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character and where the need for the provision of occasions for social gatherings is far less acute. We prefer, therefore, that full effect be given to the conception that those clubs which now hold licences should be regarded as trustees for the sport generally.

328. We therefore recommend that all net profits of all clubs holding a totalizator licence be paid to the Hunts Association for distribution amongst all existing clubs and such clubs as may come into existence in the future and be allowed into membership of the association, in such proportions as may be just and equitable having regard to their needs and circumstances. To ensure an equitable distribution and to avoid disharmony, we recommend that distribution should be made the function of a committee constituted of one member appointed by the clubs holding a totalizator licence and one by the non-totalizator clubs with an independent chairman with legal experience appointed by the Minister of Internal Affairs. The members of such a committee would doubtless be happy to act in an honorary capacity from a desire to serve the sport.

329. A recognition of the trustee principle would prevent such undesirable and unwarranted incidents as the sale by the Brackenfield Hunt Club of its licence to the Banks Peninsula Racing Club and the making of any such undesirable arrangement as has subsisted over many years between the Auckland Racing Club and the Pakuranga Hunt Club. Under that arrangement the Auckland Racing Club has profited unduly at the expense of hunting, for no racing club was ever intended to benefit from hunt-club licences. Incidentally, the creation of a trust fund of £4,000 by the Auckland Racing Club for the benefit of the hunt club in case that club ever becomes financially embarrassed lacks substance, for the hunt club itself has cash reserves totalling over £6,400. However that may be, all such sales and arrangements defeat the purpose for which hunt-club licences were granted and should be emphatically discouraged.