Department of Business
Community Benefit Fund
Annual Report
2014-15
Page | 18
Hon Peter Styles MLA
Minister for Racing Gaming and Licensing
GPO Box 3146
Darwin NT 0801
Dear Minister
In accordance with section 68B (4) of the Gaming Control Act, I present to you the Community Benefit Fund Annual Report for 2014-15. The Annual Report details the operations of the Community Benefit Committee during the financial year, including full listings of grant recipients and purposes.
This will be the last Annual Report I prepare for you, as per your letter in August 2015 where you advised me that the chairmanship of the committee will transfer to a Department of Business representative.
Yours sincerely
Sharon Wilson
Chair
Community Benefit Fund Committee
Contents
Contents 2
Community Benefit Fund Committee 3
Annual Report 2014-15 3
Highlights 3
Community Benefit Fund 4
Administrative Responsibility 4
Committee Membership and Meetings 5
Industry Contribution to Community Benefit Fund 5
Community Benefit Fund Levy - Licensed Hotels 6
Community Support Contributions – Licensed Clubs 6
Operation of the Fund 6
Performance Targets 6
Gambling Amelioration Grants 6
Gambling Research 7
Major Community Grants 7
Community Organisation Grants (small grants) 8
Vehicle Gift and Long Term Loans 9
Community Benefit Fund Committee
Annual Report 2014-15
Highlights
· The Community Benefit Fund received $2.939 million from the levy on electronic gaming machines in hotels during 2014-15.
· A total of $433,599 was spent on gambling amelioration grants.
· A total of $413,465 was spent on major community grants.
· A total of $742,347 was spent on community organisations grants.
· A total of $281,818 was spent of gambling research.
· Twelve vehicle gifts and one long term loan were approved during 2014-15.
Table 1: Community Benefit Fund Summary of Actual Cash Flow 2014-15
Revenue and Payments / Sub Total$ / Total
$ /
Opening Balance at 1 July 2014 / (90,468)
Revenue - Community Benefit Levy / 2,939,207
Revenue – Returned Grants / 16,834
Total Revenue / 2,865,573
Payments:
Gambling Amelioration Grants* / 433,599
Gambling Research Grants / 281,818
Community Organisation Grants / 742,347
Major Community Grants / 413,465
Total Grants allocated / 1,871,229
Administration / 213,625
Total Expenditure / 2,084,854
Closing balance at 30 June 2015 / 780,719
* $807K of the 2014-15 Gambling Amelioration grants were prepaid in 2013-14.
Community Benefit Fund
The Community Benefit Fund was established to provide funding support for gambling-related research and amelioration programs concerned with problem gambling, as well as community benefit grants which provide assistance for general community development and improvement purposes.
Section 68A of the Gaming Control Act, provides that:
(1) the Director-General must maintain in the Agency’s Operating Account a fund to be known as the Community Benefit Fund; and
(2) Moneys in the Community Benefit Fund are to be applied for the following purposes:
a. research into gambling activity, including the social and economic impact of gambling on individuals, families and the community;
b. promotion of community awareness and education in respect of problem gambling and provision of counselling, rehabilitation and support services for problem gamblers and their families in the Territory;
c. funding of community projects and services of benefit to communities throughout the Territory; and
d. management and administrative support of the Fund.
The Fund receives a 10 percent levy on player loss from electronic gaming machines in licensed hotels, unclaimed prizes paid to the Director of Licensing and proceeds from items forfeited under the Gaming Control Act. Each year the Minister for Racing Gaming and Licensing determines how this money will be distributed by the fund in terms of gambling amelioration, small and major community organisation grants and administration.
Two rounds of small community organisation grants and vehicle gifting / long term loans were conducted this year, as well as one round of gambling amelioration and major community organisation grants. Each round was advertised in local papers throughout the Territory.
The responsibility for assessing applications requesting funding from the above grant categories falls on the Community Benefit Committee (‘the Committee’) which has been established by the Minister for Racing Gaming and Licensing to advise and assist the Minister in the operation of the Fund.
The Committee also advises the Minister about the obligations of licensed clubs throughout the Territory to provide direct community benefit contributions to their local communities, as required under the Gaming Machine Act.
