The government had been planning to end state subsidies for the racetracks in the province completely. However, the new measures were approved in the Senate in July by only two votes. The political block supporting Governor María Eugenia Vidal is made up of less than 40 deputies, out of a total of 92. Without an alliance with members of the opposition, the new law had little chance of passing through the lower house as well.
With a complex outlook in the Lower House, and given the unlikelihood of gaining support from the opposition, the government made the decision to withdraw the proposal and begin again.
At the meeting, lawmakers discussed the postponement of the bill and the importance of keeping channels of communication open with the sector as well as with different members of the opposition. The objective of any new law will now be to search for a higher level of acceptance from the sector and safeguard the finances of the province as well.
President of the Chamber of Deputies Manuel Mosca said that a new deal was needed in order safeguard resources and protect the sector. “Agreeing means taking better care of the resources of the people of Buenos Aires that are scarce and need to reach those who need it most, and take care of an activity that has the potential to sustain itself. We have to work to ensure that this transit is gradual and as less traumatic as possible.”
Vidal’s plans to cut horseracing subsidies had caused controversy from the very start and immediately came under fire from unions representing the industry.
In February, Governor of the province of Buenos Aires María Eugenia Vidal announced that she would cut subsidies to horse racing tracks completely. The government of the Province of Buenos Aires planned to reduce subsidies for horse racing by as much as $300m per year in its first phase. It was the government’s position that horseracing in the province of Buenos Aires has its own revenue sources such as betting, as well as simulcast sales abroad. However, for more than ten years, the province of Buenos Aires has subsidised the activity of racetracks and subsidised different trade associations as well.
Source: GMB / G3 Newswire
