23 September 2019

What are the funding priorities in the ACT and where does sport fit into the mix?

| Tim Gavel
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Sport, like the arts, is part of the culture of a place, Tim Gavel argues. File photo.

Why is it in Canberra every time ACT Government money is spent on elite sport or sporting facilities there is somewhat of a backlash?

I am writing this column in the wake of a campaign against any proposal to spend government funds on a new indoor stadium in Civic to cater for the Raiders, Brumbies and an A League team and other teams, in the future.

Some of the public comments suggested money would be better spent on health, education, the arts and roads. This is not a new response to sports funding. We have been through this in the past with spending on the upgrade of Canberra Stadium for the Olympics in 2000, the V8 Super Cars, GWS, the Raiders and the Brumbies.

Most professional clubs run at a loss and at best break even. Yet there is a perception that government funding is not justified. In most instances the government funding helps clubs break even.

That perception isn’t confined to the Raiders and the Brumbies with questions raised about using government funds to attract top level men’s and women’s cricket to the ACT or the Illawarra Hawks NBL side.

Many studies have shown the benefits of having major sporting events in Canberra. The most obvious benefit is that it improves the quality of life in the ACT for many wanting to see major events in their home city without having to travel. Sporting events also attract people to the city. Canberra offers a great alternative to many who might not want to navigate the traffic of Sydney, Melbourne, or even Brisbane. Sport can also generate business.

The growth in sports-based tourism businesses can’t be underestimated. We have experienced it first-hand with the considerable number of people coming to Canberra to watch the Raiders, Brumbies, GWS, the Socceroos, the Matildas, the Big Bash and international cricket.

There are also the aspirational and inspirational qualities associated with watching sport ‘live’ at the top level, inspiring some and entertaining others.

And sport, like the arts, is part of the culture of a place. It builds on our experiences and can bring enjoyment, pride and a host of other emotions. It can help bring about a ‘sense of place.’

Watching some of the young local athletes in numerous sports reach their goal, is incredibly fulfilling; particularly if you’ve seen them as tiny kids chasing a ball around on a chilly morning, to emerging as young highly proficient sports people. And watching them play their chosen sport at the highest level at home really does bring a sense of pride.

Then there is the flow-on influence of having major sporting teams and events in the ACT with every major sporting team funding junior development programs. This, in turn, improves the health of the next generation as they actively engage in a sport that has a recognisable pathway from juniors to elite. Along the way, recreational opportunities grow, keeping more people in a sport for longer. The social benefits, as well as the health benefits, are difficult to calculate.

Apart from the new indoor stadium, the priorities for sport include a new ice sports facility and a smaller multi-sport facility catering for events, not just sport, with a seating capacity of around 3,000.

Let the debate continue!

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I have no issue at all if people want to directly comment on matters where they have a clear vested interest/direct involvement through their work etc, and that includes presenting the views of the organisation you work for – go for your life. But this isn’t the first time at all that a similar thing has been seen on this website, where people are not upfront about that. Just because someone has a public profile in some segments of the community, doesn’t mean everyone automatically will know who you are from a pseudonym that is far from obvious.

My opinions, like most on here, are solely my own. If I was presenting the views of the organisation I work for (though I doubt I ever will, as I can not ever recall a topic directly related to my workplace ever being raised on this website) or have a direct influence/impact on an issue, then I’ll be the first to declare said views are not necessarily solely my own, and that I have a vested interest in the topic. It is not an unreasonable request.

JS9 I left a post on the Burger article. I worked at McDonalds when I was 16. It was where my love affair of the delicious Big Mac began… my opinion therefore I must once again confess relates to my lived and work experience… I am no longer paid but forever I will be loyal to the arches golden.

“Many studies have shown the benefits of having major sporting events in Canberra. The most obvious benefit is that it improves the quality of life in the ACT for many wanting to see major events in their home city without having to travel. Sporting events also attract people to the city. Canberra offers a great alternative to many who might not want to navigate the traffic of Sydney, Melbourne, or even Brisbane. Sport can also generate business.

The growth in sports-based tourism businesses can’t be underestimated. We have experienced it first-hand with the considerable number of people coming to Canberra to watch the Raiders, Brumbies, GWS, the Socceroos, the Matildas, the Big Bash and international cricket.”

