N.Z. RACING CONFERENCE

Hokitika Guardian, 16 July 1931, Page 2

N.Z. RACING CONFERENCE

PRESIDENT’S REPORT.

,111 presenting my first annual report, s, President, I regret that I' cannot lo so under happier circumstances ban .those existing at present. The grav© earthquake disaster overtaking the inhabitants, of the Hawke’s say district was a staggering blow A) the, community, ' and we desire to extend to all those who suffered our

deepest sympathy. It is gratifying, to place on record-the. sporting spirit displaeyd by. the Executives of various Racing Clubs in proffering such assistance as they were able to give. Racing in New Zealand is . passing •through a most difficult .and exacting stage. The sport is facing a period of acute depression, engendered by world-kv(ide economic conditions, and the position generally is a cause for grave concern. A serious fall in the revenue derived from the totalisator and other sources lias .been aggravated by the imposition, during the year, of a further increase of 2i per cent, on Totalisator investments, and by , a substantial increase in the Amusement Tax. The strain of taxation upon the resources of Clubs is almost unbearable,

and there are definite indications that the ''point of exhaustion has been reached. - | When times were; more prosperous, many .Clubs, trusting that .“the Goldon •Kr*'? would continue, were encouraged to incur expenditure in improvements, and; in the general equipment of their courses, without . possessing the necessary capital, funds to meet the., cost/ Finnwsial! assistance was obtained j in : many instances by means of guarantees. Unfortunately . falling revenue and. adverse circumstances generally have placed some Clubs in an embarrassing positidri, and guarantors are being called upon ta meet their

obligations. * I fear many Clubs will find it difficult to carry on. I ! can only impress upon them the absolute necessity of practising the nu»st rigid economy in every possible • direction.' ' With ; true sporting spirit many of the Metropolitan and larger Clubs have allowed, necessitous Clubs'to race oh their courses. It is obvious, however, that this assistance will, afford ,but temporary relief; I am firmly. 6f opinion that unless Clubs can rely wholly upon their own resources and local support their continued existence is not only not warranted, but a possible source of danger to racing generally. ■ ' '

In. view of the circumstances disclosed by the operations, of the past year, I am emboldened, at this juncture, to offer a suggestion which appeals to me as having a distinct possi-

bility of saving the position. It is that Clubs racing in close proximity to each other, whose finanoiak position .renders it necessary to seek outside aid, should amalgamate. Such an arrangement would, t consider, have the following .beneficial results (a) A material reduction of overhead expenses. .(b) Instead of small isolated meeting of purely local interest two or three meetings with programmes attractive, not only to local owners and racegoers, but to visitors as well, f (c) A greater possibility of more suitable racing dates. •' .V' (d) Increased v membership of the amalgamated Clubs, and greater . in- 1 .terest in the sport.

. ’ ... T V ... • ’• y - ; ; : • V. ■ I desire to make.-, it: quite clear that J am riot suggesting a loss of racing days, arid, further, that I am not atitemptirig to dictate to , Clubs On a. Matter which I conceive is purely a domestic omcerri, but I do suggest that the matter is one the possibilities of (which each Metropolitan District Committee might well investigate. Following the usual custom, I give jfclio amounts of the various faxes paid during, .the present and last season'.?. The figures are as follows:

. r* • CD . O ; « •to PJ £22 7 a ■ 2 • N cj in ot- , ' HI 2? in S'.«9 <O. O*s >■ ■ W ' SsSSsSn.®.". ?; a . 8 B‘Saf. I. ? ‘!'J; r-i rH 'M ' ra *. ©' O'# US’ '£ w •§,'« co <6 © w 2 .•'*«B2ISIS I' A g'gss” " | 8; h 55 a ' . . : Q p , • . ,o I j h* ' * t & • g io ' ' fc -2 :| © : :1? : . 8 S ' 2 - S :! h S • i -2- i oj * u = <y _*“ l o i—i « « JJ?,i.B : a '■ ,** .S ..lOC 1 o H M > ’ m * =5-5 gs „ s s i- 3 s.Ss § g s 5? _r co G ® qj •• -5 2 S' « S M •' fl i-> w f-< p cJ i c -4 "2 "5 £ = S o •' O •tr' -+3 M C . ■ H H CO H H H

Since 'our last ine"tmsr the Government increased rts Totalisator. by 2} per centum, and a substantial, increase was alsb made in .'the Amusement Tax. The proportion of taxation now levied on Totalisator investments is ys follows Government Tax 5 per centum; The Clubs receive,7s per cen- . turn;. 12i per centum deducted from £1 leaves 17/6. add Government Tax on Dividends 5 per centum deducted from 17/6, loaves 16/71. Total Tay 173 per centum, equal to 3/41 ofE every £l. The Government receives 1/101, and * the Clubs 1/6 out of each £1 invested. The Government Tax is collected by

Clubs, at np expense to the Government..

