Winston Peters has proven himself a clear favourite as Racing Minister with his announcement yesterday of a $30 million tax package which insiders say will save the racing industry.
At the conclusion of Auckland's racing carnival week Mr Peters told industry leaders in Auckland how the 2006 Budget would contain
a "long-awaited fair deal" for racing.
It would include a reduction in gaming duty for racing and an accelerated write-down regime for bloodstock.
Rob McAnulty, bloodstock consultant and chairman of Fair Tax For Racing group, said the changes would allow racing to not just compete with casinos but also internationally with the buying and selling of horses.
"The minister has given us back what we lost to Australia 20 years ago. This is a major, major, major breath of fresh air."
Michael Martin, chief executive New Zealand Thoroughbred Breeders' Association, congratulated Mr Peters, who he said had brought things to a point where the industry could now reach its potential.
The key changes included a reduction in totalisator duty from 5.6 per cent to 4 per cent, and a decrease in the write-down period for stallions from four years to two years.
The maximum write-down period for broodmares would be reduced from eight to five years, and broodmares that started breeding at age eight would be written-off in full in the first year of breeding.
The changes would come into effect in the new racing season from August this year.
Lapping up the enthusiastic response to his initiative, Mr Peters said racing had been regarded as a "Cinderella's portfolio" which was disappointing given its potential as an export earner and the number of jobs the industry created.
The Government agreed with what had been the New Zealand First policy, which National later "stole", so he did not envisage any difficulties having the required legislation passed.
Mr Peters said recognition should go to Cabinet for understanding the need for urgency in making the changes which were part of the supply and confidence agreement between his party and the Government.
"It is an exciting development for the racing industry and due recognition of the industry's perseverance and hard work in securing the long term future of racing in New Zealand."
