Patrick Campion, Chairman’s Annual Message 2012

Posted on Wednesday, 24 April 2013

Trading Results 2012

I am pleased to be able to advise that our Club made a trading profit of $367,747 in 2012. That result needs to be qualified by the matters set out in the Treasurer’s Report and I refer you to the Treasurer’s Report in this magazine.

The Sydney CBD continued to be a tough trading environment throughout 2012. The Club faced many challenges from within and from outside, but despite that, our Club continues to trade reasonably well, but of course there is room for improvement.  Our key revenue driver, gaming, fell by 1%. This is not a huge fall, but we did not want it to become a trend. We have been aware for some time that our fleet of machines have needed renewal, but the uncertainty around the need for pre commitment technology as well as the Club’s finances made it necessary to delay the expenditure needed to do so. We have this year however made the commitment to that renewal to ensure that the decline is arrested and that the gaming revenue is reenergised.

A pleasing part of the 2012 results is our membership growth. Total new memberships grew by 47% over the 2011 figure and this growth filtered through to Catering and Fitness Centre revenue also.  Our street frontage promotions have been particularly successful and we are looking to build up that success in 2013.

We are looking forward to even stronger year of trading in 2013 and thank all members for your support.

Possible Airspace Development

Since 2004, the Club’s development plan has included the possibility of developing the Club’s airspace, and in 2012 the Committee decided that conditions were right to progress this.

The first step is to obtain pre-Development Application advice from the City of Sydney Council on whether a development would be likely to be approved and, if so, with what conditions. The application for this pre-DA advice will be lodged in June 2013 and I will report to members when it is received.

I emphasise that no decision to proceed with the development will be made without members’ approval.

Office of Gaming Liquor and Racing Investigation

The investigation into the Club by the Office of Liquor, Gaming & Racing (OLGR) continued throughout the second half of 2012 and was completed in April 2013. It was an expensive and time-wasting exercise. We were always confident that there would be no adverse findings against the Club or anyone associated with it, and this was confirmed when we were advised that OLGR intended to take no action and considered the matter finalised.

Corporate Governance

In 2012 the Committee sharpened the focus on corporate governance including:

a) Engaging the services of a consultant to advise on governance issues.

b) Prepared a Corporate Governance Policy document to guide the current Committee and future committees.

c) Setting measurable key performance indicators to better
measure the performance of senior executives.

d) Creating sub committees in such areas as finance, corporate
governance, marketing and remuneration to get a more
detailed understanding and to make recommendations to
the Committee.

This emphasis on good corporate governances will continue to be an important focus throughout 2013 and beyond.

Boonoona Ski Lodge

2012 was not a good year for Boonoona with total revenue seriously down, even in what was a reasonably good ski season. That performance made it imperative to change the business model for the Lodge.  As you are aware, the Committee made the decision to open bookings up to the public (which requires them to become a Gold member to secure a booking), but only after members have had a first chance to make their bookings.

This has worked well with bookings for the 2013 season already substantially ahead of where we were at this time last year and looking extremely promising for a good season.


I take this opportunity to thank the members of our Committee for their contributions throughout 2012.

The amount of work that has to be done and the time that has to be put in by Committee Members grows every year and there is no sign of that abating. New legislation is making the role a more onerous and difficult one.  Add to that the increasing issues facing all clubs and then add the particular challenges facing our Club.  It is a hard and time consuming task with no reward, other than the knowledge that it is done to preserve and benefit a great Club.

I also thank members for their support of the Committee and its decision.


I also thank our staff for their work throughout 2012 and for how they dealt with the various issues which impacted on them.  I encourage them to continue in their efforts to make our Club a welcoming venue that members and others want to return to.


I urge members to support our Club in 2013. No matter what the Committee and Management may decide and action, everything ultimately depends on the support and patronage of our Club’s loyal members.

Patrick Campion


City Tattersalls Club