The whole cost of running the Totalisator falls entirely on tlie Clubs. The'net return to them, after deducting running expenses, does not exceed, in the average, 6 per cent. This calculation includes no provision for the upkeep of Totalisator buildings, machinery, etc.

I may be pardoned for reminding Members of Parliament that a few years back the Racing authorities were asked by the Government, as a matter of national expediency, to find £200,000 extra taxation for two years. Acting on the understanding given by the then Prime Minister (Mr Massey) that, the extra tax to provide the amount required would be imposed for two years only, we unhesitatingly agreed -to. the urgent request. This extra tax not only remains in existence, but a further 2$ per centum tax on Totalisator. investments was imposed by Parliament last year. Unfortunately it is now our turn to appeal for relief. We suggest that the passing of a Gaming Amendment Bill repealing the Statute which presents:—

(1) The telegraphing or remitting through the Post Office of investments . on the Totalisator to Clubs on race days; and ' (2) The operation of the double Totalisator J would: afford some measure of relief. In every part of the country there iire hundreds of people unable to attend race ' meetings who, desiring to make I, mpdest investments, are debarred by Statute from transmitting their -money to the Totalisator, Why not provide therii with a lawful channel, whereby their investments could be made in a manner profitable to Government and Clubs alike, insteau of forcing them to bet with the illegal bookmaker ; and layer of ludicrously restricted odds, who escapes taxation, and to whom every increase in Totalisator 'Tax, by reducing dividends, is a direct gift-by the State at a time when every other section of the. community is being called upon to bear fresh burdens? ,

During" the season just drawing to a close there has been. a. move m certain quarters tor the legalisation of Bookmaking in New. Zealand. It is to be hoped that the common sense of' the •'Legislature will prevail against any attempt to- Undo much of the good effected' by ' the . wise 1 legislation which /selected; as the; legal channel for wagering,' the,Totalisator in preference to 'the Bookmaker. What is desirable is not' the roadmission but the effective repression of Ihe Bookmaker and his illegal, calling. '; - :; The totalisator holds out no seductive temptation, and Las the effect oi restricing’betting to a reasonably modest: diraensiori. This Conference has •established racing in a position where • dishonesty -can only be practised at The imminent ris£ of exile from parti •cipatiofi In it.' The recognition of Bookmakers as a part of the machinery of racing is detrimental olilie to the estimation in which the sport is held by the impartial section: of the public, and to our power of keeping it free from abuses. The standard of honesty and of true sportsmanship falls in proportion to the influence exercised by these who view racing as a mere gambling machine, and the evil is the more to be eared in times when necessity leads to, temptation. By the deaths of Sir George Hunter k.6.M;a, R. Allen, J. :S. Barrett, A..W. Budge, W. .F., M. Buckley; J. H. Colebourne,. C. ; G. Dalgety, J, F.’ Dargaviile, H. F. Doogan, N.. A. Nathan and .J. F.. Studholme, we Have lost staunch supporters of the Turf ’in this-” Dominion. Each of these, gentlemen at various times held office as : Representative to .the Conference, and as a Steward, and, Committeeman of his Racing Club, in all capacities rendering voluntary and valuable services in the best interests of racing. We have to thank Messrs A. T. Donnelly, H. F. Johnston, A. C. Hanlon, K.d, and J. H. Perrett for consentact as Judges, on appeals lodged with the Conference. It is significant of the ; able district and club control that 'since we last met only one appeal Las Leen heard by Judges, of the Conference,- and one was withdrawn. I regret having ,to infqrm you that owing to- indisposition Mr: W. E. Bidwill; O.iLEV; resigned his office as. one of General Trustees of the General Trust; Fund../ The vacancy was filled by the appointment of Mr J. G. Duncan. >: Mr Bidwill;has Tor many;years rendered yoeman services as a Representative .to. the'Conference, an as a member of its various Committees, ancr as one of the General Trustees. I am sure you will join with me in wishing Mr Bidwill a speedy recovery, and extending to him the thanks of the Conference for valuable services over a long period. As one of, three General Trustees of the General Tust Fund, commonly referred to as the Acident Fund, I feel it my duty to give you some interest-z----ing information in regard to that Fund.

