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Speaker 1: But on Friday, during the week that was you may

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Speaker 1: recall that I'd read the statement out from the Chairman

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Speaker 1: of Thoroughbred Racing here in the Northern Territory, Sid Sterling.

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Speaker 1: He's called on the new Northern Territory Chief Minister and

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Speaker 1: the new Racing Minister to show some personal courage and

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Speaker 1: independent thinking to reverse this decision to recall the twelve

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Speaker 1: million dollars the Darwin Turf Club grant. Now, mister Sterling,

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Speaker 1: Sid Sterling joins me in the studio right now. Good

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Speaker 1: morning to you, Sid. Good morning Katy, thanks so much

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Speaker 1: for your time this morning. Now, Sid, why does the

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Speaker 1: Northern Territory government need to reverse this decision to recall

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Speaker 1: the twelve million dollars?

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Speaker 2: Okatie, It's a simple mathematical equation. You try to take

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Speaker 2: twelve million dollars off the dar And Turf Club, it

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Speaker 2: would absolutely cripple it as an ongoing entity. If we

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Speaker 2: lost Darwen Racing, we would lose the territory industry, territory

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Speaker 2: racing industry across the board, and the long, rich history

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Speaker 2: and legacy that racing has bequeath the Northern Territory. It

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Speaker 2: will be a disaster.

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Speaker 3: Now I know that. You know obviously the callback of

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Speaker 3: this money.

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Speaker 1: It's going to have an impact on the Darwin Turf

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Speaker 1: Club and you know the Darwin Cup Carnival. But when

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Speaker 1: we talk more generally about the impact that it will

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Speaker 1: have on thoroughbred racing in the Northern Territory, SID, can

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Speaker 1: you give me a bit more detail on that.

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Speaker 2: We had an economic impact studied done late last year

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Speaker 2: by a reputed company, EIER. They estimated that of the

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Speaker 2: seventeen point eight million that flows into the territory industry

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Speaker 2: one way or another by both government input and TAP agreement,

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Speaker 2: that that spins off about one hundred and thirty million

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Speaker 2: dollars industry wide in expenditure in the Northern Territory. Now,

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Speaker 2: easy equation to break that down, that's about thirty million

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Speaker 2: dollars worth of GST expenditure. In that we get a

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Speaker 2: little over four times the relativity of GSD, So that

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Speaker 2: returns to the Northern Territory probably between fifty and sixty

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Speaker 2: minus million dollars. Now that's a worst case scenario. If

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Speaker 2: we've lost the industry altogether, the territory taxpayer and the

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Speaker 2: Territory treasury would be worse off. To the turn of

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Speaker 2: between fifty and sixty million dollars. So I'm putting a

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Speaker 2: worst case scenario. But all industry at this time, with

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Speaker 2: the increasing costs and CPI as it is, are vulnerable,

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Speaker 2: including the racing industry.

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Speaker 4: It's okay, it.

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Speaker 2: Can survive, but you take a put a whack like

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Speaker 2: that on it, you're really risking across the board the

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Speaker 2: whole industry.

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Speaker 1: I know that there is definitely going to be people

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Speaker 1: listening this morning who are thinking, oh, come on, you know,

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Speaker 1: the Darwin Turf Club has plenty of money.

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Speaker 3: All you've got to do is go for a walk

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Speaker 3: through Silks, or all you've.

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Speaker 1: Got to do is, you know, have a walk around

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Speaker 1: on the weekend when you see plenty of people there

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Speaker 1: for various different races.

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Speaker 3: You know, to those that are listening that are thinking that,

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Speaker 3: what would you say to them.

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Speaker 2: Well, simply this Silks has been an outstanding success and

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Speaker 2: quickly established itself as a quality venue people, particularly for

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Speaker 2: luncheon dinners. But the fact is that the funding arrangement

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Speaker 2: with the banks was predicated. It was a risky deal

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Speaker 2: for the banks in the sense this is on Crown land,

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Speaker 2: so banks can't readily sell it on if it went bad,

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Speaker 2: so banks needed a pretty strict deal in the sense

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Speaker 2: that all profits accruing to Silks would have to go

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Speaker 2: back to repayment of debt and to get that debt

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Speaker 2: down as quickly as possible. And that's good practical commercial

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Speaker 2: sense from the turf club. It's a good agreement to

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Speaker 2: be but that means there's simply no money free in

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Speaker 2: whatever Silks makes in terms of profit, because it all

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Speaker 2: goes back to the bank to pay off the loan

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Speaker 2: and the money that was borrowed to build it. So

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Speaker 2: you can't go anywhere near there to repay this twelve million.

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Speaker 1: See it was reported on the weekend that two more

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Speaker 1: people have stood down from the board of the Darwin

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Speaker 1: Turf Clubs. I know that you're not on that board obviously,

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Speaker 1: you're the chairman of the of thoroughbred racing here in

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Speaker 1: the Northern Territory. But are you concerned about what's happening

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Speaker 1: right now with the dar and Turf Club.

