RACING TAXATION.

Auckland Star, Volume LXII, Issue 166, 16 July 1931, Page 10

RACING TAXATION.

LICENSING OF BOOKMAKERS.

double tote wanted

VIEWS OF CONFERENCE,

The question of Government taxation and the proposal to license bookmakers was dealt with at length by the president of the New Zealand Racing Conference, Mr. 0. S. Watkins, in the course of his annual address at Wellington today. . ~ Mr. Watkins said that following the usual custom he would give the amounts of the various taxes paid by racing clubs during the past and present seasons. The figures are as follow: — 1929-30. 1930-31. £ s. d. £ s. d. Totalisator tax (2i p.c. 192930, but 5 31) 1 . 9 . 3 . 0 . 132,936 S 7 169,452 16 3 Dividend tax (5 (p.c.) .. 239,146 6 7 152,410 35 9 Stakes tax (5 p.c.) . 20,368 18 0 16,539 11 6 Amusement tax 12,957 5 0 11,262 17 5 Land tax .. 2.529 16 4 2,903 IS 7 Income tax ■ 011 interest 173 7 5 177 7 1 408,412 1 11 352,747 6 7 Local rates 9,734 7 2 9,529 911 Since the last meeting the Government increased its totalisator tax by 2J per cent, and a substantial increase was also made in the amusement tax. The proportion of taxation now levied on totalisator investments was as follows:—Government tax 5 per cent, the clubs received 7§ per cent, making a total of 12A per cent, deducted from £1, left 17/6; add Government tax on dividends, 5 per cent, deducted from 17/6, left 16/74, making a total tax of Hi per cent, equal to 3/4£ off every £1. The Government received 1/10J, and the clubs 1/6 out of each £1 invested. The Government tax was collected by clubs at no expense to the Government. The whole cost of running the totalisator fell entirely on the clubs. The net return to them, after deducting running expenses, did not exceed, in the average, 0 per cent. This calculation included 110 provision for the upkeep of totalisator buildings, machinery, etc.

'Measures for Relief. The president said that he might be pardoned for reminding members of Parliament that a few years back the racing authorities were asked by the Government, as a matter of national expediency, to find £200,000 extra taxation for "two years. Acting on the understanding given by the then Prime Minister (Mr. Massey) that the extra tax to provide the amount required would be imposed for two years only, they unhesitatingly agreed to the urgent request. This extra tax not only remained in existence, but a further 2£ per cent tax on totalisator investments was imposed by Parliament last year. Unfortunately it was now the racing clubs' turn to appeal for relief and they suggested that the passing of a Gaming Amendment Bill repealing the statute which prevents, (1) the telegraphing or remitting through the Post Office of investments on the totalisator to club 6 on race days, and (2) ,the operation of tlio double totalisator, would afford some measure of relief.

In every part of the country there were hundreds of people unable to attend race meetings who desired to make modest investments and were debarred by statute from transmitting their money to the totalisator. Why not provide them with a lawful channel, whereby their investments could be made in a, manner profitable to Government and clubs alike, instead of forcing them to bet with the illegal bookmaker and layer of ludicrously restricted odds, who escaped taxation, and to whom every increase in totalisator tax, by reducing dividends, was a direct gift by the State at a time when every other section of the community was being called upon to bear fresh burdens?

the season just drawing to a close," said Mr. Watkins, "there has been a move in certain quarters for the legalisation of bookmaking in New Zealand. It is to be hoped that the common sense of the Legislature will prevail against any attempt to undo much of the good effected by the wise legislation which selected, as the legal channel for wagering, the totalisator in preference to the bookmaker. What is desirable- is not the readmission but the effective repression of the bookmaker and his illegal calling. The totalisator holds out no seductive temptation, and has the effect of restricting betting to a reasonably modest dimension. This conference has established racing in a position where dishonesty can only be practised ' at the imminent risk of exile from participation in it. The recognition of bookmakers as a part of the machinery of racing is detrimental, alike to the estimation in which the sport is held by the impartial section of the public, and to our power of keeping it free from abuses. The standard of honesty and of true sportmanship falls in proportion to the influence exercised by those who view racing as a mere gambling machine, and the evil is the more to be feared in times like these when necessity leads to temptation."