In he first place, due credit must be given to those Representatives to the Conference who in 1903 were responsible for the inauguration of the Fund, and to the members of the Suborvm mi tie", consisting of Sir George Clifford, Bart., Hon. Sir Geo. McLean Hon.,.T, D' Ormond, ,T. W. Abbott, .T. IT. Nixon, and G. G. Stead, who, under the advice o f the Right Hoh. Sir Francis Bell, drafted the Rules and -Regulations establishing the Fund which the Conference adopted. Horse-owners, trainers, jockevs and stablemen have derived great benefits from the .wisdom qnd fore-thought of

these gentlemen. The General Trust Fund was the forerunner of similar funds which have since been established by the Turf authorities in other countries.

During the twenty-eigh years the Fund has been in operation the Accid-‘> ent claims paid amount to £77,827 6s lOd, and the Accident fees received £60,989, 9s 6d. Owners paid £1 for each horse raced by them up to the year 1917, when the Accident Fee was reduced to 10s. In 1922 the claims paid totalled £6,379 15s lOd. In 1923 the fee was again made £l, and in 1926, when the c,l«ims paid totalled £6,034 18s Id, it was found necessary to increase it to 30s, in order to stabilise the Fund. Since 1926 the Accident Claims afd average a yearly sum of £4,515-3s. This year claims paid amount to £5,434 3s 9d, and the ‘‘.stimated outstanding claims are £825 Is 3d.

Every owner who pays a fee of 30s a horse each season is relieved of his liability under the Workers’ Compensation Act for the payment of compensation arising out of accidents caus ed by such horse, or any other horse in training owned by him, to the trainer, jockey or stableman attending the horse. In order to obtain similar cover from an Insurance Company the owner would have to pay premiums oh the following basis!— Trainers and stablehahds.-—£4 per centum per aniiuffi (no hiding ih races.) Jockeys and Appi-elltice jdekfeys—race riding fish, £7 IOS pel - Celitum per annum. >

Consequently a cover of £IOOO on a trainer would cost £4O, and similar cover on a.jookey would cost* £75. Under our Accident Fund the owner obtains such cover for 30s —surely a reasonable charge. Volume Xl ot the New Zealand Stud i>ooa, to which 1 referred at our last

annual meeting, was puLuisned shortly aiterwaras. l regret to say that the sales of the Stud Book was very poor iiideea. The edition is limited to 400 copies, and of the 95 Racing and Hunt Clubs registered under the New Zealand Rules of Racing, only 27 have seenfit to order copies of the latest roiuhie of the Stud Book. I consider it' is essential for every Racing or Hunt Club to possess a complete set of the eleven published volumes of the N.Z. Stud Book. It will probably surprise you to learn that of the 1,200 and more breeders of thoroughbred ho-ses in New Zealand not 150 have deemed it necessary to purchase the last published edition of that indispensable work of reference. The Keeper of the Stud Book has drawn my attention to the disappointment of many many people who purchase fillies and mares with the idea of breeding from them; only to find, after returning their foalings to the Keeper, that the animals purchased are not eligible for entry in the N.Z. Stud book. Thfe "Executive Committee is Siibihittiiig for vour approval a set of regulations dealing with the responsibilities of breeders, and studroasters in connection with the notification of th© foalings and coverings of thoroughbred mares, which I strongly urge you to, adopt in the interests of all concerned. At this stage I wish to call the attention of the breeders in New Zealand to societies. which have been established in other countries, and would- recommend the formation of a similar society in this Dominion to protect the:r interest The growing ' demand for New. Zea-land-bred horses warrants our breeders following the procedure adopted in other countries, viz.: —That no horse other than thoroughbreds are offered at the recognised annual sales of yearlings. The Licensing Committee continues to carry out its work in connection with the licensing of trainers, jockeys, and gentlemen riders in a very efscient and vigilant manner. All persons granted licenses, as well as those employed in racing stables, realise the necessity and the desirability in their own interests of conforming to the standard of conduct required by the Licensing Committee, which is genuinely concerned to do all in its power to help trainers and jockeys in securing that standing .in the community which is due to practitioners of honourable crafts calling for the exercise of admirable qualities of character, skill adn courage.

