NZ. COUNTRY RACING CLUBS' ASSOCIATION

Hokitika Guardian, 28 January 1927, Page 4

NZ. COUNTRY RACING CLUBS' ASSOCIATION

The Executive <>l the ahove Association met at Wellington on Tuesday and later in the day waited on the Mon. It. I'\ Rollard, .Minister ot Internal Affairs. Mr \Y. dewell, l-’resi-dent of the Association, was the chief spokesman, being supported hy M.r D. J. Kraus (Westland) and Mr R. Hell i Levin). The following statement of the position affecting racing clubs in general and the country racing clubs in particular, was presented to the iron. Minister and supported by the remarks of the deputation.

THE TAXATION OF RACING CLUBS AN FNIME BPRDEN. "lire time has arrived for a very serious study of the burden the present taxation is upon racing and trotting clubs alike. It might be said at the outset that the sport in both instances is very popular, and that in the main is carried on by, bands of honorary officials who are associated with the sport for sports sake. Hut their membership entails burdens nowadays in that very few Clubs are without large debts, 'fbe.se have to be underwritten by the members either in bank guarantecs. or through security given over debentures. In some instances individual members' have advanced large sums of money without interest to enable their (’ltd) to keep afloat. The position of many Clubs is now very acute, and calls for redress. Representations in these matters are not new. Year after year flic official reply Is in the same tenor —sympathetic, but without practical results. We do not know that this state of affairs can continue much longer. The tale of falling revenue is a very common one, and many Club'; both great and small are in verydeep water financially. It is a fact, too. that despite guaranteed overdrafts, the Hanks are pressing for :i reduction of limit, and the curtailment is going to embarrass several Clubs very seriously. Were the situation to lie stressed for a week it could not he made more plain or definite than the simple statement that matters have reached such a pass now that relief must be afforded quickly or the flourishing condition of the sport will he in serious jeopardy. The decline or fall of the sport would he a serious matter wi.u far-reaching effect. Chief of all the standard of the 'sport would suffer. The conduct of the sport in this nominion is creditable from every point of view, and it would be a poor acknowledgement of what has been done to build up the sport to the standard it now has attained, to allow it to drift backward and lose its wholesomeness.

A couple of months ago a writer in the " Referee ” gave a resume ns follows of Racing Taxation by the Government of late years:— 1910: Totalisntor tax increased from If per cent to 2i per cent. Two and a-lmlf per cent receipts tax imposed upon the receipts of racing and trotting clubs, which include gate money, sale of race cards, booths, luncheons, etc.

Ifllo: One per cent tax imposed upon stakes to cover owners’ income tax. Two and a-ltalf per cent tax imposed upon dividends. 191(5 : Income tax imposed upon eluhs. 191;': Amusement fax (admissions and gate money already taxed to the

extent of 2'. per cent hy the receipts tax imposed in 1910). 191!: Dividend tax increased from 2'. per cent to A per cent, stakes’ tax increased from 1 per cent to 10 per rent. Fractions claimed by the Government. but repealed after one year. 192:?; Income Tax repealed. 1921: Stakes tax reduced from 10 per cent to d per cent., although when Mils tax was increased in 1921 front l

• r rent to 10 per font., it was on the distinct understanding that the increase was in lip for two years only. ; 1.92 a: One anil a-quartor nor cent re- ! fipnl on totnlisator investments up to £211.000, but not exceeding ,C2<so in any one case, provided the refund is spent on ‘permanent improvements. Tin's, it will lie admitted, is a for--1 rnidahle list of discouraging burdens ' lor chibs, hut a very lucrative source of revenue for the (ioveriimeut. which,! in the season 1021-20, received in tax-j ation £ 15'd.20.0 10s 9d, and in 1020-20, • (MOO. 200 Os lid. Some particulars' which were chtnincd a while afro show-, cd that in March. 1021. the racing and! hunt cluhs of the Dominion (not lu- , eluding the trotting clubs) had total liabilities amounting to loi.o 1.424 7s Oil : so that in the year 1024-20 life (fixation paid was only some C 75.219 short of the whole liabilities of the clubs. These figures speak for themselves, and redress is urgently needed if clubs are to carry on successfully. Further on ■ this subject of Having Taxation, it was published through the press that on November 22nil last the New Zealand Sports Protection League wrote to the Tlon. \Y. Downie Stewart. Minister of Finance, stating that the league bad on several occasions represented to the Government that the excessive rate of taxation imposed on' I totnlisator investments and dividends! was having the effect of crippling clubs, encouraging illegal betting, and causing a steady decrease Jn the State revenue and instanced the results of the Christchurch spring carnival (details of which were published recently in support of its ease. It was pointei out that investments had steadily do creased since 1,921. when the divideui tax was increased from (Id to Is, am other increases imposed. Racing am trotting clubs, it was stated, providei the easiest of all means of collectin' State revenue; but it was necessary foi the Government to give them more on couragement that l they were receiving at present if the, were to continue tc be slicit excellent tax collectors. It was also clear, said the League, that the present restrictive legislation, which gave the bookmaker a practical monopoly of nil business outside tlie precincts of the course, was a great disadvantage to both the State and the Clubs. Tire matter was brought .before the Government .with a view to remove the present restrictions which so favoured illegal methods. Here is another note from the "Referee” of November last giving particulars of a case at Levin which is typical of many other places in New Zealand. The sporting writer referring to the Levin meeting said:— Beautiful spring weather, an attractive card, and a really good attenlance, including the Speaker of the House of Representatives and three Ministers of the Crown, were not mflicient to save the Levin Racing Tub on Saturday from being involved n the general decline in the totnlisator nisiness. The investments on the nachine compared with those of last •ear’s meeting, declined by ClflOn. rom Et9.o7S to CIS.MIL when all the imintstances, save the tax-collector's nsntjable greed, sUt-vi have made for substantial increase. The hnndicnper did bis part by producing some rent finishes between well-backed

