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CONTENTSChairman’s Report

Chief Executive’s Report

Administrative and Financial Structure

Integrity Assurance Committee

Racing Industry Participants Advisory Committee

Information Technology

Stakes Payment System

Race Dates and Programming

Appeals

Industry Training

Racing Services

Corporate Affairs

Licensing

Stipendiary Stewards

Handicapping

Public Relations and Media

Australian Racing ForensicLaboratory

Veterinary

Insurance

Registration Department

Finance

Human Resources

Financial Statements

M I S S I O N S T A T E M E

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30

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“To provide independent, strong and

united leadership in the development

and enhancement of the NSW

thoroughbred racing industry, which will

lead to the maintenance

and confidence in the

integrity of the

industry, in its

competitive position and

increased financial returns

to constituent stakeholders.”

N T Functions of the Board Under section 14(1) of the Thoroughbred Racing Board Act 1996,the Board has the following functions:

(a) all the functions of the principal club for New South Walesand committee of the Principal Club for New South Walesunder the Australian Rules of Racing,

(b) to control, supervise and regulate horse racing in the State,

(c) to initiate, develop and implement policies consideredconducive to the promotion, strategic development andwelfare of the horse racing industry in the State and theprotection of the public interest as it relates to the horseracing industry,

(d) functions with respect to the insuring of participants in thehorse racing industry, being functions of the kind exercised bythe AJC on the commencement of this section, and suchother functions with respect to insurance in the horse racingindustry as may be prescribed by the regulations,

(e) such functions as may be conferred or imposed on the Boardby or under the Australian Rules of Racing or any other Act,

(f) such functions with respect to horse racing in New SouthWales as may be prescribed by the regulations.

Members of the Board 1 July 2001 – 30 June 2002

A G Hartnell AM (Tony) CHAIRMAN

Appointed 12 June 2000 for4 years Attended 11 meetings

W H Rutledge (Bill) VICE CHAIRMAN

(retired 18 February 2002) Australian Jockey ClubNominee Appointed 13 March 2000for 2 years Attended 7 meetings

R W Lucas (Ralph) SYDNEY TURF CLUB NOMINEE

(retired 24 June 2002) Appointed 13 March 2000for 4 years Attended 12 meetings

D E Hopkins (Don) VICE CHAIRMAN

from 20 May 2002 NSW Country Racing CouncilNominee Appointed 13 March 2000for 4 years Attended 12 meetings

M J Cusick (Malcolm) PROVINCIAL ASSOCIATION OF NSWNOMINEE

(retired 18 February 2002) Appointed 13 March 2000for 2 years Attended 8 meetings

R M Lapointe (Bob) OWNERS AND BREEDERS NOMINEE

Appointed 13 March 2000for 4 years Attended 11 meetings

J B Costigan (John) LICENSED PERSONS NOMINEE

Appointed 13 March 2000for 2 years Re-appointed 12 March 2002for 4 years Attended 11 meetings

M J Hill (Merv) RACING NSW CHIEF EXECUTIVE

Appointed October 1999 Attended 12 meetings

B J Reardon (Brian) PROVINCIAL ASSOCIATION OF NSWNOMINEE

Appointed 18 March 2002for 4 years Attended 4 meetings

D P R Esplin (Phillip) AUSTRALIAN JOCKEY CLUB

NOMINEE

Appointed 18 March 2002for 4 years Attended 4 meetings

Member’s Deputies Richard Turnley OWNERS AND BREEDERS

MEMBER’S DEPUTY

Attended 1 meeting on behalf of Mr Lapointe

Treve Williams AUSTRALIAN JOCKEY CLUB MEMBER’S DEPUTY

Attended 1 meeting on behalf of Mr Rutledge

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1 October 2002

The Hon J Richard FaceMinister for Gaming and RacingLevel 1355 Hunter StreetSydney NSW 2000

Dear Minister,

In accordance with Section 29 of theThoroughbred Racing Board Act 1996 asamended, I submit to you the sixthAnnual Report of the NSWThoroughbred Racing Board (TRB),covering the period from 1 July 2001 to30 June 2002.

The vast amount of work performed inthe IT sector is beginning to reapdividends. IT has long been high on ourlist of priorities and the improvements ineffectiveness and cost savings willultimately flow on from the improvedtechnology. One such initiative is theTrainers Service Centre which enablesthe rapid processing of racingtransactions as well as improving theflow of information. The centralisationof the TSC also provides administrationsavings to race clubs and regionaloffices.

Last financial year, NSW thoroughbredracing offered $92.8million inprizemoney and staged 20 of the top 50races (by value) in Australia. With theexception of the Melbourne Cup, NSWis home to the next three richest races inthe nation – the AAMI Golden SlipperStakes, the San Miguel DoncasterHandicap and the San Miguel AJCAustralian Derby.

These three races are major world racesand illustrates the strength of this State’sautumn racing carnival. Accordingly, Imust congratulate the metropolitan raceclubs for each providing highlysuccessful autumn carnivals.

Naturally, the Provincial Association ofNSW and the Country Racing Councilmust also be commended on somemarvellous racing throughout the year –providing 869 race meetings across theState.

Merv Hill and I continue to serve as NSWnominees on the Australian RacingBoard, the peak body for the nationaladministration of racing. The ARB hasbeen determinated to implement an

Australian racing information systemand to work with a Government TaskForce to the tackle the big issue of CrossBorder Betting.

Following extensive consultation, theARB widened the powers of Stewards toadopt ‘Out of Competition Testing’which allows them to take samples fromhorses in training –to provide a drug-free environment for horse racing.

And on that subject, we must giveample recognition to the ARFL(Australian Racing Forensic Laboratory) –part of the TRB which, last October,announced a "World’s First" with theability to detect erythropoietin (EPO).The lab soon fielded inquiries fromAmerica and England underlining theimportance of this breakthrough.

The dispute between NSW Racing andTAB Limited was resolved with bothparties signing a commercial resolutionending all outstanding disputes. Thesettlement was a victory for all industryparticipants and it was agreed by bothparties to move forward together for thebetterment of the industry.

It would be remiss not to acknowledgethe tremendous efforts of former Boardmembers Bill Rutledge, Ralph Lucas andMalcolm Cusick. Each gentleman madegreat contributions to both the Boardand to the racing industry throughouttheir long commitment (not yet finished)to racing administration.

To all industry participants andstakeholders, your dedication andtireless efforts throughout the year aregratefully acknowledged.

A G HARTNELL AMCHAIRMAN

Tony Hartnell

Chairman’s Report

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5

The conclusion of the year under reviewsaw the TRB reach the milestone of 5years at the peak of racingadministration in NSW. That anniversaryrequired that a review of the TRB Act1996 be undertaken, in accordance withS.53 of that Act, and a report resultingfrom that review was tabled inParliament in June, 2002.

Some minor legislative changes will flowfrom that report, but substantially thecurrent structure and arrangements willstand.

The management team was seriouslyrestructured during the year and newgeneral manager positions in Finance &Admin, Racing Services & CorporateAffairs being filled by Michael Beith,Keith Bulloch and Stephen Fergusonrespectively. Greg Perfrement, theoriginal Chief Financial Officer left us, asdid Wayne Pollock, formerly ChiefOperating Officer and these twopositions were not continued.

Also, our Official Analyst Shawn Stanleysuccumbed to the temptations of theEast and took up a position with theSingapore Turf Club. Fortunately, AllenStenhouse, a scientist of great equineexperience, was appointed to thisposition.

Our thanks go to those gentlemen whoput in great efforts at the seniormanagement level and who have nowmoved on.

The management team’s efforts wereheavily focused on developments inInformation Technology during this year.

New systems for the Registrar ofRacehorses and many of our racingfunctions were under developmentduring the year – these will put us on acontemporary IT platform which willenable greater efficiencies.

During the year we found a suitablebuilding for TRB headquarters; on afinancial analysis it was clear that wecould buy this building and move fromrented accommodation and gain savingsfor the industry.

Following completion of purchasenegotiations in January, the operationsof the TRB moved from the original baseof rented premises in Rosebery to ourown building in Mascot. The move wasmade with a minimum of disruption tostaff, our customers, and ouroperations, and was a credit to the teaminvolved. Our fit-out and relocationadvisers, Kinetic Holdings, wereinstrumental in making the movesuccessful, and the IT team handled theconsiderable technology aspectssuperbly, all managed by our internalProject Management Team and ofMichael Beith and Victoria Ramirez.

The TRB continues to show a stronglead in OH&S matters, and ourhandbook is in keen demand from otherracing entities. Our progress in OH&Smatters also came under the spotlight atthe 28th Asian Racing Conference heldin Bangkok in November 2001, whenother nations joined in a workshopwhich I chaired to discuss this importantissue.

It must also be pointed out that theIndustry Workers CompensationInsurance Fund has had a difficult yearwhere it incurred financial losses of$4.46 million due to the followingissues:

• The final position on the HIHcollapse is now known and the costto the fund was $3.2 million;

• A change in Government legislationwas introduced in late 2001 whichhad the effect of bringing forward anumber of claims which would havepreviously been spread over anumber of years; and

• Investment returns were negativeduring the year due to the poorperformance of the world equitymarkets.

The above points have significantlyaffected the financial position of theFund and combined with additionalprudential margin requirements ofWorkCover have led to the TRB’sdecision to contribute the additionalamount of $0.45 million to the fund

and increase all Industry WorkersCompensation charges by 20% effective1 July 2002. A further review ofpremiums will be carried out in thesecond half of the 2002 year.

The regulatory side of TRB operationsran smoothly during the year. Onceagain the Board sought independentassessment of its effectiveness andefficiency, and following that review hasnow embarked on a revision of itsstrategic processes.

The Board is placing more and moreemphasis on racing operational matters,such as programming.

These matters are canvassed elsewherein this report – on behalf of the Boardand the staff I thank those who workedwith us for the betterment of racing.The concern shown by the Governmentthrough our Minister and the officers ofthe Department of Gaming and Racingcomes through in real support andassistance, and I mention themespecially.

Finally, I would like to thank the staffof the TRB who have taken on the taskof change with great enthusiasm: thisis an organisation undergoingsignificant change; organisation,cultural and technological changesabound, and the staff attack these likethe winners that they are.

M J HILLCHIEF EXECUTIVE

Merv Hill

Chief Executive’s Report

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The NSW TRB and all NSW race clubsare bound by various agreements thatdetermine the flow of financialdistributions from TAB Limited.

Racing Distribution Agreement (RDA)

The RDA outlines the contractualrelationship between all codes of theNSW racing industry and TAB Limited.For example, it determines the minimumamount of race meetings each code andsector must supply to TAB. It also setsout how fees payable to all codes of theracing industry by TAB are to becalculated.

Roles of each party

The roles of each party are:

• The NSW racing industry supplies the“product” to TAB Limited

• TAB Limited “sells” the productthrough wagering outlets

• The racing industry receives a sharein the net wagering revenue andprofits of TAB

• Each of the racing codes and sectorsmust co-operate in matters such asprogramming and race dateallocation so as to fulfill the mutualobjectives of the racing industry andTAB.

Objectives of RDA

The mutual objectives of TAB and theracing industry are broadly to:

• Encourage public interest andattendance in racing in NSW

• Promote the quality anddevelopment of the codes

• Maximise Net Wagering Revenueand Wagering Earnings

NSW Racing Pty Ltd. (NSWR)

Racing NSW, Harness Racing NSW andGreyhound Racing Authority of NSW arethe controlling bodies of each racingcode in NSW. Together, they establishedthe company NSW Racing Limited(NSWR) to represent them under theRacing Distribution Agreement (RDA).

NSWR is the interface between all codesof the racing industry and TAB Limited.Its function is to perform, as agent foreach representative body severally, theterms of the RDA. The funds paid to allcodes of the racing industry by TABLimited are received by NSWR.

The Board of NSWR comprises 4members from the thoroughbred code,2 members from the harness code and 2members from the greyhound code.The current thoroughbred codemembers are:

Mr. Tony Hartnell AM (Chairman)

Mr. Bill Rutledge (retired 18 February 2002)

Mr. Don Hopkins

Mr. Merv Hill

Mr. Phillip Esplin

Inter-Code Agreement

The Inter-Code is an agreementbetween the thoroughbred, harness,and greyhound codes. It determines thebasis upon which funds received byNSWR from TAB Limited are distributedbetween the codes. It also outlines theterms under which NSW Racing Pty Ltdis operated, controlled and funded.The funds are allocated primarily onfixed proportions. Since privatisation ofthe TAB, the allocation of funds hasbeen as follows:

Intra-Code Agreement

The Intra-Code Agreement sets out thedistribution of monies between themetropolitan, provincial and countrythoroughbred sectors. The first $115m ofdistributions are set at fixed percentages.

The remainder of funds above $115m issplit 50% on the fixed portions and50% on market share of TAB sales.Since privatisation of the TAB, theallocation of funds has been as follows:

Administrative and Financial Structure

56%

27%

17%

MetropolitanCountry

Provincial

2002 2001 2000

GRA ($M)HRNSW ($M)TRB ($M)Total ($M)

1999

25.8

28.6

142.

1

196.

5

23.9

26.3

22.6

24.1

22.1

24.1

132.

5

182.

7

124.

7

172.

0

121.

7

167.

9

2002 2001 2000

Country ($M)Provincial ($M)Metropolitan ($M)Total ($M)

1999

34.9

22.2

72.0

129.

1

33.1

21.0

68.6

122.

7

31.5

19.3

65.4

116.

8

30.6

19.2

63.6

113.

4

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Purpose

The Integrity Assurance Committee is tohave primary oversight of those aspectsof the Board’s functions which relate torace stewards, drug testing and control,licensing, handicapping and horse racingappeals.

The IAC is to advise the Board onmatters of integrity which arise in thisarea.

Members

Mr D E Hopkins CHAIRMAN

The Hon J C J Matthews

Mr A K Davidson AM MBE

The Hon L F Bowen AC (RETIRED DECEMBER 2001)

Mr M Cummings (APPOINTED DECEMBER 2001)

Meetings held in 2001/2002

• July 2001

• February 2002

• The IAC was also represented at all 6Licensing Committee meetings heldin 2001/2002

Major items addressed

July 2001

• Status of Armidale Training Academy

February 2002

• Review of all integrity functions ofthe TRB

Stewards

Handicappers

Veterinary

Laboratory

Licensing

Registration

Integrity Assurance Committee

Integrity Assurance CommitteeL–R: Alan Davidson, Don Hopkins, John Matthews, Lionel Bowen

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Racing Industry ParticipantsAdvisory Committee

The Racing Industry Participants AdvisoryCommittee (RIPAC) was established underthe Thoroughbred Racing Board Act1996 as a vehicle by which industryrepresentation is made to the TRB.

