TAXES ON RACING

Hokitika Guardian, 10 August 1928, Page 4

TAXES ON RACING

.MINISTER’S REFUSAL OF RELIEF. SOME ADVERSE COMMENT. CHRISTCHURCH, July 9. Some comment on the Finance Minister’s justification of his refusal to relieve racing clubs cl a part of thcii burden of taxation was made yesterday by Mr H. R, Sellers, secretary to the New Zealand Racing Conference. “In his statement relating to the taxation in racing,” said Mr Sellers, “Mr Ddwnio Stewart, Minister for Finance is reported to have suggested IT,- .consideration that the most practicable way in which assistance can lie given to tiie smaller clubs is to fix the total isa tor tax on a graduated scale, to as to practically exempt the small clu' *s fr.'-in taxation, and that if there is any assistance within reason that can lie granted to country clubs he feels sure that when the opportunity occurs Parliament will support it, as it is highly undesirable that all racing facilities should he concentrated in the cities. It is satisfactory that the Minister recognises that unless some measure of relief from the present burden of taxation imposed upon racing is not granted, many clubs will be forced <>- t of existence. This applies not only to the smaller dubs, hut to many of the larger clubs, who are in a precarious financial position, and if it were not for the fact that tho hank overdrafts of many racing clubs are guaranteed hy private individuals, who personally derive no financial benefits from their sportsmanlike action, those dubs would cease to exist.

“Tho Minister’s suggestion for a graduated tax as tho most practicable way in which assistance can lie given is not viewed with favour hy the dubs, bat it is generally recognised that the time is not long overdue for a review of tlfe effect of the special taxation imposed u]>oii racing. Protests from the public, the clubs, and the racehorse owners are growing stronger, and there is tin doubt that they deserve tho immediate attention of the Government. “The action of the Government last year in repealing the 2J per cent, receipts tax, which was i m poised in 1910 and duplicated in 1917 by tho amusement tax, has been appreciated by all racing clubs, but the relief granted to racing clubs by this repeal amounts to only a little over £4GO9. “If the Government would increase the refund to racing clubs, of totalisntnr duty from 1J to 2.} per cent, this action would greatly relieve the present serious state of affairs, and by amending the Gaiming Act to permit of moneys lieing telegraphed to clubs for investment on the totalisator, the extra revenue accruing to the Government through the' Post and Telegraph Department, and from racing would enable a. substantial reduction in taxation to be made to the public, the racing clubs, and the racehorse owners. Such a measure would have a useful effect in curtailing the operations of the illegal bookmaker.” ‘.'FUNDAMENTAL PRINCIPLE FORGOTTEN.”

“The Minister forgets the fundamental principle involved,” said Mr J. S. Bnrtett, a representative of the Canterbury Jockey Club on the Now Zealand Racing Conference. “There is only a certain a mount of money that can ho used in the furtherance of racing, arid whether it is paid to the Government direct by the racing public or indirectly through the clubs does hot affect the position. The ndn-rncing public contribute nothing, and the anfount paid to the Government goes to the remission of general taxation shared by the non-racing public.

“To sav that there lire avenues by which a club can benefit, except by that o.f reduced taxation is quite wrong,’’ said Aft Barrett. “Those re-stonns-ihle for the conduct of racing have given this much thought, and if there was a way out that would have found it. The reduction of stakes has exactly the same effect as nil increase in taxation, for it sirrip’v means killing the golden geese in another way.

Fveii Auckland, which the strongest club in New Zealand, and the most loyal to the best traditions of racing management, has been compelled to reduce its stake* this year. Apparently, Air Downie Stewart is quite unable to look at the matter from any point of view other than of Finance Minister.”