Sports clubs up for a fight

BY DAVE WOOD IN QUEENSTOWN

Sports clubs intend to challenge the Queenstown Lakes District Council about how they are charged for leases.

The four bowling clubs face more expensive leases, while most of the six golf clubs would pay less.

However, the council is looking at charging clubs a 7.5 per cent commission on food and beverage sales, gaming machine turnover and sub-letting, and charging golf and tennis coaches a 5 per cent commission on their turnover.

Council general manager of community services Paul Wilson told the community services committee yesterday that a funding policy was being sought that was consistent and fair in balancing rates funding and user charges.

The draft provided a greater rates subsidy for public good/charitable uses ahead of private and commercial uses, but he acknowledged unforeseen issues.

On charging a commission for professional coaching and the sale of food and beverages, Mr Wilson said the community should receive some benefit from assets being used as a business. Other changes to leases would include some clubs having to pay for electricity, and reimbursing the council for maintenance and insurance.

The council also proposes changes to the fees to use sports and community facilities from next July, but not all will be going up, with council company Lakes Leisure estimating lost revenue of up to $129,000, which Mr Wilson said ratepayers would need to meet.

The council proposes significant discounts for clubs, and sport and facility hire for youth will be free.

Cr John S Wilson told the committee the draft would be contentious. "I understand the principle behind it but I'm not sure how it's going to be received."

Cr Cath Gilmour said a careful balancing act would be needed but if clubs or coaches were running a legitimate business then the council should get something back.

Tennis coach Lan Bale said the council charges for the use of the Queenstown Gardens courts were enough already.

"It's bloody hard as it is to make a living here at present. We are actually looking at moving, although we really want to stay. But this charge could be a factor in the decision we make."

The proposed charging regime was labelled "greedy" by the Queenstown Golf Club's chairman of directors, Peter Adam.

Mr Adam said the proposed commission on food and beverages would cut into already small margins and hardly make such services worthwhile.

The commission on commercial sub-letting would be likely to apply to the Southern Institute of Technology golf academy being based at the Frankton course next year.

Meanwhile, the proposed lease of $5781 (up from the existing $2000) for the Arrowtown Golf Club fails to take into account it owns part of the course.

Club secretary/manager John Stevens said any commission on beverage and food would not affect the club because the building was not on council land and coaching was done on club land.

Queenstown Bowling Club president Mike O'Connor said members would not welcome the proposal as the extra costs would be passed on to them.

The draft is open for submissions until February 28.

- © Fairfax NZ News