Political parties on board for tax change
Landmark changes to the Racing Act that will add millions to the industry’s coffers finally look assured.
The racing industry has been waiting with almost endless patience for an amendment to the act that, among its benefits, will tax overseas bookmakers for freeloading on New Zealand’s betting products.
That wait was set to get even longer with Parliament set to be dissolved before this year’s election. However, if the act does not get moving soon, the holes in the current legislation, which a working group in 2015 found leaked $45 million that would otherwise have gone to racing and sports organisations, look as- sured to be fixed regardless of which party gets into power after the election.
That is despite the man once hailed as racing’s great saviour, Winston Peters, going missing on the key industry issue.
Neither Peters, who in 2006 was responsible for introducing key tax changes for racing that earned praise from industry leaders in almost godlike terms, nor his staff responded to several requests from the Otago Daily Times about whether he would support proposed changes to the Racing Act post-election.
However, Labour and the Green Party both confirmed their support, in principle, for amending the Racing Act.
“We would support offshore operators paying their fair share to contribute to racing and sports in NZ,” Green Party gambling spokesman Barry Coates said.
“We cannot yet say whether we will support the proposed changes, since it depends on the wording and the detail, but we would support legislation on the above point in principle.”
Labour’s racing spokesman, Kris Faafoi, said his party also supported the changes in principle. He labelled them as critical for the industry.
“Labour will have to wait to see the legislation, if the Government gets around to introducing it, before it gives it guaranteed support, but if it resembles the options mooted by officials and the working party, we would have no issue supporting it.”
With the clock winding down on Parliament before the election, both parties were critical of the Government for not making the amendment a priority and getting it through sooner.
However, new Racing Minister David Bennett, just weeks into the job, has changed that momentum.
Bennett formally introduced the bill into the house on Monday, and is hopeful its first reading will be completed soon.
“We are looking at a first reading in early August sometime,” he said. “With Parliament finished by August 17, we have got to get it done before then.”