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Speaker 4: Yes.

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Speaker 2: Look, I don't want to speak for a dal On

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Speaker 2: Turf Club on chairman of thoroughbred Racing, but of course

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Speaker 2: there are a major constituency of ours and I am

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Speaker 2: concerned at the ongoing pressure I suppose that's been placed

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Speaker 2: on the day on Turf Club Committee and this fallaut

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Speaker 2: we know that we had a complete turnover of membership

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Speaker 2: following originally the Ikak report and the former Chief Minister's

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Speaker 2: wish that the Turf Club Committee be rolled over. It was,

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Speaker 2: but unfortunately we've had this series of resignations. Some some

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Speaker 2: had signaled that, you know, in the case of Barry Kola,

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Speaker 2: he believed his.

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Speaker 4: Time was up and.

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Speaker 2: He had been you know, he's had a great input

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Speaker 2: to racing over the years, and a couple of others

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Speaker 2: in that vein. But we're seeing a little bit of

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Speaker 2: a revolving door now. That's not good for the club

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Speaker 2: and it's not good for a dar On Turf Club,

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Speaker 2: particularly on the eve of our major carnival.

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Speaker 1: Is there any concern that the Darwin Cup Carnival won't

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Speaker 1: go ahead or will not be able to go ahead

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Speaker 1: in all its glory?

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Speaker 4: No, No, I'll put that to bed.

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Speaker 2: Look, there's management in place that we'll see a tremendously

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Speaker 2: successful carnival. The place is booked out, ticket sales went

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Speaker 2: very early and I'll be predicting a bumper Cup carnival.

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Speaker 1: What impact is the payback of this twelve million dollars

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Speaker 1: going to have those seed.

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Speaker 2: Well, well, simply, I mean everyone's talking about CPI and

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Speaker 2: the cost of work. GOTE estimates that probably over the

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Speaker 2: past eight years, that's about twenty four percent. Now, the

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Speaker 2: racing industry hasn't had an increase in stake money since

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Speaker 2: twenty sixteen, so that's already going on for six years.

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Speaker 2: Under the current agreement, we're trying to get out a

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Speaker 2: five percent to increase in state money across the board,

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Speaker 2: but that's five percent against you twenty twenty five percent

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Speaker 2: increases over the past five eight years. So yeah, we're

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Speaker 2: pushing against the tide. Strong battlers, big hearts in the

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Speaker 2: racing industry and you have to have big heart, two

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Speaker 2: bell and survive. But they're doing it tough and they're

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Speaker 2: entitled to know a decent return on their income and

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Speaker 2: their labor.

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Speaker 1: Now, when do you do to catch up with the

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Speaker 1: minister and what are you hoping that will be achieved?

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Speaker 3: Following on from this meeting.

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Speaker 2: The CEO of Thorobo, addressing myself will meet with Chancey

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Speaker 2: Paker tomorrow. I'm somewhat more confident that both Natasha as

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Speaker 2: Chief Minister and Chancey have a good handle on racing

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Speaker 2: industry and what it contributes to the Northern Territory economy.

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Speaker 2: I get that they see the impact it has in

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Speaker 2: an economic sense and they want that to continue. Chance

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Speaker 2: he is a very avid race follower, race goer. Not

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Speaker 2: that that means he necessarily has to support our position,

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Speaker 2: but I think that's where his heart lies.

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Speaker 4: So we will have those discussions.

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Speaker 2: Talk is cheap, of course, but that's the only way

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Speaker 2: you're going to get a resolution here is to.

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Speaker 4: Talk it through.

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Speaker 1: See do you ever think to yourself, Jesus, I wish

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Speaker 1: this grindstand had never happened.

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Speaker 4: Not at all. It's a fantastic asset. It's safe, it's there.

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Speaker 2: On Crown Land, and it will continue to pay itself

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Speaker 2: off over the years ahead, as well as well as

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Speaker 2: the Silks Club.

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Speaker 4: But but but.

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Speaker 2: Give us, give us, give it a chance, and it

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Speaker 2: will pay itself off in drodes. This is uh, you know,

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Speaker 2: in terms of uh. You know, an asset for the taxpayer.

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Speaker 2: It does produce income and will do so, you know

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Speaker 2: forever in a day. It's a quality asset. It's on

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Speaker 2: Creme Land, it's not going anywhere. It was a good

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Speaker 2: thing to do.

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Speaker 1: Well, seid Sterling, I'll be really interested to hear how

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Speaker 1: that meeting goes. If you're able to give us a

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Speaker 1: bit of an update throughout the week, we would very

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Speaker 1: much appreciate it. I really appreciate your time this morning.

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Speaker 1: Thanks so much for coming in.

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Speaker 4: Thank you.