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| NZ Gaming Column DIA reduction in venue expenses outrageous The Department of Internal Affairs (DIA) are proposing to further reduce venue expenses payable to venue operators by reducing the amount available to pay venues from 16% plus gst, to 16% exclusive of gst. This change will further exacerbate a regime which is unfair, unreasonable and without justice. There are already venues which are not being paid what is fair, actual and reasonable as provided for under the Act because of the 16% cap. The issue of the 16% cap on Societies venue expenses and the consequences of that cap were very strongly put by the Hospitality Association at the Venue Expenses Working Party. The DIA agreed to review the 16% along with adjusting the venue expenses formula to account for inflation. DIA had committed then to consult on changes to the gazette notice to reflect on all those issues. It is extraordinary that after three years and all that effort and analysis all the DIA are going to do is gazette a reduction in the amount of that societies can pay to venue operators. Under the Act venue operators are entitled to actual, reasonable and necessary expenses. This is not allowed to be a commission. It is completely unreasonable that venue operators are not receiving the actual and reasonable venue expenses they are entitled to because those expenses are capped by what is effectively a commission cap. The DIA should be removing the cap altogether, not reducing it. Venues can only be paid for reasonable and actual expenses. Societies should be held to account for that on a site by site basis. If they are there is no need for the second tier constraint of the 16%. New Zealand is seeing increasing industrial action with the junior doctors withdrawing labour in the search for a more equitable return for their labour. Maybe it’s time that New Zealand’s premier fundraisers, the venue operators, did the same. Bruce Robertson |
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