Members

Mr Mark DanielsTRAINERS

Mr Paul InnesJOCKEYS

Mr Benedict ChanOWNERS

Mr Les YoungBREEDERS

Mr Jack AshmanBOOKMAKERS

Mr Matthew Thistlewaite INDUSTRY EMPLOYEES

Mr Peter MairCONSUMERS

Under section 35 of the Act, thefunctions of RIPAC include: • Advise the TRB on industry policy

and strategic direction • Serve as a communication channel

between industry stakeholders andthe TRB

• Provide a forum to discuss issues ofconcern and make recommendationsto the TRB

• Nominate members, at the requestof Racing NSW, to serve on the TRBsub-committees or working groups

The Board gratefully acknowledges thetime, effort and expertise that RIPACmembers contribute to the racing industry.

RIPAC

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Department members

Clinton GaddesIT OPERATIONS MANAGER

Luke McLeanMANAGING CONSULTANT

Rob BuckleyIT SUPPORT

Cassandra DartHELP DESK SUPPORT CO-ORDINATOR

David ParsaIT CONTRACTOR (FROM MARCH 2002)

Racing NSW is entering the homestraight in implementing the enhancedHORSES Racing System at Racing NSW’snew headquarters in Mascot. Thesenew systems provide the industry with acontemporary technology platform thatwill allow the integration of the internet(www.racingnsw.com.au) togenerate various benefits to theindustry. Whilst these benefits maynot be visible to industry participantsuntil 2003, they will allowparticipants to interact with RacingNSW via the internet for manyfunctions from renewing a license tochecking on your stakes paymentsaccount online.

The move to Mascot (from Rosebery)was a huge project - completed witha minimum of disruption to staff anddone in a highly efficient way. Itrequired a new building to becompletely upgraded from atechnology viewpoint and it alsoallowed for a new telephone andcommunication system to beinstalled, and provision of a new hubroom. All this was successfullycompleted without any disruptionsto the NSW racing industry.

Some significant agreements werereached during early 2002 between thestate racing bodies of Australia. RISA(Racing Information Services Australia)has been incorporated as a nationalcompany with a view to holding ITresources between the States, which willeach hold equity in the company. Thefirst benefit of this is the utilisation ofthe Trainers Service Centre which is dueto go live in September 2002. This isthe first step of many which will seeeconomies of scale achieved in ITdevelopments across the country.

The development of the new Registrarof Racehorses (Registration Department)system is complete. With integrationwith the internet (2003), owners will beable to perform tasks such as horsename availability enquiries over theinternet.

2002 also saw the implementation of aWide Area Network connecting Countryand Provincial locations to Racing NSW’sheadquarters. This will provide costsavings to the industry overall whilstproviding these participants with highspeed access to central systems and theInternet.

IT

Clinton Gaddes

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DesignThe Stakes Payments System isdesigned:• To centralise the fees charged and

prizemoney paid throughout NSW• To enable industry participants to

meet legislative requirements of GST

ReviewThe second full year of operation of theNSW Stakes Payments System saw achange to the processing of payments,providing the opportunity for efficiencygains and reallocation of resources. Theyear also saw a number of majorchanges and enhancements to thesystem, including:• Processing of direct rental payments

for Lessors• Incorporating changes to Trainer’s

Workers Compensation• Processing of payments relating to

Country Cash Bonus scheme• Management of NSW Race Club

accounts and Industry Charges• Improved signoff procedures to

reduce errors and amendments• Focus on industry cashflow through

improved debt collection

Continued provision of remittanceadvice for direct payments and monthlystatements for Trainer’s enables industryparticipants to effectively manage theirbilling, GST and tax requirements.

Design ChangesWork continues on the HORSES projectto incorporate the Stakes module. Themajority of work associated with thedesign and analysis of the new systemhas been through use of internalresources. The new system will have anincreased focus on exception reportingto reduce errors and amendmentsflowing through the system. The comingmonths will finalise the design,development and training associated

with this major project. A significantenhancement to the new system is theenabling of direct payments to allowners (regardless of GST status) wherebank details are provided.

Operations and StatisticsThe NSW Stakes system is the mostexpansive centralised prizemoney systemin Australia. Statistics for the secondyear include: • Processing of almost 32,000

payments totaling $97 million for allNSW race meetings (869 in total)

• In excess of 1 million transactionsprocessed through the system

• Maintenance of Stakes accounts forapproximately 3,100 Trainers andMasters, 1,000 Jockeys andApprentices and almost 10,000owners (including overseas)

• In excess of 98% of Licensees and60% of Owners payments are byEFT.

The focus in the coming year will be toreduce the costs of administering thesystem and providing effective e-commerce solutions to the industry. Amajor driver of cost reduction will be thefocus on collection of bank details andhence direct deposit payments forOwners. The cost to the industry ofproviding cheque payments is almost$100,000 annually. The delivery of e-commerce solutions will focus on theon-line provision of account information.

The system will continue to bedeveloped over the coming years toprovide an efficient solution for theindustry. Racing NSW envisages theintegration of the system with other ITprojects and the Racing NSW websitewill provide an effective mechanism forparticipants to manage their Stakesaccounts and payments.

Department Members

Paul BittarFelicia GibsonJohn PattonCassandra DartSue Hutchison

Racing NSW Stakes Payments System

Paul Bittar

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Racing Review Panel The Racing Review Panel works inconsultation with the RacingConsultative Committee and aims toimprove the quality of racing in NSWand to maximise TAB Limited sales. TheRacing Review Panel meets on amonthly basis. The role of the ReviewPanel is to advise and recommend to theBoard, race dates and programminginitiatives that consider and address the: • needs of owners and industry

participants, • maximisation of performance across

Metropolitan, Provincial and CountryRacing,

• optimisation of wagering sales whichprovides substantial revenue to theindustry,

• most efficient yet productive mannerin which these aims can be achieved.

Primary issues considered • race date allocation process • race program co-ordination between

clubs and sectors • uniform balloting conditions across

NSW • benchmarking of race clubs returns

to owners • support to ‘Black Type’ racing • amendments and creation of Local

Rules and policies such as racedivisions, extended nominations forballoted horses or abandoned races,changes to eligibility criteria

• significant evaluation and change torace types and conditions permittedto be programmed within eachsector

• optimal field sizes versus turnover

Racing Review Panel

John CostiganBOARD MEMBER NSW TRB

Wayne PollockCHIEF OPERATING OFFICER (UNTIL FEBRUARY 2002)

Keith BullochGENERAL MANAGER RACING SERVICES NSW TRB(FROM MAY 2002)

Matt Davis(SECRETARY) RACING CO-ORDINATOR NSW TRB

Mark WebbeyCHIEF HANDICAPPER NSW TRB

John NicholsonRACING MANAGER SYDNEY TURF CLUB

Colin TuckRACING MANAGER AUSTRALIAN JOCKEY CLUB

Brian JuddCHIEF EXECUTIVE NSW COUNTRY RACING COUNCIL

Stephen FergusonEXECUTIVE OFFICER PROVINCIAL ASSOCIATION OF

NSW (UNTIL MAY 2002) GENERAL MANAGER CORPORATE AFFAIRS NSW TRB(FROM MAY 2002)

Racing Consultative Committee The Race Dates and ProgrammingConsultative Committee meets with theProgramming Panel on a quarterly basis.The role of the Consultative Committeeis to provide an opportunity for: • industry representatives to put

forward issues to be examined bythe Review Panel, and

• the Review Panel to act as a conduitbetween sectors, participants andthe Board.

Primary issues • review of restricted class racing • computerised or automated

handicapping • raceday returns to owners • minimum handicap weight spreads • raising of weights • set-weight racing

Racing Consultative Committee

Les YoungRIPAC

Michael CraigRACING MANAGER ILLAWARRA TURF CLUB

Michael BeattieCHIEF EXECUTIVE GOSFORD RACE CLUB

Tony DrewCHIEF EXECUTIVE WYONG TURF CLUB

Peter NoudRACING MANAGER NEWCASTLE JOCKEY CLUB

Brian FletcherSECRETARY / MANAGER HAWKESBURY RACE CLUB

Peter StubbsRACING MANAGER ACT RACING CLUB

John McNairTRAINER REPRESENTATIVE

Noel Mayfield-SmithTRAINER REPRESENTATIVE

Clarrie ConnersTRAINER REPRESENTATIVE

Ron QuintonTRAINER REPRESENTATIVE

Representative (2)NSW COUNTRY RACING COUNCIL

Ray MurrihyCHAIRMAN OF STEWARDS NSW TRB

Paul BloodworthDEPUTY HANDICAPPER NSW TRB

Mark DanielsRIPAC

Ron LeemonAUSTRALIAN TRAINERS ASSOCIATION (NSW BRANCH)

Race Dates and Programming

Matt Davis

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Race Dates and Programming

Average number of starters per race

Individual horses that started

Prizemoney, bonuses and starters rebates distributed in NSW ($M)

Total number of starters

Number of TAB meetings v. Non TAB meetings

Number of race meetings

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In NSW, an independent two-tier systemof appeal exists for persons aggrieved bypenalties or disabilities imposed by aracing authority.

Appeal Panel Members

Mr T E F Hughes AO QC (PRINCIPAL MEMBER)

Mr Wayne Haylen QCMr Martin Einfeld QCMr Darcy LeoMr John HiattMr Rodney WicksMs Margaret CrawleyMr Dominic BeirneMr Ray NolanMr Robert MonnoxMr John FletcherMr Peter NorrgardMr John VandenbergMr Neville BeggMr Donald StoreyMr David CampbellMr Jack HickmanMr Peter MiersMr Cliff Clare

Mr David Campbell was the only newmember appointed to the Appeal Panelduring 2001-2002.

Mr Wayne Haylen QC resigned from theAppeal Panel in July 2001 when he wasappointed as a Judicial Member andDeputy President of the New SouthWales Industrial Relations Commission.His contribution as an inaugural memberof the panel was greatly appreciated.

Department MembersMr M J HillSECRETARY RACING APPEALS TRIBUNAL

Ms K ReeceAPPEALS CO-ORDINATOR

Avenue of AppealAt the first level of appeal, any personconsidering themselves aggrieved by adecision of a racing authority has the

choice of appealing to either one, butnot both, of the following AppealBodies:• The Appeal Panel, constituted under

the Thoroughbred Racing Board Act1996 (Section 45), or

• In limited circumstances, the RacingAssociation in the region where thedecision was made.

The second and final avenue of appeal,the Racing Appeals Tribunal, isconstituted under its own Act and canhear appeals on certain matters frompersons aggrieved by decisions of thePanel or racing authorities.

Appeal PanelThe Sydney based Appeal Panel sat on19 occasions during 2001-2002. TheHon T E F Hughes AO QC chaired 15Appeals and Mr M Einfeld QC chaired 1Appeal. Within those 19 sittings therewere 16 appeals heard on 35 individualcharges. The majority of these appealswere against conviction and penalty. APanel of five members heard mostappeals.

Racing Association AppealsIn addition to appeals heard by theSydney-based Appeal Panel, theCommittees of the NSW RacingAssociations heard certain appeals intheir own districts.

Decision on Changes

Appeals

Area Upheld Dismissed Withdrawn $200 TotalRefunded Charges

Appeal Panel 6 29 2 2 35Racing Associations 1 2 0 1 3

Tom Hughes

*Appellants are required to lodge a $200 deposit, which may berefunded at the discretion of the Panel.

John Vandenberg Rodney Wicks Tom Hughes Neville Begg Cliff Clare

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The Board gratefully acknowledges thetime, effort and expertise that AppealPanel members give towards thisimportant part of the Racing Industry.

Racing Appeal Tribunal

1 Appeal was lodged with the RacingAppeals Tribunal and heard by HisHonour Mr B R Thorley. The Tribunaldismissed the appeal and varied thepenalty.

The Appeal was under AR175A being:

Any person bound by these Rules whoeither within a racecourse orelsewhere in the opinion of theCommittee of any Club or theStewards has been guilty of conductprejudicial to the image, or interests,or welfare of racing may be punished.

Kathy Reece

Rule Description Amount

AR137(a) Any rider may be punished if, in the opinion of the Stewards, he is guilty of careless,improper, incompetent or foul riding 7

AR175(a) The Committee of any Club or the Stewards may punish any persons, who, in their,has been guilty of any dishonest, corrupt, fraudulent, improper or dishonourable action or practice in connection with racing. 1

AR175(g) The Committee of any Club or the Stewards may punish any person who gives at anyinquiry or appeal any evidence which in their opinion is false or misleading in any particular. 2

AR175(gg) The Committee of any Club or the Stewards may punish any person who makes any false ormisleading statement or declaration in respect of any matter in connection with theadministration or control of racing. 1

AR175(h)(ii) The Committee of any Club or the Stewards may punish any person who administers,or causes to be administered, to a horse any prohibited substance which is detected in any sample taken from such horse prior to or following the running of any race. 4

AR175(j) The Committee of any Club or the Stewards may punish any person guilty of improper or insulting behaviour at any time towards the Committee of any Club or Associationor any member thereof, or Stewards, or any official, in relation to their or his duties. 3

AR175A Any person bound by these Rules who either within a racecourse or elsewhere in theopinion of the Committee of any Club or the Stewards has been guilty of conduct prejudicial to the image, or interests, or welfare of racing may be punished. 3

AR81(A)(ii) Any jockey, apprentice or rider who has delivered a sample of his urine or otherwisetaken as directed by the Stewards prior to, during, or after fulfilling his or her ridingengagements in any race or trial or at riding trackwork which upon analysis hasdetected in it alcohol, or any drug or its metabolites or artifacts may be punished 1

LR91(q) Every bookmaker must enter accordingly all book bets in a recognisable name of the person with whom they are made and none but legitimate wagers must be so entered. 13

Total 35

Dismissed Upheld

Represented by Solicitor 22 3Represented Self 7 3Totals 29 6

Representation Table

Summary of Charges Applicable to Appeal Cases

16

The Industry Training departmentencourages people to enter the racingindustry, identifies appropriate careerpaths and manages relevant training.

