TAX HAVEN OR IS THAT HEAVEN FOR PUNTERS

Has the world gone mad? Santa`s Kingdom is the focus of attention on national talk shows, Manchester United are only mid-table in the Premiership and, this is the real clincher, bookmakers are insisting on paying tax for punters!

The anticipation of wholesale tax cuts by Charlie McCreevy in Wednesday`s budget speech failed to materialise but, true to form, the pro racing Government again looked after our sport.

The five percent off-course betting tax will be reduced to two percent on May 1, 2002. The betting industry campaigned strongly for a reduction to just one per cent in the past few weeks in order to compete on a more level playing field with tax free off-shore operations. However McCreevy`s compromise is understandable in the current economic climate in view of the colossal sums racing is receiving from the state.

What is hard to fathom though is the about turn by bookmakers. After the Minister`s announcement of the new two percent rate, the friendly layers said they would have to pass on the charge to punters. But then the new buzz word `absorption` came into play just 24 hours later, with Paddy Power, Boyle`s and Cashmans all prepared to go tax-free across the counter. Surely a magic sponge could not absorb such a take out!

I am told that an average betting shop can boast a turnover of 15K per week, which means Paddy Power et al will cover a 300 punts (sorry make that euro) bill each week. That figure can only increase given the natural boost to turnover that tax-free betting will bring. The obvious assumption is that bookmakers are making so much money they can `absorb` this extra cost.

The other implication of this tax-free scenario is the threat to attendance at the tracks. The racecourse has always had the incentive of lower tax terms to encourage punters through the turnstiles. But who can blame Joe Punter now for staying in the relative comfort of his local shop - I hear some offer tea and cakes to `good clients` mid-afternoon - rather than make the expedition to Thurles.

There was a feeling of deja vu at Punchestown on Sunday as Florida Pearl and Native Upmanship fought out a tremendous finish to the John Durkan Memorial Chase for the successive year. However this time it was Willie Mullins` charge which just came out on top. The King George at Kempton appears the next target for the winner, and hopefully we can look forward to more exciting action from these old favourites over the winter.

John Magnier raised an interesting proposition during the week of turning the Breeders Cup into a Ryder Cup style showpiece to expand global interest in the sport. At least two conditions would need to be in place to entice the Americans over, namely the standardisation of tracks (left-handed and all-weather/dirt) and barrowfulls of cash.

But why not take this a step further. The Dubai World Cup meeting in March could be the first leg of racing`s new triple crown, with a European fixture say in July and the BreedersCup as the climax in October. An all-weather surface on the inner of Leopardstown`s turf track would make it an ideal venue for the July date. Different age-groups, sexes and distances would be accommodated for, with a huge bonus for any horse to win at all three meetings. An undisputed world champion!

Racing is becoming more and more globalised, with the Emirates World Series at the forefront of its promotion in recent years. In this regard, it was good to see that Golan is being kept in training next year with that older-horse maestro Michael Stoute.

If things continue on a downward spiral at Old Trafford, perhaps Sir Alex could become an ambassador for global racing or at least sort out those queues at Santa`s Kingdom!

Alan Magee