Authority hands clubs big loans concessions

Press, 6 September 1989, Page 49

Authority hands clubs big loans concessions

By

JEFF SCOTT

Big concessions that will bring several clubs out of the red and help revitalise others have been announced by the Racing Authority. All authority loans of $lOO,OOO or less to clubs will be written off immediately. All other loans to clubs will be reduced by $lOO,OOO and will be interest-free for two years,

The concessions apply to existing or committed loans from November 1, 1988. Many smaller clubs doing maintenance or improvements will be helped by this. There will be big savings for clubs building new stands, notably the Addington Raceway clubs, the Auckland Racing Club and Canterbury Jockey Club. “Besides Addington Raceway Ltd’s loan of $l.B million being reduced

to $1.7 million, the main advantage will be in the short term for us in that all capital and interest payments will be deferred for two years,” said Addington Raceway’s new chief executive, a former secretary of the Racing Authority, Mike Godber, yesterday. “From the point of view of the clubs we are very pleased, naturally. It gives a bit of help to all clubs which carried out capital work in the last two or three years and is a bit of relief with turnovers declining at this time,” he said. It is understood the concessions will apply to between 30 and 40 loans nationwide, with the Auckland Racing Club benefiting most. The Racing Authority believes racing, harness racing and greyhounds clubs will be adversely affected over the next two to three years from declining on-course at-

tendances and competition from instant lotto, be introduced later this month.

“It was decided several years ago to make the authority bankers to the industry,” said the Harness Racing Conference’s representative on the authority, Pat O’Brien, of Blenheim, yesterday. “Now that the authority has got a few dollars left over (due to increased T.A.B. betting), we have decided to let a lot of the smaller clubs become debt-free and finish their maintenance work,” he said.

“My club, Marlborough, paid off its authority loan last year and that is just bad luck for them. We had to make a start somewhere,” he said.

Despite difficult times, most clubs have been positive in their attitude and . the majority have recorded profits for their operations in the last financial year.