Review of the Registered Clubs Industry in NSW - Clubs NSW

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4 Measuring and reporting on club contributions 4 Measuring and reporting on club contributions IPART’s terms of reference ask it to recommend a methodology for identifying and recording the value of the registered clubs industry’s social contributions, specifically its provision of social infrastructure and services. IPART has developed this methodology, and used it to estimate that the value of clubs’ direct social contributions in 2007 was $811 million. 69 This estimate includes the value of cash donations, in-kind provision of sporting and community facilities, and volunteer labour. It does not include the indirect contributions made by clubs (such as the sense of community well-being generated by their existence). Under IPART’s methodology, indirect contributions are identified and recorded qualitatively rather than quantitatively. IPART notes that a recent study by ACG estimated that the benefit the NSW community derives from club-provided goods and services is between $59 million and $224 million a year. This study used a ‘choice modelling’ technique to estimate the extent to which consumers are willing to pay more for club-provided goods and services than the price at which clubs provide them. This is a very different approach to the one IPART used to develop its estimate of the value of clubs’ direct social contributions. As a consequence, its results are not comparable with IPART’s estimate. (ACG’s choice modelling approach is further described in Appendix F.) The sections below discuss in more detail: IPART’s preferred approach for measuring the value of the registered clubs industry’s social contribution. IPART’s estimate of this value for 2007, which it calculated using its preferred approach. IPART’s recommendations in relation to identifying and recording the value of the clubs industry’s social contributions. 69 This estimate has been revised downwards since the release of IPART’s draft report due to an adjustment in the value of volunteer labour. In preparing its draft report, IPART had access to preliminary data on the total levels of volunteer labour for the industry. Disaggregated data have since become available, enabling IPART to make adjustments in line with the intent of its draft recommendations. 68 IPART Review of the Registered Clubs Industry in NSW
4 Measuring and reporting on club contributions 4.1 IPART’s preferred approach for measuring clubs’ social contributions During IPART’s consultation process, stakeholders made few comments on the methodology for identifying and recording the value of the clubs industry’s social contributions – probably because of the complexity and difficulty of this issue. Some submissions suggested that clubs’ social contributions should be measured in terms of their ‘net contribution’, in recognition of the fact that clubs impose costs on communities as well as benefits. 70 However, IPART’s terms of reference ask it to identify the value of the clubs industry’s provision of social infrastructure and services. This means that the methodology needs to involve a valuation exercise, rather than a cost benefit analysis. Nevertheless, IPART has not ignored the costs imposed by the clubs industry – as Chapter 3 discussed, it examined these costs in assessing whether the net social contributions of the industry justify ongoing government support. IPART considers that the total value of clubs’ provision of social infrastructure and services should be calculated as the sum of the following components: The value of direct, cash contributions made to charities, community and sporting-related activities. The estimated value of direct, in-kind provision and maintenance of community and sporting facilities and infrastructure (including bowling greens, gyms and tennis courts, as well as meeting rooms and other venues), calculated using a market value approach. The estimated value of club volunteer labour not already included in the estimate of direct, in-kind contributions. IPART considers that indirect social contributions are much harder to identify and value quantitatively. Therefore, these contributions should be identified and recorded using a qualitative approach. The following sections discuss each of these components in more detail, and explain how IPART applied its preferred approach in estimating the value of the clubs industry’s direct social contributions for 2007. 70 Wayne Sampson submission, 30 July 2007, p 5; Responsible Gaming Fund Trustees submission, 27 July 2007, p 3. Review of the Registered Clubs Industry in NSW IPART 69
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Independent Pricing and Regulatory
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© Independent Pricing and Regulato
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Contents 6 Strengthening the financ
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Executive Summary Executive Summary
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Executive Summary estimated the val
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Executive Summary Therefore, IPART
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Executive Summary However, IPART al
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Executive Summary List of Recommend
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Executive Summary 15 Once the stand
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Executive Summary 29 That ClubsNSW
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Executive Summary 46 That ClubsNSW
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Page 27 and 28: 1 Introduction 1 Introduction Over
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8 Establishing a Club Viability Pan
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10 Helping clubs better understand
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11 Making it easier for clubs to am
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12 Making it easier for new clubs t
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13 Removing unnecessary regulatory
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14 A framework for a management pla
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A Terms of reference A Terms of ref
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A Terms of reference The proc
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B Terms of reference checklist Term
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C List of submitters, roundtable pa
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D Gambling expenditure and problem
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E IPART’s methodology for recordi
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F ACG’s approach to measuring the
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G ClubsNSW - steps to establishing
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Glossary and Abbreviations Glossary
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Review of the Registered Clubs Industry in NSW - Clubs NSW

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