Local clubs threatened by poker machine tax

New poker machine tax increases would threaten the operation of registered clubs on the Peninsula and their support for Peninsula community groups, the managers of two local clubs have told their members.

Ettalong Beach War Memorial Club general manager Mr Peter Hale and Everglades Country Club secretary manager Mr Wayne Dean have both described the effects of the tax in their club newsletters.

Mr Hale said a range of effects would flow from "this almost doubling of the tax over the next six years".

He said: "The average price of a schooner of beer will go from $2.40 to $3.20 (in today's prices).

"The lowest priced meal will increase from $6 to $9.

"The cost of a ticket to a Tivoli show would be $25.

"Little or no free entertainment could be provided.

"There would be no poker machine bonuses or free raffles."

"All community support would cease over a period of three years," according to Mr Hale.

He said all non-income producing activities such as carpet bowls, darts, snooker, table tennis, cards and chess, which were provided free of charge, would have to be "dispensed with".

Mr Hale said that the club's projected income to the year 2010 had shown a surplus of $5-8 million.

"Eighty percent of this surplus had been targeted to go into community development and support for projects similar to those for which we have been publicly recognised, including in parliament, in the past.

"These funds will now go into the State's consolidated revenue, and on past performance, will certainly not be seen in the Peninsula region ever again," he said.

Mr Hale said the club's board and executive believed that "the industry as a whole is in need of review and to achieve this we willingly offer the government total support and participation

"However, we equally believe that this latest tax impost is unfair and critically damaging," Mr Hale said.

Everglades manager Mr Dean said that "coupled with GST, the tax will mean we will struggle to do all the things we have done in the past.

"It could be suggested that instead of legislating clubs out of business, it is far more lucrative to tax some of them out of existence."

He said: "This would be a win-win for the government."

It would reduce the numbers of clubs, which were "not acceptable places according to the social engineers", and it would increase tax from those clubs which "hang on and survive", he said.

The clubs to survive would do so by raising prices and become "less of a threat to hotels".

"Clubs are responding to this situation and hopefully will enlighten politicians sufficiently to have this increase in tax withdrawn.

"Certainly none of us can afford to be fatigued by this matter. It is a matter of survival.

"The financial year has concluded with members renewing memberships earlier than in recent times, an encouraging sign of support.

"Likewise the Club's performance has been exceptional this year and will assist us in further reducing debt and providing sufficient funds for future maintenance demands as well as remaining competitive and offering value for money service and facilities," Mr Dean said.

Club newsletters, July 29