Racing clubs’ rating relief appeal upheld

Hannah Catchpole.
Hannah Catchpole.
Two Dunedin racing clubs have won a reprieve after appealing a Dunedin City Council decision to decline rates relief because of connections to gambling.

The council’s grants subcommittee voted to decline applications for rates relief from Otago Racing Club and Forbury Park Trotting Club in May, amid concerns that supporting gambling activity conflicted with the council’s social wellbeing strategy.

The two racing clubs appealed the decision and in  a closed door part of  a recent council meeting councillors gave final approval for a  one-year reprieve for the two clubs while a review was carried out.

In the 2015-16 financial year Forbury Park Trotting Club received $13,014 in rates relief and the Otago Racing Club $8285 worth of rates relief.

Forbury Park general manager Rodney Moore said it was pleased the appeal had been upheld, but felt racing had been "singled out", compared  with other sports, such as rugby, which people also gambled on.

It only represented a "small part" of problem gambling, Mr Moore said.

Given the difficult financial times the club was facing, the rates relief was important.

The basis of the two  clubs’ appeal was the value they brought to the community beyond racing. 

Forbury Park  was used by a wide range of clubs including the Dunedin Horticultural Society, Dunedin Rose Society, Dunedin Bird Club and Probus Club.

"We host a lot of community groups and I think Otago Racing Club do the same."

It was happy to be involved in the review alongside council staff and keen to highlight the value the facility brought to the community.

"In the wider context we are really keen to be involved in the discussion about South Dunedin."

Otago Racing Club chief executive Hannah Catchpole also highlighted the value its  racetrack at Wingatui brought to the community.

"At Wingatui we only have 11 meetings a year, so for the rest of the year we really are a public facility," she said.

The future of rates relief for the two courses would remain under threat until the review was completed and it was crucial for them to show the courses were "not just for racing" but also for public use.

"We are happy to work with the council over the next year to make sure they are happy with our applications."

She respected the council’s wish not to support gambling, but this did not need to mean stopping rates relief for all racecourses.

"It would come down to each racecourse and the nature of the gambling at a particular racecourse."

She believed there was less problem gambling at Wingatui than at other courses  in New Zealand.

Having rates relief was "very important" to the club.

"We run on a very tight budget and all the money that we can save or get given back we invest back into the the facility."

A report by council community adviser Paul Coffey tabled at the meeting,  in which the grants subcommittee originally declined the applications, said the Problem Gambling Foundation had advised racing was the third-top reason for people presenting for assistance with problem gambling, behind gaming machines and casinos.

Supporting the clubs with rates relief could be seen as conflicting with the council’s social wellbeing strategy and grants policy, given evidence suggested racing contributed to social issues, including gambling, that were detrimental to public good.

vaughan.elder@odt.co.nz

Comments

Sanity 1, Neo-Puritans 0.

Although the question of why any businesses (not just those seen by some to be desirable) can obtain rates relief remains. It would make far more sense, be more efficient, and more equitable to just use the available funds to reduce everybody's rates.

 

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