TOTALISATOR TAX

Hokitika Guardian, 12 May 1932, Page 8

TOTALISATOR TAX

(' REDUCTION CRITICISED

CLUBS IN DIFFICULTIES

WELLNGTON, May 11

A criticism of the proposal in the Finance Rill to reduce the totalisator' tax from 5 per cent, to 4 per cent, was made from the Opposition benches in the House of Representatives last week, it was contended by the Labour speakers that the principle of giving a rebate to racing clubs at a' time when education and other services were being reduced was wrong in principle. .The Government’s reply was that the racing clubs throughout the country were in financial difficulties" and that, as they were a source of considerable revenue, they should be encouraged to carry on. An amendment to limit the concession to clubs with an annual turnover of less than £15,000 was' lost on the voices. “This is one of the most infamous clauses in the Bill,” said Mr F Langstone (Labour, Waimarino). He stated that in the case of a metropolitan club, like Auckland, which had a toalisator turnover of £200,000 or £300,000 in the year the rebate would be substantial, but the country clubs would get little relief. Mr W. E. Bardard (Labour. Napier): “The little struggling clubs will welcome anv relief.”

Mr F. W. Schramm (Labour Auckland East): “They are not entitled to anything. The Government is taking the money away from education.”

EXPENSES OF CLUBS.

Mr Langstone said that the racing

clubs had elaborate expenses, and that if they wanted to save money they should cut down these expenses. They spent i'ar too much money on handicapping, starting and advertising. 1 Mr Langstone: “The Auckland Racing Club pays its handicapper a retainer of £IOOO per year.” A voice: “That is a metropolitan club.” Mr Langstone said that a country club which had held a meeting in Auckland had a liquor bill amounting to £7O for one day’s racing. The clause was simply endeavouring to make good expenditure such as this •ut of the coffers of the State, and it was absolutely wrong. The State had not asked the racing clubs to build elaborate grantstands and had not asked people to lend their money for . that purpose. i Mr Coates: “What about the jguarantees?” I Mr Langstone said that football 1 clubs and swimming clubs did not' get tlie same assistance as racing clubs. te Kurrrs case. In rep'y to an inaudible interjection from -Ur W. J. Broadfoot (Government, Waitomo), Mr Langstone said that the lion, member who represented Te Ktuti had little to talk about. The Te ICiiiti club filched £BOO of State !:money and a Finance Act had been passed validating what was done. Times were too serious to use public moneys in this way. The racing clubs had already had a rebate amounting to Iff per cent, for the big clubs and 2if per cent, for the small clubs, and now it was proposed to give racing a further concession when industry, the | farmers, and educational institutions needed money. The Minister of Finance (the Hon. \Y. D. Stewart): “WeWant to get revenue for the schools and this is to aioid making great losses.” Mr Langstone said that it was recognised that there had been a fall

in the totalisatoi' revenue, which was a financial barometer of the state of the country. But in spite of the drop the expenses of the clubs went on. The hanks had financed the racing clubs in some of their enterprises and the clause simply meant that the banks were being paid out of the Consolidated Fund. Practically the whole of the rebate would be gobbled up by the banks, which should bear their own losses. At the present time the racing clubs paid no taxation except a penny in the pound land tax. A voice: “What about the totalisator tax?’"* Mr Langstone: “That belongs to the State, and the racing clubs are only acting as agents in collecting it.” He said that the Canterbury Jockey Club paid only £‘2o a year for the lease of its ground, and he pointed .out that in other parts of the country, tenants of educational reserves were ( outributing thousands of pounds to )i. e r t .i the land they occupied. The Canterbury Jockey Club ...i mo least relief of all the cl übs. Mr Contes: “Nonsense.” Mr laiiigstone said there had been racing in Canterbury for many years, and if they could not pay their way, nobody else could. Air A. S. Richards (Labour, Hoskill) : “They should go out of business.”

“( AHE LESS STATEMENTS.”

