SPORT IN JEOPARDY

King Country Chronicle, Volume XXVI, Issue 3448, 29 March 1932, Page 5

SPORT IN JEOPARDY

RACING CLUBS FACE CRISIS. i BURDEN OF TAXATION. URGENT NEED OF RELIEF. Racing in New Zealand at the present time is passing through a difficult stage, and the sustained fall in revenue derived from the totalisator and other sources has placed many clubs on the verge of bankruptcy. Unless relief is given from the heavy burden of taxation under which the sport is labouring, the embarrassments that face some clubs and their guarantors will mean extinction. The strain of taxation is aggravated during the present season by the acute depression, and the position generally is causing the racing authorities of New Zealand very grave concern. Last year 72 racing clubs suffered a total loss of £56,182 and 26 trotting clubs lost £19,445, a total of £75,627. Eighteen racing clubs made a profit of £3964 and six trotting clubs made £IO6B, a total of £5032. The current racing year still has some four months to run, but the position is considerably worse. The majority of meetings have been run at a loss and those who have escaped disaster have been fortunate to come out square or with the smallest profits.

Profiting Without Risk.

The amount of Government taxation collected and paid by racing clubs for the past three years is as follows: £ s d 1928- 402,306 16 3 1929- .. ... .. 405,582 5 7 1930- 374,415 7 7 Many clubs have substantial liabilities in the way of mortgages, debentures, bank overdrafts, and obligations to guarantors. A continuance of present conditions will mean bank- v ruptcy and cessation of racing and trotting. Apart from the substantial loss in revenue that will occur with any cessation of racing—and the recent announcement by prominent owners of retirement is a sign—the result will be increased unemployment, decreased returns to many primary producers, decreased revenue to Government railways, post and telegraphs, and capital losses to breeders.

Many Dependent on Sport. There were last season 925 companies and individuals breeding thoroughbred horses in New Zealand, with 100 registered stallions and 1884 thoroughbred mares. The number of horses actually raced last year was 2018, with 474 trainers dependent for their living on racing, with their 800 dependants. In addition, there were about 200 owners who trained their own horses.

There are over 300 licensed jockeys with dependants estimated at 600, and apprentices number about 200, while there are between 2000 and 3000 stable hands. Racing clubs have recently been forced to reduce staffs, but their employees number about 250 on the permanent staffs. ■ Racing days give employment to 13,000 casuals. From these figures it will readily be seen what a serious addition to the ranks of the unemployed any radical alteration in racing affairs will precipitate. The figures given are for racing only, and as trotting generally ranges in everything to about one-third of racing, the list is considerably augmented.

As a Matter of Business.

The opinion held by both the racing and the trotting authorities, and frequently expressed in public through the columns of the Press and by deputation to the responsible Ministers, is that failure by the Government to grant relief at this critical period must lead to serious consequences. They have always suggested that it is inequitable for individual clubs to bear losses while the Government in every instance derives substantial sums from their operations. As a matter of pure business, they regard it as better for the Government to grant relief than to continue on the present blind course which has led, and is leading, to a progressive and serious shrinkage in revenue.

Apart from taxation relief, they also regard it as an imperative reform the legalisation of telegraphing bets to race courses on race days and the institution of the double totalisator. These reforms would not only help Government and club revenue, but at the same time diminish illegal betting through bookmakers.