals with a wide range of issues that impact upon all breeders but sometimes very significantly on the commercial breeders.

 

That Aushorse had to join the main body was obvious but on what terms. That has been the problem for too many years.

 

Last Friday, we agreed to amend the TBA constitution to enable Aushorse to join the TBA. We also changed the voting structure from a sliding voting structure that broadly reflected the mare numbers in each state to a structure of one vote per member body. We have agreed that instead of just the small number of commercial breeders having the benefit of the name Aushorse, it will be used by all breeders in Australia.

 

There were various other changes to the constitution in the heads of agreement to ensure that the TBA enhanced its role as a body looking after the interests of all breeders regardless of location or size.

 

I have personally been working on this issue for at least a decade and I wish to thank Tas Reilly and Michael Ryan especially for their contributions. I think the agreement will work well and be to the benefit of the industry

 

  

MEETINGS WITH THE TAX OFFICE

2/11/2006 

The Australian Taxation Office has been conducting audits into the thoroughbred racing and breeding industry, which has resulted in some concerns from many breeders. As a result, representatives of the TBA and the ATO have had series of meetings, which have been very productive from both sides.

One of the main concerns has been the interpretation by the current audit team of whether a breeder is conducting his breeding operations as a hobby or a business. The TBA has presented many arguments that there are many different ways of conducting a business when breeding and that it is almost impossible to have a set of rules that will embrace all circumstances.

Without going into all the details I am happy to report that I believe that the ATO may review their approach. They stressed that they had no intent of causing unnecessary fear or panic and that they appreciated that our industry was a valuable one for rural Australia and that it was not involved with the cash economy.

Much of our discussions have revolved around what is called TR 93/26, which was written when the industry was different than it is today. This tax ruling is currently being revised and a series of meetings in Melbourne, Sydney and in Brisbane between the ATO and the industry has taken place. These are in addition to the meetings that the TBA has been involved in and which have focused on the current audit and the interim period.

 

TBA AGAIN AT THE ASIAN RACING CONFERENCE

02/11/2006 

The TBA will be in Dubai in January and will have a marketing stand. We have been at every conference since 1990 and have had a marketing stand since they were introduced at the Bangkok meeting. Visit the official ARC Website http://www.arcdubai2007.com

  

INTERNATIONAL BREEDERS MEETING IN TOKYO

03/06/2006 

The International Breeders Meeting was hosted by the Japanese Thoroughbred Breeders in May 2006, the first time the meeting has been conducted in Asia. The meeting coincided with the running of the Japanese Derby. The Japanese could not have been more hospitable or better organised and the meeting was a great success both in terms of fostering goodwill between the various breeding countries and in the interesting agenda.

 

There was great interest in various subjects where Australia has led the way. Firstly, the meeting reviewed the change in determining the year of birth away from the actual date of birth to the date of conception. I reported to the meeting that the change had been a great success and I think there are other countries who will now follow this method.

 

The second subject was the agreement between the ASB and the TBA that a stallion farm could block a mare return if the service fee had not been paid when it fell due. The TBA had spent a great deal of time working out conditions so that mare owners would be treated fairly and the conversations in Tokyo mirrored our own. I believe that other countries will use almost the same conditions if they implement a similar scheme.

 

These meetings are held every 18 months and are normally conducted without elaborate infrastructure.

 

AUSTRALIA TO HOST NEXT MEETING

03/06/2006 

I have much pleasure in advising that the next International Breeders Meeting will be hosted by Australia in late summer 2008. The Canadians, who were scheduled to host the next meeting graciously agreed to let Australia go ahead and will now host the meeting after Australia. Plans have already commenced to ensure that the meeting will benefit both Australian and international breeders.

 

OUTSTANDING RIRDC PUBLICATIONS

03/06/2006 

Derek Field kindly filled in for me recently in attending a meeting of RIRDC that discussed and planned the next 5 years priorities for equine research. Previously, we had made representations that we wished a study to be made on tracks and on racehorse injuries. I was, therefore, very pleased to receive a copy of the latest RIRDC publication which is called Risk Factors for Injuries in Thoroughbred Racehorses. I will not summarize the report but I regard it as essential reading for any one who wishes to engage in serious debate on this subject.

