Review of the Registered Clubs Industry in NSW - Clubs NSW

More documents

Recommendations

Info

6 Strengthening the financial viability of the registered clubs industry Table 6.1 Sources of revenue for registered clubs Source Revenue % of total revenue Profit % of total profit Gaming machine 63.2 174.6 Bar 16.6 17.0 Food 7.0 (1.7) Membership 3.2 2.0 Facilities and venue rental 1.1 0.4 Other gaming 2.2 0.0 Sports 2.0 (6.3) Ancillary business 1.8 Other a 2.9 (85.8) a ’Other’ includes ancillary businesses, donations, cash grants, abnormal and extraordinary items. Source: ClubsNSW submission, 31 July 2007, pp 98-99 and Allen Consulting Group, Socio-economic impact study of clubs in NSW (2007), 2008, p 16. Note: Year sources for columns differ. Revenue figures are based on 2007 data and profit figures on 2003 data (more recent figures on profit % are not available). ClubsNSW also submitted that, while it believes clubs should be encouraged to diversify their activities and sources of income, it also believes clubs’ long-term financial viability will remain closely linked to their ability to operate gaming machines. 93 Based on its own investigation and analysis, IPART agrees with this view. It considers that there are no feasible options for replacing a club’s reliance on gaming machine revenue for the following reasons: While clubs’ operation of gaming machines is not without risk (ie, competition between gaming venues, consumer appeal/expectations of type of and age of machines), this operation is a simple business with defined gross returns in percentage terms (after gaming tax and return to player) compared to other club department operations and other business segments. Gaming machines can generate a much higher volume return per square metre of floor space with relatively low staffing requirements compared to other club trading activities, or any other business a club might diversify into. For example, food operations are far more labour-intensive and influenced by a greater range of external inputs and factors, such as cost of goods, food and service quality and greater competition. Given this reliance on gaming machine revenue, clubs are vulnerable to changes in government policy that directly influence this revenue stream, such as changes to gaming machine tax rates. Therefore IPART considers any future changes in this policy needed to be preceded by consultation with the clubs industry. 93 ClubsNSW submission, 31 July 2007, p 100. 88 IPART Review of the Registered Clubs Industry in NSW
6 Strengthening the financial viability of the registered clubs industry Recommendation 12 That any future changes in Government policy affecting the revenue stream from gaming machines be preceded by consultation with the clubs industry to determine the likely impact of the proposed changes. IPART notes the NSW Government and ClubsNSW entered into a Memorandum of Understanding (MOU) about gaming machine taxation rates in March 2006. This MOU sets out the gaming machine tax rates that will apply to registered clubs until 2011/12 and commits the two parties to a consultation mechanism in relation to future changes to taxation arrangements. IPART’s view is that a similar level of consultation should take place concerning future changes in policy (in addition to tax rates) that affect this revenue stream. ClubsNSW submitted that the combination of recent gaming machine taxation increases and the introduction of total smoking bans have sent many clubs to the brink of financial disaster. On this basis, it called for an immediate review of clubs’ gaming machine tax rates. 94 However, as IPART indicated on numerous occasions throughout its review and consultation process, the terms of reference for this review do not include revisiting NSW Government policy on smoking bans in clubs or gaming machine tax rates. In addition, IPART does not consider that the information presented by ClubsNSW provides clear evidence that clubs are “facing financial disaster”. Table 6.2 shows that compared with 2003, a higher proportion of clubs in all size categories were profitable in 2007, and that a smaller proportion of clubs in most size categories were non-profitable. 94 ClubsNSW submission, 4 April 2008, p 18. Review of the Registered Clubs Industry in NSW IPART 89
Page 1:
Independent Pricing and Regulatory
Page 4 and 5:
© Independent Pricing and Regulato
Page 6 and 7:
Contents 6 Strengthening the financ
Page 9 and 10:
Executive Summary Executive Summary
Page 11 and 12:
Executive Summary estimated the val
Page 13 and 14:
Executive Summary Therefore, IPART
Page 15 and 16:
Executive Summary However, IPART al
Page 17 and 18:
Executive Summary List of Recommend
Page 19 and 20:
Executive Summary 15 Once the stand
Page 21 and 22:
Executive Summary 29 That ClubsNSW
Page 23 and 24:
Executive Summary 46 That ClubsNSW
Page 25 and 26:
Executive Summary 60 That OLGR deve
Page 27 and 28:
1 Introduction 1 Introduction Over
Page 29 and 30:
1 Introduction 1.1.2 Review’s foc
Page 31 and 32:
1 Introduction 1.2 Other reviews an
Page 33 and 34:
1 Introduction 1.3 The structure of
Page 35 and 36:
2 The registered clubs industry in
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46: 2 The registered clubs industry in
Page 47 and 48: 2 The registered clubs industry in
Page 49 and 50: 3 Understanding the social contribu
Page 77 and 78: 4 Measuring and reporting on club c
Page 87 and 88: 5 Refining the Community Developmen
Page 95: 6 Strengthening the financial viabi
Page 99 and 100: 6 Strengthening the financial viabi
Page 117 and 118: 7 Improving clubs’ financial repo
Page 135 and 136: 8 Establishing a Club Viability Pan
Page 147 and 148:
8 Establishing a Club Viability Pan
Page 149 and 150:
9 Improving corporate governance Th
Page 151 and 152:
9 Improving corporate governance 9.
Page 153 and 154:
9 Improving corporate governance Bo
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
9 Improving corporate governance wh
Page 161 and 162:
9 Improving corporate governance Ne
Page 163 and 164:
9 Improving corporate governance IP
Page 165 and 166:
9 Improving corporate governance Ch
Page 167 and 168:
9 Improving corporate governance es
Page 169 and 170:
9 Improving corporate governance Re
Page 171 and 172:
9 Improving corporate governance 9.
Page 173 and 174:
10 Helping clubs better understand
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
11 Making it easier for clubs to am
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
12 Making it easier for new clubs t
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
13 Removing unnecessary regulatory
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
14 A framework for a management pla
Page 223 and 224:
Page 225:
Page 229 and 230:
A Terms of reference A Terms of ref
Page 231 and 232:
A Terms of reference The proc
Page 233 and 234:
B Terms of reference checklist Term
Page 235 and 236:
C List of submitters, roundtable pa
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
D Gambling expenditure and problem
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
E IPART’s methodology for recordi
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
F ACG’s approach to measuring the
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
G ClubsNSW - steps to establishing
Page 263 and 264:
G ClubsNSW - steps to establishing
Page 265 and 266:
Glossary and Abbreviations Glossary
show all

Review of the Registered Clubs Industry in NSW - Clubs NSW

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?