SYDNEY—The NSW racing industry will receive a $40 million taxpayer-funded compensation package over the use of Randwick Racecourse for next year's Catholic World Youth Day.
Prime Minister John Howard today said the federal government would provide $20 million to the industry, while NSW Deputy Premier John Watkins indicated in NSW parliament the state government would match that contribution.
Under the agreement, horses and trainers will be relocated to Warwick Farm and Rosehill racecourses, with infrastructure at both venues to be given a $10 million upgrade.
A further $7 million will go towards upgrades of facilities at Randwick while the Australian Jockey Club (AJC) will receive a $3 million payout and a 50-year extension of its lease at that track.
Randwick-based trainers whose businesses are affected by the move will be given $10.8 million in reimbursements through Racing NSW.
A contingency fund of $10 million will also be set aside to ensure there are no disruptions to the 2008 spring carnival.
"This is a substantial and comprehensive package of measures that not only secures Randwick for World Youth Day but will see a lasting benefit for the racing industry through investment of the three premium venues here in Sydney," Mr Watkins told parliament.
The agreement on compensation ends an on-going dispute between the AJC and the Catholic Church over the use of the venue for the papal visit.
Relations took a further hit last month, when the AJC refused to let church officials bring media into the racecourse for a press conference, and accused them of "bullying" and "intimidation".
Mr Watkins today reiterated that Randwick was the only suitable venue in Sydney to hold the event.
"... World Youth Day will provide a significant legacy to NSW, not only in terms of infrastructure benefits to the racing industry but for the NSW economy and that Sydney is again showcased to the world as premium tourist destination," Mr Watkins said.
Earlier, Mr Howard said the funding would offset the costs associated with moving the horses from Randwick to accommodate the visit of Pope Benedict XVI and thousands of young pilgrims.
"The coalition recognises there are significant costs involved in constructing the necessary infrastructure at Warwick Farm and Rosehill Gardens to accommodate the Royal Randwick horses and trainers," Mr Howard told reporters in Cairns.
"This funding will help make the youth day a big success while looking after the interests of the horse racing industry."
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