Racing: Minister backs on-course betting tax reductions to encourage crowds

Any move on New Zealand racing taxation should be in on-course betting, Racing Minister Damien O'Connor told thoroughbred racing leaders.

Speaking at the annual meeting of New Zealand Thoroughbred Racing (NZTR) in Wellington yesterday, O'Connor said on-course betting was where emphasis needed to be placed.

" ... I'm advocating for a reduction in on-course taxation duty, which would provide more money directly to the clubs for spending on stakes, on-course entertainment and facilities."

When questioned by NZPA after his speech, O'Connor would not give any figures on what the reduction might be.

"There's about $2.6 million paid at the moment in on-course turnover," he replied. "I would like to see a large portion of that available as long as the codes [thoroughbred, harness and greyhounds] and the clubs could come up with a plan to spend it wisely.

"I fervently believe that until we get people to attend race meetings, we're not going to generate new interest in racing."

O'Connor would not say how soon a reduction on on-course tax betting could be introduced but indicated it would be sooner rather than later.

And an angry New Zealand Racing Board (NZRB) chairman Warren Larsen took exception to a comment he is servant of the Government.

Larsen was questioned at the meeting as to whether he was the right person to be arguing a case for tax relief.

Larsen was appointed to his position by the Government and after explaining how he had gone about making a case for taxation relief, he later answered the question more directly.

"I take the utmost exception to it. I am absolutely my own person, I am doing this for reasons for whatever good, bad or indifferent outcomes occur, totally remote from any political party."

Larsen said the argument of taxation relief was better directed at officials, rather than politicians.

"It's important to always remember that if you are in a position of dealing with Governments, you have to be prepared to deal with the devil," he said.

Larsen was questioned on the methods he had used to put racing's case for tax relief. He said seeking response from politicians might gain publicity but that's all it might amount to.

"In the end you don't win these arguments unless you convince the officials first and foremost, not the politicians," Larsen said.

"Would we do it any differently again? I think not, no matter who was in power."

* Meanwhile, it was announced at the meeting that the size of payment to owners of losing maiden horses would be $100 per race.

NZRB chief executive Graeme Hansen said the payment for each non-stake earning horse in a maiden race would start from the new season, on August 1.

Hansen said $750,000 over the next two seasons had been budgeted for in making the losing maiden payments.

- NZPA