SPORTS EVENTS

Evening Post, Volume CXXVII, Issue 50, 28 August 1939, Page 11

SPORTS EVENTS

ART UNION MONEY

ALLOCATIONS CRITICISED

The fact that in the distribution of over £10,000 of the proceeds of the Centennial sports art union some organisations were made straightout grants, as against loans to other bodies, has given rise to comment in some quarters in "Wellington.

When he announced the allocations a fortnight ago, the Minister of Internal Affairs (the Hon. W. E. Parry) stated that the advisory committee Which dealt with the applications recommended grants, with a few exceptions, in the cases of those bodies which had no gate revenue and loans for those bodies which, though having gate revenue, needed money in advance either to finance overseas teams to New Zealand for the Centennial fixtures, or had to incur special expense for the occasion. There were also guarantees against loss in respect of specific events. The recommendations of the advisory committee subsequently were considered by the trustees appointed under the terms of the licence to hold the art union. The trustees, after full consideration of the advisory committee's report, made their recommendations to him and he adopted them.

In connection with the loan money, the Minister pointed out that in all cases the loan was to be a first charge against any profits accruing from the purposes for which it was granted. There has been some speculation as to the full implication of this announcement, but it has been pointed out, in response to an inquiry, that if an association, granted a loan of £200 for a tour by a visiting team, should lose that amount it will not be expected to make good the loss; in other words, that the loans are to be a first charge on any profits not on an association's assets.-

As for the differentiation which has been shown between grants and loans it is the contention of those who have criticised the allocations that it would have been fairer to have placed all bodies on the same* basis by making loans to them, the amount to ,be repaid by them to be subject to the financial result of their separate undertakings. The statement also has been made that this was the intention of the advisory committee.

The matter has been discussed unofficially in athletic circles and there the opinion has been expressed that instead of the discrimination which had been shown it would have been more equitable if all bodies had been placed on the same footing. Some of the organisations which had been given loans only had not found it easy for years to make ends meet and it was not very encouraging to find that some of the other organisations were given big grants that were not subject to any repayment.

Another point that was made was that an association which normally made a profit of £100 or so on its national championships might conceivably not be in such a fortunate position if it went ahead and arranged for a .visit of an overseas team as a Centennial attraction and from the proceeds had to pay back the amount of the loan from the art union proceeds.