Finances for Games “satisfactory”

Press, Volume CXII, Issue 33064, 3 November 1972, Page 10

Finances for Games “satisfactory”

At the present rate of income and providing no unforeseeable major expenses arise, there is good reason to expect that all the money needed to run the 1974 Commonwealth Games will be found.

The chairman of the Games finance committee (Mr M. F. Hunter) gave this indication yesterday when he described the financial position at this stage as satisfactory.

With public interest in the Games likely to heighten next year, the committee was confident that all expenses would be covered, he said. However, although the flow of money now coming in was satisfactory, there could be no slackening of effort, Mr Hunter said. "There is still a lot of money to be raised, but the support we are getting from the people of New Zealand is most encouraging,” he said. NEW BUDGET The finance committee is at present engaged in producing an up-to-date budget, which will almost certainly put the operating figure in excess of s2m, at least s)m more than was allowed for in the first budget prepared about two years ago. Included in the new budget will be a grant of up to $650,000 towards the Queen Elizabeth II Park complex, which is similar to the amount the Games Organising Committee originally thought would be necessary to develop Lancaster Park as; the main stadium. The Organising Committee’s main sources of present income are from the national appeal, fund-raising, and commercial concessions. Mr Hunter said all three were going well.

The appeal, which has a target of $600,000, now stands at $528,000 (costs to be deducted) and it is known that there is a sizeable amount of money still to come.

Early next year, it is intended to revitalise the appeal, particularly in some North Island areas where progress has been slow, and it seems certain that the target will be exceeded.

FUND-RAISING Fund-raising, which encompasses raffles, promotions and the like has so far realised $102,000. Its target of $150,000 seems well within reach.

Commercial concessions, mainly for the use of the Games symbol, have proved a much greater money-earner than was originally envisaged. The target was set at $lOO,OOO, but this figure is likely to be well surpassed. So far, 46 contracts have been signed and there are about 140 more under consideration.

Another big revenueearner is certain to be the Games commemorative dollar, which went on sale this week. The potential of this project has proved such that it has become one of the prime responsibilities of the newly formed marketing committee. If the entire first minting of 250,000 coins is sold, the Games fund will

benefit by $225,000 —and there is already some talk of a second minting. Mr Hunter said there had been increases in costs on the budget first drawn up, and it was intended _ that these be met by the higher-than-expected returns from concessions and by any additional revenue which the commemorative dollars might bring in. Before the Games were awarded to Christchurch, the Government and the combined Canterbury local bodies each agreed to make contributions of $200,000. In both cases, these are made in yearly payments. Both are up to schedule.

Another source of major income is ticket sales. The original estimate was s|m, but the chairman of the tickets committee (Mr J. E. Davies) said yesterday that he now anticipated a return of at least $600,000. The fee for television rights to the Games will be another major item of income. It will have to be negotiated by the Organising Committee and, presumably, the N.Z.B.C. If the televising is in colour, which the Organising Committee says is essential to ensure overseas sales, this figure is certain to be substantial.

Apart from what it needs to meet day-to-day expenses and equipment purchases, the Organising Committee has the bulk of its money invested in trustee securities at the highest possible shortterm rate of interest.