The Wanganui Chronicle. FRIDAY; JANUARY 11, 1946. THE TURF AND THE TOTALISATOR

Wanganui Chronicle, Volume 90, Issue 9, 11 January 1946, Page 4

The Wanganui Chronicle. FRIDAY; JANUARY 11, 1946. THE TURF AND THE TOTALISATOR

VY/lTlf the note issue by the Reserve Bank of New Zealand soaring to an “all-time high” of more than £46,000,000 for the Christmas and New Year holiday period, it is not surprising that totalisator turnovers have reached a level never before attained in the Dominion—not even in the boom which followed World War 1. A perusal of the figures shows that a total of more than three million pounds in the vicinity of £3,250,000 was “invested” through the totalisators on racing and trotting courses throughout the country since December 8. Of this aggregate investments durj ing the midsummer holidays accounted for £2,841,878. By the time January has run its course the total will have been increased by i another million, for the three days of the Wellington meeting this i month can be estimated to produce a turnover of at least £500,000, i and in addition there will be racing at Ellerslie and several other i centres. The totalisator is—and should remain.—the only legal medium I of investment for racegoers in New Zealand. With the experience i gained in the more than thirty years since bookmakers were ban- ! islied from Dominion racecourses, racing and trotting clubs would ; not have it otherwise. Probably only a small proportion of the j racing community honestly favours the return of the bookmaker, i But there should be some provision, as is operated in conservative England, for the stay-at-home follower of racing. Steadily increasing totalisator turnovers have enabled racing and trotting clubs to offer higher stakes and to improve facilities for the accommodation of still more patrons. Owners of horses, encouraged by the prospect of winning richer prizes, have been inspired to pay higher prices at the yearling sales, bringing in an era of increased prosperity for breeders of thoroughbreds. Twelve months ago at Trentham records were broken when 3000 guineas | was the amount paid for the top-priced yearling, and more than twenty lots topped the 1000-guinea mark. These figures, together with the fact that the three most important races in New Zealand have each a £5OOO stake attached and upwards of one hundred are £lOOO or higher, are evidence that racing and the breeding industry are enjoying a period of prosperity beside which the postwar boom after World War I pales into insignificance. The Government has a substantial financial interest in the whole question. From taxation on totalisator investments and dividends to the extent of 10 per cent., and on stake-money to a minor extent, the State reaped a harvest of more than £300.000 during the past four weeks. For the racing year which ended on July 31, 1945, the amount received from these sources was £1,133,830. With the complete restoration of racing and trotting dates and the increased totalisator turnovers, it can be safely estimated that in the twelve months ending July 31 next the revenue will be not far short of two million pounds. What it would be like if some means could be devised whereby “off-course” investments could be diverted to pass through the course totalisators can only be a matter for conjecture, but it would be conservative to estimate that the aggregate turnover would be doubled, with a consequent improvement in the Government’s rake-off. Control of the sport—or industry—of racing is in the hands of the New Zealand Racing Conference, but racing is one of the most profitable milch cows in the Government’s taxation herd. The racing clubs provide the pasture, feed the cow and do the milking. The Government gets the cream and the clubs are left with the skim-milk. The State gets practically 10 per cent, of all investments on the totalisator, its share from the recent four-day meeting at Ellerslie being close on £BO,OOO. The racing clubs get an approximate net 6 per cent., but from this they are compelled, by legislation, to provide stake-money to the extent of 95 per cent, of their average receipts. Thus, even if a club shows a loss on its year’s operations, the Government still gets its share in taxation and is always on the winning side. The Government should not be permitted to shirk its responsibility to what has grown into a major industry. It has granted a monopoly in betting, through the totalisator, to racing and trotting clubs; it accepts a licence fee in the shape of the totalisator and dividend taxes; and its responsibility should not end with its “Thou shalt not” to those who would wager through any other medium than the totalisator. The Racing Conference, it is understood, is studying the problem of getting off-eourse wagers to the racecourse totalisators. It should have the assistance of the Government in this direction, for the State controls the medium of communication through the Post and Telegraph Department. Further assistance, mainly financial, could be provided in enabling the racing and trotting clubs to improve amenities for their patrons. The millions obtained in taxation of investments should not be looked on as simply so much revenue gained. Moreover, the State has done little in the past to encourage the improvement of thoroughbreds in this country, Hie Remount Encouragement Scheme being only a minor benefit to the hunt clubs. New Zealand horses have already made a name for themselves overseas. Pbar Lap made New Zealand known in the United States; Moifaa went to England and won the world’s greatest steeplechase; and half a century ago Carbine, after carrying all before him in Australia, was bought for England and there re-established the Musket line. In India and in South Africa owners have been keen to secure horses bred in this Dominion, and other markets were opening up before World War 11. Increasing totalisator turnovers have enabled clubs to offer bigger stakes and give a fillip to the breeding section of the industry. It’s up to the Government to give a hand now.