Objectives:• Increase apprentice jockey and

trackwork riders numbers • Increase apprentice jockey race

riding opportunities• Manage the TRB Apprentice School

in conjunction with TAFE• Manage the Apprentice Race Series

in conjunction with DET NAC• Encourage greater participation of

young people in the racing industry• Assist people entering the industry

to find their most suitable careerpath

• Provide ongoing industry-crediblementoring to apprentice jockey,trackwork rider, strapper andstablehand trainees.

• Ensure participants are informedabout changes to the national RacingIndustry Training Package

• Provide equitable training for racingindustry participants throughout thecountry, provincial and metropolitanregions

• Participate on state body RacingTraining NSW

• Liaise with national body RacingTraining Australia to ensureconsistency in training is maintained

• Expand the scope of training • Formulate a strategic approach to

promote careers in the racingindustry to school students.

TRB Apprentice SchoolApprentice Schools operates on afortnightly basis in the six RegionalAssociation areas: • Central Districts Racing Association

(CDRA) – Orange TAFE deliverstraining at Orange, Dubbo, Bathurstand Mudgee.

• Hunter and North West RacingAssociation (HNWRA) – Scone TAFEdelivers training at Scone,Broadmeadow and Tamworth

• Northern Rivers Racing Association(NRRA) and Mid North Coast RacingAssociation (MNCRA) – Grafton TAFEdelivers training at Grafton andother areas in the NRRA and MNCRA

• South East Racing Association (SERA)– Goulburn TAFE delivers training atQueanbeyan and Moruya

• Southern Districts Racing Association(SDRA) – Wagga Wagga TAFEdelivers training at Wagga Wagga.

Apprentice Jockey Training and theNSW Institute of SportIndustry Training has held preliminarydiscussions with the NSW Institute ofSport with a viewto progressingspecialisedpsychological andphysical fitnesstraining forapprenticejockeys.

Following thesediscussions, theTrainingDepartment andthe NSW Instituteof Sport held anIntroduction toSports Psychologysession forapprentice jockeymentors, andrepresentativesfrom the NSWJockeys Association. The purpose of thesession was for mentors to discussconcepts related to motivation, goalsetting, concentration skills and stressreduction and how these issues relate toapprentice jockeys.

Appointment of Malcolm Fitzgeraldas Training Support OfficerLicensed jockey Malcolm Fitzgeraldjoined the Industry Training Departmentin August 2001.

His duties include the followingactivities:• Attendance at local race meetings to

mentor apprentices,• Riding work with apprentices,• Attendance at Apprentice School to

review race rides and tutorapprentices on the mechanical horse

and Equisizer,• Apprentice mentoring outside of

Apprentice School and racemeetings,

• Workplace visits to assessapprentices’ stable skills,

• Visits to school and pony clubs topromote the racing industry.

Industry Training has also encouragedTAFE to appoint former and currentjockeys as mentors and part timeteachers to assist in mentoring andcoaching of apprentices.

Apprentice mentors are involved in boththeoretical and practical tuition. They are ‘role models’ who communicate the benefit of theirexperience to apprentices by contributingto Apprentice School classes as well as‘on-the-job’ training.

• Metropolitan and Provincial – LeeAnn Olsen and Brian Wood

• CDRA – Bill Aspros, Paul Wearne andTracey Bartley

• HNWRA – Stephen Parr and WayneWeate

• MNCRA and NRRA – Michael Flick • SERA and SDRA – Garry Buchanan.

Promotions and RecruitmentIndustry Training’s Malcolm Fitzgeraldand Gail Vitale attended the followingpony camps and schools career marketsdays to promote the racing industry, andspecifically apprentice jockey careers.• Camden Pony Camp (where 60

young elite riders from throughoutNSW, aged between 14 and 17years, attended the camp)

• Crookwell Pony Camp• Canberra Careers Expo

Industry Training

Marianne Chaffe

17

• Goulburn Careers Expo• Liverpool Career Search Market• Cumberland Rotary Career Markets

Parklea• Marcarthur Area Careers Markets

Cambelltown• Central Coast Career Market Ourimbah.

Each of the careers markets attractbetween 2,000 and 4,000 local students.

Women in Racing WorkshopsAs a response to the recommendationfrom the Thorley Report (IndependentReport in Sexual Harassment in theRacing Industry) that the racing industryshould continue to inform and educateindustry participants throughout thestate about sexual harassment, IndustryTraining developed a project plan andbudget and organised ten statewideWorkshops.

Despite a mail out to all licensed andregistered females, articles in the Mayand June 2002 RacingNSW Magazine,requests for support from RegionalOffices and announcements at theOccupational Health and Safetyseminars, the response to theWorkshops was minimal. A total of 12women responded from four countryvenues, nil from two country venues andeight from the metropolitan area andmost of the Workshops were cancelled.

Acknowledging the important, yetsensitive, nature of the subject, IndustryTraining will attempt to reschedule someof the Workshops. Information packageswere sent to those women in countryareas who expressed interest inattending a Workshop, which wassubsequently abandoned.

Senior Jockeys TrainingIndustry Training convened two meetingsbetween President and Secretary of NSWJockeys Association and a training groupcalled CD Sports. Industry Trainingassists the NSW Jockeys Association inthe organisation and delivery of seminarson issues related to health and diet andcareer transition.

DET NAC ‘RISING STAR’ ApprenticeRace Series

The 2001 ‘Rising Star’ Apprentice RaceSeries concluded atWarwick Farm on Monday6th August 2001 withSERA apprentice LukePrice taking out the title

ahead of Mark Schmetzer.

The Series began again in February 2002at Broadmeadow with other heatsconducted at Canterbury (night meeting)Dubbo, Taree, Mudgee, Goulburn,Gosford, Armidale, Port Macquarie,Hawkesbury, ACT and the final atRandwick. The number of heats in theSeries has increased from 10 to 12.

Mr Lou Deutshcer and Mr Joe Dwyer fromDET NAC worked with the IndustryTraining department in co-ordination ofthe series and the Board gratefullyacknowledges their contribution.

The ‘Rising Star’ logo is embroidered onthe winners jackets and appears inracebooks and other promotional material.

Apprentice Race RidingOpportunitiesRace riding opportunities for apprenticesincreased by 8% from 1997 up until the2000 – 2001 season.

During the last two seasons there weretwo individual apprentices, riding withgreat success in the metropolitan area,who temporarily inflated the figures.

This inflation began in the previous seasonwhen Hugh Bowman had 848 rides andMitch Newman 791 rides. Last seasonNewman and Bowman between themrode 1904 races in the metropolitan are awinning a total of 189 races.

The above figures show that apprenticerace rides in the 2001 – 2002 season arethe second highest since records were kept.

Government Funding for TrainingProjectsThe Industry Training Department wassuccessful in securing funding from thegovernment for training projects to thevalue of $96,750 in the last financial year.

*The Stewards Resources and PilotProgram were Racing Training NSWinitiatives. Agreement to progress theseunique programs was facilitated bycommon goals of the three codes. Thesefunded projects are managed by RacingNSW Training Manager Marianne Chaffe.

Racing Training New South WalesIn NSW, changes or extensions to industrytraining programs are determined by abody called Racing Training NSW (RTNSW)which is the link between industry andgovernment. RTNSW meets once every sixweeks and comprises representatives fromthe three racing codes, NSW department ofGaming and Racing, TAB Limited, and anindependent representative.

The racing industry’s national trainingadvisory body Racing Training Australia(RTA) reports directly to the FederalGovernment on development of trainingprograms. RTA meets regularly andRacing NSW Industry Training ManagerMarianne Chaffe represents NSW ateach of these meetings.

Project Source FundingStewards Pilot Australian National $10,000*Program Training Authority

Stewards Resources Department of Education $38,700*and Training – Industry Skills program

Induction Package Department of Education $28,200for New Workers and Training – Industry to the Racing Industry Skills program

Learnscope On Line Australian National $19,800Training Project Training Authority

TOTAL APPRENTICE % APPRENTICESEASON STARTERS RIDES RIDES

1997 –1998 60,580 7,704 12.71%1998 – 1999 60,154 8,718 14.49%1999 – 2000 61,186 11,246 18.38%2000 – 2001 57,120 11,872 20.78%2001 – 2002 58,012 11,216 19.33%

18

2001 National Conference forTraining Providers in the RacingIndustryThe Industry Training department andRacing Training NSW hosted the 2001Conference for the national training bodyRTA from the 26th to the 28th Septemberthis year. Forty eight delegates attendedthe Conference to hear guest speakersfrom the NSW Vocational Training Board,the Department for Women and theAustralian National Training Authority.

Ms Fern Linden (Department for Women)commended the Industry Trainingdepartment on work completed inrelation to sexual harassment issues andinitiatives regarding dissemination ofinformation to industry.

The presentation of the NSW StewardsCurriculum Development Program createda great deal of interest withrepresentatives from other statesrequesting further information on thecourse.

The Conference outcomes included: • Increased knowledge and

understanding of State and Federalgovernment training agendas

• An opportunity to review andunderstand variations between currentState practices

• Provision of a national professionaldevelopment forum

• The establishment of priorities forfuture training directions.

Stewards TrainingIndustry Training funded and co-ordinated the training of StipendiaryStewards from regions throughout NSWin the Certificate IV Workplace Trainerand Assessor course.

In a separate program six Stewards ledby Chairman of Stewards Ray Murrihyparticipated in the ANTA funded NSWRacing Industry Stewards Pilot TrainingProgram which started in August 2001.

The programs provided Stewards with anunderstanding of structured training offeredto apprentices, trackwork riders, strappersand prospective horse trainers and thequalifications to train and assess industrypersonnel, including trainee stewards.

Marianne Chaffe and Greg Rudolph alsoworked with TAFE NSW in thedevelopment of Racing AdministrationStewards – Certificate IV and Diplomacourses. Racing Training NSWapproached TAFE NSW to assist incourse design.

NSW TRB International Rider PolicyIndustry Training worked with theLicensing Department and Stewards todevise a policy for international ridersfrom private training providers whowere placed on work experience withNSW licensed trainers. This included theformatting of information in relation to:• terms of training • award wages• hours of work permitted• visa terms • insurance cover• work experience duration • sponsorship options for trainers at

the end of the visa term • associated costs.

NSW TRB Occupational Health andSafety SeminarsTo promote better industry practice andsafety in racing, to help prevent injury, andin turn limit insurance costs to trainers, theBoard resolved late in December 2001 tomake it compulsory for licensed trainers toattend a TRB Occupational Health andSafety Seminar in order to obtain a trainerslicense for the 2002/3 racing season.

Industry Training worked with otherdepartments to co-ordinate seminarschedules.

Industry Training produced the projectbudget for the OH&S Information Seminarsand with the assistance of Ms MicheleJackson (Human Resources consultant) andMs Terrie Norman (Risk Management)facilitated the delivery of seminars in 14regions throughout the state.

Following the completion of the aboveseminars Industry Training produced anOH&S flexible delivery package (comprisinga compilation video and printed material) sothat those licensees unable to attend one ofthe scheduled seminars could attend an in-house regional session.

This package is now available for all newlicensees so that they may receive the sameinformation as currently licensed trainers.

NSW Apprentice Jockey Numbers to 30th June 2002

General Manager Racing Services

The position of General ManagerRacing Services was established by theBoard following a review of TRBfunctions. Mr Keith Bulloch wasappointed to the role in May 2002.Reporting to the Chief Executive, theposition formed part of an Executive re-structure, and grouped together fiveracing sections within the organisation.

These areas are:• Industry Training• Licensing• Handicapping• Registration• Racing Co-ordinator

The GM Racing Services has asupervisory role in regard to thesedepartments, including SeniorManagement reporting to the Board andimplementation of Board policy. Areassuch as Race Programming, Race Resultsand Calendar (magazine) integritysections are also included.

General Manager Corporate Affairs

Mr. Stephen Ferguson was appointed tothe position of General ManagerCorporate Affairs in May 2002. Part ofhis role includes major policydevelopment in areas including:• Strategic planning• Industry structure• Performance benchmarking of race

clubs• Racehorse ownership• Return to owners• Distribution schemes• Race date allocation• Publications

Indentured Probationary Aiming to becomeApprentices Apprentices probationary

ApprenticesThis number Registered stablehand Registered stablehand includes 5 / riders who are / riders seekinginternational riding in barrier apprentice jockeyriders who have trials so as to gain status and assessedbeen granted their permit to as having appropriatepermits to ride ride in races weight – not yet in races riding in trials62 12 14

Keith Bulloch

Stephen Ferguson

19

The TRB Licensing Department isresponsible for the issuing of licences toapplicants from persons residing in theMetropolitan and Provincial sectors.

The Country Racing Council regionaloffices are responsible for the issuing oflicences in their designated Associationarea of Country NSW.

The Licensing Committee met on 6

occasions during 2001/2002. The role ofthe licensing committee is to set licensingpolicy and procedure for the TRB.

Applicants for licences may be furtherinterviewed at these meetings, anddecisions or recommendationsforwarded to the Board for approval.

The meetings are also attended bymembers of the TRB Integrity AssuranceCommittee. The Board gratefullyacknowledges the contribution of IACmembers for the licensing function.

TRB Licensing CommitteeMr Don HopkinsMr John Costigan

Integrity Assurance CommitteeMr D E Hopkins (Chairman)The Hon L F Bowen AC (until 13/8/2001)Mr M G Cummings (from 18/12/01)

Mr A K Davidson AM, MBEThe Hon J C J Matthews

Department Members

Keith BullochSUPERVISOR OF LICENSED PERSONS - UNTIL JUNE 2002

Colin NicksonASSISTANT SUPERVISOR - UNTIL JUNE 2002

Gary RudgeLICENSING SUPERVISOR - FROM JUNE 2002

Insurance – Impact on TrainersThe increasing cost of insurance has hada direct impact on licensees with theintroduction of mandatory public liabilityinsurance for all NSW trainers from2001/2002. The TRB in conjunction withthe Trainers Association devised apayment method to facilitate theintroduction of a group policy for allNSW trainers. Charges were leviedaccording to the number of individualhorses started by a trainer.

