The Hawera Star. THURSDAY AUGUST 16, 1928. RACING TAXATION.

Hawera Star, Volume XLVII, 16 August 1928, Page 4

The Hawera Star.

THURSDAY AUGUST 16, 1928. RACING TAXATION.

Delivaraq every evening by 6 o’clock la iT&wera. ■ Manaio. Normanby, Okaiaiva, Eltham. Mangatoki. Kaponga, Alton, Turleyville Patea. Waverley, Mo_ola, Whakamaro. Ohangat, Meremere. Frasei Road, and Ararata.

In the course of his Financial Statement, the Hon. W. Downie Stewart had something pertinent to say about racing taxation which made very interesting reading, coming as it did ait the end of a period during which a great, deal has been heard from certain quarters about the “burden of taxation” which has to ibe borne by racing clubs. The Ministerial exposure of the fundamental fallacy of many of these complaints has been accorded support from an unexpected quarter, several members of the Stratford Racing Club having gone out of their way at the, annual meeting to state very definitely that this class of taxation is not oppressive. The time for such straight talking as that of the Minister, and of the members of this club, has been long overdue; for too long have certain clubs been allowed to make public their complaints and to blame the Government for their position without anything being isnid in refutation of their charges. Every time a club has found itself in difficulties it, has looked around for someone, or some conditions not under its control, upon which to place the responsibility for its insecure position. Officials have waxed eloquent on the iniquity of a Government which seeks to derive so much revenue from the legitimate pleasures of the people and have uttered solemn warnings that, if taxation is not reduced', some small clubs will have to goi out of existence — nis though that would bo a national calamity! It. is no intention of ours to inveigh against racing, but we do believe that there is an urgent need on the part, of some of its- supporters for a readjustment, of values when the conditions under which racing is carried on are under discussion. The Minister showed very clearly that it is the public which bears by far the greatest .proportion of the taxation, and lie uttered a truth in a few words when he said that" . . in fact, the clubs do not aisle that, the tax imposed on. the public should be reduced, but that they should ireceive a larger share of it.” Ho

shows that this taxation, which has been said to have become “an everincreasing burden since the war,” dates back, in. part, to 1910, the total isaitor tax halving been oss'essed at 74 per cent, for the clubs and 24 per cent, for the Government in that year. There was certainly 'an increase made in the dividend tax in 1921 from 24 per cent, to 5 j per cent., but it is the investor who pays that, the clubs merely acting as the. agents 'of the Crown, as they do when they pay over the Crown’s 24 per cent, share of the totalisator 'tax. In 1921 the Government decided to take the unpaid fractions l of 'dividends, but that decision was soon repealed, the amounts, which, in the aggregate are worth approximately £35,000 to £40,000, being again conceded to the clubs. Altogether there have been remissions and concessions granted the clubs during the hast few years worth over £IOO,OOO a year to them.. The Minister recognises that something might be done to make more equitable the rebate of 11 per cent, on the totalisator duty, which since 1915 has (been granted in respect of the first £20,000 passed through the machine at a meeting. This rebate, equivalent to £250, may be claimed for expenditure tip on ground improvements, but it is not available to the smaller clubs where the investments on the machine do not amount to £20,000. The fact that the smaller clubs are not allowed to share in this concession is not the fault of the, Government. The Minister of Finance favours the institution of a graduated totalisator fax, but this proposal has been opposed by the metropolitan clubs, .which will not countenance the payment of a smaller percentage by the lesser clubs so long as there is a risk of their having to make up the amoun t so lost to the aggregate by bearing a heavier tax themselves. Racehorse owners who complain against the cost, of railway transport and the amount of the stake tax arc on firmer ground When they air their grievances. It has been shown that, it is much cheaper for an owner to send (his horse to Australia than to transport it from the North to •the South Island-—and that is bad business from the Railways Department point, of view. It is also reasonable (for an owner to claim that a stake is not worth so much .to him today as it was in former years, in view of the allround higher cost of racing a horse, and some consideration migh t be shown him on those grounds; but it is neither .reasonable nor business-like for clubs which are suffering loss .through their proximity to larger meetings, their inability to offer sufficient inducement to j owners and racecourse patrons to attend their meetings, or through the general scarcity of money 'and the consequent retrenchment of expenditure by the public, to rail against the Government for their own failure to show good balance-sheets. As to the argument that racing provides employment for a. large number of people and the demise of a few clubs would .spell disaster for those; employees, that is more cant. The employees may live on the sport, but that is not the primary reason, or even one of the reasons for the existence of the “sport of kings.”