Read Getting Set for an Active Nation - Sport New Zealand

• The Taskforce was concerned that funding allocations to national governing
bodies and individuals from public sector sources are made annually and the
subsequent lack of continuity negatively impacts on participation and
performance-related initiatives.
• There is inconsistency in the classification of charitable purposes as they relate to
recreation and sport.
• The funding for recreation and sport organisations at all levels is under threat
owing to the lack of recognition of not-for-profit recreation and sports promotion
as a charitable purpose. Attempts by the Inland Revenue Department to institute
taxation on grants to clubs will also have a negative effect.
• The reduction in the New Zealand Lottery Grants Board income, with its
implications for funding recreation and sport, is a major concern.
• The Taskforce was concerned that funding allocations from gaming machines
were often ad hoc with decisions made by local operators without reference to
the development plans of recreation and sport organisations. Distributions from
gaming machines and some other sources often occur without adequate
monitoring, accountability, clarity of processes and a consistency of criteria being
applied. A further concern is that there is an over-reliance by recreation and
sport clubs upon gaming proceeds.
• Public funding of sports has not been made on the basis of proven need.
Significant income increases have occurred in major professional sports without
critical evaluation as to whether the continued allocation of grants by central
agencies to these sports is an appropriate use of public funds.
• Community sport funding from the Hillary Commission has remained static over
many years and the effectiveness of the scheme must be questioned.
• With the relocation overseas of many New Zealand based corporates, financial
decisions in relation to commercial investment in sport are now being made
outside New Zealand. The Taskforce is concerned that this will lead to a
decrease in corporate investment in New Zealand recreation and sport.
• The mentality amongst some funders was too often to give “a little to all” rather
than offer focused support.
• Despite the assertion that “sport should run sport” the variable quality of sport
(and recreation) leadership and administration does not justify the allocation of
unmonitored funds.
5.14 Research and Resources
Excellent research has the capacity to save costs, time and resources that would
otherwise have been committed to trial or long-term ventures. Research in New
Zealand, and relevant research from overseas, has not been made available to
Ministerial Taskforce on Sport, Fitness & Leisure January 2001 page 60 of 153