The Stipendiary Stewax-ds continue to do valuable work in the managemen of our meetings, and there is no question that they have contributed largely to the confidence of the public in our sport.

The work of the Racecourse Inspectors meets with the general approval of all concerned in racing. This year they have again inspected and reported to the Licensing Committee upon all registered appi’entices. The report covers each lad’s character,- general habits, riding tuition received, lodging, etc., and it is extremely useful to the Licensing Committee in carrying out its duties in regard to the granting of licenses etc.

In view of the discontent which has been expressed in several quarters regarding what has been termed the ever-increasing expenses of the Conference, it is incumbent upon me to draw your attention to the following facts relating thereto. The public,, bv investing on the totalisator, supply the revenue from which clubs obtain virtually the total amount given by them* in stakes, though some of the larger clubs are able to supplement this amount from other sources.

The point I desire to emphasise is that as the public supply these funds they are entitled to demand an adequate supervision of the general con-

trol and conduct of racing, and of racecourses also. It is therefore the duty of the Conference authorities to afford the necesary protection. The appointment of Stipendiary Stewards anci Racecourse Inspectors was intended primarily to satisfy this obligation. Some years ago the Rules of Racing provided that the whole of the revenue derived; fj’om tot al: up tor investments must be given in stakes. To enable clubs to meet Conference and District Committee levies without touching upon other sources of revenue, the Rules were amended. Clubs are now required to give in stakes not less- than 90 per cent, of the average net amount derived from the totalisator during the preceding three years, and from the remaining 10 per cent: is derived the amount required by the Conference t" ineet the cost of Stipendiary Stewards and Racecourse Inspectors, etc.

It will be apparent, in view of the foregoing explanation, that the publicare actually paying for their own protection, the clubs being a, collecting medium only.

Apart from the cost involved in supplying the services of Stipendiary Stewards and Racecourse Inspectors, amounting to £8,165- Is 2d, the net cost of administration of the Conference for the current year was £1,582 f ',s Bd. This aitlount includes, lioweVer, sunik tif £4oß' 8s iOd, being the cost of tile N.Z. Stud Book (published every third year), and £315 10s 8d non-recliri'ilig expenditure on the revised Rules of Racing. Deducting these two items, the net cost of administration is reduced to £B6B 12s 2d. Surely this amount cannot he looked upon as excessive.

During the year your Executive Com mittee has examined every channel of Conference expenditure with a view to effecting economics. The result of the Committees investigations has been that the only reduction which could possibly be made was to reduce the salaries of the officers of the Conference. The deduction so made will result in a total saving of over £990 per annum. v

The fees paid by owners for the various registrations which they are required to make under the Rules of Racing are mo&i reasonable, considering the time and labour involved in connection therewith on the part of Conference officers, ancj are in many instances, much lower than the corresponding fees charged in other countries,' and in other branches of the sport. I sincerely trust that this explana-tion,-combined with tlie fact of the Executive Committee’s exercise of careful supervision over Conference expenditure, will serve to correct the apparent misapprehension existing regarding Conference expenses. Incidentally I may mention that ol last year’s total levy of £9,550 I6s 8d taigh clubs provided £4j836 15s 9d, the remaining eighty seven clubs paying only £4,687 0a lid, The inference suggested by these figures is that the larger dubs are bearing an undue proportion of the Conference expenses to the relief of a great number of smaller clubs.

It is pleasing for me to record that our official organ, the New Zealand Referee, in its editorial columns is rendering very valuable service to the Conference, and by the excellent quality of its articles and the fullnes of its news, is keeping its large public keenly interested in racing at a time when that interest, so necessary to our well being, might easily be lost. The direction given at the last annual meeting o transfer the office of the Conference from Christchurch to Wellington was given effect to before the end of July last. Over fifteen tons of office equipment, records, library, etc., were transported. The change was so efficiently carried out by the staff of the Conference that the routine of its business was not dealyed, and everything woi’ked smoothly. At a later stage of the proceedings of this annual meeting of the Conference I shall have occasion to speak to you at some length on the matter of the revised Rules. The work of preparing them has been long and arduous, but in common with the other members of the Executive Committee I feel that the l'esult has been well worth the effort to provide a body of racing legislation in such forms as will enable all concerned—Conference, District Committees, clubs, officials, trainers, jockeys, and the public—to ascertain with as little trouble as possible their rights and duties and obligations ns participants in the great sport of racing.