Peter Williams: Affiliation fees leave sour taste

Wednesday's Consumer Price Index fixed the rate of inflation at 3.5 per cent. But, from January 1, New Zealand Golf is asking its club members to pay 18 per cent more in affiliation fees.

This is not a catch-up as the rate has been rising for some time. From next year, not only will full playing members pay $25 plus GST out of their subscriptions to the national association, but so will previously exempt summer and life members. Junior members, who also didn't pay before, will be levied $12.50.

The news of the increase, conveyed without warning just before Labour Weekend, has gone down like a three-putt on the 18th green, and left a taste about as sour.

The letter doesn't explain why such a sharp increase is needed, apart from saying golf is one of the lowest levied sports in the country "delivering an extensive range of services to members."

But for most members, the only service they get from New Zealand Golf is a handicap system and some advice for their course from the Sports Turf Institute. Few realise they're also paying for things like national team travel costs and junior development programmes.

New Zealand Golf's income from affiliation fees in 2005 was $1,293,811, or 34 per cent of total income of $3,773,150. The new rate, collected using the current system, would bring an extra $232,885 but, by spreading the obligation to summer, life and junior members, the coffers might, optimistically, swell by up to $400,000.

And why does New Zealand Golf which, before an horrendous loss on the New Zealand Open, reported an operating surplus last year of $116,000, need to hit up its members for so much more money?

The national body isn't saying, but it seems they're striking before two big blows - another loss on the New Zealand Open and a substantial cut in funds.

Just how NZG's income will be affected won't be known for some time, but it is certain to be well in excess of $400,000. Funding - around $690,000 in 2005 - will be nowhere near that because of a change in policy. Despite promises, it seems next month's New Zealand Open will again drain reserves.

The outcry over this fee increase has led to calls for changing the assessment system for affiliation fees.

Around two per cent of the high annual sub of an Auckland club member is paid as a levy to head office while in a small country town, the proportion of the subscription could be as much as 10 per cent.

There seems to be growing support for an assessment based not on the number of club members but on the actual revenue clubs receive from membership subscriptions.

Clubs, and their members, will reluctantly front up with the funds for this latest charge.

But the pressure's now on New Zealand Golf to make sure members get real value for their money, and to find a system to more equitably assess the affiliation fees.