New law could lead to 'extinction event' for sports clubs

New legislation could lead to an "extinction event" for local sports clubs, the NZ Amateur Sport Association's chairperson has warned.

The Incorporated Societies Act 2022 targets different kinds of clubs, requiring them to introduce a number of new rules.

Gordon Noble-Campbell told Breakfast the legislation took a one-size-fits-all approach.

"The law applies to an incorporated sport organisation like the New Zealand Rugby Union – which has hundreds of employees, millions of dollars, plenty of resources, accountants, and lawyers... in order to support the obligations of the Act," he said.

"Those same obligations have been placed on the likes of the local bowling club where, quite often, it's the same person who might well be the president and the secretary, and if they're lucky they might have a treasurer there as well."

The new obligations relate to issues including financial reporting, managing conflicts of interest and dispute resolution procedures.

"Is the new law and its regulations fit for purpose for supporting community sport organisations?" he asked. "Which everyone knows are absolutely fundamental to the wellbeing of New Zealand communities and are largely responsible for the delivery of sport to Kiwis.

"Our concern is simply that, if the obligations are too tough, if the regulations create too much of a resource challenge for your local community sport club, then people won't volunteer. They won't step forward.

"They won't be prepared to undertake the governance duties – which are essential for the ongoing operation of their club – and that would be a tragedy for New Zealand, and we fear that it could become something of an extinction event."

The Association acknowledges that reforms are necessary but insists this is an unnecessary burden on volunteers.

Also speaking to Breakfast this morning, Nicole Wismans, Ōhope Beach Football Club president, said clubs weren’t aware of the changes and found out through the media.

“It’s, again, another breakdown in communication between either the council and government organisations and smaller organisations like ourselves,” she said.

She called it a “huge disappointment” for local, grassroots sports organisations across the country — as volunteers are essential to keep them running.

“It is a huge load of work. There is [a lot] of red tape that communities unless you’re behind it, you don’t see,” Wismans said.

“Without these volunteers, without my commitment, I just couldn’t do it by myself.”

She said the added pressure on clubs and volunteers would be a “burden” — and that every organisation is different.

“The people that are involved in our club, our organisation, our committee, are also full-time parents, they’ve got full time jobs, they have other commitments, their kids play other sports.

“It’s gonna have a huge impact to have an accountant and a lawyer, and where is this money gonna come from.

“You can’t compare apples to oranges.”

She said: “By doing this, you are essentially gonna shut down a lot of those smaller clubs that are running on, as you say, single-man people.”

Wismans also believes the changes will have an effect on sport in New Zealand as a whole.

“It’s shutting down potential New Zealand athletes coming through these smaller clubs.”