Labour M.P.s oppose lottery duty move

Press, Volume CXI, Issue 32701, 2 September 1971, Page 2

Labour M.P.s oppose lottery duty move

(New Zealand Press Association) WELLINGTON, September 1. Opposition speakers in Parliament today called on the Minister of Finance (Mr Muldoon) to exempt from duty all lotteries, including the Golden Kiwi and Mammonth lotteries.

Speaking during the second reading debate on the Gaming Duties Bill. Mr R. J. lizard (Lab., Pakuranga) said the bill freed from duty all those priv-ately-run lotteries still subject to duty—mainly mystery-envelope sales—but left duty on the Government lotteries, which last year provided almost $625,000 in tax.

The Government was freeing from duty lotteries run by substantial charities, he said. But it was drawing money from gambling to go to charity, while insisting that 10 per cent of it go in tax to the Consolidated Fund.

The lottery duty of 10 per cent was a very significant part of the income of the Lottery Board of Control, and was nearly half of the funds received for distribution pur* poses. He said this was because the tax was levied not on profits, but on gross sales. Why should one charity be exempted from this duty, he asked, while other charities W““ “'■*

Mr M. A. Connelly (Lab., Wigram) said the time had long since passed when recreational, cultural and community activities should be financed from lottery profits. With the falling popularity of the lotteries, the money available for distribution also was falling, he said, and funds should instead be available from some reliable source, expanding to meet the growth of the population. The Government should go the whole way and eliminate entirely the duty paid on all lotteries, he said. By abandoning its claim of the profits of the Golden Kiwi and Mammoth lotteries, the Government immediately would be making available a much-needed extra $625,000 for community purposes. Mr T. F. GUI (Nat., Waitemata) said it was not correct to compare the Golden Kiwi and Mammoth lotteries and private charity lotteries. Money going to the Staterun lotteries was a straight investment, he said, quite different from that going to charities or their lotteries

where one could see what the money was being used for.

In reply, Mr Muldoon said there was no intention of reducing the duty on the Golden Kiwi and Mammoth lotteries. The bill arose largely from representations, particularly from St Peter’s Maori College. "They were considered and it was felt it was time the duty was removed. There was no intention of going further at this stage, he said. TOTALISATOR DUTY Mr P. Blanchfield (Lab., Westland) criticised a provision of the bill which imposed interest charges of 5 per cent a month on unpaid totalisator duty. Many small racing clubs often had to borrow from the bank in order to pay the duty, he said. The 5 per cent interest charge was “Government usury.” Mr Blanchfield suggested that jackpot winnings also should be subject to tax. Win and place investors were subject to a 17.32 per cent tax and doubles investors to a 20 per cent duty. Jackpot syndicates were professionals who did not pay a cent to the clubs, he said. The bill was given its second reading.