WA Turf Club's decision to reduce stakes correct

10/9/97

Racing and Gaming Minister Max Evans said today that the Western Australian Turf Club had made the right decision in reducing stakes to levels appropriate for its income and financial position.

"Even at the new levels that will apply from October 1, WA stakes will be comparable with Queensland and well ahead of South Australia," Mr Evans said.

"The surge in metropolitan stakes over the last five years has been remarkable. In 1992-93 the minimum metropolitan stake was $13,000.

"It jumped to $16,000 from August 1, 1993, then $20,000 from January 1, 1994, $23,000 from August 1, 1994 and $25,000 from December 1, 1994.

"The seeds of today's problem were sown in the splurge in 1994 and there were people in the industry who recognised the problem at the time.

"As well as its relatively high stakes level, WA racing has a number of advantages over other States.

"The WA TAB returns a higher percentage of total turnover to the industry than any other. In 1996-97 the WA return was 6.5 per cent, followed by SA on 5.6 per cent, with NSW the lowest on 3.3 per cent.

"WA also returns 35 per cent of gross commissions, compared with SA 31 per cent, Queensland 25 per cent, and NSW 20 per cent.

"The Government's five per cent tax on TAB turnover equates to 28.8 per cent of gross commissions. That is fractionally more than the NSW and Victorian figures of 28.2 per cent, but no other State has abolished on-course taxes.

"All these factors show that WA racing does well in its relationship with the TAB and the Government.

"The Turf Club may need to give serious consideration to the fact that during 1996-97 there was no growth in the racing section of the TAB's turnover, no growth in the WATC's on-course tote turnover, and a decline in bookmakers' on course betting."

Media contact: Hugh Ryan 9366 0200