THE TOTALISATOR TAX

Taranaki Daily News, 1 August 1930, Page 7

THE TOTALISATOR TAX

INCREASE OPPOSED BY CLUB. TARANAKI J.C. DISCUSSION. The increase in the totalisator tax formed the subject of discussion at the annual meeting of the Taranaki Jockey Club last night. The president (Mr. L. said that racing officials all over New Zealand had °beeii seriously disturbed by the announcement that'it was proposed to increase the totalisator tax from IQ per cent, to 12J per cent., an addition which, on last year’s figures would substantially increase- the heavy amount now paid. The extra, levy did not interfere with the commission' taken by clubs, which still remained at 7J per cent., and it might be said, that it did not therefore interfere with club’s earnings. On the basis of. last year’s figures the proposal, if made effective, would mean an increase of .£120,000 taxation paid by racing people, a total of approximately £500,000. > That was a huge load for any sport to carry and must surely have a detrimental effect eventually. Many clubs were finding it difficult to make ends meet. Investments were falling and many people believed that yie present.taxation was to some extent responsible. The ‘ fact remained, however, that less money would be available for re-investment. Each pound invested would be reduced to 16s 7|d, the Government taking Is of the difference.

All recognised that times were nofc normal and that the Government was faced with a difficult task, but he suggested that if amendments were made to existing legislation, making it permi/seable to wire money to the totalizator, a greatly increased turnover would result with consequent increased return to the Government. It waa held in some quarters that the extra revenue derived directly through the totalisatoi and indirectly through the Post and Telegraph Department would at least equal the extra amount represented by the 2J per cent, now proposed. There could be no question that the statute as it stood fostered illegal betting (a lot of it credit betting) and created a disrespect for the law and its administration. Bookmaking was rampant, and there was little doubt that the legislation suggested and an active campaign on. the part of the police would go a long way towards suppressing the breach of the law. He failed to understand why the amendment had failed to reach the Statute Book. It seemgd as though there was an alliance (unconsciously perhaps) between the anti-gambling element in Parliament and that section in sympathy with the bookmaker. • ■

Mr. G. Fraser briefly touched on what he referred to the inroads on the pockets of the public and asked them to vizual<ise the next Christmas meeting. Probably the crowd that attended would have collectively £lO,OOO in their pockets, but by the time that had been through the two days* races they would go out with £2OOO. If they went to Z .atford they would have to add an additional £6OOO to that amount and • there was one certainty.fj that at the end of the seconds day tithe whole of

that £16,000 would have gone towards the stakes of the clubs and the Government taxation. He was not trying to draw any moral.' If there was any moral it -was that they should not put their money through the totalisator.-

but it showed why the bookmaker was the only one that could smoke cigars. He thought the Government had failed to realise the maxim that “You can’t eat. your seed .potatoes and hope to have mxt year’s?crop.”