Issues

Sports rate relief ‘will improve health’

Daithi McKay Peter Cheney talks to Daithí McKay about his Rates Exemption for Amateur Sports Clubs Bill and its potential social benefit.

A North Antrim MLA plans to bring forward a private member’s Bill that would abolish rates for amateur sports clubs. Daithí McKay is Sinn Féin’s northern economy spokesman but this is a personal initiative.

His previous Bill resulted in the introduction of the plastic bag levy. Similarly, this Bill replicates an existing policy in the Republic.

The Land Valuation Act 2001 exempted land from commercial rates if it were developed for sport. Amateur sports clubs across the UK are already entitled to 80 per cent rate relief and councils can extend this to 100 per cent in England, Scotland and Wales.

The same flexibility does not exist in Northern Ireland but the Bill would amend the Rate (Northern Ireland) Order 1977 to increase relief to 100 per cent.

Speaking to agendaNi, McKay explained that this would benefit clubs in both urban and rural areas. “Sports clubs are under a lot of pressure financially. I know a number of rural examples in my own constituency and there are a number of reasons for that,” he remarked.

GAA and rugby clubs’ sponsorship from construction firms has been badly affected by the economic downturn. Overheads have also gone up.

With relief already at 80 per cent, surely the Bill would make little difference? A typical rural sports club, he replies, has large grounds and could be paying £400-600 per year in rates. “It is my belief that that money should be going towards services and facilities and equipment for young people,” McKay continues.

“There is a public health aspect to this issue as well because I believe that by providing this relief for clubs that we are actually investing in public health. We are investing in young people who are supported by these clubs and we will receive a social return in many ways by ensuring that these clubs are supported.”

HMRC data indicate that 213 amateur sports clubs in the province are paying £420,000 per annum in rates. The Department of Finance and Personnel estimates that the revenue was

£1.4 million in 2010-2011. These figures, to him, suggest that the cost would be “minimal” and could be met through monitoring rounds.

Surely a sports club – as a local landowner – should be paying some contribution to a council’s rates? “Sports clubs would make up a very small percentage of the properties in each district council area,” he responds. “It won’t make that much of a difference but it will make a difference in terms of the money that will go to individual clubs: £400, £500, £600 at a time.”

Over 700 responses have been received to date in his consultation: “We’ve had responses from boxing clubs, soccer clubs, GAA clubs, rugby – a whole variety of sports, some of which I didn’t expect a response from [e.g. martial arts]. This comes from right across the sporting community.”

McKay intends to present the Bill before the summer and have it enacted by the end of 2014. He will have an “open mind” to amendments from other parties.

Finance Minister Simon Hamilton has been made aware of the Bill, along with all other MLAs. “I am aware that he has an interest in sports himself,” McKay quips, “and is a member of a sports club so hopefully that sporting club and other sporting clubs will put pressure on the Minister to do the right thing.” McKay, for the record, is a member of St Mary’s GAC, Rasharkin.

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