Clubs and the economy
Clubs are a vital part of the ACT economy.
Clubs have combined assets of over a third of a billion dollars, their gross revenue totals about $250 million and their gross expenditure by clubs is about $230 million.
It is estimated that clubs contribute an estimated $440 million worth of flow-on benefits to th e ACT economy and over $300 million in terms of value added.
Clubs account for about 3,400 full and part time jobs directly and indirectly each year. Of the 2,000 directly employed, just over two thirds are young people, working on a part time or casual basis.
These indicators are based on 2002/03 study and the economic contribution of the club sector is likely to have increased over the past three years.
While these economic indicators reflect a sizeable club sector, growth in the industry has slowed and in terms of gaming revenue in fact declined for the first time in 2004/05 – largely as a result of the restrictions on note acceptors.
While 2005/06 has seen some growth, 2006/07 has deteriorated following five months of reasonable growth with the impact of the smoking ban in clubs which came effect on 1 December 2006.
This picture is also reflected in the level of operating surplus of the clubs which have continued to decline over recent years in line with the tougher trading conditions, the subdued performance of a number of clubs and now the impact of measures in the name of harm minimisation initially, and more recently smoking restrictions.
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.
Of course, unless clubs generate an operating surplus and make provisions for depreciation they would cease to be viable and would not be able to invest in Canberra's future.
The ACT Government is also a major beneficiary of club activity, particularly gaming machine activity. In 2005/06 clubs paid $50 million in gaming taxes and other charges.
