$1.4m From Doubles Sought

Press, Volume CVIII, Issue 31730, 13 July 1968, Page 7

$1.4m From Doubles Sought

(From Our Own Reporter) WELLINGTON. If a proposal to Increaso the present totalisator deduction on doubles betting by 2.6$ per cont moots with Government approve I It would boost racing clubs revenue by $1,440,000 In the 19M-M season. Mr 0. A. Whyte, president of the New Zealand Racing Conference, said In his report to the annual meeting In Wellington yesterday. Mr Whyte said that as there was no prospect of any change in the apportionment of racing taxation in the foreseeable future the executive committee had reluctantly come to the conclusion that an increased deduction from the totalisator was mandatory to keep racing alive in many districts. After prolonged and careful consideration, both the executive of the Trotting Conference and the executive committee of the Racing Conference had voted unanimously in favour of a proposal to ask the Government to increase the present totalisator deduction on doubles betting from 17.32 per cent to 20 per cent on the understanding that the increase of 2.68 per cent should be retained by clubs on doubles betting on the course and by the Totalisator Agency Board on off-course doubles investments, said Mr Whyte. The anticipated increase of $1,440,000 in revenue to the In dustry was based on turnover of all doubles, both on and off course, for the 1966-67 season, LISSIR IMPACT It was considered that by applying for this extra deduction to doubles betting only, the financial impact on the racing public would be cushioned to a greater extent than if the increased percentage were less than 2.68 but also applied to win and place betting, said Mi Whyte.

The average dividend for the main double during the last five years had been $l4l. An increased deduction of 2.68 per cent would have reduced this figure to about $136.50. Mr Whyte said that in submissions to the Government in 1964 it had been stated that taxation relief of the order of $1,800,000 was needed to raise the value of 1964 stakes to the 1950 real values. This figure had been considered necessary to keep racing in a healthy financial state in order that the future of racing and those employed in the industry could be

safeguarded and the amount of Government taxation from racing protected at its then level. In 1966 the Government increased revenue to clubs by about $200,000 in rebating taxation from the totalisator by the Stamp Duties Act 1965 but htis assistance, although welcome, had been Insufficient to help clubs to any material extent said Mr Whyte. In 1967 both conferences made further submissions, this time to the Taxation Review Committee, pointing out that in comparison with 1964 taxation

paid to the Government from racing increased by $1,166,000 in 1965 and by $1,335,000 in 1966, while in the same two years the overall operations of clubs resulted in a total loss ot $98,734 compared with a loss ot $83,934 in 1964, notwithstanding the additional amount ot $200,000 received by them in 1966 from the rebate of totalisator duty. "TAKING TOO MUCH" •'! can only reiterate what has been said time and time again, and very rightly, that the Government is taking too much out of racing,” said Mr Whyte. “For the year ended July 31, 1967, the Government received nearly $13,000,00 in totalisator duty tax notwithstanding that clubs had faced heavy financial prob lems.” Mr Whyte said that this year these problems have been accentuated by falling turnover both on-course and off-course and although taxation received by the Government had decreased only slightly clubs had not been so fortunate and the season just ending had been a calamitous one as far as racing finances were concerned. The scant reserves of many clubs, built up in the past by prudent management, had been depleted by heavy losses and it was only by borrowing or substantially reducing expenditure that most clubs had been able to carry on. Even large metropolitan clubs, which a few years ago were in a position of affluence, had found it necessary to reduce stakes. This means a lower return to owners, trainers, jockeys, and many others who depended on racing for a livelihood, said Mr Whyte. "If this additional totalisator deduction is agreed to I feel that the way is clear for clubs to look to the future with renewed confidence. The initial steps for a much needed recovery is again squarely over to the Government/’