In April 2015 it was announced in the Territory Budget that there would be approximately an $8M increase to the Community Benefit Fund budget, courtesy of the Northern Territory Casinos being required to contribute to the fund. This increased budget has resulted in two significant changes for the following year. Firstly four rounds of small and major grants are to be conducted, with applications being accepted year round. The second major change was the introduction of a quick grants round which provides more flexibility in eligibility and time frames.
Administrative Responsibility
Under the Gaming Control Act (the Act), the Director-General has responsibility to maintain the Community Benefit Fund (CBF). The Director-General’s duties in relation to the CBF can be broadly summarised as follows:
· maintain the CBF in the agency operating account;
· determine the revenue of the CBF through assessing gaming machine levy;
· monitor and report on club community contributions; and
· approve funds for gambling related research.
Licensing NT in the Department of Business is responsible for the coordination, management and administration of the program. This includes secretariat and executive support to the Committee as well as promoting the program within the wider community. The secretariat is also responsible for the management of amelioration support and research activities, overall fund administration and general reporting of the program activities and progress to Government and other stakeholders.
Licensing inspectors in the Department of Business are responsible for ensuring returns are provided by each club and checking that contributions claimed on the returns are eligible.
Committee Membership and Meetings
The Community Benefit Committee is comprised of three community representatives and one government representative. During the course of 2014-15 the committee reported to three different Ministers.
Community members of the Committee are appointed in an honorary capacity by the Minister. Nominal fees for attending Committee activities may be paid at the discretion of the Minister. Community members are also entitled to reimbursement for out of pocket expenses in meeting obligations arising from participation in Committee activities, consistent with normal government policy.
During 2014-15 the following members served on the CBF Committee for the periods listed below.
· Sharon Wilson – Chair (Darwin) 01 July 2014 – 30 June 2015
· Austin Chin (Darwin) 01 July 2014 – 23 July 2014
· Vicki O’Halloran AM (Darwin) 01 September 2014 – 30 June 2015
· Paul Davis (Alice Springs) 01 July 2014 – 02 February 2015
· Jennifer Lillis (Alice Springs) 01 September 2014 – 30 June 2015
Government Representatives
· Seán Parnell (Darwin) 27 January 2015 – 30 June 2015
Director-General Department of Business
The Committee met on three occasions during 2014-15. Some of the recommendations for grants proposed by the Committee to the various Ministers during 2014-15 were not approved. As this was the first time in the CBF’s history that recommendations had not been, the Chair made contact with the present Minister seeking both clarification of the expected role of the committee and requesting advice as to any amendments required to the guidelines. The Chair also recommended that the number of Committee Members be increased to allow for representation across broader geographic and demographic areas. The Minister appeared to be receptive to the CBF continuing to make a worthwhile difference to the Northern Territory Community, to advertising for new members and to providing feedback to the Committee.
Industry Contribution to Community Benefit Fund
The gambling industry is a major contributor to the Northern Territory economy, with significant investment, employment and taxation revenue effects. It is also a key element in the broader recreational, hospitality and tourism sectors.
However, the industry carries the potential for significant negative social consequences as a direct result of problem gambling aspects, particularly in regard to the operation of electronic gaming machines. To establish a responsible and balanced position for the industry, government requires that this sector of the gambling industry contributes to measures to address the adverse effects it created and more generally, to improve the broader community environment within which the machines operate.
The required industry contribution is achieved in two ways:
1. through the imposition of a Community Benefit Fund levy on the electronic gaming machine takings from licensed hotels; and
2. by direct support to community improvement and development by licensed clubs operating electronic gaming machines.
Community Benefit Fund Levy - Licensed Hotels
The Fund is established under the Gaming Control Act to consolidate and manage the Community Benefit Fund levy collected from the operation of electronic gaming machines in licensed hotels. Funding is directed to specific areas of activity as specified in the legislation.
Community Support Contributions – Licensed Clubs
As part of the arrangements for allowing gaming machines in community venues, clubs are required to make contributions to the local community and report those contributions on a regular basis. Guidelines exist to clarify what can be legitimately reported as a contribution.
Section 68B(2)(b) of the Gaming Control Act requires the Community Benefit Fund Committee ‘to monitor the contribution that clubs that are licensees under the Gaming Machine Act make to the community’.
