“TOTE” TURNOVER MISLEADS AS TO ACTUAL INVESTMENTS

Evening Star, Issue 26149, 10 July 1947, Page 4

“TOTE” TURNOVER MISLEADS AS TO ACTUAL INVESTMENTS

(Special) , WELLINGTON July 10. “ There has been comment in recent years upon the increase in. the totalisator turnover. 1 have stated on more than one occasion that the figures quoted are most misleading, excepting to tnoso who. understand the position,” said Mr H. F. Nicoll, in his presidential address to the annual meeting of the New Zealand Trotting Conference to-day. “ Last season the turnover was about £20,000,000. In 1920 it was £8,792,000, in 1921 £10,121,212, so that in 26 years it has scarcely doubled, which is not extravagant, in view of the, growth in population and the greatly increased attendances. In addition, there has never beeii so much money in circulation in the history of New Zealand as there is to-day. “ It is not generally recognised what a £20,000,000 turnover signithis,‘” said Mr Nicoll. “ The actual money involved in the investment is from 25 to 30 per cent, of the total. Supposing we take 28 per cent., which is a liberal estimate; that means the £20,000,000 is in reality £5,600,000, and that is the money invested to produce the larger total. Out of the total, or £20,000,000 turnover, the Government takes £1,860,000, and the club’s share is £1,500,000. “The Government tax is paid into the Consolidated Fund, and used to assist stabilisation subsidies or. other such useful purposes. “ Eighty per cent, of the club’s portion is required to be paid in stakes, and immediately returns into circulation. The trainers receive their fees, and, in turn, pay their stable attendants, saddlers and harness makers, blacksmiths, etc., and the bills for their horses’ fodder, the growers of which pass on the bulk of their receipts in wages to farm workers. The remaining 20 per cent., retained by the clubs, has to pay the totalisator staff, the gatekeepers, and the many other attendants on race days, besides providing for the upkeep of the course, and for the many repairs and renewals always necessary. 11 In my opinion, the totalisator has been a true friend to the Government, and a great safety valve for the Dominion, absorbing the abnormal surplus spending power of the people, who without it would have joined the competitivqe demand for goods, and luxuries, in scarce supply, thus raising their cost, and accelerating the spiral of inflation.”