RACING TAXATION

Evening Star, Issue 20555, 6 August 1930, Page 5

RACING TAXATION

NEW METHOD EXPLAINED SPECULATORS CARRY BURDEN [From Our Parliamentary Reporter.] WELLINGTON,, August 5. Tho proposed changes in the totalisator tax were discussed by the Ministor of Internal Affairs (Mr de la ierrelle) in an interview with your correspondent, the Minister declaring that am effort was being made to seriously mislead racing people, not only in regard to the extent ol the increase, but also as to the Government’s attitude towards the racing clubs. “ I find the Reform candidate for Invercargill,” said Mr do la Perrelle, “telling his audiences that I was once feted as a friend of , the racing clubs, as one who would give sport a, better chance against ever-increasing inroads of taxation, and that the racing clubs are not being justly treated to-day., I still maintain that I,am keenly desirous of seeing the racing clubs prosper, and I know the racing public will appreciate the difficulty in which the Government is temporarily placed, and will not mind contributing a little more through the medium of the totalisator.” “After all,” said he, “this only amounts to od in tho £ on investments.” THE TAX EXPLAINED. “ As Mr Hargest has stated that he is not a racing man,” continued the Minister, “ a little enlightenment seems necessary as to what takes place and what is proposed. At present the-first deduction from the totalisator, investments is 10 per cent., of which the Government gets 24 per cent, and the clubs 7J per cent. The new proposals provide for a deduction of 124 per of which the Government will, get 5 and the clubs 74 per cent, as hitherto. It will not be surprising to many rac-r ing people to know that strong efforts were made to induce the Government to take from them the fractions in connection with the operation of the totalisator. The suggestion was not approved by Cabinet, and the clubs will retain those fractions, which constitute a fairly substantial total during tho season. What they mean to clubs may be seen from the following figures:— For the year 1928-29 the fractions paid to clubs were: Racing clubs £25,636, trotting clubs £9,818; total £35,454. For, the 3 r ear. 1929-30 £25,574 has been 1 paid to racing clubs, and £11,203 to trotting clubs, the total being £36,782. These figures for, the present year have not been finalised, and the complete figures will show a slight increase on this total. *Not only has the Government maintained the racing clubs’ proportion of the totalisator tax, but it has not interfered with the rebate of up to £250 per annum towards course improvements, which is such a help to struggling clubs. “As the Prime Munster has promised to give full facilities for -a Gaming Amendment Bill this session, and that aims at considerably increasing tho totalisator revenue by directing investments away from illegal channels, it can hardly bo said with justice,”- concluded the Minister, “ that the Government ts unsympathetic to them.”