A rural Dunedin pony club, which received a pokie grant of nearly half a million dollars last year, has rejected allegations it acted as a front for racing interests.
Last year, the Taieri District Pony Club was granted $488,458 from The Trusts Charitable Foundation, to help construct a cross-country course and drain part of Wingatui racecourse.
A year before its successful application, the club, which was an amalgamation of the Mosgiel, Outram and Middlemarch clubs, had total assets of $38,000.
An Otago Daily Times reader contacted the paper last week alleging the club was a front for Wingatui racing interests, so it could assist in draining the ground in preparation for it becoming a venue for jumping races.
The ODT reported last week Wingatui had become a jumps venue after an absence of four years, with two hurdle races and two steeplechases carded for the Otago Racing Club meeting on May 19.
Taieri District Pony Club president Anne Beattie rejected any suggestion the club of 150 members acted as a front to develop part of Wingatui, saying the cross-country course was its idea and it was the pony club which approached the racing club.
"It is a win-win situation."
Asked why the club applied for and received such a large amount from the foundation, which aside from the New Zealand Racing Board has been the biggest funder of the racing industry, she replied: "They have got money".
The club had used other pokie funding grants in the past, "but for this particular one we went to [the foundation]".
"Around two-thirds" of the funds were used to drain part of the racecourse, including the southern part of the track, with the remainder used to construct portable cross-country jumps.
The Otago Racing Club would use its own jumps, she said.
The pony club had access to the racing club facilities and would use the track an estimated 15 times a year, for one-off events and training opportunities but not on designated race days, Mrs Beattie said.
Work began in May last year, and was largely completed last week.
Problem Gambling Foundation of New Zealand chief executive Graeme Ramsey said despite the best intentions of the group, the size of the grant raised questions.
"It is a pretty good return for 150 members, especially when you think of all those community groups providing services, such as food banks and help for those affected by earthquakes, struggling for funds.
"On the face of it, I would say this needs to be carefully looked at by the Department of Internal Affairs."
An Internal Affairs spokesman said the department was not involved in any investigation, but would look at any information as it came to light.
Questions to The Trusts Charitable Foundation were directed to the chief executive, who did not return calls.
Otago Racing Club president Leanne Richards said the club had not approached the pony club to apply for the funding.
However, she agreed with Mrs Beattie the relationship had been to beneficial to both groups.
"It's a joint venture, really."
The wet nature of the southern part of the racecourse had meant it had little use, but its subsequent drainage allowed the 2000m track to be extended for jump meetings and for the pony club to use the area on non-race days, she said.
Mrs Beattie said the Taieri club had no permanent base but moved around its three affiliated clubs, and had been looking for public land to establish a suitable cross-country course.
The club used two privately-owned farms, but needed permission to use them, with availability limited because of farming commitments, she said.
Both the Taieri and Mosgiel club had the right to use the Wingatui grounds on non-race days, free of charge, as part of their 20-year lease, she said.
The sport was an expensive one, but the advantage of Wingatui was its central location for Canterbury and Southland clubs, and it could hold South Island events in the future.
