Budget Implications for Leisure Sectors

Martin Sheppard, Managing Director of Smart Connection Company believes that the 2009 Australian Federal budget presents "many opportunities".

In an advisory note, Sheppard has reviewed the budget and highlighted both the direct benefits to the industry and some of the issues that it faces.

Sheppard suggests that "as has been focused on by the main media outlets, there is quite clearly an emphasis on longer-term building projects and the key priorities are:

• Stimulate demand and keep more Australian’s at work;
• Invest in infrastructure to boost productivity and growth;
• Invest in clean energy initiatives to create a low-pollution economy of the future;
• Deliver a ‘fair-go’ for pensioners and make retirement incomes more secure;
• Paid parental leave schemes – improving work-life/family balance
• Invest in Australia’ research and innovations future and continue the education revolution
• Lay the foundations on the government’s deficit exit strategy by 2015/16.

Key aspects for the leisure industry include:

1. Environmental Focus 2009/10
• $64.6 million toward improving energy efficiency and performance of homes and commercial buildings in the community (including sports and recreation centres);
• $100 million Natural energy efficiency initiatives to develop innovative smart-grid energy networks;
• $33.6 million Commonwealth Parks and Reserves for protection of biodiversity 

2. Culture Heritage and the Arts
• $74.9 million for heritage projects;
• $62.3 million for arts and culture;
• Additional support for arts training organisations ($1.1 million), touring organisations and exhibitors to encourage greater engagement

Job and business creation are at the heart of these budgets including 9.3 million for the National Arts and Craft Industry to develop the Indigenous art sector, 9.6 million for Arts Start to help young and emerging artists for business start ups and 14.9 million to invest in heritage projects as a cornerstone of the local economy.

Culture, arts, sport and recreation are an economic success story for Australia and this budget clearly recognises their value to the economy during this challenging economic period. 

3. Investing in the Whole Health System 
Billed as a series of vital reforms for Australia’s health and hospital system this incorporates a $64 billion agreement with States.

Some of the initiatives include:
• Mandatory continuing professional development requirements for general psychologists, appropriately trained social workers and occupational therapists – with a possibility of this being linked to General Practitioner/Exercise referrals
• $872.1 million over 6 years, in conjunction with the States and Territories in preventing lifestyle risks that cause chronic disease
• Agreement to establish a national preventative health agency to advise Australian Governments on preventative health progress.

This I believe is an exciting area for leisure. We can and should demonstrate the value that active recreation and physical activity can deliver to the preventative health arena and subsequently the mental, physical and social health of the country.

4. Education
The budget reflects the Governments desire to drive for a world-class education system and innovative knowledge-based economy. Supporting early child-hood, schools and vocational education and training by both the public and private sector. Increasing spending by 50% on the previous 5 years.

Some initiatives include:
• A further $10 million to the Sporting Chance Program to improve the education, life skills and employment prospects of 1400 indigenous students;
• $5 million to establish 10 school based sports academies (focus on girls);
• $5 million to the 'former Origin Greats' to establish school based academies with a focus on rugby league in Queensland and NSW;
• Training supplements and grants to encourage people who are unemployed to become trained ($26.8m)
• $298.5 million for additional programs for people who have just lost their jobs. The PPP programs ($2 billion) should provide training to an estimated 711,000 training places over 5 years
• A national consistency for all registered training providers 
• Research between Universities and industries for future innovative programs to create new training and new jobs

This area provides innovative ways for leisure, sport and recreation to invest in its most important asset; its staff. As a Registered Training Organisation, Smart Connection Company can guide organisations through these government opportunities and advise on appropriate investment levels and training solutions.

5. Sports Performance and Participation
Outcome 15 of the Department of Health and Aging is directly relevant to our industry. It is aiming to increase participation in physical and active recreational activities, to promote physical and mental health and to help prevent chronic disease across the community. It also supports a competitive and clean Australian Sports sector that is based on excellence, integrity and leadership.

• Over 40 projects to increase community participation, including The Penrith Valley Sports Hub, upgrades of sports fields, restoration of Perth Football Club grandstand
• Water safety organization such as Surf Life Saving Australia and Royal Life Saving Society and production of a wet safety DVD with Lawry Lawrence, to be given to the parents of each of the 260,000 new born babies.
• Indigenous Sports and Recreation Program

In fact there is more new money in the health budget for sport and recreation than in the ‘sports budget’. This should give a strong warning to local government and to centre managers as to where the emphasis needs to shift. The focus is quite clearly on ‘Health Outcomes’. If we can show health outcomes linked to facility and program development then resources may be available.

From an industry point of view we can look at the budget through a number of perspectives and depending on an organisation’s priorities you will explore different scenarios.

For Smart Connection Company, our advice to our clients is that there are many opportunities from this budget. With a little imagination, we can use sport and recreation as a vehicle to achieve some of the government’s goals. For instance:

1. Facility Planning and Management
We need to be cognoscente of the focus on both energy conservation and the climate challenge. Resources are available for smart-energy, natural broadband, energy efficiency and use of synthetic pitches to encourage more people to be active. Whether retro-fitting facilities or planning for new ones – explore the great opportunities. Also, there is a 50% tax refund on all capital purchases made for some small size businesses (≤ $2m) … so can this assist in upgrading your facilities?

2. Program Development
A very strong picture is developing from government that their agenda is preventative health; we can plan, develop and manage sport and recreation to provide those goals. Following from Canada and Europe, we have the opportunity to really develop our industry, let’s work together between local government, education, providers and sport to make a difference by developing programs to key target groups. Programming for at risk target groups, investigating exercise referral schemes, developing initiatives that cut across health, education and recreation sectors and the development of multi use facilities or health hubs are all positive initiatives that would contribute to positive and preventative health outcomes.

A first step in this area for Council’s is most definitely the development of a physical activity strategy. Ensure that activity drives the health agenda in your Council and encourage your community to reap the physical, mental and social rewards of a formalized physical activity strategy.

3. Activating the Community
Clearly by targeting the young, high schools and the older generation, there are opportunities to put programs together to encourage more people to be more active and with that a possibility to attract funding.

With rising unemployment, the pricing of facilities for the hardest hit will be important. We need to promote the value of active recreation to ensure that people do not underestimate the benefits. Yet again, we must focus on the outcomes (physical, mental and social health) to keep people involved.

4. Our Important Asset
Focus on training staff, with the level of government funding available there is no reason why we can’t train, retain and develop staff for the long-term. Whatever happens in our industry- good times bad times, lean times… we will always get a better result of we have the best staff. So pick up the good habit now of investing and training your people and you will benefit from this for years to come.

I trust this may assist Councils, facilities and organisations explore the budget and look at the positive approach to it. If you have any feedback or questions, don’t hesitate to contact myself, Gary Topp our Consultancy Manager or Peter Evans our Training Manager on 03 8696 7500.

For more information go to www.smartconnection.net.au