In 2014-15, community support contributions from licensed clubs totalled $4.424 million, equating to 15% of net gaming machine revenue received. This represents a decrease of 5% from the 2013-14 community support contributions, which totalled $5.319 million, equating to 20% of net gaming machine revenue received. (Table 5 refers)
Operation of the Fund
Performance Targets
The following performance targets were set for 2014-15:
· 100% accuracy of grant payments processed; and
· 100% specified grant timeframes met.
Both performance targets were achieved during 2014/15.
Gambling Amelioration Grants
The Gambling Amelioration Grants Program was established to support interventions that reduce problem gambling and minimise the harms that result from gambling. Interventions can range from community awareness and education through to the provision of counselling, rehabilitation or support services for problem gamblers and their families.
In 2014-15, five organisations were funded a total of $1,240,599 ($807,000 was prepaid in 2013-14) to provide gambling amelioration services. These organisations were:
· Amity Community Services Incorporated received funding of $556,000 to continue their gambling intervention service and education program, individual assessment and counselling, maintenance of its website and the Gambling Counselling Helpline.
· Somerville Community Services received funding of $226,000 to continue its problem gambling financial counselling service in Darwin and Palmerston for a further twelve months.
· Big Fat Productions (italk library) received funding of $155,000 for stage four of the strong living project. This project is aimed at the prevention and reduction of habituation gambling within indigenous communities.
· The Synod of the Diocese of the NT Inc (Anglicare NT) received funding of $35,000 for the development and production of resources to compliment the Problem Gambling Financial Counselling Services they provide that is funded by the Commonwealth Government.
· Amity Community Services Incorporated and Big Fat Productions (italk library) received funding of $251,000 for a joint project titled “Choose Your Own Adventure”, an alternative gambling awareness campaign.
· The Department of Justice, Victoria was also paid $17,599 as the Northern Territory’s contribution to the National Online Problem Gambling Project.
Gambling Research
Two new research projects received funding in 2014-15. The total paid in 2014-15 was $281,818. These projects are:
· Australian National University – Were successful in being funded $300,000 ($100,000 in 2014-15) to be paid over three financial years to expand the useability of ‘Gambling Harm in the Northern Territory - An Atlas of Venue Catchments’.
· Menzies School of Health Research – Were successful in being funded $536,364 ($181,818 in 2014-15) to be paid over three financial years to conduct a Northern Territory Gambling Prevalence Survey.
Major Community Grants
The Major Community Grants Program was established in 2008-09 to provide funding support to not for profit Northern Territory based organisations for community development and improvement purposes. The maximum grant available for each project is $200,000.
In 2014-15, eight organisations were funded a total of $413,465 as follows:
· Katherine Historical Society received $200,000 for climate control to the Clyde Fenton Gallery at the Katherine Museum;
· Darwin Symphony Orchestra Inc received $40,000 to perform Horatio and the Handbag Education story throughout the Northern Territory
· Northern Territory Shelter Inc received $35,000 to conduct the Housing CHANCE project NT;
· Darwin Military Museum received $35,000 to fund a WWI Bronze Soldier Statue;
· Olive Pink Botanic Garden received $32,000 for a project titled Sharing our Desert Environment, which will see new information nodes installed throughout the garden.
· Tennant Creek Senior Citizens & Pensioners Association received $25,719 to install solar power to their facilities, in an attempt to reduce running costs.
· Life Be In It NT Inc received $24,408 to conduct the Active and Healthy School Holiday Program
· Milne Volunteer Bushfire Brigade Inc received $21,338 to add and improve infrastructure and expand the local communication network.
Community Organisation Grants (small grants)
Community Organisation grants are available to support projects which have the potential to improve the wellbeing and lifestyle of Territorians. Funding for a wide range of purposes may be provided to eligible not for profit Territory based community organisations.
Funding is generally limited to amounts of $5,000 or less, although higher amounts may be approved under specified conditions outlined in the grant guidelines. Funding is provided for non-recurrent expenditure and is available only for clearly identified projects which can be completed within specified time frames.
Greater consideration is given to priority issues such as level of existing community support and circumstances such as remoteness or high levels of socio-economic disadvantage. Preference is also given to requests for lower value amounts. This combined approach allows for an equitable distribution of available funds throughout the Northern Territory to as many worthwhile projects as possible.