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The Canberra Times
The Canberra Times
Jasper Lindell

No justification to take community grants away from us, clubs say

Taking community contribution funding off clubs and handing it to an independent body to administer risks short-changing sports groups and would not address the legitimate question of long-term funding security, the clubs' industry body says.

ClubsACT chief executive Craig Shannon said the organisation did not support the Greens' proposal to establish an independent fund to manage community contributions.

ClubsACT chief executive Craig Shannon. Picture by Keegan Carroll

"There is a legitimate question about the long-term security of funding as gaming revenue declines. We have been raising that concern ourselves. But dismissing community contributions as creative accounting is unfair and overlooks the support people actually receive," Mr Shannon said.

"Clubs already operate under eligibility, reporting and audit requirements. If a particular contribution is overvalued, establish that and correct it. We support defensible valuation standards and proper scrutiny."

Mr Shannon said the sector supported transparent reporting and a properly sequenced transition away from reliance on gaming revenue.

The Greens' spokeswoman on gambling, Rebecca Vassarotti, said a new investment fund and annual top-up payments from clubs could be used to secure the amounts directed to local sports groups under the existing mandatory community contributions scheme.

"For years, local sports have been dependent on revenue pulled straight from gambling harm. But with this proposal, we finally have a chance to break free and build a real, independent future for community sport," Ms Vassarotti said.

"Right now, the big clubs decide where community contributions go with zero strings attached. The cash gets scattered in tiny amounts, diluting its impact and keeping community sport dependent on private businesses."

But Mr Shannon said the Greens' proposal risked weakening support for sports and other community groups by severing the link between clubs and those receiving help.

"Community support involves much more than grants. It includes grounds, maintenance, free rooms, equipment and ongoing assistance. If clubs must replace recognised in-kind support with additional cash payments, there is a real risk they will have less capacity to keep providing those services," he said.

Opposition Leader Mark Parton said too many changes to the clubs sector in the ACT risked encouraging gamblers over the border to Queanbeyan and starving community organisations of support in the territory.

"I think the Greens live in fairyland when it comes to this space and, at the end of the day, if you change enough things so that community clubs close in great numbers, the money that's flowing out of clubs to community organisations will not be there," Mr Parton said.

Ms Vassarotti said she would bring the Greens' proposal to the Legislative Assembly for debate in October, seeking the parliament's support to call on the government to establish the independent community contributions fund.

Mr Shannon said the Greens should publish a complete financial model and consult clubs and beneficiaries before seeking support in the Assembly.

"Clubs were built through the money, effort and commitment of sporting, cultural and other community groups. Their constitutional purposes explain who they support and why. Taking those decisions away from member-governed organisations requires a much stronger justification than has been offered," he said.

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