Clubs pull out of amalgamation talks

Four clubs have withdrawn their interest in amalgamating with Club Umina, instead focusing on combating increased poker machine tax and indoor smoking bans, according to ClubsNSW publicity officer Mr Jeremy Bath,

"The double whammy of increased poker machine tax combined with indoor smoking bans has caused four of the largest registered clubs in Australia to overnight pull out of a potential rescue plan to save a club with almost 8000 members on the Central Coast, from closure," Mr Bath said.

The Easts Leagues Club, along with Souths Juniors, Rooty Hill RSL and Central Coast Leagues Club had all expressed an interest in joining with the financially troubled Club Umina, which was placed into administration earlier this year with debts totalling $3.2 million.

Mr Graeme Campbell of Administrators Ferrier Hodgson recently confirmed to ClubsNSW the four clubs had withdrawn their interest.

Mr Bath said they were, instead, focussing on each paying "tens of millions of dollars" in increased poker machine tax.

ClubsNSW CEO Mr David Costello said: "It is extremely disappointing that amalgamation talks with Club Umina have fallen over so early in the process.

"It is however not unexpected given the enormous challenges currently facing the NSW club industry.

"The dual challenge, come 2007, of paying increased poker machine tax while suffering significant income losses from blanket smoking bans is one that report after report has declared as virtually insurmountable.

"The lunacy of the poker machine tax increases has never been more clearly evident than with regard to Club Umina.

"Despite its well known perilous financial position, the State Government is demanding the club pay an extra $960,000 in tax over the next seven years alone.

"It defies belief that a Government would allow clubs established by and for the community over more than 50 years to, in the space of seven years of consecutive tax increases, fall down and close.

"One hundred and ninety clubs have closed or been saved only through amalgamation during the past eight years.

"Without urgent and significant reductions in poker machine tax, we as an Industry are able to do little more than say 'We told you so' as the closures continue to mount," Mr Costello said.

"Of these 190 clubs, six belong to the Central Coast.

"Just a few years ago, who would have ever thought that in 2005 we would be seriously talking about Club Umina joining this very long and sad list?"

Press release, July 14 Jeremy Bath, ClubsNSW