Sporting organisations across NSW have gained a part-reprieve after facing severe financial pressure from huge rent increases for facilities they have established on State-owned land.
In the New England, Tamworth City Bowling Club (TCBC) initially was faced with paying $30,000 a year
for land rented from the State Government from next February, up from the present levy of $2625 – and an increase of 470 per cent.
On a lesser scale, the volunteer-run Barraba Golf Club had been set a proposed rent increase from $641 to $2500 a year in 2011 by the NSW Department of Lands.
However, the two organisations have now been granted some relief, with State department spokesmen saying they, apparently with other affected clubs, will be granted 50 per cent rebates on the projected new rates.
State Member for Tamworth, Peter Draper, had complained earlier that the proposed harsher rent rises could harm the organisations’ ability to maintain levels of service, describing the move as “a blatant and desperate money grab by the State Government”.
“You can’t put a value on the importance of small sporting clubs in the community and these rent increases could force them to close,” he said.
Mr Draper said the rent increases could still affect organisations across the State.
“Given the current employment prospects due to the world economic crisis, it would be disastrous to see a rent increase threaten any local jobs.”
TCBC manager and secretary, Greg Harris, said the original rent increases were put upon the club with little notice.
“There was no consultation beforehand at all,” Mr Harris said.
“We can accept rent increases but it was not justified to increase it by the amount they had proposed – maybe something linked to inflation would be more appropriate.”
Secretary manager of the Barraba Golf Club, David York, said with only 98 members, the club would have struggled to find the extra money for the rent rise.
“Our golf club is all voluntary labour and every bit of money we earn we’ve got to work to get,” he said.
Earlier this year, the club received $4267 through a NSW Sport and Recreation Capital Assistance grant and Mr York said some of that money would now go towards paying the rent increase.
In Tamworth, Mr Harris said TCBC, which has more than 800 members, would seek other revenue raising ideas to pay for the now lesser increase.
“We have a bistro which is picking up trade,” he said.
“Drawings have been done for an extension for the front of the club which would double the bar area, which would increase revenues.”
A Department of Lands spokesman said both TCBC and Barraba Golf Club had been granted a 50pc rent rebate and the department would be reviewing the circumstances of both clubs.