Grant from lottery to be probed

Press, 26 May 1979, Page 1

Grant from lottery to be probed

PA Wellington The Crown Law Office will investigate suggestions that a Lottery Board of Control grant of $50,000 to the Racing and Trotting Conferences may have breached the Gaming and Lotteries Act.

The question was raised by the writer of a letter to the “Evening Post” who queried the right of the board’s chairman, the Minister of Internal Affairs (Mr Highet), to make such a grant under the terms of the act.

A copy of a lottery tic ket bearing the inscription. “All profits to charities.’ was included with the letter.

The Department of Internal Affairs’ chief execu tive (gaming), Mr K. O’Connor, said yesterday that the matter was about to be referred to the Crown Law Office, a customary move in such circumstances.

Nobody had raised the question of distribution of lottery profits before, he said.

The results of the inquiry might be known in about a week. Mr O’Connor said that

under the terms of the Gaming and Lotteries Act, 1977, lottery profits had to be used for a “charitable purpose." Section 71 of the act defines "charitable purposes” as any charitable, philanthropic, or cultural purpose and includes every other purpose that is “beneficial to the community or any section of the community.” Mr O’Connor declined to comment when asked if the grant might have breached the terms of the act.

When Mr Highet announced the grant recently he was quoted as saying $30,000 had been given to the Racing Conference and $20,000 to the Trotting Conference for use at their own discretion. According to a Press Association report, he said that he hoped its use might be connected with the breeding industry. Tattersall's in Australia helped racing by way of c grant, and he believed the Lottery Board should do the same.

"After all, most of those who buy tickets are interested in racing and trotting,” Mr Highet said.