Golf: Clubs to be hit by increase in levies

Golf clubs are having to reassess their 2007 finances after being hit by a million-dollar bombshell by New Zealand Golf, in the form of increased membership levies.

Clubs, many of which have already set their 2007 budgets , got an unexpected letter dated last week listing increases in levies on club members.

There was no warning the letter was coming, one club secretary told NZPA.

Based on NZ Golf membership figures on the national body's website, the new levies will cost the 385 golf clubs a total of at least $621,000.

That figure was based on the minimum levy increase -- $4.50 per player . New Zealand has 138,000 players with an official NZ Golf-sanctioned handicap, spread across the clubs.

But the actual cost to clubs was likely to be well over $1 million, as levy increases will range from the minimum $4.50 up to $14.75 per member.

Clubs at present are levied $20.50 for all members, except juniors and life members, who are levied nothing, while summer members are levied $10.25.

From January 1, all members -- including summer members -- will be levied $25, except junior and life members, who will be levied $12.50.

NZ Golf chief executive Larry Graham told NZPA levy increases were an annual process aimed at keeping pace with costs and inflation.

"I'm not sure that this has come from nowhere, this is a process we go through every year," he said.

"I understand there may be some budget issues for clubs and how they deal with that I can't answer, but our dates have been set at 31 October with regard to notification of increases for some time.

"There are no sort of secrets about how we do our business. The truth of the matter is that golf in New Zealand has been too cheap for too long and at some point we will have to catch up.

"We've had it too good for too long."

It was imperative for NZ Golf that their budget reflect 2007's anticipated new environment, he said.

He would not say how much NZ Golf expected to receive from the levy increase.

"There's less sponsorship available, less pub charities available and the government has indicated that golf isn't going to be part of the new high performance funding.

"The issue for us is making sure we maintain the programs that we have now, if we don't do that then we really do have a problem of declining membership.

"Young people need something to aspire to and if you don't have elite programs and sport development initiatives then you're not going to get people wanting to play golf," he sai d.

In its letter to clubs, NZ Golf argued that members who weren't levied before were still using the national body's facilities.

The letter cited such things as junior development, turf research, information technology development, rules education, marketing and slope and handicap assessments o f the courses.

Graham said the levy increases were in no way connected to NZ Golf's struggle to find funding for the New Zealand Open.

The national body recently applied unsuccessfully for a $400,000 grant from the Rodney District Council towards the funding of the NZ Open championship at Gulf Harbour next month.

NZ Golf faced a long struggle to find a sponsor for that event.

- NZPA