Manitoba trots out support for horse racing industry

The Manitoba government is planning to buy more time for the struggling horse racing industry by giving the sector more money sooner.

The province has pledged to pay out the remaining five years of a legal settlement to the Manitoba Jockey Club overthree years.

The club would receive $7.4 million annually for the duration of the arrangement, which was originally reached after the jockey club took the province to court over a plan to hand over the reins of the horse-racing track to Red River Ex.

The province says more money upfront will improve the industry's sustainability.

After the next three racing seasons, the province would continue to finance the sport, agriculture minister RalphEichlersaid.

"We have to support in some way or fashion. It's a $34-40 million income tax return for government. It creates about $112 million a yearthrough tourism and raisingrevenue, 1,100-1,200 jobs," he said."It's a big business for Manitoba."

Arrangement not sustainable: Eichler

Eichler said the de-escalating formula reached bythe former NDPgovernment and Manitoba Jockey Club in 2014 would slip from $5.4 million in the initial yearsto $3 million by the 10th year.

"It just wasn'tgoing to make it sustainable," he said.

The province decided to increase funding after analyzing a government-commissioned review of the industry, published last week, which recommended a boost of around$600,000 annually to revitalize thethoroughbred, standardbred and Manitoba Horse Racing Commission programs, a news release said.

Darren Dunn, CEO of AssiniboiaDowns, said the new deal gives the industry and government a chance todiscuss a long-term strategy for horse racing in Manitoba.

Peguisdevelopment vital

A majorreason why the 2014 settlement wasn't sustainable is because a planned developmentby the Manitoba Jockey Club and Peguis First Nation hasn't beenstarted.

The proposal, which would generate revenue for the industry, would see a hotel, conference space and possibly retail and restaurant locations built on 36 acres.

Dunnisn't surewhen construction will start, but he believes the three years of acceleratedprovincial fundingwill give the groupstime to strategize.

"The development on this property will form a key piece of future growth revenues, so we continue to be optimistic about it," hesaid.

The province's treasuryis expected to fork over $10.2 million this year through a number of means, including settlements, grants, VLT revenue and some of the proceeds from betting.

NDP leader Wab Kinewisbaffled the government is respectingthis arrangement considering their usually combative nature with the courts.

"They have the prerogative to tear up a legal agreement with the Mtis," he said. "This governmentcan argue legally, apparently, against the constitutional authority to bring in a carbon tax, but yet on this issue their hands are tied?"

With files from Sean Kavanagh