EGMONT RACING CLUB

Taranaki Daily News, 31 July 1931, Page 10

EGMONT RACING CLUB

THE BURDEN OF TAXATION LOSS ON YEAR'S OPERATIONS. DEMANDS BY THE GOVERNMENT. “It is with regret that I have to refer to the serious loss of £2033 on the season’s operations,” said the chairman, Mr. John Gray, in his address at the annual meeting of the Egmont Racing Club at Hawera last night. “This is directly due to the very serious decrease in attendance and the reduced financial circumstances of the public patronising the meetings. “The committee anticipated a further decline in revenue compared with the returns of last year, and considerably reduced the stakes and general expenses prior to the summer race meeting,” continued the chairman. “Even then the February fixture showed a heavy loss, and in consequence stakes and expenses were again subjected to a reduction for the winter meeting, which concluded with' a loss of about £l5O. “Financial considerations throughout the vear have given the committee the greatest concern, and, whilst endeavouring to provide programmes that would ensure satisfactory race meetings from a racing and public standpoint, the cost to the club was reduced to figures it was anticipated would enable the club to balance its accounts. That we did not succeed in the latter direction was entirely due to the- unprecedented drop in totaiisator investments and in general revenue, and it is very evident that until the existing financial depression is overcome, racing clubs will be unable to conduct t'he sport on the splendid lines’ and organisation to which the race-going public of the Dominion has been accustomed. “This brings me to the very serious aspect of the taxation of racing revenue, the imposition of which, if continued on the present basis, must, even during the present year, force many small clubs to forego their meetings. TOTALISATOR TAX INCREASE. “It is a significant fact that whilst this club made heavy curtailments of its stakes and race meeting expenses in endeavouring to balance its accounts,- the Government imposed last year a further 24 per cent, on gross totaiisator investments' and a substantial increase in the amusement tax, which operates upon admission prices and members’ subscriptions. Whilst we showed a loss of £2033 for the year, the net revenue paid to the Government by the club in respect of its four days’ racing amounted to £3261, which equals 66.44 per cent, of the stakes. “Such a result indicates that race meetings, instead of being primarily for the legalised conduct of a national sport, have been reduced to tax-collect-ing agencies for the Government and the capital of many clubs has been so depleted that several clubs were unable to hold meetings last year, and the prospects are that many more of the smaller clubs will not be able to take up their permits this season. The general response to repeated requests for reduced taxation has been that the Government requires all possible revenue at the present time. -“This is well understood, but for that very reason the Government should be prepared bo foster the sport which so largely contributes to the Consolidated Fund, as for every race day cancelled in a provincial centre such as this the loss in taxation will be approximately £lOOO. Another way in which the Clubs could he granted some relief is the legalising of the telegraphing of investments to the course. This subject has been so much before the' publi of late that it requires no explanation. “The incoming committee will require to give most serious consideration to the management of the club for the coming .year, that ways and means will be found of continuing our long-established fixtures without the prospect of financial loss. This year will be the fiftieth anniversary of the formation of the club. The loss sustained by this clulb is an indication of the .general experience of racing clubs throughout the country, and many clubs with heavy liabilities will find it very difficult indeed to carry on. REDUCTION OF EXPENSES. “The general expenses throughout the year have been very greatly reduced. The greatest item of expenditure was the painting and renovation of the main racecourse buildings, and the committee was of opinion that, though funds were low, it would not be wise to allow bhe assets to fall into disrepair. The course and grounds have been kept up to the usual high standard, and reflect credit on the club’s employees, and the course committee responsible. The gardens and- lawns, which did not have the constant attention possible when we had a permanent gardener, were in good order for the meetings, and thanks are due to the sub-committee responsible for the control of this work. “The Club is fortunate in having a substantial asset in its fine freehold property, and its financial position is undoubtedly sound. I fully realise, however, that every effort must be made in the future to avoid any loss which would, of course, involve further depreciation of assets,” The financial depression prevailing throughout the year had had a very serious effect upon racing revenue, and the clulb’s finances had suffered to such an extent that the year’s operations showed a of £2033 18s 3d, stated the report. ’ In anticipation of a heavy decline in revenue the committee had substantially reduced the stakes of the two race meetings held, whilst geneial race meeting expenses were also decreased, the total saving effected being £1444. The abnormal decline of £28,500 in totaiisator investments and £565 in gate receipts was, however, more than could reasonably have been . provided for, and a serious loss was inevitable. Early in the year the committee authorised the complete renovation and painting of the principal racecourse buildings, as this work had. been long delayed and was absolutely necessary for the maintenance of the clubs assets. This expenditure of approximately £3OO, which was made a direct charge on the annual accounts, should not, recur for some years. “It is with regret that we have to record the deaths during the year of three members, the-late Messrs A. VV. Budge (life member), E. C. Barleyman and W. J. Linkhorn, to the relatives of whom expressions of sympathy • are tendered,” concluded the report, which also expressed appreciation of the services of. the club’s honorary and permanent staffs. The following officers were elected, being the only ones nominated: —‘President, Mr. J. Gray; vice-president, Mr. A. Good; honorary treasurer, Mr. S. Adamson; committee, Messrs J. H. Baker, H. I. Crocker, R. Hicks, W. McL’Dowie, M. F. Purser, G. H. Ryan, F. \V. Sutton, J. D. Scott, H. Spratt, S. C. Tonks, W. O. Williams; stewards, Messrs J. H. Baker, H. I. Crocker, W. A. Good, R. Hicks, W. McL’Dowie, M. F. Purser, J. D. Scott, H. Spratt, F. W. Sutton, S. C. Tonks,-W. O. Williams.