Occupational Health and SafetySeminarsChanges to legislation required thelaunching of a significant OccupationalHealth and Safety educational program forthe racing industry. Trainers, as employers,were required as a condition of theirlicence renewal to attend an OH&Sseminar run by the TRB. Future Trainerswill also be required to witness an OH&Svideo (produced by the TRB for thispurpose) before they are granted a licence.

Licensing

Number of NSW Licensees

Type Metropolitan Provincial Country Total01/02 (00/01) 01/02 (00/01) 01/02 (00/01) 01/02 (00/01)

Trainers 138 (143) 213 (234) 954 (1095) 1305 (1472)Own/Trainer 7 (8) 37 (40) 141 (89) 185 (137)Jockeys 76 (85) 40 (47) 207 (223) 323 (355)Apprentices 13 (14) 11 (10) 85 (88) 109 (112)Approv. Riders 0 (0) 0 (0) 70 (55) 70 (55)Bookmakers 54 (49) 13 (12) 163 (177) 230 (238)Bkmks Clerks 409 (379) 62 (66) 442 (473) 913 (918)Stb/Hand 1022 (1121) 561 (553) 1422 (1387) 3005 (3061)Foreman 63 (62) 31 (28) 143 (136) 237 (226)Rider Agent 13 (9) 6 (8) 8 (5) 27 (22)Total 1795 (1870) 974 (998) 3635 (3728) 6404 (6596)

Gary Rudge

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FunctionThe activities of the Stipendiary Stewardsinclude:• ensuring the welfare of the

racehorse• officiating at all race meetings and

official trials in NSW• attending and supervising trackwork• conducting track and stable

inspections• administering drug testing

operations• addressing rider, track and horse

safety issues• conducting inquiries into race rides &

conduct of licensed persons• investigating wagering activities• investigating the use of prohibited

substances.

Personnel changesThe past year has seen a number ofchanges with NSW Stewards continuing tobe in high demand by other racingjurisdictions. During June, Kim Kellyaccepted the prestigious appointment ofDeputy Chairman of Stewards with theHong Kong Jockey Club and will onAugust 1st join former NSWTRB StewardsJamie Stier (Chairman) and Martin Knibbson the Hong Kong Jockey Club StewardsPanel. Dubbo based James Perry, also onthe 1st August will take up anappointment as Manager, StewardsDivision, NSW Greyhound RacingAuthority. James Peyton (Burkes Backyard)and Mark Whiteman (Sky Channel) havechosen different career paths whilsttrainee Steward Drew Smith has beenappointed to the Southern Districts Panel.Two trainees Andrew Ray (Grenfell) andCraig Pringle (Dubbo) joined the panel inFebruary and April respectively.

Visiting OfficialsDuring the year a number ofinternational and interstate officialsspent time observing the functions ofthe NSWTRB panel. These includedMalcolm Wallace and Sim Harris (UKJockey Club), Noel McCutcheon (NewZealand Racing Conference), TravisRandell (Western Australia Turf Club)and James Williamson (QueenslandPrincipal Club). In addition RacingVictoria Chairman of Stewards DesGleeson visited NSW to conduct a studyof the operations of the NSWTRBBetting Steward/Form Analyst TerryGriffin with a view to creating a similarposition on his Victorian panel.

Industry TrainingThe TRB recognises the challenges facedtoday and encourages Stewards tocontinually upgrade their skills. MarcVan Gestel (Bachelor of InformationTechnology), Greg Rudolph (Metro) andJim Walshe (SDRA) (Graduate Diploma inLaw) are successfully continuing extracurricular studies.

In addition a number of Stewardsparticipated in pilot programs for theDiploma of Racing Administration.These courses were ‘Lead and FacilitateWork Teams’ and a Certificate IV inWorkplace Training and Assessment,which qualifies those Stewards asworkplace trainers and assessors.

Developed in conjunction with RacingTraining NSW and TAFE NSW, thenationally accredited Diploma of RacingAdministration – Stewards is the firstspecialised training course for Stewardsand only the second of its kind in theworld. Greg Rudolph has been pivotal

in its development and not only will thecourse provide valuable training forNSWTRB Stewards but it has attractedinterest from both interstate andinternational racing bodies.

Panel members from across the statealso attended in-house workshops onOccupational Health and Safety andSexual Harassment in the workplace.

Conferences & TribunalsChairman Ray Murrihy during the yearrepresented the NSW TRB Stewards atthe National Chairmen of StewardsAdvisory Group conference and inaddition represented that group on the

National Equine and Integrity WelfareAdvisory Group (NEIWAG) and theAustralian Rules Review Advisory Group.

Ray Murrihy also represented theStewards at the Australasian RacingAppeals Conference and gave anaddress on litigation matters to theMajor Race Clubs and AssociationsConference in Sydney.

Developments2001/2002 saw Stewards assist NSWTRBVeterinary personnel in the accreditationprocess for country swabbing officials.

New human drug testing protocols weredeveloped and these incorporated theintroduction in New South Wales on the1st January 2002 of the testing fordiuretics and anorectics. The banning ofriders taking these harmful substanceswas seen as an important health issueand the move was followed nationallyon the 1st May 2002. Minimum raceweights were raised 1kg to allowjockeys to accommodate the changes.

Stipendiary Stewards

Ray Murrihy

21

Industry LiaisonIndustry matters continued to beaddressed through liaison with anumber of bodies including:-• Australian Racing Board• NSW Jockeys Association• Australian Trainers Association (NSW

Branch)• NSW Bookmakers Co-Operative Ltd• Australian Equine Veterinary

Association• RSPCA• TRB Integrity Assurance Committee• National Equine Integrity & Welfare

Advisory Group• Exotic Diseases Workshop• Animal Care and Ethics Committee• Combined Racing Codes Committee• Sports Betting Disputes Panel• Licensing Enforcement Agency• Department of Primary Industries

Department Members

Ray MurrihyCHAIRMAN OF STEWARDS

Kim KellyDEPUTY CHAIRMAN OF STEWARDS

Pat HartmannSENIOR STEWARD

Larry MorrisonSTEWARD

Philip DingwallSTEWARD

Greg RudolphSTEWARD

Marc Van GestelSTEWARD

Cameron GeorgeSTEWARD

Steve CarvossoSTEWARD

Terry GriffinBETTING STEWARD

Jason WhybrowCADET STEWARD

James SaundersonCADET STEWARD

Andrew RayTRAINEE

Craig PringleTRAINEE

Bill FanningCHIEF STEWARD, NORTHERN RIVERS

Michael ZarbSTEWARD, NORTHERN RIVERS

Bevan TurnerCHIEF STEWARD, MID NORTH COAST

Shane CullenCHIEF STEWARD, HUNTER & NORTH WEST

Geoff HausfeldSTEWARD, HUNTER & NORTH WEST

James PerryCHIEF STEWARD, CENTRAL & WESTERN

Raymond LivingstoneSTEWARD, CENTRAL & WESTERN

Todd SmithSTEWARD, CENTRAL & WESTERN

Kevin WilliamsCHIEF STEWARD, SOUTHERN DISTRICTS

Darryl McLeanSTEWARD, SOUTHERN DISTRICTS

Drew SmithSTEWARD, SOUTHERN DISTRICTS

Craig YeoCHIEF STEWARD, SOUTH EAST

Jim WalsheSTEWARD, SOUTH EAST

Bob NicholsonRACECOURSE DETECTIVE

Beatrice NovakSECRETARY

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Department MembersMark WebbeyCHIEF HANDICAPPER

Paul BloodworthDEPUTY CHIEF HANDICAPPER

Craig LeetHANDICAPPER

Colin DensonHANDICAPPER

Greg PearsonHANDICAPPER

FunctionsThe handicapping panel is responsible forthe handicapping of all meetingsconducted throughout the state and theACT. During the last racing season thepanel weighted 89,667 nominated horsesat 866 race meetings. The departmentalso oversaw the increase in minimumweight to 53kg, the introduction of setweight maidens and was heavily involvedin the introduction of the recentlyintroduced programming policy for NSW.

StaffThe 2001/2002 season sawconsiderable change within theHandicapping department. Longserving panel member John Russellretired after a distinguished career inracing and fellow panel memberDebbie Winter left for alternativeemployment, but remained in racing.Provincial Handicapper Gary Rudge was

appointed Supervisor of LicensedPersons towards the end of the season,making a total of three departures fromthe panel in a 12 month period. GregPearson, who had been located inWagga for the past 12 months, wasrelocated back to the TRB offices inMascot, making the handicappingdepartment a totally centralisedoperation. It was with great pleasurethat the department welcomed theappointment of former WATC ChiefHandicapper Paul Bloodworth to theposition of Deputy Chief Handicapperwithin the panel. Paul has a wealth ofhandicapping experience, learning thecraft under Racing Victoria ChiefHandicapper Jim Bowler in a 10 yearcareer with the VRC/Racing Victoriaprior to moving to Perth. He served asChief Handicapper in Perth for 3.5years and has taken over thehandicapping of open sprints up to1400m (including G1 Galaxy) and 2and 3yo metropolitan racing.

Industry LiaisonThe 2001/2002 season saw theintroduction of a revised handicappingpolicy for NSW racing. As handicappingis at times a contentious issue, thedepartment felt it necessary to release adocument outlining the maxims andmethods used in weighting horses. Therevised policy encompasses all areas,

metropolitan, provincial and country,and outlines what horses will receive forwins and also for moving up and downthe class ladder. This policy will beplaced on the NSWTRB website in thenew season and also appear in the NSWRacing magazine. It encourages ownersand trainers to seek out explanationsfrom the panel as to decisions reachedwhen handicapping their horses.

Senior Handicapper Mark Webbey andDeputy Chief Handicapper PaulBloodworth attended the annualAustralia and New ZealandClassifications meeting in Brisbane inJune. At this meeting the groupfinalised the Classifications for the2001/02 season, which once again sawSunline the highest rated horse inAustralasia at 124. She was closelyfollowed by champion West AussieNortherly (122) and Melbourne Cupheroine Ethereal (119). Champion 3yofor the season was Viscount with a120 rating whilst Victory Vein wasrated champion 2yo with a 107 rating.

In a busy year for the ChiefHandicapper, he also represented NSWat the Australian Group and ListedAdvisory Group meeting in Perth duringJuly and then accompanied RacingVictoria Senior Handicapper Jim Bowlerto the annual InternationalClassifications Meeting in Singapore,also in July.

Handicapping Department

Handicapping PanelL–R: Greg Pearson, Paul Bloodworth, MarkWebbey, Craig Leet, Colin Denson

23

The Public Relations and MediaDepartment maintains constantcommunication with the media,providing news and informationconcerning the NSW TRB and theracing industry.

Department Members

Mark BrasselPUBLIC RELATIONS AND MEDIA MANAGER

Bev RitzauMAGAZINE CO-ORDINATOR

Joan DemusSUBSCRIPTIONS / DATA ENTRY

The Public Relations and MediaDepartment is the conduit between theBoard and the media. It provides themedia with information including Boardpolicy and announcements, racinginquiries and appeals, and current affairs.

The Department seeks to enhance theprofile of thoroughbred racing and topresent a positive image of both the TRBand the racing industry.

The Department also provides up-to-the-minute maintenance of the Racing NSWwebsite www.racingnsw.com.au ,adding stories and news items to thesite as they happen. The Board sees theindustry website as being a majorpromotional tool into the future, inaddition to its potential to facilitate e-commerce type transactions within theindustry. As the site develops,promotional opportunities for theindustry as a whole will be taken. Justsome of the new initiatives put onto thewebsite include:• BOBS (Breeder Owner Bonus

Scheme) Section - BOBS Scoreboard,Final Stallions List, Latest BOBS news,Frequently Asked Questions &Answers, Terms & Conditions,Nomination Forms, etc.

• NSW Race Dates - for the entireracing season

• Honour Roll – Jockey, Trainer &Apprentice winners and runner-updating back to the 1935/36 season

• Metropolitan Premiership Tables &Apprentice Allowances

• Full Results and Stewards Reports(Metropolitan, Provincial andCountry)

• Reasons for Decision –comprehensive details on racingappeal decisions

• Racebooks for all NSW meetings• Feature Articles, etc.

Racing NSW Magazine

Racing NSW is the official racingcalendar for NSW thoroughbred racing.The TRB outsources the production ofRacing NSW Magazine to GadflyEditorial Services Pty Ltd.

www.racingnsw.com.au

Public Relations and Media

Mark Brassel

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Australian Racing Forensic Laboratory

The Australian Racing Forensic Laboratory, is anationally and internationally recognisedcenter of excellence that undertakessurveillance on samples collected pre and postrace from greyhounds, standardbred andthoroughbred horses racing in New SouthWales and other states in Australia. Pre raceblood testing is conducted at selected SydneyMetropolitan and Provincial thoroughbredmeetings. The Australian Racing ForensicLaboratory is an Accredited Racing Laboratoryand undertakes confirmatory analyses onsamples sent from Melbourne, Queensland,Perth, England, France, Hong Kong, NewZealand, Macau, Mauritius and Singapore.The Laboratory is also the nominatedAustralasian Referee Laboratory for anyconfirmatory samples from the FederationEquestrian Internationale. The Laboratory alsoassisted Steward Inquiries into allegedcontravention of the Rules of Racing.

Non-Raceday Samples are analysed fornominated therapeutic drugs when trainerswish to ensure that a horse under their care isfree of the nominated drug/s, prior to racing.

The laboratory also analyses unlabelledmedications, syringes and feed preparations atthe request of Stewards departments.

The Laboratory’s commitment to research anddevelopment continued with considerableattention given to peptide hormones, anabolicsteroid metabolism in the horse and thedevelopment of broad-based automatedscreening techniques.

Quality Assurance is an integral part oflaboratory operations and includes inter-laboratory and intra-laboratory samplesprocessed as part of the Asian QualityAssurance Program, which embraces thelaboratories of the Asian Racing Conference.

During 2002, the laboratory commencedhuman testing and to date has screened over440 samples with 41 positives being declared.The laboratory also identified 121 positiveequine and canine samples during the year.

In May a new Official Analyst, Mr AllenStenhouse, was appointed, subsequent to theresignation of Dr Shawn Stanley.

