A proposed commission scheme for trade activities on land owned by the Queenstown Lakes District Council has raised concerns for some local clubs and groups.
As part of its draft community facility funding policy, the council proposes "supplementary rental" as a 7.5% commission on retail sales or food and beverage sales and 5% on charges for coaching, when sports clubs, arts groups or community associations use facilities on council land.
"It looks like money-grabbing," Arrowtown Bowling Club president John Polson said.
The commissions will be calculated from the gross turnover rather than the profit, which Mr Polson said would eat into the already slim earnings for many clubs.
"We maintain the facilities the club operate, for the benefit of the community. When we sell food and drinks at tournaments, all the money goes towards maintenance and development of the facilities.
"At our club we have worked hard to raise funds for renovation of our premises, and a lot of volunteer hours have been put into the club.
But now it looks as though the council wants to penalise us," he said.
The Wakatipu Sports User Group has been in consultation with the council and Lakes Leisure, which manages many of the council-owned facilities.
Craig Ferguson from the group said they had received calls from sport clubs regarding the commission.
"It seems we should seek clarification from QLDC of the distinction between commercial and community-based activities.
"The user group will be happy to help any sports clubs with making their submission, if needed," Mr Ferguson said.
Paul Wilson, QLDC community services manager, acknowledged the concerns and welcomed feedback on the proposal.
"This is an attempt to strike a balance between leasing council land almost for free, and not creating unfair competition for similar activities not using council-owned facilities. But it is not set in stone yet."
"We are still considering alternatives, for example having a lower limit, so the supplementary rental [commission] is only charged when turnover exceeds a specific amount," Mr Wilson said.
Some community groups are more affected by the commissions on coaching.
As a music tutor and trustee of the Queenstown Performing Arts Centre Trust, Margaret O'Hanlon predicts the new structure would be difficult to enforce.
"When we sub-lease the centre's facilities to clubs and groups, we do not always know how much money is made from tuition . . . It leaves a big margin for corruption.
"I assume we will also have to take the commission off users from festival activities etc. It will be a book-keeper's nightmare," Ms O'Hanlon said.
The draft proposal is open for consultation and submissions until February 28, 2010.
