Industry still awaits promised tax relief

Press, 3 July 1979, Page 24

Industry still awaits promised tax relief

By

W. R. CARSTON

The question of financial assistance by way of tax relief was still a matter of concern for many involved in the trotting and racing industries, members were told when the retiring president of the New Zealand Metropolitan Trotting Club (Mr Eugene McDermott) presented his report at the annual meeting last evening.

Mr McDermott said that Mr Muldoon and his Government had been criticised by many trotting and racing people for their continuec harsh treatment of an industry which provides employment, both full and part-time, foi thousands ot N w Z. slanders, and gathers so much revenue for the State fi„m citizens of this country and also by way of foreign exchange earnings.

Quoting from a recent report in a well-known weekly newspaper, Mr McDermott said that during a period of only eight months the sale of racehorses earned a colossal $9,624,619 in overseas funds yet mother Budget

bad come and gone and the industry was not even mentioned. Mr McDermott said that since then the Minister of

'nternal Affairs, Mr Highet, had said that some trotting and racing clubs were having financial difficulties and that the Racing Authority was looking at the position.

"At the same time Mr laghet's own department is considering the establishment of a game of chance called ‘Lotto,’ whose establishment would only worsen the present perilous position of the trotting and racing industries,” he said.

“I suggest that if trotting and racing in this land are allowed to stagnate for much longer there will be an exodus of studmasters, oreeders, owners, trainers and horsemen from an industry far more important chan many others whose demands are so often met by direct action,” he said. In referring to two other recently published newspaper articles, in one of which administrators and others gave their views as to what ails trotting and racing, Mr McDermott said he was astounded to read that Mr Graham Callam, chairman of the Racing Authority and of the Totalisator Agency Board, was quoted as saying that if tax relief was not forthcoming from the Government then perhaps the punter should pay a little more.

“This from the chairman of a body which, according to Mr Highet, is currently looking at the finances of the industry,” he said, “I would point out that in its 1975 Manifesto the present Government promised tax relief but since then the only benefit of any con-

sequence has been at the expense of the long-suffering punter and it is questionable just how much punishment he can take.” Mr McDermott, still referring to the newspaper articles, said that both Mr Hughes, of the Racing Conference, and Mr Cruickshank, of the Trotting Conference, said that their industries were being taxed out of existence, while Mr John Rowley, chief executive officer of the Trotting Conference, produced turnover figures to show that trotting, at least, was quite healthy and not suffering from a decline. “Now I don’t know if Mr Rowley is suggesting that wotting doesn’t need tax relief but I can assure him and the Government that the Metropolitan Club, at least, does need it and is not at all happy with a system whereby the tax department gathers almost $600,000 over four meetings and the organising club shows a substantial loss,” he said.

Mr McDermott said that, furthermore, nons; of the gentlemen interviewed was quoted as even mentioning t’ 3 fuel crisis which must have a most detrimental effect, involving, as- it does, the transport to meetings of horses, owners, trainers,

drivers and the all-important patrons.