Andrew Vadasz Donna Johnson

Department MembersAllen StenhouseOFFICIAL ANALYST

Andrew VadaszMANAGER

John KeledjianOPERATIONS MANAGER

Cary MurphyQUALITY ASSURANCE MANAGER

Andrew McKinneySENIOR SCIENTIFIC OFFICER

Nick BasgallopSENIOR SCIENTIFIC OFFICER

Ben TurcoSCIENTIFIC OFFICER

Chris WongSCIENTIFIC OFFICER

Steve MulleySCIENTIFIC OFFICER

Aarati Rana-FoleySCIENTIFIC OFFICER

Tony DunstanTECHNICAL OFFICER

Corrine SmartTECHNICAL OFFICER

Lauren AshurstTECHNICAL OFFICER

Val WilsonLABORATORY ASSISTANT

Tom MillerLABORATORY ASSISTANT

Donna JohnsonSECTION CO-ORDINATOR, CENTRAL

SERVICES

Jennifer HolmanADMINISTRATION ASSISTANT

Perico AlcaineBOTTLE RELOCATION ENGINEER

Post Race Plasma TCO2 Pre RaceSector/Code Urine/Blood Bloods Blood Total Positive

NSW Metropolitan Thoroughbreds 2975 541 3516 5NSW Provincial Thoroughbreds 1116 589 1705 5NSW Country Thoroughbreds 3982 190 4172 9Other Thoroughbreds 2416 1200 3116 8Harness Racing NSW 1491 2139 3630 8Pre Race Testing 1036 0FEI & other amateur groups 221 221 5Greyhound Racing Authority NSW 2684 2684 42TOTALS 14885 4659 1036 20580 121

Human Samples Urine Total PositiveNSW Metropolitan 62 62 16NSW Provincial 43 43 4NSW Country 168 168 21TOTALS 441 441 41

Other Samples AnalysedConfirmatory Analysis for other laboratories 37Non-Raceday/Elective Testing 45Quality Assurance 18Asian QA Program 64TOTAL 164

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Veterinary

Department members

Dr Craig SuannSENIOR OFFICIAL VETERINARIAN

Dr Mark CavesOFFICIAL VETERINARIAN

Ms Susan CliffordRESEARCH ASSISTANT/ANIMAL ATTENDANT

Assisting veterinary officialsThe TRB acknowledges the assistanceof part-time veterinary officials

Professor David Hutchins OAMDr Peter KnightDr Meg BrownlowDr Timothy CrispDr Michael KiddDr Leanne BeggDr Michael Goodwin

Objectives• Safeguard the health and welfare

of horses involved in thoroughbredracing in NSW,

• Provide and supervise veterinaryservices at metropolitan andprovincial racetracks and tosupervise veterinary activities atNSW country tracks,

• Provide advice to the TRB andindustry on veterinary and equinewelfare matters, and on issuesrelating to prohibited substancesand their detection,

• Assist the Australian RacingForensic Laboratory in developingdrug detection methods andgenerating drug detection times,

• Represent the TRB on various groupsand committees on veterinary andequine welfare matters,

• Provide expert advice to Stewardsand to Appeals and other hearings.

ProgramsThe ongoing monitoring and auditingof the Quality Assurance Program for

veterinary services at NSW countryrace meetings continues. A "Guide forofficial racing veterinarians in NSW"was published and distributed toapproved official veterinarians in thestate, the guide providing a frameworkfor the delivery of veterinary services atNSW TAB race meetings. UpdatedManagement Agreements werecompleted for all approved TRBveterinarians.

The "Sample Collection Process QualityManagement System" wasimplemented to ensure the propercollection and transport of samples fordrug testing to the ARFL. Integral tothis program is a system of formallyapproving sample collection officials,including their being subject to probitychecks. The Veterinary Departmentacts as the auditor of the system.

As part of the new Sample CollectionProcess, sample collection services inthe metropolitan and provincial areaswere re-structured to improveefficiencies, integrity andaccountability.

A Post-Mortem Program facilitates theautopsy examination at the UniversityVeterinary Centre, Camden, of horsesthat die or are euthanised atmetropolitan and provincial races andbarrier trials. This program providesvaluable information on the causes ofinjuries and sudden death, and whichwill lead to the development ofmeasures to reduce their incidence.

Following an earlier administration trialinvolving the anti-ulcer medicationranitidine, a detection period for thedrug was formulated and released tothe veterinary profession, andinformation on ulcer preventionstrategies in racehorses was publishedin Racing NSW and on the TRBwebsite.

Following an outbreak of the highlycontagious equine respiratory infectionstrangles in a group of harness racinghorses in northern NSW, the VeterinaryDepartment was involved inconsultations with Harness RacingNSW, local TRB Stewards and NSWAgriculture, regarding controlmeasures to limit the outbreak, andthe drafting of bulletins on equineinfectious diseases for the TRB websiteand Racing NSW for the information

of trainers and industry participants.

Dr Suann was appointed as a memberof the Research Advisory Committee ofthe Rural Industries Research andDevelopment Corporation (RIRDC)Equine Research Program, andattended his first meeting of theCommittee in June. He is also theChairman of the International Groupof Specialist Racing Veterinarians(IGSRV).

Administration trialsAdministration trials involvingerythropoietin (EPO), vedaprofen,ketoprofen, equine growth hormone,ethylestrenol, omeprazole, trometamol,budesonide, stanozolol anddeoxycortone acetate were conducted.The purpose of these trials was todevelop and monitor the detectionmethods for these drugs, and in thecase of some legitimate equinetherapeutics, devise suitable ‘detectionperiods’. The EPO trial facilitated thedevelopment of a new method for thedetection of EPO administration toracehorses.

Meetings and conferencesDr Suann attended the RIRDC and PostGraduate Foundation "InternationalHorse Industry Symposium" held atthe University of Sydney in July. He

Craig Suann

26

also attended in Perth, meetings of theAssociation of Official RacingVeterinarians (AORV), the AustralianRacing Laboratories and the AustralianRacing Board’s National Equine Integrity& Welfare Advisory Group (NEIWAG),called to discuss a number of veterinaryregulatory, drug testing and equinewelfare issues. Dr Suann alsorepresented NEIWAG at a number ofmeetings of the Australian Racing Boardthroughout the year.

Dr Caves attended an internal auditortraining course conducted by QualityAssurance Services Pty Ltd in September2001, and represented the TRB atmeetings of NSW members of theAustralian Equine Veterinary Association(AEVA) throughout the year. There wasongoing consultation by the veterinarydepartment with the AEVA on a numberof relevant equine veterinary andwelfare matters.

Animal Care and Ethics Committee(ACEC)The TRB’s Animal Care and EthicsCommittee (ACEC) was established underthe auspices of the NSW Animal ResearchAct 1985 to monitor and supervise theTRB’s team of research horses used fordrug administration trials conducted inassociation with the Australian RacingForensic Laboratory (ARFL).

The TRB’s ACEC comprises the followingmembers:

Mr M J Hill (TRB CEO)CHAIRMAN

Dr Craig SuannCATEGORY A MEMBER

Mr Allen StenhouseCATEGORY B MEMBER

Mr A GregoryCATEGORY C MEMBER

Mr J L MuirCATEGORY D MEMBER

Mrs S CliffordTRB ANIMAL ATTENDANT/RESEARCH ASSISTANT

Four meetings of the Committee wereconvened during the year. ACECmembers also conducted inspections ofthe research horses and stabling facilitiesafter each meeting.

Applications for research

The following research applications wereapproved by the ACEC during the year:

Ongoing Studies into the Detection ofDrugs in Racehorses (2002). This studyfacilitates the process of constantlymonitoring new and existing drugs thatmay have a legitimate use in horses. Thispermits the ARFL’s obligation to theracing industry to rapidly respond toproblems relating to the detection ofthese drugs. Any proposed trialsundertaken as part of this proposal are

discussed at a formal meeting beforebeing conducted. ACEC members areprovided with information on dosagesand routes of administration, thepharmacology of the drug/s, and anypotential adverse effects.

Detection of ethylestrenol in racehorses.This study will assist in improvingmethods of detection of this orally activeanabolic steroid.

An evaluation of the population meanand distribution of insulin like growthfactor I (IGF1) plasma concentration inthe thoroughbred racing population.This study will facilitate an internationalinter-laboratory program to refinemethods for the detection of growthhormone administration in racehorses.

The detection of omeprazole inracehorses. This trial will assist in thedevelopment of a detection period forthis new anti-ulcer drug in racehorses.

The detection of the veterinary sedativesdetomidine and medetomidine inracehorses. This trial will lead to therefinement of detection methods forthese drugs in racehorses.

The detection of the human coughsuppressant dextromethorphan inracehorses. This study will elucidate themetabolites of this over-the-counterpharmacy preparation whenadministered to horses.

27

Department Members

Michael ThompsonMANAGER

Hesna WhitbreadSENIOR CLAIMS OFFICER

Kay StivactasCLAIMS OFFICER

Nichole MooreCLAIMS ASSISTANT

As at 30 June 2000 the administrationof the department has been subject toan outsourcing arrangement withASWIG, the aim being to improveresources, training and service.

Objectives• Manage the TRB Workers’

Compensation Insurance Fund

• Monitor Workers’ CompensationInsurance Scheme, co-ordinaterenewals

• Initiate and facilitate a generalinsurance scheme that provides costsavings for participants by takingadvantage of industry buying power

• Investigate initiatives aimed atreducing the cost of delivering aWorkers’ Compensation policy andclaims service to the industry

• Promote sound Occupational Healthand Safety (OH&S) practices andimprove awareness about OH&Sissues.

Workers’ Compensation ClaimsDuring 2001-2002, 399 Workers’Compensation Claims were received -this is the highest number in ten yearsand an increase on last year, whichironically was the lowest number in nineyears. The number of current claims asat the 30 June 2002 was 287.

The increase in number of claims is notunexpected, as last year there was agreater emphasis on OH&S, InjuryManagement and early reporting ofclaims - increased reporting is a naturalconsequence.

The implementation of the injurymanagement program leads to earlyreturn to work in many cases, which hasreduced payments in regards to weeklybenefits.

During the year substantial changes tothe NSW Workers Compensation systemand legislation took place. Thespeculation and uncertainty arising fromthese amendments has resulted inincreased litigation and if not thegeneration of claims, the bringingforward of claims.

Whilst the case estimates on claims havegone down this has been counteractedby the effects of loss of reinsurancerecoveries (HIH), increased claimspayments brought on by legislativechanges and poor return oninvestments.

PremiumsSubstantial increases in general (PublicLiability etc.) insurance premiums havebeen the subject of much publicity thisyear and the Thoroughbred RacingIndustry has not escaped in regards toeither increased premiums or publicity.

Some increase in Workers’ Compensationpremiums has been necessary for2002/2003, but certainly not on the scaleof general insurance.

A complete overhaul of the Workers’Compensation premium methodologytook place during the year. This wasdone with extensive consultation withthe industry.

The result has been a move away fromthe wage based method of calculatingpremium to system that features:

• Pay as you go

• Activity and location based charges

• Based/minimum fee at the start ofthe year

• Claims rating fee at the end ofthe year

Insurance

Michael Thompson

28

Occupational Health & Safety(OH&S)Over the past three years NSWThoroughbred Racing Board (NSWTRB)has been a leader in the Australasianregion in the development OH&Sprograms and procedures for the racingindustry.

In this regard the NSWTRB developed:

1. "Occupational Health & Safety FormGuide", which is a video trainingpackage for the industry.

2. "A Systems Approach to OH&S",which provides documentationnecessary to introduce a first classOH&S program into any business inthe industry.

The NSWTRB has also been instrumentalin incorporating safety issues into manyfacets of racing inNSW, such asindustry training andrules of racing.

The NSWTRBprovided informationseminars during theyear to informindustry participantsof their newlegislativerequirements andthat the NSWTRB hasdeveloped the abovementioned tools toassist them meetthese requirements.

It is intended thatover the coming yearthat, individuals inthe industry will be invited to be trainedand accredited as presenters of thetraining package.

They will in turn present the training toindustry participants throughout NSW.

It is envisaged that future developmentsmay involve:

• A requirement that the 1 day OH&Scourse be undertake to obtainlicensing or registration,

• All clubs will have a formal OH&Sprogram,

• OH&S conditions will apply tocontractor and trainers entering clubproperty,

• Expansion into a national riskmanagement program,

• The establishment of a register of

standard safe practice andprocedures,

• Annual OH&S conferences, both inNSW and Nationally.

The task ahead is to encourage individualsand organisation in the industry toembrace and run with OH&S concepts.

Injury ManagementEmployers and employees would havenoticed the increased attention beingfocused on participation in the injurymanagement process, which is aimed atachieving early intervention, improvedmedical management and early returnto work.

There has been substantial improvementin early notification of injuries, whichgreatly assist in the early intervention

and medical management.

There has also been an improvement inthe willingness of employers to providesuitable duties to injured employees,which assists in the early return to work.

Employers’ understanding of theirinvolvement in the process of injurymanagement has improved. To theextent that some employers are takingthe initiative in considering managementoptions before being approached by theTRB insurance department.

Further development in this area iscertainly warranted but theimprovement is encouraging.

General Insurance ProgramWe had one advantage this year, in thatour renewal date is the 31st March,

which meant that we improved ourchances of at least getting cover, beforerenewals for the 30 June "dried up" thelimited reinsurance capacity availablethis year.

The general state of the insurancemarket has meant that fewer insurersare available to take on the risk (bothreal and imaginary) associated with ourindustry. Those that are available arebeing more selective, imposingpreviously unheard of conditions andconsiderable increases in premiums.

Insurance industry advisers do notnecessarily see that there will be a reliefin this area next year and that a returnto previous premium level is extremelyunlikely.

There is no doubt that by combining to

effect one cover, the industry has savedthe clubs from an even greater increasein premiums than that incurred. In fact,this year as to whether some clubscould have even got cover if they werestand-alone is doubtful.

The NSWTRB in association with theARB and Aon Risk Consultants arecurrently considering the feasibility ofan option that will make insurancecover more affordable for theindustry nationally.

29

Registration Department

The Registrar of Racehorses is responsiblefor the naming and recording of ownershipof all horses that race or go to studthroughout Australia, with the exception ofimported broodmares and stallions whichare recorded with the Australian Stud Book.