 

Also RIRDC has published a great publication called Plants Poisonous to Horses. It is full of pictures of all the plants that cause all the problems and also contains advice on the elimination of these plants. It is also an essential read.

 

TAXATION IN THE THOROUGHBRED INDUSTRY

03/06/2006 

The TBA has requested the Victorian and the South Australian Presidents to work with industry and to meet with the Commonwealth Government and the ATO in an effort to make the various taxation issues fairer to both breeders and owners. There are four issues that are being addressed

  1. The need to change the write down provisions to match those in NZ.

  2. The need to ensure that our exports are GST free.

  3. The need to permit capital losses on the disposal of a racehorse to be matched against capital profits on the sale of a racehorse.

  4. The need to ensure that there are fair and easy to follow rules for owners and breeders on who can and can not register for GST and thus claim rebates for GST paid on racehorse expenditure

BIG CONCERNS AT THE ASIAN RACING CONFERENCE

12/03/2003 

The 29th Asian Racing Conference took place in Auckland, New Zealand between the 1st and 6th March 2003 with a full array of racing, social events, meetings, conference papers and discussions conducted in a good atmosphere. The conference was extremely well organised and administered, and it would have been most difficult for anyone who attended not to have left with a greater understanding of the racing and breeding industry throughout the region and the world. Well done, New Zealand.
 
There were some quite outstanding papers delivered, most with all the technical communication aids that appear on screens as graphs, slides, flow charts, photographs and so on, but it may be unfair if I singled these out.
 
Instead, I would like to concentrate on three areas of great concern to the breeding industry in Australia that were widely discussed at the conference.
 
The first is the subject of betting exchanges and internet betting that has the potential to destroy racing in the Pacific and Asian region by operating without returning funds to the industry as do the legal totes. Almost four years ago, at a previous ARF meeting, a professional punter from Holland actually gave a demonstration on how he bet on line and at the meeting all the heavies in racing administration were present and everyone saw the potential problems ahead.
 
At the Auckland meeting it became quite apparent that next to nothing has been done to counter the internet betting and in fact the delegate from the International Federation of Horse Associations said they would appoint someone in Paris with a budget of US$75000 to deal with the problem next month and lawyers said they would seek uniform legislation to ban the exchanges and introduce a good neighbour policy. Yes, prohibition. I met no one who was not aghast at the ineptitude and tardiness of the official response to the problem. Currently the threat is from people whom, at least, superficially seem most pleasant but the prospect of quick easy money will soon attract criminal elements who will totally disregard any laws. These people have to be beaten at their own game through commercial and technological supremacy.
 
The second point is that an administrative nightmare is unfolding with the thoroughbred industry witnessing the biggest growth area in the world … racing administration. It is displaying a great example of negative correlation because as the number of runners decreases, so does the cost of administration increases. At present, working the way up the tree, there is the club administration, then often the rural or provincial administration, then the state administration as in the principal clubs, then the national administration as in the Australian Racing Board, then the Asian Racing Federation and finally the IFHA in Paris. All are trying to justify their existence with endless committees and in the end what is being achieved apart from spending money that should be put into prize money or research? Just to give an example, a charming young lady representing the Equine Pharmaceutical Industry informed the meeting that the Australian Rules of Racing had been altered so that some worming pastes and anti-biotics were no longer prohibited substances. To which a gentleman from England tore his hair out because the ARB did not have permission from Europe. And who was supposed to safeguard our industry from the betting exchanges and other internet betting shops. All talk and little action between the layer upon layer of administration is now stifling the industry so that speed in decision making and implementation is quite impossible.
 
Needless to say some people thrive in tripping around the region and the world and seek to not only perpetuate their current activities but to increase them no matter if the results of their deliberations have no benefit.
 
The third area of concern is also obvious to see. For many decades Australian breeders have imported high class breeding stock from England, Europe and the USA to augment the champions that have been retired from the Australian turf. This importation of quality blood stock accelerated from 1991 with the introduction of dual hemisphere horses and Australia has been standing racing and breeding champions from America, Ireland, England and France which have achieved success in roughly the same the ratio as locally bred stallions. At the same time racecourses have been maintained at high levels and the sport has achieved a popularity that the Europeans can only dream of. Our best races as set out in the Group and Listed Races listings are compiled on criteria and ratios far more conservative and demanding than those in the northern hemisphere. So with pedigrees, racecourses, prize money, trainers and jockeys that are at least the equivalent to those in Northern Hemisphere, there is no logical reason why Australian racing should not be considered to be in the top drawer.
 
