TAXATION OF RACING.

Otago Witness, Issue 3613, 12 June 1923, Page 34

TAXATION OF RACING.

DEPUTATION To MR MASSEY. PROMISE TO APPROACH PARLIAMENT’. Following- on a deputation from a number of social workers, the Prime Minister was on Thursday waited on by representatives of racing clubs, asking for a reduction in taxation. The deputation was headed by the president of the Dunedin Jockey dub (Mr A. O. Hanlon), who said that the. taxation should be reduced in the interests of the clubs and of the community generally. Taxation had been raised to such an extent that it was only a matter of a very short time when several clubs would be unable to carry on. Therefore, they wanted to see if the taxation could he reduced, and reduced as quickly as possible. To take this year’s working of the Dunedin Club: There had been a loss of £514- on the spring meeting, and the Government got £4201 in taxation ; in February the loss was £1765, and the Government got £6149; on the summer meeting there was a profit of £431, and the Government took £4802; in the winter meeting there was a profit of £340, and the Government took £7539. On the y.ar’s working there had been a loss of £1458, and the Government had been enriched by £23,483. Mr W. T. Hazlett (president of the Southland Racing Club) said that his club was losing hundreds every year, and so in time it _ must go out of existence unless something svas done. For many years breeders bad striven against adverse conditions to breed a strain of thoroughbreds and today he did not know of any country outside England -whore thoroughbreds broil eh t such big prices. Recently buyers from Melbourne had paid £2OOO and over for New Zealand horses. If the clubs were forced out of existence a valuable industry would be lost, for the breeders would also go out of business. This country was eminently suited for the breeding of horseflesh, and it was now beginning to come into its own. If there was a setback the position would never be retrieved. The Hon. W. Downie Stewart remarked that the racing clubs thought it was enough to tax the income without putting another 2£ per cent, on to investments. But the 24 per cent, tax had been in existence for a considerable time, and should have affected the clubs before now.

Speaking on behalf of the countrv clubs, Mr O. R. Wise (Oarnaru) instanced the case of the Kuro'.v Club which two years ago, on a profit of £I4OO, had given - •

the Government. Last year, on a profit of £llOO, it had contributed £IBOO. Eight other clubs were in a similar position, and there were four clubs which should have held their meetings for the benefit of their districts, but which had held them an the Ricaarton course. He thought that, if the imposition of the tax meant a loss on a meeting it should not be collected. Mr R. Grilr-n, representing the Owners’ and Breeders’ Association, declared that training would have to go out if the taxation was continued. If the clubs were extinguished so would breeding be extinguished. Mr Massey stated that relief from taxation could come only by legislation. He understood that many off the smaller clubs had been very hard hit. Mr Stewart, who was the Minister concerned, and himself were anxious to help them. Fortunately the tax of which they complained of was not among his sins.—(Laughter.) It had been imposed 10 or 12 years ago. It was quite true that he had increased the tax on stakes two years ago when he was looking round for every available shilling. He had met a number of owners in private conference, and had told them that he intended to increase the tax of 1 per oent. to 5 per cent. One man —and he thought it one of the most sporting things he had known —had said. “Make it, 10 per cent, until we are through with the slump.” He agreed with alacrity, but the tax was to he repealed, according to statute, on March 31, 1924, unless the Governor-General extended it for a period not exceeding six months. He was not going to advise the Governor to extend the tax for six months. Mr Wise had made a very sound suggestion in connection with the small clubs. The position was one that would be altered through the Gaming Bill or the Finance Act, and he was going to ask Parliament to remedy it so fur as the clubs, in uiffieulties were concerned. Of course, there were other clubs in a splendid financial position. Auckland had made alterations to their buildings that must have cost anything up to £IOO.OOO, and Wellington had also extended. He did not think that breeding was going to suffer as much as had been suggested. New Zealanders were a sporting people, and they were not likely to forgo the privilege of going to a race meeting occasionally even if they had to pay. He had to reduce taxation "all round, and he did not want to put any unreasonable proposal in connection with racing before Parliament. He could not promise that Parliament would do anything, but it would do what, was right., and he thought that they would have every reason to be pleased with the legislation that would be put on the Statute Book. They could go away satisfied that lie would remedy matters as quickly as possible. The deputation withdrew after extending its thanks for a sympathetic hearing.