The Department also records syndicates,leases, transfers of ownership and racingcolours in New South Wales.

Other functions include checking un-namedfoals and broodmares at horse salesthroughout the country. In the period fromJuly 2001 to June 2002 there were 9600horses checked at 40 sales by RegistrationOfficers.

We also check the identity of ex-racehorsesby their brands and white markingsthrough our coding system for breedingand showing purposes and, during the pastyear, 483 enquiries were made, the majorityof which were positively identified asregistered horses.

Department membersDianne GreenREGISTRATION SUPERVISOR

Beverley LawlessREGISTRATION OFFICER - ADMINISTRATION

Carole PattersonREGISTRATION OFFICER - SYNDICATION AND PROMOTIONS

Judy StevensonREGISTRATION OFFICER - TRANSFERS OF OWNERSHIP

Cathie HughesREGISTRATION OFFICER - NAMING OF RACEHORSES

Lauren PhelpsREGISTRATION OFFICER - LEASES AND RACING COLOURS

Mark HollowayREGISTRATION OFFICER - IMPORTS AND SALES INSPECTIONS

Anne McFarlaneREGISTRATION CLERK - CASHIER

Kim WatkinsREGISTRATION CLERK - CORRESPONDENCE/RECEPTION

Pam GaynorREGISTRATION CLERK - DATA ENTRY

Ken KlemREGISTRATION CLERK - DATA ENTRY

Nigel PriceREGISTRATION CLERK - DATA ENTRY (UNTIL MARCH 2002)

Contribution to Equine ResearchThe Registrar of Racehorses contributes alarge amount of money to equineresearch each year which is derived froma levy of $20 of the registration feewhich is currently $70 for each horseregistered. This levy commenced inAugust 1994 and up until June 2002 atotal of $2,328,576 has been donated toRural Industries Research DevelopmentCorporation who administer thedistribution of these funds.

Department Statistics

AdministrationThe TRB administers the RegistrationDepartment on behalf of the following:

2001–2002 2000–2001 1999–2000

Australian RegistrationsNSW Transfers of ownershipNSW LeasesNSW Syndicates

14,1

39

1,95

3

1,11

2

103

14,6

89

2,04

8

1,16

6

131

14,4

48

1,87

8

1,13

6

73

42%

22%

19%

10%

7%

NSW Thoroughbred Racing BoardRacing Victoria LtdQueensland TRBWestern Australian Turf ClubThoroughbred Racing SA Ltd

Dianne Green

30

Finance and Human Resources

The aim of the Finance division of theNSW TRB is to provide timely andaccurate information to the Board andinterested parties within the industryon financial performance. Thefinancial year ending 30/06/02 hasbeen focused on improving currentsystems and procedures and tailoringreports to end user requirements. Thisculminates in the presentation to theAudit Committee of the year endresults, before final presentation to theMinister

Finance Department Members

Michael BeithGENERAL MANAGER FINANCE AND ADMINISTRATION

Julie MarchantFINANCIAL ACCOUNTANT

Helen DalakiarisPAYROLL CO-ORDINATOR

Darela KurtovicPAYROLL CO-ORDINATOR (FROM 4 MARCH 2002)

Farrah TanACCOUNTS PAYABLE CLERK (UNTIL 24 APRIL 2002)

Louise MurrayACCOUNTS RECEIVABLE CLERK

Kerryn NewmanRACE RESULTS

Human ResourcesAt an operational level, enhancementof the overall effectiveness andefficiencies of the organisationresources has been the major focus ofthe NSWTRB Human ResourcesServices.

Relocation of HeadquartersHuman Resources was a key elementin the successful relocation of the TRBheadquarters from Rosebery toMascot. The new headquarters ofRacing NSW meets both the needs ofour staff members and theorganisation’s operational needs.

Training and DevelopmentEmployee development through onand off the job training has beenundertaken throughout the year withthe majority of staff participating inboth recognised training programs andon the job training.

Comprehensive performancemanagement training continues to bea focus for the TRB and that alongwith the support of training will assistin the establishment of goals andobjectives in line with the overall goalsand objectives of the NSWTRB.

Occupational Health and Safety

An Occupational Health and SafetyCommittee continues to review andmake recommendations concerninghealth and safety issues for the TRBstaff.

Human Resources

Victoria Ramirez

Audit Committee

Mr R.M. Lapointe Mr J.B. Costigan Mr M.J. Cusick (until 18 February2002)

Julie Marchant

Micheal Beith

Victoria Ramirez(HUMAN RESOURCES)

31

Financial StatementsFor the year ended 30 June, 2002

Statement of Financial Performance 32Statement of Financial Position 33 Statement of Cash Flows 34 Notes to and Forming Part of the Financial Statements 35 Declaration by Board Members 45 Audit Report 45

NSW Thoroughbred Racing Board

32

Note 2002 2001$ $

REVENUE

REVENUE FROM OPERATING ACTIVITIESSale of Goods - Publications 6(i) 873,616 882,212 Sale of Services 6(v) 11,118,927 11,539,326 First Charge 6(ii) 10,153,766 8,708,363

22,146,309 21,129,901

REVENUE FROM NON OPERATING ACTIVITIESProceeds Disposal of Assets 6(iii) 84,426 139,605 Interest 6(iv) 315,289 1,130,876

399,715 1,270,481

REVENUE FROM ORDINARY ACTIVITIES 22,546,024 22,400,382

EXPENSESAdministration 6(vi) 5,100,854 4,811,956 Licensing 6(vii) 267,146 271,461 Provincial Associations 6(viii) 111,896 119,036 Race Results 6(ix) 102,433 92,585 Cost of Goods Sold - Publications 6(x) 986,824 874,445 Laboratory 6(xi) 2,184,456 2,202,567 Handicapping 6(xii) 535,404 616,784 Stewards 6(xiii) 2,662,801 2,775,092 Veterinary 6(xiv) 647,605 621,376 Syndicates 6(xv) 177,596 184,864 Media 6(xvi) 272,830 544,303 Industry Training 6(xvii) 342,398 310,681 Stakes Payments 6(xviii) 403,211 247,660 Information Technology 6(xix) 1,298,544 898,143 BOBS Breeders Incentive Scheme 6(xx) 6,378 - Insurance 6(xxi) 10,466,843 9,415,115 Movement in market value of investments integral to insurance activities 528,281 141,385 Borrowing Costs 6(xxii) 158,591 191,703

EXPENSES FROM ORDINARY ACTIVITIES 26,254,091 24,319,156

Share of net losses of partnership accounted for using the equity method 93,483 113,872

LOSS FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE 6(xxiii) (3,801,550) (2,032,646)

INCOME TAX EXPENSE RELATING TO ORDINARY ACTIVITIES - -

LOSS FROM ORDINARY ACTIVITIES AFTER INCOME TAX (3,801,550) (2,032,646)

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM

TRANSACTIONS WITH OWNERS AS OWNERS 20 (3,801,550) (2,032,646)

Statement of Financial PerformanceFor the year ended 30 June, 2002

The accompanying notes form part of these Financial Statements

33

Statement of Financial Position

Note 2002 2001$ $

CURRENT ASSETSCash Assets 8 2,876,973 6,416,331 Receivables 9 8,254,515 13,622,158 Other 10 149,252 93,567

TOTAL CURRENT ASSETS 11,280,740 20,132,056

NON-CURRENT ASSETSPlant and Equipment 14 3,896,956 1,616,245 Investment in land and buildings 12 2,862,480 - Other Financial Assets 11 10,891,891 11,420,172 Investment accounted for using the equity method 13 - - Intangible Asset - AJC Businesses Acquired 19 - 435,728

TOTAL NON-CURRENT ASSETS 17,651,327 13,472,145

TOTAL ASSETS 28,932,067 33,604,201

CURRENT LIABILITIESPayables 16 9,657,854 11,811,648 Interest Bearing Liabilities 15 952,501 969,097 Non-interest bearing liabilities 18 - 550,000 Provisions 17 7,263,506 6,515,947

TOTAL CURRENT LIABILITIES 17,873,861 19,846,692

NON-CURRENT LIABILITIESProvisions 17 15,983,339 14,881,092

TOTAL NON-CURRENT LIABILITIES 15,983,339 14,881,092

TOTAL LIABILITIES 33,857,200 34,727,784

NET LIABILITIES (4,925,133) (1,123,583)

EQUITYRetained Losses 20 (4,925,133) (1,123,583)

TOTAL EQUITY (4,925,133) (1,123,583)

As at 30 June, 2002

The accompanying notes form part of these Financial Statements

34

Note 2002 2001$ $

CASH FLOW FROM OPERATING ACTIVITIESReceipts from customers 26,129,657 15,642,214 Payments to suppliers and employees (24,679,661) (16,757,397) Interest and Investment earnings received 315,289 994,074 Borrowing costs (158,591) (191,703)

NET CASH PROVIDED BY/ (USED IN) OPERATING ACTIVITIES 7(b) 1,606,694 (312,812)

CASH FLOW FROM INVESTING ACTIVITIESPayments for property, plant and equipment (5,858,802) (959,296) Proceeds from sale of plant and equipment 84,426 139,605Payments for investments - (3,160,769)Loans (to)/from related parties 1,194,919 (343,654)

NET CASH USED IN INVESTING ACTIVITIES (4,579,457) (4,324,114)

CASH FLOW FROM FINANCING ACTIVITIESRepayment of loan from Australian Jockey Club (550,000) (550,000)

NET CASH USED IN FINANCING ACTIVITIES (550,000) (550,000)

NET DECREASE IN CASH (3,522,763) (5,186,926)

Cash at beginning of the financial year 5,447,234 10,634,160

CASH AT THE END OF THE FINANCIAL YEAR 7(a) 1,924,471 5,447,234

The accompanying notes form part of these financial statements.

Statement of Cash FlowsFor the year ended 30 June, 2002

35

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

The following is a summary of theaccounting policies adopted in thepreparation of the financial report.

NOTE 1: STATEMENT OFSIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purposefinancial report that has been preparedin accordance with AccountingStandards, Urgent Issues GroupConsensus Views, other authoritativepronouncements of the AustralianAccounting Standards Board and theCorporations Act 2001.

The financial report covers the NSWThoroughbred Racing Board ("TheBoard").

The financial report has been preparedon an accruals basis and is based onhistorical costs and does not take intoaccount changing money values or,except where stated, current valuationsof non-current assets. Cost is based onthe fair values of the considerationgiven in exchange for assets.

The following is a summary of thematerial accounting policies adopted bythe Board in the preparation of thefinancial report. The accounting policieshave been consistently applied, unlessotherwise stated.

a) Property, plant and equipmentare measured on the cost basis. Thecarrying amount of property, plant andequipment is reviewed annually bydirectors to ensure it is not in excess ofthe recoverable amount from thoseassets. The recoverable amount isassessed on the basis of the expectednet cash flows which will be receivedfrom the assets employed andsubsequent disposal. The expected netcash flows have not been discounted topresent values in determiningrecoverable amounts.

b) The depreciable amount of all fixedassets including buildings andcapitalised leased assets, but excludingfreehold land, are depreciated on astraight line basis over their estimateduseful lives to the economic entitycommencing from the time the asset isheld ready for use. Properties held forinvestment purposes are not subject todepreciation. Leasehold improvements

are depreciated over the shorter ofeither the unexpired period of the leaseor the estimated useful lives of theimprovements. The depreciation ratesused for each class of asset are:

Class of Asset Depreciation Rate

Plant and Equipment 5-40%Land and Buildings 2.50%

c) Leases: Leases of fixed assets, wheresubstantially all the risks and benefitsincidental to the ownership of theasset, but not the legal ownership, aretransferred to the Board are classified asfinance leases. Finance leases arecapitalised, recording an asset and aliability equal to the present value of theminimum lease payments, includingany guaranteed residual values. Leasedassets are depreciated on a straight linebasis over their estimated useful liveswhere it is likely that the Board willobtain ownership of the asset or overthe term of the lease. Lease paymentsare allocated between the reduction ofthe lease liability and the lease interestexpense for the period.

Lease payments for operating leases,where substantially all the risks andbenefits remain with the lessor, arecharged as expenses in the periods inwhich they are incurred."

d) Investments: Non-current investmentsare measured on the cost basis. Thecarrying amount of non-currentinvestments is reviewed annually by theMembers of the Board to ensure it is notin excess of the recoverable amount ofthese investments. The recoverableamount is assessed from the quotedmarket value for listed investments orthe underlying net assets for other non-listed investments. The expected netcash flows from investments have notbeen discounted to their present valuein determining the recoverableamounts.

Investments integral to the Board'sinsurance activities, includinginvestments in land and buildings aremeasured at net market values at thereporting date. Changes in net marketvalue of such investments arerecognised as revenues or expenses in

the financial year in which the changesoccur.

e) Receivables: All trade debtors arerecognised at the amounts receivable asthey are due for settlement no morethan 30 days from the date ofrecognition.

Collectibility of trade debtors isreviewed on an ongoing basis. Debtswhich are known to be uncollectible arewritten off. A provision for doubtfuldebts is raised when some doubt as tocollection exists.

f) Investments in Associates :Investments in associates arerecognised in the financial statementsby applying the equity method ofaccounting.

g) Intangibles - Goodwill: Goodwill isinitially recorded at the amount bywhich the purchase price for a businessor of an ownership interest in acontrolled entity exceeds the fair valueattributed to its net assets at the date ofacquisition. Goodwill is amortised on astraight line basis over the period of 4years. The balances are reviewedannually and any balance representingfuture benefits for which the realisationis considered to be no longer probableare written off.

h) Foreign Currency Transactionsand Balances: Foreign currencytransactions during the year areconverted to Australian currency at therates of exchange applicable at thedates of transactions. Amountsreceivable and payable in foreigncurrencies at balance date areconverted at the rates of exchangeruling at that date. The gains and lossesfrom conversion of short-term assetsand liabilities, whether realised orunrealised, are included in profit or lossfrom ordinary activities as they arise.

Exchange differences arising on hedgedtransactions undertaken to hedgeforeign currency exposures, other thanthose for the purchase and sale ofgoods and services, are brought toaccount in the profit from ordinaryactivities over the lives of the hedges.