I'orses, and winding up with a sequence of a head, another head, and a deadheat. Hut hackers are tiring of paying twenty per cent for the nrivilege of risking their own money, and it is not surprising that more end mare of them are turning a less critical eve towards the übiquitous bookmaker, t Many other quotations of a similar character could he given hut t is felt ; ♦ Ministers must have realised how the drift has set in. and what a

struggle it is for many of the Clubs to stem the advance tide. As regards assistance, relief is sought by way of greater assistance under legislation for Clubs, owners and the public. Clubs: The maximum of the refund on totalisntor investments should bo increased to ffdOO. the refund to cover maintenance in addition to permanent improvements, and payments on interest on loans. Owners: (a) Stakes tax to be reduced to 2! per cent, (b) Railway charges one way only, and owners to be relieved of present cumbersome system of obtaining refunds cm the return journey.

Public: Dividend tax to be reduced to per cent. Clubs would be helped further by granting facilities to forward money to Clubs for investment on the totalisn-

tor; by granting permission to introduce the double totalisntor; where desired ; by permitting the publication of dividends in the newspapers.

It is a notorious fact that illicit hefting is going on daily apt! the postal service, telegraph office, and telephone system are used extensively for that purpose. Rookmakeis, their agents and their clients may tints use the public service illegitimately to the detriment of Club revenue and Government income, but the Clubs may not use the same service in a legitimate way. There are very few corners in the Dominion where results and dividends are not known within a very short time of the result of important events, enterprise of*the law breakers which shows how extensive: is the; illicit betting which is going on. The suspension of the Amusement Tax for racecourse admissions and particularly on members’ subscriptions is desired also. Clubs .are taxed already on admissions to the extent ol 2! per | cent., and the amusement tax is

second imposition .on the same money, wnile inenihe rs subscriptions which are levied largely to cover overhead expenses in Club management should he free of taxation, as without efficient management Clubs must stiller. The debenture tax is another heavy impost on Racing Clubs several ot which owing to the; lack ol landed security leave to offer a high rate oi interest to attract, necessary money. The money is used for improvements the better to equip courses to eater for advanced sport, from which in turn by increased conveniences and comfort to

i.weers and patrons. Club receipts are enlarged, and tlie Government derives direct benefit from such expenditure with borrowed money.

The pressing needs of the times alone justifies this extended reference to the matter and the requests herein made. But the need for substantial relief is urgent and immediately necessary. Ordinary business folk who have little or no interest in racing are helping many local Clubs in tin; interests of the community. It is not fair to saddle private individuals in this way when large sums are taken from the sport widen contributes already very large to the public treasury by way of post and Digraph services, railway receipts for passengers and goods traffic:

and the general income derivable from the trade and intercourse created in any and all centres where meetings are held. With all Inis in niincl and again recalling the very pressing needs of the moment, relief along tho lines herein indicated is urgently pressed for and ike (’emnty Racing Clubs of the Dominion are entirely behind the executive in this appeal.

THE .MINISTER’S REl’i.Y. Mr l-ollim! in reply spoke cordially and favourably to the deputation. Ho intimated that the rebate on totalisafor turn-over would be extended to cover certain maintenance expenditure, in the way of renewals and interest oil loan improvement expenditure. The reduction of the stakes tax was in the bands of the House, where it did not

have a vorv favourable reception, formerly. Th regard to llio dividend tax this went spocilically to t!ie reduction of the war debt of the Dominion, and was a matter for the .Minister of Finance. In regard to the use of the telegraph for forwarding money and the puhlication of dividends, these matters were to be dealt with by legislation likelv to be infrodneed from the Upper, Mon.se next session. • The question of railway charges for transporting racehorses was to lie brought before the M.inistcr of llailways by an influrntial deputation when .Mr Coates returned to New Zealand next month. .Mr ISollard concluded by reiterating his iTieiHllitte.SK towards the mini try racing clubs, and thanks were extended to the Hon. Minister for his promises of help and his disposition generally In do what lie could for the advancement of Mr sport.