TOTALISATOR TAX

Otago Daily Times, Issue 21639, 9 May 1932, Page 5

TOTALISATOR TAX

PROPOSAL TO REDUCE OPPOSED BY LABOUR MEMBERS (Special to Daily Times.) WELLINGTON, May 7. Objection was raised in the House to-day to the proposal of the Government, as embodied in the Finance Bill, to afford relief to racing clubs throughout the country by reducing the totalieator tax from 5 per cent, to 4 per cent. Mr F. Langstone (Waimarino), who began a lively discussion on the subject, contended that the racing clubs were merely the agents of the State in the collection of the tax. The Minister of Finance (Mr W. Downie Stewart) said that as the racing clubs of New Zealand were in difficulties it was desired not to kill the goose that laid the golden eggs and stem this source of taxation by allowing the clubs to fail.

Mr Langstone: This clause in the Bill would benefit the metropolitan racing clubs, such as Auckland, and the small clubs with a turnover of a few thousands at a meeting would not benefit, on account of the amount of the tax being so small. Mr W. E. Barnard (Napier) said the •mall, struggling clubs would welcome any relief at all. Mr Langstone said if these clubs wanted relief they should get it from •ome other source, such as a reduction of expenses on advertising, handicapping, and starting fees. Every small racing club in the Dominion could save more in that way than was provided in the Bill. Mr Barnard; What expenses do you mean? Mr Langstone; Advertising is a big item. Every club is compelled to advertise its meetings in the Referee. Mr J. G. Coates: That is all right. Mr Langstone: I have seen advertisements in that paper for weeks and weeks for the same meeting. Then, again, there was the country, club that held a meeting in Auckland some time ago, and the liquor account for two days was £7O.

Mr Coates: Oh, no. Mr Langstone: It is no use the Minister shaking his head, for I know. The same speaker said the clubs should be asked to put their houses in order. They were not compelled to erect expensive grandstands, nor to issue debentures when licenses were the only real security they had. No other form of •port, such as football and athletics, was asking for similar support. “We are not playing at politics,” Mr Langstone went on. “We are living in serious times. We gave the clubs relief last year, and it is not right that we should give them further relief when there are ■o many social services.- requiring money.” Mr Stewart: This is to avoid a greater loss.

Mr Langstone: Hut the more we help them the more the revenue seems to go down. The banks have financed racing clubs. Let them stand the loss themselves. The banks will get the benefit of this concession. Trafficking in licenses was also permitted, Mr Langstone said, and be instanced a case in the Manawatu where a hunt club’s license had been bought by a racing club. The Canterbury Jockey Club had huge assets in expensive grounds and grandstands, and made a great deal of money from sub-leases. This club would derive a great benefit, but other clubs, which needed money more acutely, would not.

Mr Coates: No club requires it more than the Canterbury Jockey Club, Mr Langstone: I should say no club in New Zealand requires it less. Mr Coates: Nonsense.

Mr Langstone: It has carried on racing for 60 or 70 years, and if there is no chance for that club What earthly chance have other clubs?

Mr Richards: Let them go out of business.

Mr Coates said he regretted to hear the sweeping statements of the member for Waimarino, who did not realise the desperate position of the racing clubs throughout the country. He had spoken about high expenses, but if he could show how, they could save money the Racing Conference would be delighted to know. There was not a metropolitan racing club in the country that was not right up against it. The Canterbury Jockey Club was in no different position to other clubs, and other individuals who had invested money in projects whicli were to-day not returning anything. Good, clean sportsmen who had given guarantees were surely entitled to some consideration.

Mr Langstone: Yes, and other guarantors as well—football and other clubs. Mr Coates: The hon. member knows there is no comparison. It is difficult to know what is going to happen to racing clubs. They do not know themselves. Of course, if they close up n certain section of the public who do not care for a good horse and a good race will think it is a good thing. Jt was added by Mr Coates that the Wellington Racing Club debenture holders had been subject to a cut in interest, and it would be a bad thing for them and for the sporting community if the clubs they had supported were to meet with disaster. Mr F. W. Schramm: How much is involved in this relief of tax? Mr Stewart: £30,000.

Mr Coates said there was only one Jnetropolitan racing club in the Dominion financial—-the Auckland Racing Club, which had paid its own way on the season’s racing. “ Unless we pass this legislation and give relief,” Mr Coates added, “we are going to have endless difficulty and many* cases of financial wreck among the racing clubs of this country.” Mr Langstone: Well, do the same to the farmers, the workers, and the rest ®f them, Mr Coates: That is different. We must take the cases on their own.

Mr Langstone: The racing clubs have iad a cut in interest payments. Mr Coates: Yes, they need it too. Mr Lee: Do you think the banks would •ell them up? Mr Coates said that not all the guarantors were banks. There were settlers in his district who had pledged thousands of pounds’ worth of their assets to stand guarantors to the racing club. This legislation would give them breathing space. Mr J. O’Brien said the racing clubs had themselves to blame for a great deal of their present financial embarrassment, as there had been a great deal of selfishness among them in refusing to allow other sports bodies to use their grounds—grounds which were used for racing on about five days in the year. “Even this legislation would not save •ome clubs, and if some clubs go out of business we will still have our racing," he said. The Government was not helping the sports which went toward making a clean, healthy manhood, but was looking after the sport which built and maintained healthy horses. The expenses were too high, and the prize money was too large. He objected to taking money from women and children through social services and devoting it toward the relief of racing clubs. Mr P. Fraser said that while there ! were people starving in the streets his j heartstrings were not severely strained in sympathy for deputations of some of the wealthiest men in this country approaching the Government for relief of taxation for racing clubs. Mr Stewart said he would not like

the impression to be circulated that the Government had given money to people who could do without it and allowed poor people to go short. The Government received a good share of the totalisator tax, and it was always a debatable point as to what proportion the clubs should get and what should be handed to the State. He regarded the legislation as a sprat to catch a mackerel, because if the racing clubs were on the verge of bankruptcy there was a danger that yds source of taxation might disappear if the clubs failed. “If we do not give these clubs relief,” the Minister added, “I am just afraid we might kill the goose that lays the golden pornr ” l do'