Costs or gains arising at the time ofentering hedged transactions for the

36

purchase and sale of goods andservices, and exchange differences thatoccur up to the date of purchase orsale, are deferred and included in themeasurement of the purchase or sale.Gains and losses from speculativeforeign currency transactions arebrought to account in the profit fromordinary activities when the exchangerate changes.

i) Employee Entitlements: Provision ismade for the Board's liability foremployee entitlements arising fromservices rendered by employees tobalance date. Employee entitlementsexpected to be settled within one yeartogether with entitlements arising fromwages and salaries, annual leave andsick leave which will be settled afterone year, have been measured at theirnominal amount. Other employeeentitlements payable later than oneyear have been measured at the presentvalue of the estimated future cashoutflows to be made for thoseentitlements.

Contributions are made by the Board toan employee superannuation fund andare charged as expenses when incurred.

j) Cash: For the purposes of thestatement of cash flows, cash includescash on hand and at call deposits withbanks or financial institutions andinvestments in money marketinstruments maturing within less than14 days to maturity.

k) Revenue: Revenue from the sale ofgoods is recognised upon the deliveryof goods to customers. Interest revenueis recognised on a proportional basistaking into account the interest ratesapplicable to the financial assets.Revenue from the rendering of a serviceis recognised upon the delivery of theservice to the customers. All revenue isstated net of the amount of goods andservices tax (GST).

l) Trade, stakes payments and othercreditors: These amounts representliabilities for goods and services providedto the Board prior to the end of thefinancial year and which are unpaid. Theamounts are unsecured and are usuallypaid within 30 days of recognition.

m) Insurance: Premiums received arerecognised from the attachment dateand are measured over the period ofinsurance in a pattern in accordancewith the incidence of risk.

Liabilities for outstanding claims arerecognised for direct and inwardsreinsurance business and measured atthe present value of expected futurepayments.

n) Goods and Services Tax (GST) :Revenues and expenses and assets arerecognised net of the amount of GST,except where the amount of GSTincurred is not recoverable from theAustralian Taxation Office. In thesecircumstances the GST is recognised aspart of the costs of the acquisition ofthe asset or as part of an item of theexpense. Receivables and payables inthe statement of financial position areshown inclusive of GST.

o) Comparative Figures : Whererequired by Accounting Standardscomparative figures have been adjustedto conform with changes inpresentation for the current financialyear.

p) Going Concern: The financialstatements have been prepared on agoing concern basis, whichcontemplates continuity of normalactivities and the realisation of assetsand settlement of liabilities in thenormal course of business.

At 30 June 2002, the Board has a netasset deficiency of $4,925,133. Theoperating deficit of the Insurance Fundof $4,467,489 for the year ended 30June 2002 was the most significantelement in the movement. Theoperating deficit was impacted bynegative movement in the WholesaleTrust following September 11, 2001and the prudential margin provision forclaims liability was increased by $1.9million on the recommendation of theactuary. This additional provision nowtakes the prudential margin from 20%of estimated claims liability to 25% ofestimated claims liability.

To assist the financial performance ofthe fund the Board resolved to increaseall premiums by 20% as at 1 July 2002.

The Board also allocated an amount of$450,000 to the fund through the firstcharge.

The Members of the Board are of theopinion that the Board will continue tobe able to pay its debts as and whenthey fall due on the basis that the Intra-code Agreement allows the Board tolevy an administration charge onwagering receipts received from theTAB Limited. In addition the Board arecommitted to making the necessaryincreases to insurance premiums tocover any shortfall, once the impact ofthe HIH collapse has been accuratelydetermined.

NOTE 2: CONSOLIDATEDOPERATIONS

The NSW TRB - Administration includesthe administrative functions of the Boardin accordance with the ThoroughbredRacing Board Act 1996. The Boardprovides the independent integrityfunctions of the NSW ThoroughbredRacing Industry including Licensing,Stewards, Veterinary and Laboratory. Inaddition it provides the co-ordination ofthe NSW Thoroughbred Racing Industryincluding race programming, stakespayments and industry training. Alsoincluded are Racing Colours Registration,NSW Racing Magazine, Syndicates,Leases and Transfers and the NSW TRBInsurance Fund separately. Theconsolidated results encompass alldivisions noted above.

NOTE 3: INCOME TAX

The Board being a non-profitorganisation established for thepromotion of thoroughbred racing isexempt from Income Tax pursuant tothe provisions of Section 50-45 of theIncome Tax Assessment Act (1997), asamended.

NOTE 4: ECONOMIC DEPENDENCY

The Board received 46.12% (2001 :39% ) of its income via a First Charge onthe distribution of wagering receipts tothe Thoroughbred Racing Industry. Thisdistribution is governed by the NSWRacing Distribution Agreement asentered into by NSW Racing Pty Limitedand TAB Limited. Consequently, the

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

37

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

NSW Thoroughbred Racing Board iseconomically dependent on TAB Limited.

NOTE 5: EVENTS SUBSEQUENT TOBALANCE DATE

Subsequent to Balance Date NSWRacing Pty Limited, on behalf of thethree racing codes, settled a disputewith TAB Limited relating to the 2000financial year. The Board resolved toappropriate an additional First Chargeof $450,000 for the industry workerscompensation insurance fund from thesettlement monies. This income hasbeen included in the 2002 financialyear.

In addition the Board has resolved toincrease Workers CompensationPremiums by 20% effective 1 July 2002with a further review to occur inDecember 2002.

Except for the above no matters orcircumstances have arisen since the endof the financial year which willsignificantly affect the operations of thecompany, the results of thoseoperations, or the state of affairs of thecompany in future financial years.

NOTE 6: STATEMENT OF FINANCIALPERFORMANCE

(i) Sale of Goods - Publications incomeis derived from the sale of advertisingspace in the Breeding and Racing andNSW Racing magazines as well assubscriptions by industry participants tothese.

(ii) First Charge represents a charge tothe industry based on the budgeted netloss for the year.

(iii) Proceeds on Disposal of Assetsrepresents amounts received on sale ortrade in of assets.

(iv) Interest - represents earnings andinterest income.

(v) Sale of Services - represents incomederived from the sale of services to theracing industry - including stewards,handicapping, laboratory, veterinary,race results, syndicates and stakespayments.

(vi) Administration expenses representthe cost of the administrative areas of

the Board including executive, finance,property, human resources, appeals,and consultants.

(vii) Licensing expenditure representsstaff and office cost associated with thederivation of this income stream.

(viii) Provincial Association costsrepresent the staffing andadministrative costs associated with theProvincial Officer and therepresentation of the interests ofProvincial Association members.

(ix) Race Results expenditure representsstaff, consultants and office costsassociated with the deriving of incomefor the provision of race resultinformation.

(x) Publications expenditure includesstaff and office costs as well as allproduction and selling costs.

(xi) Laboratory expenditure includesstaffing, depreciation of capitalexpenditure, consumables andoccupancy costs.

(xii) Handicapping expenditure includesstaff and office costs.

(xiii) Stewards expenditure includesstaffing cost, shorthand writers, officecosts as well as the costs associatedwith the Broadmeadow office.

(xiv) Veterinary expenditure includesstaff, research horses, consumables andoffice costs.

(xv) Syndicates expenditure includesstaffing and office costs.

(xvi) Media costs include staff,participation in national advertising,promotional activities and monitoringof media.

(xvii) Industry Training expenditurerepresent staffing costs as well aseducational costs associated with thetraining of apprentice jockeys.

(xviii) Stakes Payments costs includestaffing, consultants, systemdevelopment, bank charges and officecosts.

(xix) Information Technology representsthe cost of providing an IT platform tothe board and supporting staff costs.

(xx) BOBS - Breeding Incentive Schemeexpenditure is the cost associated with

the incentive scheme. Costs includeprinting as well as publicity.

(xxi)Workers Compensation InsuranceFund. This Fund is designed to provideworkers compensation insurance coverfor employees of NSW Racing Clubs,Associations, owners and trainers ofracehorses against liability relating toinjury, loss or damage either sustainedor caused by jockeys, apprentices,stable hands, workers, servants,employees or agents in theiremployment or acting on their behalfpursuant to NSW Workcoverlegislation. In July 2000 the Boardsigned a service contract with ASWIGPty Limited. This contact specified thatASWIG are to provide to the Boardmanagement services in relation to theinsurance fund.

(xxii) Borrowing costs include interestexpense, bank charges and bankguarantees.

38

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

2002 2001$ $

(xxiii) Profit/Loss from Ordinary Activities :The result from ordinary activities has been determined after :Borrowing Costs - Other persons 158,591 191,703

Total Borrowing Costs 158,591 191,703

Depreciation of non-current assets- Plant and Equipment 623,916 476,541

Total Depreciation 623,916 476,541

Amortisation of non-current assets- Goodwill 435,728 550,000

Total Amortisation 435,728 550,000

Bad and Doubtful Debts- Trade Debtors 49,307 8,388

Total Bad and Doubtful Debts 49,307 8,388

Rental Expense on Operating Lease 263,346 253,679 Contingent Rental on Cessation of Lease 42,400 -

305,746 253,679

Net (Gain)/Loss on disposal of non-current assets:- Property, Plant and Equipment 7,269 33,367

Total Gain on disposal of non-current assets 7,269 33,367

Provisions- Employee Entitlements (61,895) 62,196 - Doubtful Debts 30,000 - - Outstanding Insurance Claims 1,911,700 2,628,976

Total Provisions 1,879,805 2,691,172

Remuneration of Auditor - audit 65,700 43,600 - other services 74,976 46,847

Total Remuneration of Auditor 140,676 90,447

(xv) Individually Significant Items:

Increase in Provision of Prudential Margin relating to Insurance Claims Liability as recommended by the Actuary 1,911,700 2,629,172

39

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

2002 2001$ $

NOTE 7: STATEMENT OF CASH FLOWSa) Reconciliation of CashCash at the end of the financial year as shown in the statementof cash flows is reconciled to items in the balance sheet as follows: -

Cash 2,876,973 6,416,331 Less: Bank Overdraft 952,501 969,097

Cash 1,924,472 5,447,234

b) Reconciliation of Cash Flow from Operating Activities

Operating profit after tax (3,801,550) (2,032,646)

Profit on Sale of Assets 7,269 (33,367) Amortisation 435,728 550,000 Reduction in Success Fee Reserve (550,000) (1,486,314) Increase in Leave Provisions (61,895) 62,196 Depreciation 623,916 476,541 Unrealised loss on investment 528,281 141,385 Share of loss in Registration - 26,667

983,299 (262,892)

(Increase)/decrease in trade debtors 165,480 (364,717) (Increase)/decrease in prepayments (55,685) 98,051 (Increase)/decrease in Stakes Payment debtors 72,775 (3,512,996) (Increase)/decrease in other debtors 3,745,091 (2,581,243) Increase/(decrease) in trade creditors (3,099,801) 5,048,264 (Increase)/decrease in Stakes Payment Creditors 851,000 3,552,389 Increase/(decrease) in other current liabilities - - Increase/(decrease) in sundry creditors (140,648) (2,210,158) Increase/(decrease) in accruals 975,027 (675,836) Increase/(decrease) in Insurance Claims Provision 1,911,704 2,628,972

4,424,943 1,982,726

Cash Flows from operating activities 1,606,694 (312,812)

c) Credit Stand-by Arrangement and Loan FacilitiesThere are no credit stand-by arrangements or loan facilities as at 30 June 2002.

NOTE 8: CASHCash at Bank 2,100 4,238 Deposits at Call 2,874,873 6,412,093

Total Cash 2,876,973 6,416,331

The deposits bear floating interest rates between 3.5% and 3.8% (2001: 4.8% and 4.95%).

NOTE 9: RECEIVABLESTrade Debtors 675,551 811,033 Provision for Doubtful Debts (30,000) - Sundry Debtors 131,525 3,878,356 Amounts receivable from associated entities- NSW Country Racing Council Limited 2,721,030 5,120,490 - Registrar of Racehorses 181,427 164,833 - NSW Racing Pty Ltd 1,016,921 18,348 - Australian Racing Board (502) - - Stakes Payment Debtors 3,440,221 3,512,996 - Other Racing Clubs 69,319 69,319

Bank Guarantee 49,023 46,783

Total Receivables 8,254,515 13,622,158

The NSW TRB undertakes accounting support for the NSW Country Racing Council Limited , Registrar of Racehorses, NSW TRB Insurance Fund, AJCGroup Training Company Limited, NSW Racing Pty Limited and the Australian Racing Board. Amounts disclosed above as receivable from otherentities are payable to the NSW TRB by these entities for expenses paid on their behalf. These are summarised as follows:

40

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

Expenses Paid on Receipts frombehalf of entity

- NSW Country Racing Council Limited 48,051,512 50,450,972 - Registrar of Racehorses 2,811,555 2,794,960 - NSW Racing Pty Ltd 8,753,524 7,754,951 - Australian Racing Board 1,295,439 1,295,940

NOTE 10: OTHER CURRENT ASSETSPrepayments 149,252 93,567

149,252 93,567

NOTE 11: OTHER FINANCIAL ASSETSANZ Wholesale Investment Trust 10,891,891 11,420,172

10,891,891 11,420,172

NOTE 12: INVESTMENT IN LAND AND BUILDINGSLand and Buildings - acquired during the year 2,862,480 -

Total Land and Buildings 2,862,480 -

The Baxter Road property is mortgaged to the ANZ Bank and acts as security for the ANZ Bank Guarantee to Workcover.

NOTE 13: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHODInterest in joint venture partnership;

(a) Name of Entity Principal Activity Balance Date Ownership Interest2002 2001

Registrar of Racehorses Registration of Racehorses 30/06/2002 42% 42%in Australia

Movements in carrying amounts 2002 2001$ $

At beginning of financial year - - Investment during year 93,483 113,872

Share of operating loss after income tax (93,483) (113,872)

- -

NOTE 14: PROPERTY, PLANT and EQUIPMENTPlant and Equipment - at cost 5,232,916 2,452,973 Less accumulated depreciation 1,335,960 836,728

Total Plant and Equipment 3,896,956 1,616,245 Movement in Carrying AmountsBalance at Beginning of Year 1,616,245 1,239,728 Additions 2,996,322 959,296 Disposals (91,695) (106,238) Depreciation Expense (623,916) (476,541)

Carrying Amount at the end of the year 3,896,956 1,616,245

NOTE 15: INTEREST BEARING LIABILITIES

Bank overdraft - unsecured 952,501 969,097 The bank overdraft is unsecured and is subject to a floating interest rate between 8.6% and 12.6% (2001: between 8.75% and 12.75%).

