President's Report
The year 2011 witnessed a return to profitability for Panania Diggers, realized through strong growth in all income sectors and solid control of expenditure. The net profit of $143,683 is a turnaround of $232,009 on the 2010 net loss of $88,326.
Members would be aware of the difficulties the majority of licensed clubs experienced as the hospitality industry adapted to the smoking bans introduced in 2007. Whilst your Club was supportive of the legislation, the impact of the Smoke Free Environment Act was particularly acute on gaming income and has taken a considerable time to return to pre ban levels. In addition, the poor external economic climate added to very tough trading conditions for hospitality venues resulting in many long established clubs folding or amalgamating over the past few years.
Your Board quickly recognised the need to adapt or perish hence for many years our business plan has had a strong focus on participation and engagement with the local community. This awareness has underpinned the development of ‘The Green’ and our keen support for local families and sporting and social clubs. That your club has now over 10,000 members and extraordinary usage of our alfresco amenities supports those early tough choices made by your Board.
Aligned with this was the acknowledgment the Club needed to broaden our income streams and utilize underperforming facilities of the clubhouse. Consequently, in late 2011 a long-term lease was signed with the Fitness Local group for the establishment of a fitness centre in the former Sports Pavilion area. The enthusiastic member support for Fitness Local Panania since it opened in November 2011 is recognition of the professionalism and quality of this boutique gym operator.
This plan will continue into 2012 with arrangements well advanced for the refurbishment of the front façade including a covered walkway, a coffee shop and revamp of the foyer, Tab facility, gaming room and bars.
Members would be aware the 2011 Annual General Meeting approved a new Constitution for Panania East Hills RSL Club including changes to the composition and responsibilities of the Board of Management. The forthcoming Board of Management biennial election, to be conducted on the 22nd, 23rd and 24th of March 2012 in the Club foyer, will be the first under the new structure and I urge all members to participate in this important process. The Annual General Meeting will also consider a resolution to award Mr. George Coleman Life Membership of Panania East Hills RSL Club, a recognition strongly supported by the Board of Management.
The year ahead will again see many challenges for the Club industry, foremost amongst these the proposed draft national gambling reform for poker machines package to be debated in Federal Parliament in the near future. Your Club strongly supports gaming harm minimisation but has grave concerns over the expected and unintended consequences of some aspects of the package, notably the limits on ATM withdrawals. Your Board strongly urges all members to investigate the issues behind the proposed legislation.
On behalf of the Board I extend my condolences to the families of members who have lost loved ones over the past year.
In closing, I once again acknowledge the professionalism and commitment of my fellow Directors during the year, the excellent work of our staff led by CEO Guy Hallgath and the unwavering support of the many sporting and social groups who call Panania Diggers their home.
Garry Murray
President
Panania Diggers