Kiwis bet $7.91 million on Melbourne Cup

In a display of recession-defying optimism, Kiwis bet $7.91 million on the Melbourne Cup, the third-highest amount on record.

TAB racing manager Michael Dore said one punter walked away with $24,000 after putting $2000 on the winner, Shocking.

None of the New Zealand-trained horses finished in the top three, although Kiwi-bred Master O'Reilly was fourth.

TAB turnover was up 4 per cent on last year, but that was still below the record $8.13m spent on the race in 2005. The Federation of Family Budgeting Services said the fact that this year's spending was up on last year did not mean people had more money, but that times were still tough.

"It's not that people have more money in their pockets, it's that people are desperate," federation chief executive Raewyn Fox said.

Westpac senior economist Donna Purdue said that, although its latest quarterly survey put consumer confidence at a four-year high, responses indicated cash was still tight.

However, it found that people were feeling more confident about the future, which affected spending patterns. "If people are feeling more confident, their willingness to spend goes up."

At Trentham racecourse punters had been picking New Zealand horses but were still partying despite the result.

Lynne Rait, 60, and John Morrow, 50, of Island Bay, were dressed to dazzle. "It's Melbourne Cup. I always come to the races with a hat or fascinator," said Ms Rait, who made her own hat.

They planned to attend a Melbourne Cup one day. "I'll take some of my silly hats ... before I get too old and too fat – you don't get taken seriously if you're older."

- © Fairfax NZ News