However, one of these new committees that have been formed in the administrative layers is producing international classifications of racehorses that denigrate the Australian thoroughbred industry to such an extent that it looks second class to those in Europe. The breeders, the owners and the sales companies are most concerned at how our elite horses are being treated in the classifications and the question that I asked at Auckland is whether it is worthwhile being in a system that gives us only nominal or token acknowledgement. The only blessing is that in a room of about 200 to 300 racing people only five had looked at the classifications which may indicate the interest that is in them but nevertheless they are their in black and white downgrading the Australian industry.
 
For many years, most Australians have quietly endured the condescending and patronising attitudes of some European racing officials whom I suppose genuinely believe that their horses and pattern races are better than ours, notwithstanding the lack of any evidence. This is the first time that they have sought to quantify their attitudes in ratings and at the Auckland meeting I recommended that unless the Australian horses and races were adequately recognised Australia should not be part of the ratings.
 
The answer from the Europeans and I include Hong Kong is probably that Australian horses will have to participate internationally a lot more to receive better ratings but why should they just to satisfy a group of handicappers when there are adequate races at home. The evidence of equality can still be assessed.
 
I know that I have full support from most racing people in Australia and the region on this subject and I can only repeat that it is far better for us to be solely part of the ANZ ratings where 99.9 % of our horses race than be part of an international model that will not properly recognise us.
 

AUCKLAND SUCCESS FOR EVERYONE

10/03/2003 

The Asian Racing Conference in Auckland was attended by racing officials, owners and breeders from more than 28 countries, and the 5 or 6 days were packed with interest.

 

I am glad to say that the TBA stand in the conference hotel that was prepared and manned by our secretary, James Peters, and which was jammed full of brochures from organisations and associations within the Australian thoroughbred industry was constantly busy. Tons of brochures, papers, guides and magazines were distributed to delegates and I am sure that everyone who sent material to the TBA for the stand would have been delighted at the response.
 
The New Zealand and the Irish Thoroughbred Marketing Boards also had stands, which were popular with the delegates. It is always difficult to know what will be the top seller, because in Bangkok two years ago, it was the big photos of a stallion, where as in Auckland several booklets were on demand.
 
The next conference will be in Korea in 2005, God willing, and of course we will be there also.
  
Richard Turnley
10th March 2003
  

 VALE   JOHN KELLY SNR

25/02/2003  

The founder of Newhaven Park Stud, Boorowa NSW, John William Kelly, has died at the age of 86 and with this death the Australian thoroughbred breeding industry has lost one of it's last post war heroes. In the beautiful rolling countryside of the southern slopes of NSW, between Boorowa and Cowra, John Kelly built a thoroughbred stud that was to become the equal of any in Australia. The concentration was on quality bloodstock and animal care and not on pretentious infrastructure. The results were outstanding both in the sales rings and on the track.

 

John Kelly served on the committees of the NSW Bloodhorse Breeders Association where he was Treasurer and also on the Australian Bloodhorse Breeders Association.

 

For most breeders, the memory of John Kelly is associated in two ways. Firstly he is remembered in connection with the two great stallions, Wilkes and Luskin Star which stood at Newhaven, although there were other great horses at the stud. Secondly, he is remembered sitting behind the auctioneer's right shoulder at the Inglis Sydney sales, always dressed in coat, collar, tie and clean boots, assessing every horse as it entered the ring and writing the price and comments in his catalogue.

 

In his later years, John Kelly suffered from ill health and was not often seen. I only knew John Kelly in the last 35 years of his life, having purchased several fillies from his drafts and later on Victory Prince by Imperial Prince who stood at Newhaven from the great Newhaven Valour family. After Victory prince had sired Tierce, which later went to stand at stud at Newhaven, John Kelly came and visited Victory Prince at Sutton Forest and we got to know each other better.

 

A full obituary will appear in the TBNSW Update and the web sites next month.

 

Rest eternal. And may light perpetual shine upon him.

 

Richard Turnley

President

Thoroughbred Breeders Australia.