NOTE 16: PAYABLES

Trade Creditors 2,098,075 5,197,877 Sundry Creditors - 140,648 Amounts payable under Racing Distribution Agreement - 189,373 Accruals 1,739,500 384,954 Stakes Payment Creditors 4,403,389 3,552,389 Deferred Income 670,764 1,051,194 Privatisation Success Fee 314,406 864,406 Jockeys Benevolent Fund 431,720 430,807

Total Creditors and Accruals 9,657,854 11,811,648

The privatisation success fee represents funds remaining from the success fee received by the industry as a result of the public listing of TABLimited. During the course of the current year, an amount equivalent to the funding of loan amounts due and payable to the AJC in respect ofAJC businesses acquired of $550,000 (2001: $550,000), have been charged against this amount. Monies received by the NSW TRB at the balance date for products or services not yet provided are classified as deferred income. These itemsinclude subscriptions received for registration of racing colours, license fees, Workers Compensation Insurance premiums and subscriptions to NSWRacing magazine.

41

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

2002 2001$ $

NOTE 17: PROVISIONSCurrentEmployee Annual Leave 532,438 340,478 Employee Long Service Leave 241,524 247,983 Provision for Insurance Outstanding Claims 6,489,545 5,927,485

Total Current 7,263,507 6,515,947

Non-CurrentEmployee Annual Leave - 353,019 Employee Long Service Leave 400,379 294,757 Provision for Insurance Outstanding Claims 15,582,960 14,233,315

Total Non-Current 15,983,339 14,881,091

Total Employee Entitlements 1,174,342 1,236,238

No of employees at balance date 93 98

An actuarial valuation of the Insurance Funds outstanding claims was performed by independent actuaries McMahon Actuarial Services as at June30 2002. The ANZ Bank have issued guarantees amounting to $18,084,000 in favour of Workcover Authority of NSW. As at 27 September 2002this has been increased to $21,200,000 as required under the term's of the Board's insurance licence. In accordance with actuarialrecommendations the Board has provided for a prudential margin of 25% (2001 - 20%) of the central estimate of liabilities in recognition of theuncertainty of future estimates and the inherent variability of conditions affecting future claim payments.

NOTE 18: NON-INTEREST BEARING LIABILITIES - CURRENT

Loan from Australian Jockey Club - unsecured - 550,000

- 550,000

The Australian Jockey Club was repaid over a period of a four years concluding in this financial year. It was non-interest bearing.

NOTE 19: INTANGIBLE ASSETS

AJC Business Acquired 2,200,000 2,200,000 Less: Accumulated Amortisation (2,200,000) (1,764,272)

- 435,728

In 1998 AJC industry functions for Registrar of Racehorses, NSW Racing Magazine, Racehorse Colours Registration, Registration of RacehorseSyndicates, Leases and Transfers were transferred to NSW TRB. The consideration paid on the transfer of these functions has been amortised overfour years.

NOTE 20: RETAINED LOSSES

Retained losses at beginning of the financial year (1,123,583) 909,063Net loss from Ordinary Activities after income tax (3,801,550) (2,032,646)

Retained losses at end of the financial year (4,925,133) (1,123,583)

NOTE 21: CAPITAL AND LEASING COMMITMENTS

Operating lease CommitmentsNon-cancellable operating lease contracted for but not capitalised in the Financial statementsPayable not later than 1 year 62,914 276,355 Payable later than 1 year and not later than 5 years 221,359 -

284,273 276,355 Capital Expenditure Projects

Payable not later than 1 year - 2,705,000

NOTE 22: CONTINGENT LIABILITIESThe Board are not aware of any contingent liabilities which are required to be disclosed in these financial statements.

42

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

NOTE 23: MEMBERSa) Names of Board Members who have heldoffice during the financial year are

A.G Hartnell(Chairman)

Nominated by Australian Jockey ClubW H Rutledge (Deputy Chairman) - Retired13 March 2002

Nominated by Australian Jockey ClubP Esplin - Appointed 13 March 2002

Nominated by Sydney Turf ClubR W Lucas

Nominated by Provincial Association of NSWM J Cusick - Retired 13 March 2002

Nominated by Provincial Association of NSWB Reardon - Appointed 13 March 2002

Nominated by Board of Directors of NSWCountry Racing Council D E Hopkins (Deputy Chairman from 20 May2002)

Nominated by eligible industry bodies torepresent the interests of Licensed Personsand Race club employeesJ. Costigan

Nominated by eligible industry bodies torepresent the interests of Owners andBreeders of thoroughbred racehorsesR. M. Lapointe

Chief ExecutiveM J Hill

2002 2001$ $

b) Remuneration of Non-Executive Board Members

Income paid or payable to all directors 476,813 375,000

Number of Non-Executive Board Members whose income was within the following bands$0 - $9,999 2 -$10,000 - $19,999 1 -$40,000 - $49,999 5 5 $60,000 - $69,999 - 1 $90,000 - $99,999 1 1

NOTE 24: COMPANY DETAILSThe NSW Thoroughbred Racing Board was established as an entity under The Thoroughbred Racing Act 1996. As such it is an entity incorporatedand domiciled in Australia.The registered office and principal place of business of the Board is: 81-83 Baxter Road, Mascot, NSW,2020.

NOTE 25: FINANCIAL INSTRUMENTSFloating Interest Rate Non Interest Bearing Total

Note 2002 2001 2002 2001 2002 2001

Financial Assets:

Cash 8 2,876,973 6,416,331 - - 2,876,973 6,416,331

Receivables 9 - - 8,254,515 13,622,158 8,254,515 13,622,158

Investments 11 10,891,891 11,420,172 - - 10,891,891 11,420,172

Total Financial Assets 13,768,864 17,836,503 8,254,515 13,622,158 22,023,379 31,458,661

Weighted average interest rate 3.80% 4.95%

Financial Liabilities:

Bank Loans and Overdrafts 15 952,501 969,097 - - 952,501 969,097

Loans 18 - - - 550,000 - 550,000

Trade and sundry creditors - - 6,501,464 8,890,914 6,501,464 8,890,914

Total Financial Liabilities 952,501 969,097 6,501,464 9,440,914 7,453,965 10,410,011

Weighted average interest rate 8.60% 8.75%

Net financial assets/(liabilities) 12,816,363 16,867,407 1,753,051 4,181,244 14,569,414 21,048,650

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is thecarrying amount, net of any provisions for doubtful debts of those assets, as disclosed in the statement of financial position and notes to thefinancial statements. Except for the following concentration of credit risks, the entity does not have any material credit risk exposure to any singledebtor or group of debtors under financial instruments entered into by the economic entity.

The net fair values of financial assets and liabilities approximate to the carrying amounts at balance date.

43

Notesto and forming part of the Financial Statements for the year ended 30 June, 2002

NOTE 26: SEGMENT REPORTING 2002 2001$ $

Primary Reporting - Business NSW Insurance Total NSW Insurance TotalThoroughbred ThoroughbredRacing Board Racing Board

Segments RevenueExternal Sales 15,953,310 6,592,714 22,546,024 15,114,340 7,144,657 22,258,997

Total Segment Revenue 15,953,310 6,592,714 22,546,024 15,114,340 7,144,657 22,258,997

Expenditure 14,019,971 11,060,203 25,080,175 13,685,718 9,465,512 23,151,230 Amortisation 550,000 - 550,000 550,000 - 550,000 Depreciation 623,916 - 623,916 476,541 - 476,541 Share of Loss Registration 93,483 - 93,483 113,872 - 113,872

Total Segment Expenditure 15,287,370 11,060,203 26,347,574 14,826,131 9,465,512 24,291,643

Segment Result 665,940 (4,467,489) (3,801,550) 288,209 (2,320,855) (2,032,646)

AssetsSegment Assets 11,803,799 17,128,268 28,932,067 15,725,152 17,879,049 33,604,201

Total Assets 11,803,799 17,128,268 28,932,067 15,725,152 17,879,049 33,604,201

LiabilitiesSegment Liabilities 11,494,271 22,362,929 33,857,200 13,932,989 20,794,796 34,727,784

Total Liabilities 11,494,271 22,362,929 33,857,200 13,932,989 20,794,796 34,727,784

Net Liabilities 309,528 (5,234,661) (4,925,133) 1,792,163 (2,915,747) (1,123,584)

The primary business activity is the NSW Thoroughbred Racing Board provision of racing services to the industry. The secondary activity is the WorkersCompensation Fund. All income and expenditure is incurred within the thoroughbred racing industry within the state of New South Wales, Australia.

NOTE 27: RELATED PARTIESAn amount of $57,186 was expended on legal fees to Atanaskovic Hartnell. A G Hartnell is both a partner in the firm of Atanaskovic Hartnell andChairman of the NSW Thoroughbred Racing Board. Agistment fees for research horses of $5,784 were expended to Muskoka Farm. Muskoka Farmin owned by R M Lapointe, a Board member of the NSW Thoroughbred Racing Board.

NOTE 28: INSURANCE ACTIVITIES 2002 2001Premium revenue 5,679,305 5,492,891 Reinsurance recoveries and other recoveries revenue 74,150 427,084 Investment revenue 223,419 966,993 First Charge 450,000 - Other Income 165,840 257,689

6,592,714 7,144,657 General and Administration 971,833 931,519 Direct claims 9,001,089 7,965,592 Outwards reinsurance 559,000 568,401 Investment expense write-down 528,281 141,385

11,060,203 9,606,897 Underwriting result for the financial year excluding investments revenue and expense (4,162,627) (3,287,848) Investments - - Land and buildings 2,862,480 - ANZ Trust 10,891,891 11,420,172

13,754,372 11,420,172 Operating AssetsBank 2,874,873 6,412,093 Other Debtors 450,000 - Bank guarantee 49,023 46,783 Reinsurance recoveries 2,842,000 4,350,000

6,215,896 10,808,876 LiabilitiesOutstanding claims 24,914,504 24,510,800 Unearned Premiums 290,425 633,912

25,204,929 25,144,712

a) Outstanding Claims $000 $000- -

Gross undiscounted claim liability 26,373 26,083 Discount to present value (4,647) (4,262)Third party recoveries (1,226) (274)Re-insurance recoveries (2,842) (4,350)

17,658 17,197 Prudential margin 4,415 2,963

22,073 20,160 Current 6,490 5,927 Non-current 15,583 14,233

22,073 20,160

44

Notes

The average weighted term to settlement of the outstanding liabilities is 3.4 years (2001: 3.6 years).

The following average inflation rates and discount rates were used in measuring the liability for outstanding claims:

2002 2001Next Year Thereafter Next Year Thereafter

Inflation rate 4.00% 4.00% 3.50% 3.50%Discount Rate 6.00% 6.00% 5.50% 5.50%

b) Net claims incurred for current year and change in incurred for prior years.2002 2001

Current Year Reassess Prior Current Year Reassess PriorIncurred Years Incurred Years

$000 $000 $000 $000Gross undiscounted incurred claims 7,080 (658) 5,596 (1,220)Undiscounted reinsurance & other recoveries (360) 2,321 (395) 2,026 Net undiscounted incurred claims 6,720 1,663 5,201 806 Discounting of incurred claims (869) 203 (691) 226Discounting recoveries 62 (403) 74 (381)

5,913 1,463 4,584 651

Gross discounted incurred claims 6,211 (455) 4,905 (994)Discounted reinsurance & other recoveries (298) 1,919 (321) 1,645

Net discounted incurred claims 5,913 1,464 4,584 651

The claim cost incurred consists of paid to date plus estimate of outstanding liabilities plus administration expenses.

to and forming part of the Financial Statements for the year ended 30 June, 2002

45

Declaration and Audit Report

DECLARATION BY BOARD MEMBERSThe Members of the Board declare that:(1) the financial statements comprising the Statement of Financial Performance, Position and Cash Flows and accompanying notes:

(i) give a true and fair view of the financial position of the NSW Thoroughbred Racing Board as at 30 June 2002 and it's performance for theyear ended on that date.(ii) are in accordance with NSW Thoroughbred Racing Act 1996 and comply with the Accounting Standards and the Corporations Regulations,and other mandatory professional reporting requirements and

(2) as at the date of this declaration there are reasonable grounds to believe that the NSW Thoroughbred Racing Board will be able be able to payits debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board and is signed for and on behalf of the Board

Mr. A G HARTNELL Mr D HOPKINSCHAIRMAN DEPUTY CHAIRMAN

Dated at Sydney this 21st day of October, 2002.

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF NSW THOROUGHBRED RACING BOARDScopeWe have audited the financial report of NSW Thoroughbred Racing Board (“the Board”) for the year ended 30 June 2002 comprising theStatements of Financial Performance, Position and Cash Flows, accompanying notes and Declaration by Board Members. The Members of theBoard are responsible for the financial report. We have conducted an independent audit of the financial report in order to express an opinion on itto the members of NSW Thoroughbred Racing Board.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report isfree of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures inthe financial report and the evaluation of significant accounting estimates. These procedures have been undertaken to form an opinion whether, inall material respects, the financial report is presented fairly in accordance with Accounting Standards, other mandatory professional reportingrequirements in Australia and other statutory accounting requirements so as to present a view which is consistent with our understanding of theBoard's financial position and performance as represented by the results of its operations and cash flows.The audit opinion expressed in this report has been formed on the above basis.

OpinionIn our opinion, the financial report of NSW Thoroughbred Racing Board is in accordance with:a) NSW Thoroughbred Racing Board Act 1996, including:

i) giving a true and fair view of the Boards financial position as at 30 June 2002 and of its performance for the year ended on that date and;ii) complying with Australian Accounting Standards and;

b) other mandatory reporting requirements.

BDOCHARTERED ACCOUNTANTS

David GomanMANAGING PARTNER

Signed at Sydney this 24th day of October 2002.

46

81-83 Baxter Road, Mascot NSW 2020 P.O. Box 528, Kensington, NSW 1465

Telephone: 02 9551-7500 Facsimile: 02 9551-7501 Email: racing@racingnsw.com.au