TROTTING CLUB FINANCE.

Otago Witness, Issue 3886, 4 September 1928, Page 60

TROTTING CLUB FINANCE.

AN UNSATISFACTORY POSITION GOVERNMENT SEVERELY CRITICISED. The Government was subjected to pointed criticism at the annual meeting of the Forbury Park Trotting Club last week in respect to the continuance of taxation which, at the time it was imposed was said to be unavoidable on account of th' stressful days of war through which the country was passing. Now that the war has been ended P years the racing and trotting clubs consider that the time is long overdue for the fulfilment of the promises made when the Government decided to impose amusement, dividend, and owners’ taxes on the sport of racing. In the chairman's address there was vigorous resentment of the “ specious promises ” of the Government which had not been kept, and aiting scorn for the legislators who were *’ bleeding the racing community white in the interest of wowserism.” Mr A. G. Neill also made reference to the manifest injustice of the impositions at present being borne by the racing and trotting clubs of the Dominion, and produced figur- to demonstrate “ the distinct breach of faith ” of which the Government has.been guilty. That the feeling of the ineeting was in the warmest sympathy with the sentiments expressed was evident by the unanimity with wlr'ch a resolution on the subject was carried.

! Mr B. S. Irwin, in moving the adoption ' < the annual report and balance sheet, ' said that th<_y all knew that the Forbury j r .rk Trotting Chib, like kindred bodies in all parts of the Dominion, had been passing through a phase which they sincerely hoped was now ending. It had been a difficult and trying period that had made it very hard for the committee to carry on successfully from the fin ncial point of view. They would all agree that from the sporting standpoint the year had been a good one. but he re- . gretted to say that the almighty dollar , played a very important part m the I club’s operations, as it did in those of I all clubs of a similar nature. Still, in > spite of the difficult times through which | they had just passed, Forburj’ Park’s I position compared quite favourably with ! thr f most other clubs. J A glance at the balance sheet, he said, would show them the true position. The club had been founded many years ago. and at the beginning it had been found necessary to raise mortgage on their property at the time of purchase, and also to issue debentures. The mortgage still stood, and they were still paying interest on the debentures, but he considered that the fact that no -other loans had been floated since was evidence of good manacement on the part of the stewards When they had started they had had little or no capital—about £2OO. he thought was their entire wealth—whereas to-day they had all the necessary appointments at Forbury Park, the course being completely equipped from the dual viewpoint of beauty and utility, and everything in very good order. Personally. although they had not been able to pay off the debentures and get rid of the mortgage, he considered that the affairs of the club had been well conducted. Tn the palmier days, when thev were not hemmed in on all sides by taxation and'impositions, the club had erected the buildings at the course, and these were ’all paid for. They would notice ir the balance sheet , that there was a large- amount owing to the bank. This had been raised on the mint-and several guarantee of the committee. Of course, they wanted this amount reduced-as soon as . possible. but they were not growling about it. As stewards of the club, they reckoned that .it was their duty to the chib to take up this responsibility. They had taken the risk because they knew, and had confidence, in the loyalttv of the club. Tn accepting the liability they had. of course, not lost sight of the value of the buildings and property. The debenture holders who had come to the help of the chib at its inception took up the debentures at 5 per cent., arid were still getting that rate of interest. Whether they were prepared to continue on the Same rate he did not know, biit whatever they did they had rendered good ’service to the chib?’.-

i Mr Irwin said that; the shrinkage in totalizator receipts -had ■Continued duriji'r the year, and :-expen.ze«. had crone on vising.. (Some. DtlmJe said tlraUthe.-heavv hnrdoji- nf f.nxntion ffhov typye carrying Reul hoMi’pfr tn dn with their nresent position. They maintained that the club wks

not affected greatly. He would like „ point out that whatever burden the club member was asked to carry, as owner or runter, reflected on the prosperity of the club. There was a certain pool at every race meeting, and so long as the Government continued to draw on that pool as it was doing now’ the finances of clubs must be affected and totalisator returns decreased. Whenever they protested they were met by the Government with specious promises, but nothing was ever done.

“ When these taxes w’ere imposed we were told that they would be withdrawn when the emergency conditions they were intended to meet had passed,” said Mr Irwin, “ but those promises have never been fulfilled, and it does not look as if they ever will be if we do not do something _ ourselves. The racing community is being bled white by the Government in the interests of wowserism. The politicians of our country who call themselves statesmen will do nothing to redeem their pledges because they must.pander to the wowsers. It will not be long, gentlemen, before the racing community—and it is a large section of the public—will make its voice heard in a manner that cannot be ignored.” Continuing, Mr Irwin said the committee had done its best with the loyal support of the members. There was no doubt as to the popularity of the sport in the Dominion, and he felt sure that if they could hold on for a little while longer, and if they got a little assistance from the Government, that all would be well for the club. That was all that was required just now, but still they all wanted to see the stakes increased so that the better-class animals would be attracted to their meetings. They had not done it sooner because they had not been in the position to do so. During the past year the committee had done its best for the club, but if there were any members who would like to make any suggestions for the more efficient running of the elub thej’ were always glad to hear them. Mr A. G. Neill said he would like to endose what the president had said in regard to the heavy taxes they were called unon to pay. During the past year they had made no important improvements at the park, and they had been favoured with fine weather for all their meetings, and yet they could not show a profit on the year’s working. The president had placed his finger on the weak spot when he attributed this state of affairs to the taxation that they were paying. Last year the Government collected £423,251 in taxes from the racing public. Of this sum they took £138.000 in totalisator tax', £248,000 in dividend tax, £13,000 in amusement tax, and £22,000 in owners’ tax. Forbury Park Trotting Chib had paid £12,000 of the total, and the Dunedin Jockey Club had had to pay about £16.000. In al] almost £30.000 had been taken from Dunedin alone. He contended that the whole system was wrong. All the taxes mentioned were war measures, and it was a breach of faith for the Government to continue them. The racing community had been fairly treated by the Minister of Finance (Mr W. Downie Stewart), who had said that their finan cial difficulties were not in any way attributable to taxation. That was not right. Last year the Government had collected about £250,000 in dividend tax. If that were left to be circulated among punters it would be going through the totalisator all the time, and about £125,000 would be distributed among clubs, Forbury Park's share of that distribution would be about £3500, which would mean that they would have a profit of that amount on the year. These facts, he contended, were indisputable. There was no answer to them. It was up to the racing public, and their club as a body, to show the Government that they did not intend to sit quietly and bear the heavy burden any longer. Mr Neill then moved—“ That this meeting of the Forbury Park Trotting Club considers that the financial difficulties of trotting clubs is due to the continuance by the Government of the excessive taxa tion ".hat was imposed for war purposes and strongly urges the granting of immediate relief.” The motion was carried unanimously.