Mr Coates, said that Mr Langstone had made a number of careless sweeping statements which could not be . borne out by facts. The racing dubs I throughout (fie country were in a pro--1 carious position, and unless they were afforded some relid they could not curry on. There was not a metropoliJ tar* dul> Ilia t was not up against it. 1 and the good dean sportsmen who bad j become guarantors were entitled to a I little consideration. Mr Langstone: “We don t a.-mu i-inr guarantors of churches vnd football clubs.”

Mr Coates: “The hon. , gentleman must realise that that is no comparison at all. There are twenty-eight racing clubs in New Zealand, and it is very difficult to know what is going to happen if they have to close up. Perhaps the hon. gentleman does not like a good horse.” Mr Langstone: “I have put shoes on more' horses than you have ever seen.”

Mr Coates: “I’d like to shake hams with the hon. gentleman.” Mr A. M. Samuel (Government Thames): “Everybody can’t be a blacksmith.”

STATE WILL BENEFIT.

Mr Langstone’s challenge for a shoeing contest Was graciously turned down by the Minister, who, continuing his speech, said that they had to protect the racing clubs from disaster. The debenture holders in such clubs as Wellington liad already had a 20 per cent, reduction in their interest. He asked members to take an impartial view ol the whole position. Lf racing clubs were able to carry on, more revenue would accrue to the State and naturally educational institutions would benefit.

Mr J. O’Brien (Labour, Westland) said that the position of many racing clubs was as they had made it themselves. Quite a number of clubs had gone in for expense for which there was uo need, Mr Coates. “Such as?” Mr O’Brien: “I’ll toll you in a minute.” He added that racing clubs had grounds that would suit the whole public, but other bodies were not allowed to use them.

Mr Coates: “That is not general.”

MEN OB HORSES,

“Yes, it is,” replied Mr O’Brien, who- added that even this concession would not . save some clubs. One duo in iiis district had refused to alio a the Rugby Union use its ground unless it got one third of the proceeds. The union had to get a ground for itsdl, while a tine ground was lying idle. .A good deal of trouble was caused through the racing clubs not co-oper-ating with other bodies. He thought the clubs should sacrifice something. Personally he was in favour of athletics. it was better tor the country to have a fine type of manhood than a line type of horses, Mr A. M. Samuel (Government, Thames) said there were several clubs on the verge of bankruptcy, otherwise the concession would never have been granted. It was to operate for only one year. If a little more taxation was- imposed on the racing clubs that would be the end of. them. He pleaded mainly on behalf, of the small country clubs. Why should the people in the country districts be forced to travel to the towns because their 1 own clubs w-ere bankrupt? Surely the Government could give,, some measure of relief" to tide the small clubs over their present difficulties.

, “1 am confident there is not a Country racing club which is solvent to-day,” said" Mr W. J. Broadfoo't (Government ,Waitomo), “and I think they are entitled to this small rebate to enable them to \veather the storm. Mr P, Fraser (Labour, Wellington Central) said that in ordinary times the question might be worthy of consideration, but when many people were struggling he did not feel bis heart strings being pulled.

“AN INDUSTRY.” “You have got to look at it as an industry to-day,” remarked Mr H. S. S. Kyle (Government, Riocarton). Mr Fraser said lie felt sympathy for the small country dubs, but he certainly could” not support the concession "to the big metropolitan clubs when children were being derived of part of their schooling and people going hungry. The Minister of Finance (Hon. W. Downie Stewart) said be did not wish the- impression to get abroad that the Government was giving something to people who could well do without itHe looked at it from the tax-gathering viewpoint. The Government received a rich share of the totalisator investments, and if it was true that ttie majority of dubs were on the verge oi 'biinruptcy be would get less and less in revenue. He wished to ensure that the revenge did not disappear, and it a d pea red that the only thing to d« "'as to give the dubs a slightly bigger share then they had been receiving. “If we don’t grant relief,” lie added, “we may kill the goose that lays the

golden eggs.” The Leader of the Opposition moved that the concession should only n|>Iply in the ease of clubs with an anj tiunl turnover of less than ■ £15,000. but this was lost <>n the voices. Tim clause was then approved without division.