TAXATION OF RACING.

Otago Daily Times, Issue 18928, 31 July 1923, Page 5

TAXATION OF RACING.

TO THE EDITOR. Sib, —Tlie hon. treasurer of the Dunedin Jockey Club is gifted with a happy versatility. In his remarks on taxation at the annual meeting of the club he got badly mixed up in his effort to prove that the loss shown on the balance sheet was due entirely to excessive taxation, but each set of figure® quoted appeared to me as an argument against.his contention. The yearly increase in the totalisator revenue is proof that the sporting public is satisfied with the deduction from dividends. Otherwise the amount put through the totalisator would decrease. The large majority of people who attend race meetings do so for the pleasure and benefit they derive from the outing. It is the social and exhilarating aspect of the question, and not the chance of the loss or gain of a few shillings or pounds as the case may be, that attracts crowds to a racecourse. When a punter puts his dole on a horse h© is only concerned at the end of the race as to whether the horse he backed is first or second past the post. If neither, h© consoles himself that he has contributed something to the support of the sport, and has also contributed something to help the country meet its obligations. If, on the contrary, he is fortunate in picking a winner h© does not cavil at a few shillings being deducted from bis dividend. Mr Lough waxed indignant when I suggested at the annual meeting that the investing public was levied on for totalisator tax and that the hors© owners paid the tax on stakes, and in support of this quoted balance sheet figures in which it is stated that the club received from the totalisator for the four meetings the _ sum of £38,367, and on the debit side it is stated that the club paid Government taxes to the amount of £'21,014. The club paid in stakes £29,850 and the owners, whose horses won the stakes paid through ths club, as their agent, £2985, so that the actual tax paid by the club was £9O 16s tax on members' fees plus £391 3s 2d income tax. Mr Lough is reported to have quoted further figures showing how the club had progressed. In 1913 the stakes offered amounted to £11,290, and in 1923 to £29,850, but Mr Lough forgets that sine© 1913 the world has been knocked topsy turvey. We hav© participated in and passed through the greatest war in history. Thousands of the pride of New Zealand’s manhood were killed or incapacitated and money was spent in millions to maintain the glorious heritage of freedom our forefathers fought for and won. Mx Massey and his Ministers are striving valiantly to win New Zealand back to normality, to maintain our credit and meet our obligations. They are assailed on all sides and by all classes with applications to lighten the burden of taxation and reduce the cost of living. For some year's past the metropolitan cluhg of New Zealand have vied with each other in increasing stakes, and it is now perfectly patent they have carried th© argument toe far. Yet Mr Lough declares the increase was 'justified. How he arrives at this conclusion is too deep for mo to answer. The cost of maintaining and racing horses is much greater now than it was some years ago and the executive of clubs had to take this into consideration in fixing stakes, but I think it will not be denied that the increased stakes have made it more profitable to race horses now than it was prior to 1914. It would be ungrateful not to recognise the splendid work done over a long period of years by men now associated with the Dunedin Jockey Club, men who are imbued with a desire to provide public entertainment in a clean, healthy form, and no doubt they are concerned in case taxation should causa the sporting public to relax attendance, but Mr Lough’s remarks with respect to Government and taxation and his innuendo as to the writing on th© wall are all “moonshine.” The Government will undoubtedly bring about a reduction in the tax on sport and amusements as soon as it can consistently do so without having to pass the burden on to those less able to bear it. —I am, etc., W. F. Smoo.