“We will look to target additional spending at areas that deliver social cohesion.” Such were the words of Finance Minister Michael Noonan at a breakfast this morning attended by over 400 business leaders in South Dublin.
Sport may take some comfort from this as the final touches are being applied to what next month’s budget will contain.
“We will start a process of movement towards sector specific areas that can deliver for the country,” he added and sporting leaders present will take some solace from this after a number of years of cuts on the current expenditure side.
Whether that will hold sway with Government that once again correctly stated yesterday that it had invested €95 million in sport in 2014, a 28% increase on 2013, is difficult to judge but not to guess at.
Minister Noonan did continue that there would be no new tax measures and no cuts to spending next year which is another positive in an environment that has been challenging.
On Tuesday Sport for Business put forward a proposal around reducing VAT on investment in sport where a set proportion was devoted towards community sport and a further reduction when that was directed at Youth.
“There is limited scope for new reliefs, largely because of constrained resources within the administration of Government said Noonan but he did highlight the success of sector specific policies with regard to Tourism, property and agriculture.
Sport has been a beneficiary through horse breeding and the wider benefit that a targeted break could deliver can be evidenced through a close analysis of how investment in sport generates economic activity as well as physical.
Noonan expressed himself a believer in “using tax breaks to get short term social benefit,” another argument that could be used by sport to gain some relief from taxation in order to offset a less likely substantial raise in grant funding.
Our belief is that Government can be more effective as an enabler of business investment rather than as paymaster. A trial targeted reduction of VAT as outlined would not be welcomed by all within sport, many of whom would see no direct benefit.
For others though it would lead to a greater emphasis on sport as a marketing and CSR investment and a rising tide lifts all boats.
Reaction to our proposal was varied from strong support within financial services and the larger sporting bodies.
Others suggested that a relief for sporting bodies on their ability to reclaim VAT, or at least some part of it would have a transformative effect.
This is not a simple equation of providing euros in grants to help sport function. There is a complexity but also a great opportunity in thinking differently when it comes to Government funding of sport. That’s what we shall continue to push over the next three weeks before budget day. If you have an alternative idea that you would like to enter into the debate please do let us know.
The Business Breakfast was hosted by Mary Mitchell O’Connor, TD who has assisted Sport for Business in it’s efforts to raise parity of esteem for Women in Sport.
Sport for Business works with over 100 member organisations to raise the level of engagement and delivery between sport, business and society.
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