Clubs and the Economy
Clubs are a vital part of the ACT economy.
According to a recent SEIS report compiled by the Allen Consulting Group on behalf of ClubsACT, in 2006/07:
- Clubs had combined assets of $212 million dollars
- gross revenue totalled about $272 million
- gross expenditure by clubs was about $208 million
- clubs employ nearly 2,200 people, many of whom are young people, working on a part time or casual basis
- over $86 million is paid in wages, salaries and payment to contractors each year.
Clubs invest $40 million each year on capital improvements, while almost 80% of the goods and services they consume are purchased from businesses in the ACT.
While these economic indicators reflect a sizeable club sector, growth has slowed and since 2002 has in fact declined – in terms of revenue (particularly gaming revenue), expenditure and assets.
The operating environment for clubs continues to be very challenging with major threats to the very viability of clubs on the horizon.
An ever increasing regulatory burden and the prospect of gaming revenues continuing to fall mean that clubs are facing a very uncertain future.
What is certain however, is that if clubs fail, the economic and social contribution they make will also disappear. The community will be the ultimate loser.
As not-for-profit organisations the purpose of clubs is to maximise the benefit for their members and they do that by ploughing much of their combined operating surplus back into their clubs and into community infrastructure.
It is important that government understands the key role clubs play and ensures the legislative and regulatory frameworks do not impede clubs’ ability to survive.