GAI WATERHOUSE has slammed the report that recommends the merging of the Australian Jockey Club and Sydney Turf Club as being "worth nothing", reports Craig Young in the Sydney Morning Herald.His report adds: The champion trainer cut loose a day before Racing NSW hosts a high-powered meeting into the mega-club merger and the industry's funding and comes as the AJC is expected to announce major prizemoney cuts."Racing does not need a third level of bureaucracy and no business flour

GAI WATERHOUSE has slammed the report that recommends the merging of the Australian Jockey Club and Sydney Turf Club as being "worth nothing", reports Craig Young in the Sydney Morning Herald.

His report adds: The champion trainer cut loose a day before Racing NSW hosts a high-powered meeting into the mega-club merger and the industry's funding and comes as the AJC is expected to announce major prizemoney cuts.

"Racing does not need a third level of bureaucracy and no business flourishes that are run by bureaucrats," Waterhouse, who is holidaying in Europe, wrote on her Tuesday blog. "Businesses do well when run by people on the spot who are committed, who know their product and are under pressure to make it work."

Waterhouse believes the clubs should "be more accountable to Racing NSW, so everyone can see where the dollars and cents are being spent". "The AJC are there trying to make it work," she said. "To think in just a couple of weeks' time they are going to the gallows, it's cruel and wrong. I would have had a better chance of writing the report than the firm [Ernst & Young] they engaged.

"I spoke to the two people compiling the report at Randwick one morning and neither had walked on a racetrack till then. They had no idea about Flemington ... it was horrifying to hear their ignorance about a sport they were about to condemn. The report is worth nothing and should be taken very lightly."

Representatives from the STC and AJC, who met yesterday to compile a response to the report, were not part of the meeting held at Racing NSW's Sydney office, which coincided with Racing Victoria's chief executive Rob Hines announcing the Victorian industry was flourishing.

Hines expects Victoria to receive "$19 million or nearly 9 per cent on the previous year" from its share of Tabcorp revenue and is adamant prizemoney levels will be maintained. "We should also note that Tabcorp, some corporate bookmakers and betting exchanges are making a further contribution through direct sponsorship of clubs and events which also assists in supporting prizemoney levels," he stated.

Arrowfield Stud principal John Messara emerged from the meeting as spokesman and was "left with the distinct impression prizemoney is under threat".