Conference opposed to new deduction

Press, 9 November 1984, Page 35

Conference opposed to new deduction

The Trotting Conference was disappointed and opposed to the proposal to take a further reduction from its patrons even though win and place pools were not affected, said the president of the conference, Mr Dewar Robertshaw, of Auckland, in a statement issued yesterday. The announcement by the Minister of Internal Affairs, Mr Tapsell, had been commented on by racing administrators, but the attitude of their trotting counterparts was different. The Trotting Conference was aware that the Minister was anxious to. assist the industry, but he was frustrated by the economic state of the country and his proposal has been made in a genuine and sincere effort to help, said Mr Robertshaw.

In the past whenever relief from taxation was sought, the same answer came through — a further deduction from the pool provided by betters. “Each deduction had small effect on its own on the dividends, but the cumulative effect is somewhat different,” he continued.

The proposal was opposed on three grounds. On the last occasion that there was a deduction from the pool, it was promised that no more would be taken from the better. All submissions made earlier in the year had emphasised that point

It was feared that the move could be counterproductive at a time of falling attendances and could produce a negative

reaction to the substantial promotion of trotting at present being undertaken. Also, there was a doubt whether the purpose would be accomplished. Doubles and trebles pools were substantially down and quinella pools were holding their own, but single and low double-figure dividends were increasing in frequency. Trifecta betting was increasing nationally as more clubs and T.A.B. agencies changed to Jetbet, but the experience of some clubs was that those pools decreased once the novelty wore off.

“Finally, the Trotting Conference was left on its own in its opposition and the executive reluctantly felt it could not be left out provided a ‘package deal’ could be obtained,” said Mr Robertshaw. The remission of totalisator duty on the first $300,000 turnover at meetings restricted to on-course only betting, was a good concession by the Government and would enable the Racing Authority to go ahead with its policy of restructuring the industry. The conversion of some full totalisator licences to on-course only stature could result in a much improved financial situation for the clubs concerned.

Consequently extra licences could become available for redistribution to clubs which had a high T.A.B. turnover, e If this was done it was expected the Government would examine taxation on betting so that a more permaiisM solution could be

found. “It was emphasised that the present solution was only an interim one. It is disappointing to find that the more permanent solution would be in place before or at the time of the 1986 Budget rather than that to be presented in 1985. “The final requirement by the Trotting Conference was that the deductions should go to the clubs, and not the Racing Authority, although this was negotiable,” continued Mr Robertshaw.

The main objection to the new deductions going to the authority and not the clubs was that it was a reflection on the conference and the clubs concerned.

“The Trotting Conference cannot accept that these people are incompetent and trotting has gone a long way to putting its house in order, and, with the cooperation of the clubs concerned, has taken steps to see that the less successful clubs take some positive action.

“The Trotting Conference has been overruled in this respect. While some progress has been made, the conference is still regretful that it has been necessary to take more from its patrons as it would have preferred to have ‘weathered the storm’ until taxation relief was obtained. “It will be interesting to see how the Racing Authority administers the funds provided by the new 2 per cent deduction and whether, when the interim solution is converted to a more permanent one, that deduction will be restored,” said Mr Robertshaw.