GREATER Taree City deputy mayor David West has set the warning bells ringing among some local registered clubs that they could be next in the sights of the NSW Lands Department as it enforces massive Crown land rent hikes.
Last week, it was revealed that several North Coast bowling and country clubs had been hit with huge rent increases – some nearly 1000 per cent.
Between 60 and 70 clubs have been hit in the first wave, and Cr West fears the Mid North Coast could be next.
“This just beggars belief,” Cr West said. “Small country clubs such as these foster our children in a wide range of sports. It could come down on clubs in our area like a sledgehammer.”
Ballina Bowling Club has been told its Crown land lease will rise from $11,000 to $70,000 (up more than 500 per cent), Lismore Heights Bowling Club from $2978 to $28,000 (nearly 1000 per cent) and Crescent Head Country Club from $14,650 in 2000 to $54,555 this year (about 180 per cent).
The new rents apply to clubs on Crown land with a poker machine revenue of more than $1 million a year, and reflect what the State government and Lands Department is calling ‘commercial rates’.
The government has decided to scrap a rebate that used to apply to the clubs and is instead squeezing the full market rate out of them, Cr West said.
Already several small clubs – mostly in rural communities – have said they will shut their doors if forced to pay up.
Around 350 registered clubs in Sydney and across the State are on Crown leases. In the Manning and Great Lakes area, they are understood to include Black Head Bowling Club, Pacific Palms Recreation Club, and Taree Aquatic Club (the latter only partially).
Cr West said the crackdown is frightening for smaller country clubs such as Yamba Golf and Bowling Club – one of those hit already with its rent rising from $7000 to $75,000 - a staggering 971 per cent increase, over three years.
The club’s manager said this week it was an impossible amount to impose on what is a modest local outfit largely serving retirees and pensioners, which despite its million dollar pokie revenue made a profit last year of just $184.
Like most other clubs, it gives a big percentage of its profits back to the local community.
Cr West pointed out that the State government’s crackdown comes just weeks after the Independent Pricing and Regulatory Tribunal found clubs gave back $800 million in community contributions each year.
“If the leases on some of these clubs increase to such an extent, they will be basically out of business.
“This current council probably cannot do a lot about it, but the new council (after the September 13 election) will need to grab and run with it.
“The mayors of every council in regional New South Wales should be putting together a framework to fight the impost.”
A spokesman for Black Head Bowling Club told the Times his club had not been contacted by the Lands Department at this stage, however last year the club had been hit with an “astronomical” Crown land rent increase.
“We fought the case and won, writing letters and explaining our situation.”
Finally an agreement was made for the club’s annual rental to be $16,700, paid in four instalments.
A spokesman for Taree’s Aquatic (Sailos) Club said it was not as affected, as it held a permissive occupancy only for its verandah areas, which are on Crown land.