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Agenda – Sports, Arts, Culture & Community Services Committee - 10 November 2010 - #2780280

SPORTS, ARTS, CULTURE & COMMUNITY SERVICES COMMITTEE

10 NOVEMBER 2010

9 FUNDING APPLICATION – QUEENSLAND REDS RUGBY UNION GAME 29 JANUARY 2011 Mark Seedhouse MS : 1/58/16-01: 2782895

RECOMMENDATION: That Council provide In-Kind assistance to the value of $20,000 (ex GST) to the Cairns District Rugby Union to support the Queensland Reds vs Canterbury Crusaders Trial Match on the 29th January 2011 at Barlow Park.

INTRODUCTION: Council has received an application from the Cairns District Rugby Union for grant assistance with a Super 15 (Rugby Union) trial between the Queensland Reds and the Canterbury (New Zealand) Crusaders, to be held at Barlow Park on the 29th January 2011.

BACKGROUND: This will be a game of rugby union between the Queensland Reds – currently the most exciting team in the Super 15s competition - and the New Zealand Canterbury Crusaders – the most successful rugby team in the Super 15s competition. The Super 15 competition comprises teams from Australia, New Zealand and South Africa. Both teams comprise Australian Wallabies and New Zealand All Blacks players – the top two rugby union teams in the world. Many of these players will be representing their countries in the Rugby World Cup in 2011. All teams in the Super 15 competition schedule trial games (usually 2-3) as part of their preparations for the competition proper which starts in February. This game, if successful, will secure the opportunity to host a trial match to be held in Cairns each year for the next two years. It gives a great opportunity to show case Cairns as a rugby and sporting venue and could lead into the hosting of international teams on a regular basis. This is the Cairns and District Rugby Union’s strategic vision for this region. Council has adopted a grants policy providing a funding stream to assist with Development Events. The policy allows for the provision of funding through a Resource and Performance Agreement in special situations – in this case, where a funding commitment is required at very short notice.

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Council has recently had to act in a similar vein in order to secure the Davis Cup tennis match this September.

COMMENT: The event provides substantial opportunities for the Cairns Region. The immediate benefits will be the travel and tourism generated by the participants and visitors to the event.

The promotion for the Trial Match will be significant. It will be targeting both domestic and international visitors and be marketing Cairns as a tourist destination as well as some where to watch rugby. Marketing will target all rugby sub-unions in Queensland and Northern Territory. Invites will also be sent (through member club’s databases) to nearby nations’ rugby clubs in Guam, Singapore and Japan. There will be a marketing campaign targeting NZ supporters (Kiwis) as the Canterbury Crusaders have a significant following. Papua New Guinea (PNG) will also be targeted as the Queensland Reds will be playing Will Genia, who is from PNG. This event has the sanctioning of the Australian Rugby Union through the Queensland Rugby Union who has provided assistance with the planning and budgetary process.

Over the longer term it is intended that this event be the first in a series of rugby events over the next three years that will position Cairns for competing for larger events. The other events being targeted by the CDRU and associated Cairns rugby entities are:

• Australian 7’s. The successful hosting of this Trial Match will put Cairns in a strong position to bid for the Australian 7s and have Cairns placed firmly on the International Rugby map. The Australian 7s is one of the round of the international sevens competition played at numerous locations around the world – significantly Hong Kong and Dubai. These are great events that attract significant support internationally. Such an event will be very important for rugby and Cairns. • Ella 7s. In 2011 the CDRU are aiming to host an Ella 7s competition for Indigenous players from this region. This will become a premier event as part of the Indigenous rugby events in Australia and lead up to other international events and competitions. This competition is for men, women and juniors. • TAS 7s This event was held last year and the success has been so strong that it has now been included as one of the qualifying competitions for the Australian Schoolboys 7s selection process.