  

CLEARING UP A FEW GST BLUES

15/01/2003 

In recent days there have been several reports that overseas buyers coming to Australia, are unable to keep their yearlings that they have purchased GST free in Australia for more than 60 days. In most cases this is not correct. In fact, by applying to the Australian Taxation Office and receiving a GST number, not only will the overseas buyers have the GST on their purchases refunded, but they will also have all their GST on agistment, veterinary bills, handling costs and floating refunded. Further more, the horses can stay in Australia for an indefinite period so they can be fully mature and broken in when they leave to their racing country.
 
The process is very simple. The overseas buyer can personally apply, or can use an agent to apply to the ATO for a GST registration number. Evidence must be provided to satisfy the enterprise test, that is part of the GST Act, such as a copy of a certificate of registration, or whatever the ATO requires, and either the agent or the overseas buyer must have a bank account in Australia.
 
The Australian Taxation Office has recently further improved it's service, by agreeing that a statement from the revenue authority in the home country certifying the status of the non resident will be sufficient. The Australian Taxation Office has had officers on the Gold Coast at the Magic Million Sale to assist the process, and they have indicated that they will have officers at other sales.
 
There are still a few problems in relation to those buyers who can not meet the enterprise test, but talks are continuing to overcome these problems in time for the sales in Adelaide and Perth. These mainly relate to individual purchasers from Asia. Buyers from New Zealand normally ship their purchases back home within the 60 days GST free period.
 
Compared to other countries the GST in Australia is still very new and the Thoroughbred Breeding Industry and the Australian Taxation Office are working together to ensure that the GST Act is complied with, but in a way that assists our export market.
 
As agents, buyers and breeders become more familiar with the process there will be fewer problems. The simple rule is that overseas buyers should register for GST and they will find then that Australia is the best place to buy thoroughbreds.
 

Richard Turnley
President
Thoroughbred Breeders Australia
 

2002 IN REVIEW

10/12/2002 

2002 started well for most thoroughbred breeders in Australia as they saw most yearling sales at least hold steady if not increase on the prices of the previous years and the continuing increases in prize money on the racetracks help demand for horses be maintained.

 

Most breeders have now worked out for themselves that the shuttle stallions from the northern hemisphere have just as much chance as failing as the Australian horses and that there is a lot more in financially sound mating than merely visiting an overseas stallion. The sad story was that Danehill did not return to Australia, which is the country that has established him as a mega star. It is some consolation that he has numerous sons standing at stud throughout Australia.

 

Australia is the second largest racing country in the world and the vast majority of the annual production races in the home country. Over the past 15 years or so hundreds of millions of dollars have been spent by Australian breeders importing mares from some of the best thoroughbred families in the USA, Ireland and England and there is no doubt that the quality of our blood stock has been enhanced. Nevertheless it is interesting to note that the majority of the group winners in Australia still carry the wonderful blood of past Australian champion stallions and especially Star Kingdom.

 

It is not surprising that with the huge range of quality mares and with champions of the turf from Europe, the United Kingdom, the USA and from Australia now standing in Australia the demand for Australian horses from overseas buyers has increased. There is no country in the world that can offer such a diverse range of quality yearlings.

 

The TBA has been working with the Australian Taxation Office and the Treasury to make the recently introduced GST regulations easier for overseas buyers to comply with. We still have some way to go before we can say that we can be happy that the interpretation of the act is neutral to overseas sales.

 

The TBA also played a major part in preventing the outbreak of Viral Abortion that occurred early in the stud season becoming more of a disaster. The press, radio and television all helped us in spreading the message quickly that there was an urgent need for sound isolation policies on studs and that pregnant mares should be foaled down at home where ever possible.

 

The TBA has been pleased to play it’s part through out the year with racing and veterinary authorities as well as with the auction houses. Procedures relating to the X raying of yearlings at sales were worked out and have already been tried at the ready to run sales. The cost of the x-rays will be met by breeders.

 

The TBA has two representatives on the Australian Group and Listed Races Committee and this committee met twice during the year. Australia is the only country where the background, criteria and guidelines for the black type races are fully disclosed on the ARB web site and in a publication.

 

During the year the TBA welcomed and hosted many people from overseas the latest delegation being from South Korea. Thanks go to the studs and race clubs for their assistance.

 

The TBA web site continues to grow in popularity and in the number of hits and is accessed by people from around the world. Because we maintain our independence we do not feature in some of the closed awards but it is generally considered that the Australian site is world class.

