The racing industry is the focus of a study on the distribution of the tax dollar. It is hoped that this study will look not only on the taxation policy, but also the turnover of the industry and make representations as to how this can be more equitably distributed to the stakeholders.

This writer has continuously contended that the two most significant impediments to a successful industry have been:

A taxation policy that has not recognised the capital needs of the promoting company or the increasing costs for compensating the participants, i.e., jockeys, grooms, farriers, veterinarians, trainers, owners, breeders, etc.

The unique situation where more than 50 per cent of the production is handled by a third party - bookmakers - from whom the players in the industry receive no contribution.

Contentious matters

It is inconceivable that these matters still remain contentious. From as far back as the 1960s there were complaints about the contribution from the bookmakers' activities.

The off-track activities of these bookmakers led to severe cash flow problems, and their operations were legalised in 1966 and the Betting Gaming and Lotteries Commission was formed.

The introduction of the Betting Gaming and Lotteries Act was hailed by all as a step in the right direction.

Stakeholders in the racing industry could now look forward to participating more meaningfully in the profits being made from the expanding bookmaking activity.

In fact, the Racing Year of 1966/67 had this to say: "The most notable feature of horse racing in Jamaica during 1966 and 1967 was the increase in purse money, due largely to grants received from the Government under the levy scheme."

It is worth emphasising that one of the most important provisions of the act (Part III section 16) is that funds should be made available for:

The improvement of breeds of horses.

The advancement or encourage-ment of veterinary science or veterinary education.

The improvement of horse racing.

The records show that, from as far back as 1970, representation was made explaining the inadequacy of this contribution and the need to increase it to $ 150,000 to meet the demands for more race days and the increasing expenses being incurred by the various stakeholders.

The then minister "expressed sympathy and stated that the order would have to be changed".

Unfortunately, no additional funds were forthcoming and in 1971, the financial secretary, P. W. Beckwith, informed the promoters, "that the additional sum for augmentation of purses for 1970 for which they had applied would not be forthcoming as the minister could not approve the application".

The developments during that period make interesting reading There were numerous submissions pleading the case for increased contributions from the levy scheme.

The Government held firm and placed a new twist on the nego-tiations, stating there would be major amendments to the substantive law to permit the establishment of a racing commission and simul-taneously the amendment to the regulation would be dealt with, as he did not propose to make piecemeal amendments

Tote monopoly

Writing in the Racing Year of 1975, the late Jack Ashenheim had this to say: "The most important single question which remains to be answered is that of a tote monopoly. Racing will not prosper, expand or improve without more money. More money is needed for purses, salaries and wages; for new and improved facilities for owners, trainers, jockeys, and grooms.

"Money is also needed for improvement to the racing plant and a good, properly drained racing strip which will provide the horses with a safe surface to race on. The money can only come in sufficient quantity for these improvements from a tote monopoly. Contingent on this is the building of a new, properly equipped racing plant. The present stand at Caymanas Park has become totally inadequate and unsuitable. The stable area is a disgrace to the industry. It is a near physical impossibility to remedy these and other matters without a lengthy break in racing, which would so disastrously damage the finances of the industry that it may well die and result in grave hardships for the many thousands who depend on it for a living.

"For this reason, a new plant should be built so that racing could continue at its present location and simply move over to the new plant on completion without a break."

That was in 1975. Thirty-three years later things are no different.

Another study is commissioned and, in the meantime, stakeholders are now unified in their resolve not to continue participating in the current conditions. A way has to be found to incorporate the book-maker's activity into the revenue of the promoting company.

That should be the focus of this new committee. There can be no future for the industry unless there is substantial increase in turnover. This is even more critical when one realises that 80 per cent of the current turnover is generated through off-track business.

Next week, we will look at suggestions on how to strengthen and expand the off-track operations.

Howard L. Hamilton, CD, JP, is a former chairman of Caymanas Track Limited. He is the current president of the Thoroughbred Owners' and Breeders' Association. He can be contacted at howham@cwjamaica.com.