TOTALISATOR TAX.

Otago Witness, Issue 3987, 12 August 1930, Page 56

TOTALISATOR TAX.

THE PROPOSED INCREASE. minister, defends decision. WELLINGTON August 6. The proposed changes in the totalisator tax were diecussed by the Minister of Internal Affairs (Mr P. A. de la Perrelle) in an interview to-day. The Minister declared that an effort was being made to mislead racing people seriously, not only in regard to the extent of the increase, but also regarding the Government’s attitude towards the racing clubs. “ 1 find the Reform candidate for Invercargill,” said Mr Perrelle, “ telling hie audiences that I was once feted as a friend of the racing clubs, and one who would give the sport a better chance against the ever-increasing inroads of taxation, and that the racing clubs are not being justly treated to-day. I still maintain that I am keenly desirous of seeing racing clubs prosper, and I know the racing public will appreciate the difficulty in which the Government is temporarily placed, and will not mind contributing a little more through the medium of the totalisator. After all, this amounts to only 6d in the £ on the investments. “As Mr Hargest has stated that he is not a racing man,” continued the Minister, “ a little enlightenment seems necessary in respect to what takes place and what is proposed. At present, the first deduction from the totalisator investments is 10 per cent., of which the Government gets 2$ per cent, and the clubs 7J per cent. The new proposals provide for a deduction of 12J per cent.,-'of which the Government will get 5 per cent, and the clubs 71 per cent, as hitherto. It will not be surprising to many racing people to know that strong efforts were made to induce the Government to take from them the fractions in connection with the operation of the totalisator. The suggestion was not approved by the Cabinet, and the clubs will retain those fractions, which constitute a fairly substantial total during the season. What they mean to the clubs may be seen from the following figures:—For the year 1928-29 the fractions paid to the clubs wer.e — racing clubs_£2s,636, trotting clubs £9818; —total £35,454. For the year 1929-30, £25,574 has been paid to the racing clubs and £11,208 to the trotting clubs, the total being £36,782. The figures for the present, year have not been finalised, but the complete figures will show a slight increase on this total. Not only has the Government maintained the racing clubs* proportion of the totalisator tax, but it has not interfered with the rebate of up to £250 per annum towards course improvements, which is such a help to the struggling clubs. “As the Prime Minister has promised to give full facilities for the Gaming Amendment Bill this session,” added Mr Perrelle, “ and as that aims at considerably increasing the totalisator revenue By directing investments away from illegal channels, it can hardly be said with justice that the Government is unsympathetic.”

EFFECT ON RACING CLUBS. HASTINGS, August 8. A general condemnation of the totalieator tax was voiced at the annual meeting of the Hawke’s Bay Jockey Club today.

The president (Mr T. H. Lowry) said that the proposal to increase the totalisator tax by 2i per cent, had come as a bombshell to the clubs. It reminded him of the tax organised by Sir Robert Peel in England in 1818 called the “ window tax.” It was enforced as a last resort, and when the collectors came round to get the tax they found the windows closed up. It looked as though some of the clubs might have to close up if the present tax was increased. Mr Massey had led them to understand that the original tax was due to the necessity of obtaining additional revenue during the war, and, owing to war expenses, it had accumulated. He thought the Prime Minister had overrun his object with this taxation. Mr H. A. Russell said that on the year’s operations the Government had made £247 more than the Hawke’s Bay Racing Club. In the first instance the tax had been put on to help racing, but now its principal purpose was to help the Government. If the same amount went through the totalisator next year as last year then the Government, with the increased tax, would net a further £2804. It would thus seem as though racing was to be run mainly for the benefit of the Government. The effect would be to drive business into the hands of the bookmakers. Mr J. S. M'Leod said he believed that something would have to be done to impress the gravity of the position on responsible politicians. Every party that came into power seemed to think _.. that the racing clubs were to be made the chopping blocks of taxation schemes. Mr Massey had given them to understand that the tax would be repealed after the war, but instead of that it had been increased. A great many owners were now seriously considering whether racing paid. It had come to this—that neither they nor the clubs were getting fair treatment. For himself, if he could he would sell his horses to-morrow. Apart from Sir George Hunter’s Bill nothing had been even attempted to help racing. Very few clubs had had a prosperous year. The Government gave them no consideration whatever, but merely seemed desirous of threshing the last grain of corn out of them.