Racing: Peters gets go-ahead for $30m package

Forget Winston Peters' promises to the racing industry, they are already a reality.

Peters revealed to the Herald yesterday that a $30 million-plus package a year to horse racing was already in place.

The New Zealand First leader might have to work hard to prove himself with the cynics when dealing with the rest of the world, but the new Racing Minister had accomplished his aims for racing even before being sworn in yesterday afternoon.

In a stunning declaration, Peters said New Zealand First's demands for the racing industry had been agreed to during his party's negotiations with the Labour Party in the past two weeks.

And they encompass pretty much all of what racing has been looking for, and failed to receive, from recent successive Governments.

"There was no use taking on the racing portfolio if we couldn't deliver on our promises," Peters said.

"I would never have signed up for racing if I hadn't been confident of that. My demands have already been agreed to by the Labour Party."

In that simple statement racing has had its best news in decades.

Peters said all five points in New Zealand's First's racing policy on its website are in the bag.

They are:

* Remedy the anomaly in gaming legislation by putting gaming on the same foot.

* Implement an improved depreciation regime for stallions (write-down over two years) and broodmares (including provision to fully depreciate a mare 12 years or older in the year of purchase).

* Provide a tax advantage for on-course betting.

* Review the Racing Act 2003 and clarify governance and management roles.

* Provide interim measures in conjunction with the Racing Board to ensure a smooth transition to the amended taxation regime.

Figures between $20 million and $30 million a year for racing have been bandied about if the industry is put on the same tax structure as gaming.

Peters puts it at $25 million.

"Racing has needed this for a long time. There is no question gaming has had preferential treatment while taking a vacuum out of this country.

"Racing generates export earnings, creates jobs and builds a culture - the other, well, it doesn't do that. Racing is an important part of New Zealand life."

Asked if gaming might object to change for racing, Peters said: "My obligations lie with racing."

New Zealand First's website declares: 'In 2003 casino owners, mostly from overseas, took $457 million in revenue and paid $18.3 million gaming tax.

'In the same year, racing's revenue was $218 million and the industry paid $34.4 million in gaming tax.'

Peters wants to point out that this was not just a handout to the racing industry. "The real issue, and our priority, is to turn the industry around to the point where export potential is reached.

"If you look after the racehorse owner that will follow - it is very expensive to race a horse today and the owner is currently carrying the can.

"Racing accounts for $1.5 billion of GDP with export earnings of $130 million. That can be increased."

Peters is very keen on the introduction of a tax reduction on on-course betting, which will see bigger dividends for those attending race meetings.

"If you want people back at the races you have to give them a reason to go and bigger dividends is that reason.

"It's worked overseas and it will work here."

For decades the different racing factions have demanded selfish change - Peters is delighted at the current unity.

"It was clear at that meeting we had at Te Rapa racecourse in Hamilton a few months ago that there is a united voice. That is important."

The changes, he says, will be included in the 2006 Budget, assumed to be between mid-May and mid-June.