During the last five years the two most controversial and debated issues - the new poker machine tax and non smoking policies - have now been completely phased in to the club industry.
A total ban on smoking in all enclosed areas of the club commenced in July and the last instalment of the gaming tax was applied on 1 September 2007.
The overall impact of these Government policies have had, and will continue to have, far reaching consequences for our industry.
Through the club Journals we have endeavoured to keep members up to date on what it means to our club and what initiatives have been put in place in an attempt to alleviate their impact.
The management of the gaming tax is different to that of the smoking.
This tax comprised four specific annual increases from September 2004 to September 2007 at a fixed rate on gross gaming revenue.
Whilst an onerous tax, at least you knew what was coming.
However, in the case of the smoking, the only information available on its impact has been the experiences from other States.
Clubs NSW Chief Executive Officer, David Costello, states in the Club Life Magazine September 2007 edition "It will take at least three months for meaningful trends to emerge and we should not forget that the results achieved in the first few months of smoking bans in Queensland, Victoria and Australian Capital Territory, bore no resemblance to how they performed across a twelve months period.
The informal results achieved so far show, in the worst case, declines of up to 25% of gaming revenue, with the official statewide figures expected to show a decline of around 7.5% with regional NSW faring a little better than clubs in Sydney, Newcastle, Wollongong and Lake Macquarie." Our own research and experiences confirm the findings of Clubs NSW that in the short term no fix pattern has emerged.
Unfortunately, early indications are that we are at the high end of the scale.
Already considerable investment has been made in the latest gaming technology plus the construction of two outdoor smoking terraces in an attempt to offset loss of custom and revenue.
As a consequence, it seems prudent to take a wait and see attitude and let our present actions bed in until more reliable data is available.
Although the annual accounts are yet to be finalised, revenue has been affected by a downturn in gaming turnover and smoking bans.
As a consequence operating profit will be considerably down on 2006.
However, we still have substantial cash reserves and are debt free.
In these difficult times it is essential that we continue to plan for the future development of the club properties and generation of additional income streams.
The NRL season was always going to be difficult when the pre season planning was turned upside down by injuries to key players.
Current salary cap conditions precludes having experienced replacements on hand as substitutes.
It was fortunate that through the good work of our junior development programs, there were a number of young players with NRL potential in our lower grades.
They had to be fast tracked by our coaching staff to fill the gaps in the NRL squad.
A total of 11 young men made their NRL debut, a record for our club.
This exposure to NRL football will be invaluable for the future development of these young players who will form the nucleus of the Dragons future.
Despite this lack of experience, the NRL team finished only two wins out of making the final playoffs.
Our Premier League's performance was solid throughout the season, bowing out in the first round of the Final Series.
Congratulations to our players led by Mark Gasnier, Ben Hornby and Jason Ryles; Nathan Brown and his coaching staff; CEO Peter Doust and administration team.
I would like to remind you that club membership subscriptions are due on 31 December 2007.
Renewal notices will be posted separately with a number of options available to suit your individual needs.
Please contact the membership office for further information.
The festive season seems to start earlier each year, so if you wish to use the club facilities, please book as soon as possible.
On behalf of the board, management and staff, I wish all our members and their families, a Merry Christmas and a Happy New Year.
Warren Lockwood
Chairman
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St George Leagues Club
LEAGUES CLUB JOURNAL