 

Finally, from the start of the breeding season to the present time the drought has relentlessly tightened it’s grip on most thoroughbred areas though out Australia. It is highly likely that the 2003 foal crop will be at least 15% less than this year as breeders elect not to mate or mares decide not to carry their pregnancy to full term. The impact on this drought will be felt for many years and will flow through to the racing industry. The Board of the TBA can do little to assist in a practical sense those breeders who are suffering in the conditions but our hopes and prayers are for good rains in the near future.

 

May Christmas and the New Year bring peace to us.

 

Richard Turnley

10th December 2002

 

AUSTRALIA PRAYS FOR RAIN

09/12/2002 

No one living in the eastern states of Australia has seen anything like the widespread drought that has now established itself in nearly every corner of Queensland, NSW and Victoria. West of the Great Dividing Range the pastures have been totally devastated and thousands of native animals and birds together with cattle and sheep have perished from the lack of feed and water. Graziers have been forced to slaughter their breeding stock that have been accumulated over decades and the grain production this year will decline by over 57% from the previous year. 

 

All thoroughbred breeders have already been affected by the drought as feed prices skyrocket and water becomes scarce. Mercifully parts of South Australia and Western Australia have been spared and huge shipments of oats from Western Australia at unheard of prices are keeping many studs and trainers going for the time being.

 

In NSW the big dry has led to a massive outbreak of bush fires along the ranges ranging from the Hunter Valley to the Bega Valley. On some days there are over 80 fires burning out of control.

 

It is a desperate time but we are most fortunate that the terrible loss of life that has been caused by the long drought throughout Africa has not occurred in Australia. Nevertheless it is a time to reflect and to hope and pray that rain will soon arrive and prevent further suffering to so many country people and livestock who suffer enough in the changing economic environment.

  

Richard Turnley

9th December 2002

  

GST AND HORSE EXPORTS

20/07/2002 

Unlike England, Ireland and New Zealand we have had a GST or VAT in Australia for only a very few years and at present the thoroughbred breeding industry is having a few difficulties in making the GST act export friendly. I believe that the situation was the same in New Zealand when their GST act was introduced and that in order to make the act work there was a need to make what can be called variations on a theme. In Australia we will get it all working well fairly soon but it may need a few meetings between breeders and the Tax Office and Treasury in the mean time. The results of our latest meeting are in the latest news section of this site and I would recommend that they be read.

  

Richard Turnley

20 July 2002

  

GST Fiasco     

20/06/2002 

Australian breeders who are registered for GST recently received a flyer from the Australian Taxation Office in their mail entitled GST and Horse Exports and probably almost keeled over at some of the statements in the flyer. The requirements set out in the flyer are completely contrary to the procedures that have been agreed to between the industry and the ATO. Many of the requirements have been made retrospectively and breeders will have no chance of meeting them. In addition the procedures that were only agreed to in March 2002 have already been altered and the procedure for dealing with GST pre 25th March 2002 are entirely different to the procedures post 25th March.

 

One of the most amazing statements that is made is that horses that have been broken in prior to export are liable for GST . This statement is made although there is a draft ruling and a letter to the Australian Racing Board that breaking in is necessary as a pre export function prior to export to most Asian countries. As everyone knows most Asian countries will not take a horse until it has matured and is broken in.

 

The TBA and Aushorse have written to the ATO complaining in the strongest terms about the statements in the flyer, the retrospective nature of the requirements and the mishandling of the issue of GST and horse exports.

 

In addition the two associations will be seeking to meet urgently with the Treasurer and the Minister for Trade in Canberra in order to resolve this issue. It is totally frustrating for breeders and agents and can very easily be resolved by common sense. Any progress on the issue will be placed immediately on this website

   

Professor Rose Stands Down (a bit)   

04/03/2002 

Professor Reuben Rose has been the Programme Manager of the Equine Research and Development Programme in Australia since 1995, but recently announced that he would be standing down from that position, although he would continue on the committee for a time to enable a smooth transfer to his successor to take place. 

 

At a function held last week at Sydney University, Reuben gave a frank speech about his role in the R and D programme, and I could not help but think how good he is at motivating right to the end. He said quite sincerely that he took the job because he thought he was the best for it and I agree. Right from the start this programme could have