Kyle Mills: Tax policies sounding death knell for industry

I can see it coming; it is going to be another case of too little too late. Cast your minds back a few years - all anybody could talk about was the America's Cup.

Auckland played host to a major international sporting event which ignited hype nationwide. Not only did it boost our economy, it increased tourism and showcased New Zealand to the world.

It was easy to see it was doing wonders for our country. And surely our Government could see this. But there was a catch - overseas syndicates showed the big bucks and our best sailors jumped ship. This was the beginning of the end. We lost the Cup and everything that came with it. Why did our Government not do anything about this?

I ask the question: When are these sleeping giants that we call our politicians going to wake up and save our racing industry instead of crippling it?

People within the racing industry are only asking for what is fair and reasonable, tax on profit instead of turnover. The Government is taxing every dollar that goes over the table. This has a trickle-down effect throughout the industry. Our stakes are too low, our best horses are sold overseas, our trainers are moving abroad and our owners would rather race their horses in other countries.

Racing has a massive following throughout the world. Australia's industry is in a healthy state - just have a look at the stakes they race for week in week out. Can you guess where our best horses, trainers and owners are heading?

Last year the Kelt Capital Stakes in Hastings had a $1 million stake. This encouraged the Queensland owners of glamour galloper Starcraft to bring their horse to New Zealand. It wasn't too long before everybody in NZ knew who Starcraft was. Thanks to the hype surrounding the race, turnover increased. This is just an example of what can happen by increasing stakes.

Recently the Western Australian government injected $16 million into stakes and $20 million into the improvement of facilities and race tracks. By doing this they are going to retain their best horses and trainers.

How can our Government help? For starters they can start listening to the racing fraternity. Secondly, they can tax on profit like they do with the casinos as opposed to turnover. Thirdly, Government can allocate funds to improve facilities and race tracks. And last but not least, the injection of money into stakes will attract overseas horses to our shores which will certainly increase the public following.

In its present state why would new people want to get involved in the industry? Our thoroughbred and harness racing industry only wants what is fair and reasonable.

* New Zealand cricketer Kyle Mills provides the occasional column on racing matters.

- HERALD ON SUNDAY