 The current trading environment is extremely difficult as the Club has been required to adjust to lower revenues as a result of smoking restrictions and continued increases in poker machine taxation.
Added to this our industry is being impacted, as are many businesses, by cost of living pressure caused by higher interest rates, rising petrol prices and general economic uncertainty.
The Club's recent three month trading period generated an operating profit before poker machine taxation of $3.3 million and from this the State Government charged over $3 million in taxation.
This rate of taxation equates to a 90% charge which no other business or individual is assessed or could afford to pay.
This Club has joined our industry bodies in calling on the NSW Government to review the club gaming machine taxation levels.
Rugby League Funding The viability of Rugby League Clubs has received a great deal of media attention in recent times.
NRL CEO David Gallop was reported as saying that "
without change to the current tax rate the chance of some NSW NRL Clubs not making it is a very real one".
The St George Dragons are in this category and we have reduced the Leagues Club grant by $2 million for the 2008 season.
Our club will continue to support rugby league and the community but this will be limited to available funds and our capacity to provide grants.
The St George Leagues Club is in a better position than many of our Sydney competitors as we have no debt and sufficient funds to maintain a capital expenditure program designed to reduce our dependence on gaming revenue.
In order for licensed clubs to survive relief from the present tax structure is needed as is recognition for the investment that clubs make in the community.
Danny Robinson
General Manager
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St George Leagues Club
LEAGUES CLUB JOURNAL
