Review of the Registered Clubs Industry in NSW - Clubs NSW

4 Measuring and reporting on club contributions
As noted above, this approach implicitly incorporates a value for the volunteer
labour associated with the provision of certain club facilities. For example, a club
may make use of volunteers to maintain its golf course. As a result of this volunteer
involvement, the club can reduce its greenkeeping expenses and is then able to
charge a lower sale price than would otherwise be required if commercial labour
were used. Therefore, in calculating the estimated value of volunteer labour, only
volunteer labour that is not associated with the provision and maintenance of
community and sporting facilities and infrastructure already valued through the
market value-based approach is included.
IPART’s methodology uses available commercial prices for comparable goods and
services and deducts the payment made by members and non-members for use of
these facilities. It does not include the consumer surplus that individual members
and other users may enjoy or the community-wide (or public) benefits generated on
top of the value of CDSE and other similar contributions.
IPART encountered several difficulties in applying this methodology, using the data
made available by ClubsNSW. In particular:
Market values cannot be estimated for all club-provided facilities. IPART
attempted to value the majority of club-provided facilities. For products where no
market value can be estimated (mainly due to the absence of an active market for
these products or significant heterogeneity in the types of facilities provided),
IPART treated the contributions associated with these products as indirect
contributions (ie, it did not attempt to quantify them, but considered they should
be identified and recorded through qualitative statements). These products
include memorials, playgrounds, libraries, carpet bowls, boat/ski facilities and
other (sporting and non-sporting) facilities.
Market values for products differ based on factors such as location, type and
quality. Given this, IPART adopted a range of market values where appropriate
for metropolitan and country/regional facilities. These ranges reflect IPART’s
assessment of the market values of typical low and high value facilities.
Club sale prices and annual sale quantities are not currently collected as part of
ACG’s survey. Therefore, IPART adopted an alternative approach for calculating
the market value of direct in-kind social contributions.
Table 4.1 summarises IPART’s approach for estimating market values for different
types of club-provided facilities.
74 IPART Review of the Registered Clubs Industry in NSW