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• International training camps The CDRU are currently liaising with connections in Japan who are very interested in using Cairns for their residential rugby camps and clinics. The success of the Trial match will go a long way to secure these activities. • Cairns Old Crocs Invitation Charity Match The local Cairns Old Crocs (an over 35s club) held their inaugural Gold Legends Charity match at Barlow Park in July 2010. This attracted great interest and will be continued in future years. They will work to bring senior teams of note to Cairns to play local teams and support charity. • Cairns Old Crocs Tournament For the past 7 years the Cairns Old Crocs have hosted a masters/golden oldies tournament. They have had visiting teams from Guam, New Zealand and representatives from the United States as well as local and interstate teams playing in this tournament for each of these years. They are looking at expanding this further and tapping into the extensive golden oldies international market in 2011.

Other opportunities that will present themselves to the CDRU are the rights to host state based competitions at junior and senior representative levels. Each, of these events will attract significant tourism and economic benefits to Cairns and the region. If Cairns Regional Council were to offer assistance, it would be appropriate to provide assistance up to the value of $20,000 as this is the maximum amount allowable under the Developmental Events Grant Stream. Unco-incidentally this is the amount of assistance that has been applied for. Assistance could be provided through a cash donation of $20,000 or through In-Kind assistance in the waiving of Venue Hire Fees (approx $8,500) and the forgoing of the commission from the ticketing (approx $11,500). The in-kind assistance option is preferred as this has far lower net cost to Council.

CONSIDERATIONS: Corporate and Operational Plans: Providing assistance to this event would align with Corporate Goal 5 – “Creating a prosperous region.” It should be considered part of the declared supporting strategy to “Support the development and growth of Festivals and Events across the region.” It would also fit within the strategy to “Strengthen Council’s support for economic development including tourism and economic diversification.

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Statutory: The provision for grant funding is contained in sections 137 and 138 of the Local Government (Finance Plans and Reporting) Regulation 2010. Policy: The funding stream and proposed delivery mechanism are consistent with Council policy 1.06.22 – Council Grant Program. Financial and Risk: There is no further money available in the 2010/2011 Festivals and Events fund, so the provision of $20,000 in cash assistance would require extra budget allocation. If the assistance is provided by In-Kind means, then the extra internal charges borne by the Festivals and Events Fund will be offset by equivalent internal revenue for Barlow Park and Ticket-link. Whilst there will be some external costs to council (e.g. Electricity for lighting) these will be relatively small and can be contained within the normal operating budgets of the departmental business units. Sustainability: Supporting this application will encourage and facilitate sustainable economic growth and prosperity for Cairns. The event is consistent with the direction set down in the recently adopted TNQ Events Strategy 2010 – 2015.

CONSULTATION: In formulating the recommendation, consultation has been had with the General Manager of Community Sport and Cultural Services, the Team Leader of the Leisure Venues Unit. They provided input on the benefit to the Cairns Community and provided the cost estimates for the In-Kind assistance. The following officers were consulted internally :

• Manager Corporate Communication • Manager Economic Development.

OPTIONS: Assistance could be provided through a cash donation of $20,000 or through In-Kind assistance in the waiving of Venue Hire Fees (approx $8,500) and the forgoing of the commission from the ticketing (approx $11,500). The in-kind assistance option is preferred as this has far lower net cost to Council. Another option would be to refuse support for the application or to provide support up to a smaller amount than the full $20,000.

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CONCLUSION: Supporting the application from the CDRU for assistance with the Queensland Reds vs Canterbury Crusaders Trial Match would provide substantial benefit to the Cairns Region and would be consistent with Council’s goal of “Creating a Prosperous Region”. It is therefore recommended that: Council provide In-Kind assistance to the value of $20,000 (ex GST) to the Cairns District Rugby Union to support the Queensland Reds vs Canterbury Crusaders Trial Match on the 29th January 2011 at Barlow Park.

ATTACHMENTS: Attachment 1 - Cairns & District Rugby Union Inc Fund Application #2782895 Mark Seedhouse Business Planning & Support Officer Ian Lowth General Manager Community, Sport & Cultural Services

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ATTACHMENT 1

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