There is some truth to this. But there is also a fallacy that having big events = automatically great net benefits to the Territory. The supercar fiasco being the perfect example of this. I’d also argue an independent analysis of the investment made into the big codes (especially what is paid for the privilige of Giants playing here) may show the returns are not indeed that great from investment into elite level sport per say.

I’d certainly welcome less government funding going to professional sporting codes and more going into community based sporting organisations, combined with a subsequent reduction in the reliance on poker machine profits to fund many of those valuable sporting organisations. Would be a good story all around.

“In 2015 La Trobe University, Centre for Sport and Social Impact reported on the ‘Value of a Community Football Club’ and concluded that “For every $1 spent on a community football club, there is at least $4.40 return in social value.”. The study also found significant social, health, community and economic outcomes from investment in football clubs.

This all said it is bewildering that a scheme that has existed to relieve the taxpayer of the sports bill burden has also come under sustained attack. The debate about the community contributions of ACT Clubs saw criticism being levelled at clubs by some (including an author of this site) for targeting too much funding towards sport. But the contributions toward sport are not ‘out of kilter with what the community expects.’ Quite the contrary, it is exactly what the community needs.”

This is conflating two very seperate issues. Yes Canberra’s community clubs fund sport in the Territory. But the $4.40 figure was directly related to a study of football clubs themselves in Victoria – i.e. the sporting team organisation itself, not any related community club that, in almost every circumstance, also operates poker machines. This should not be seen as a proxy for the value of the community club sector in the Territory, who undoubtedly also have a not insignificant negative impact on a portion of our community.

It is undoubtedly true that the community club sector does play a significant role within the funding of non-elite level sport in the Territory. But it does not need to be the case – sport would not cease to exist without them, as the Government could always choose to fund it.

As always, it would be great if people could be honest with who they are and who they represent in their comments.

Capital Retro9:52 am 19 Jun 19

” Sport can also generate business.”

Please give examples and supply proof of this. Who are the prime benefactors?

A semi-professional or professional level of sport generates direct business through coaching and sporting equipment sales (some of which is highly specialised). The increase in sporting participation means an increase in supporting businesses such as catering (or similar food and drink service) and functions. The management of infrastructure (not all sports are played on the council’s local oval) is another business sector that benefits. After all, ice skating/ice hockey and tenpin bowling are two sports that require specialised facilities.

Capital Retro6:15 pm 19 Jun 19

Given that most sports at a professional level are tied into direct sponsorship with sporting goods companies, the participants will not be buying their gear at the local shops.

And I doubt if the catering and transport for visiting professional sports people involves locally owned and controlled businesses.

Indeed the ice sports and tenpin bowling require specialised facilities but they are privately operated and generally family operated so their potential for generating “more business” is negligible.

Probably the large scale amateur sports events in Canberra bring in a lot of spending on food and accommodation but that benefit is reciprocal as every city like Canberra has similar events throughout the year.

Let’s face it – without subsidies from government most of these elite level sports would not function and this has exceeded reasonable limits in the Territory.

michael quirk8:06 am 19 Jun 19

The funding of sports infrastructure needs to be assessed against the claims of alternatives including health, education and transport. It is unfortunate light rail was prioritized despite having a low benefit to cost ratio. If people ever want the provision of stadiums, convention and theatre centres etc they need to insist that the extension of the light rail be assessed. It is very problematic it would provide greater benefits than a football stadium, a bus way or many other infrastructure projects. The government needs to do the analysis and not recklessly use limited public funds..

Sadly it should be that easy michael, but governments hellbent on staying in power and doing whatever it takes to achieve that find it very easy to ignore such obvious ways to compare projects and investment opportunities.

Saying that, taking a pie in the sky/finger in the air view of it all, I’d suggest the Cost Benefit ratio of a convention centre or a stadium would be just as poor as the light rail ones – especially for the way over the top Australia Forum that was proposed, and no doubt the expensive indoor stadium that will be proposed as well. Out of those you suggest, probably upgrades to the Canberra Theatre would be the most likely to have a positive outcome in terms of such analysis.

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