Review of the Registered Clubs Industry in NSW - Clubs NSW

G ClubsNSW - steps to establishing a registered club
16. Objections can be taken to the application under Section 25 of the Registered
Clubs Act. An objector can be the Commissioner of Police, the Director of Liquor
& Gaming and a local council or other consent authority. Also the owner or lessee
of any land or any person who ordinarily resides on any land within two
kilometres of the club’s premises (if the premises are located in an area covered by
the Local Government Act) or within eight kilometres of the premises in any other
area may object.
An objection can also be taken by any person who alleges that his or her interests
financial or other are likely to be adversely affected by the granting of the
application. Accordingly local hotels, restaurants, reception centres etc can file
objections. A major concern in relation to any application concerning a club or a
new club is the potential for objections ultimately found to be frivolous or without
reasonable foundation to delay applications for a considerable time and cause
considerable uncertainty and additional expense. As demonstrated by many
applications for liquor licences, an objector who can cause delay will often
succeed in substance merely by having caused the delay.
Not only is there scope for a frivolous objector to delay the application at first
instance, the delay can be continued by appeal proceedings even though they
might ultimately be unsuccessful.
17. Notwithstanding the comments in relation to the problems with club premises
above, there has been at least one instance of the Licensing Court granting a
certificate of registration conditionally without the club having any premises but
on the basis that council-approved plans were submitted with the application
which were approved by the court. Once the premises were constructed a further
application could be made for a final order in relation to the certificate of
registration. Ironically, that club was not able to proceed as it could not raise the
funds to construct the clubhouse. It has now merged its activities with a large
registered club.
18. The issue of getting a conditional grant of a new certificate of registration without
first committing to building costs is partially alleviated by the existing section 18
which allows a conditional application where the new club proposes to have ‘new
premises’.
19. Once an application for a certificate of registration under Section 7 is granted the
club will:
– Be able to sell liquor in its premises to members and guests of members.
– Be able to apply to the Liquor Administration Board for the 10 free gaming
machine entitlements available under the Gaming Machines Act. However it
will still have to purchase or lease the gaming machines in respect of each of
those entitlements. Once again this raises issues of finances and cash flow.
20. The legal costs from the first step to the last will approach $35,000 and
conceivably be much more if difficulties such as problems with Council and
objectors in the Licensing Court are experienced. This does not include the cost of
the premises construction, renovation or business and operational costs.
256 IPART Review of the Registered Clubs Industry in NSW