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Govt not a golf club

By Kerces - 17 October 2005 7

Planning Minister Simon Corbell says, “The ACT Government should not be in the business of running golf courses.” I wonder why not, since they seem to be interested in whatever else is going on.

Anyway, keeping in mind that they are not greenskeepers, the government has sold the Gold Creek Country Club and golf course.

The proud new owner is the Konstantinou group, which built the new swimming pool and sports centre in Belconnen (home of Club Pink).

Mr Corbell said the golf course has been costing taxpayers about $1 million a year and is “an asset which the Territory really does not need”.

[ED – Samuel Gordon Stuart sent in the following]

According to ABC Online, the ACT Government has sold off the Gold Creek Country Club and Golf Course to the people who run CISAC for $3 Million. Seven Story Simon is quoted as saying “The Gold Creek Country Club and Golf Course has cost ACT taxpayers about $1 million a year, so it is an asset which the Territory really does not need, The ACT Government should not be in the business of running golf courses and the sale of this asset will allow it to grow and develop as a recreational facility for north Canberra.”

So, if the golf course is so unprofitable, why are the CISAC owners so willing to buy it?

What’s Your opinion?


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7 Responses to
Govt not a golf club
Growling Ferret 4:28 pm 18 Oct 05

“to make ONE MILLION DOLLARS”

Turn over one mill, not make. Gold Creek would require probably 3-5 full time staff on the greenskeeping payroll, and the distance the course is spread out means larger fuel costs than every other course in Canberra.

As GC Clubhouse is non smoking, it has been poorly attended every time I’ve been there…

I don’t think they have pokies subsidising the golf either.

Membership of GC is about $1200 per annum. And 182 golfers is a group of 4 teeing off every 7 minutes from 7am until 12:22pm – a staggering number of players for an overpriced (and out of the way) course midweek…

bonfire 3:38 pm 18 Oct 05

an associate of mine has a way with figures. he’s what i’d call a sharp businessman, and while a good friend – id never go into business with him.

he goes to his accountant and says ‘if i pay tax, i use a different firm next year’ and thats how places like gold creek run at a loss.

a different focus on the figures, may show that its running at a profit. depends on where they are carrying the loss from.

i’d look carefully at the wording used.

Maelinar 12:54 pm 18 Oct 05

Gold Creek is a money trap for an unaware male.

Just because it’s located at Gold Creek and smells of Talcum and other heady scents doesn’t make it more valuable than gold, which seems to be the standard pricing scale out that way.

At a quick guide, to have the golf course open (without any members) to make ONE MILLION DOLLARS, you’d have to charge 182 people $15 each day of the year.

That’s without charging any money for membership at all, which is basically just a subsidised way of getting money out of you at the start of the year anyway.

Also excluding the Pro Shop and the Bar takings, sponsors signs, the list goes on.

So given these statistics, 180 people isn’t an unreasonable figure of people to throw through a golf course in a day, I fail to see how this golf course is not making a profit, and therefore be sold off as a dead asset.

Growling Ferret 12:09 pm 18 Oct 05

Story is they are looking at further development of the facility, including accommodation. There are 3 practise holes at Gold Creek that I can imagine being used as the land for the new development.

I had relos in town over the weekend, and the over 50’s love Gold Creek. There is money to be made setting up more accommodation, better facilities and possibly more crafty style ‘shoppes’ there…

ssanta 8:51 am 18 Oct 05

Because the residual land value that the golf club sits on is an effective write off for some assets for such a large construction and investment conglomerate Sam. Think depreciation write off and tax dodge my friend.

Maelinar 8:29 am 18 Oct 05

IMHO 3 million is a scream for a golf course. The Konstantinou group must be kicking themselves for getting away with this.

What the hell is going on here ? Simon could have made 3million by running over it with a bulldozer and subdividing it into housing estates.

This reeks of back patting Simon, might wanna be careful if this one gets public. (see aforementioned comment about clerks and shredders)

Samuel Gordon-Stewar 8:23 pm 17 Oct 05

I submitted the same story, in it I posed the question “If it is so unprofitable, why are Konstantinou so willing to buy it?”

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