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Velodrome In Danger As Club Reels From Pokie TaxJuly 9,2003

The future of the Olympic velodrome in Bankstown is in danger as the club that runs it is questioning whether it can afford losses of $25,000 a week. Bankstown Sports Club, which has a contract to manage the velodrome for 21 years, said it will closely examine the funding of the club when poker machine tax increases in the state budget.

Under new tax rates, the club would pay an extra $10.5 million by 2010, to a total tax of $23.5 million. The club's secretary manager, John Mackay, said: "We are getting a little bit concerned that this increase in taxation is going to cause us some major problems."

Four Australian world champions, including Bradley McGee, who was leading the 2003 Tour de France until yesterday, and the national adult and junior cycling teams, train at the velodrome when in Australia.

It is unclear if the club could get out of the contract with Bankstown Council to manage the velodrome, but Mr Mackay said it wanted to fulfil its obligations: "[Funding community sports] is what we are supposed to do."

Since the announcement of the tax increase in last month's state budget, clubs have been warning they may have to cut funding for community groups and facilities.

Dee Why RSL this week became the first club to announce it would suspend donations of $1.1 million to more than 100 local groups until it had reassessed its financial situation.

Overall, clubs paid $55.5 million under a Government community development scheme last year - $22.1 million more than required to earn tax offsets under the scheme.

Bankstown Sports Club paid $1.5 million to community-funded organisations last year - more than twice the amount required - and an extra $100,000 in sponsorship to national cyclists, a rugby league team and a volleyball team.

A cycling coach at the NSW Institute of Sport, Gary Sutton, said the Bankstown club's sponsorship had helped champions gain valuable competition experience. He said the velodrome was "world class". Since it was the only indoor velodrome in NSW, it would be more difficult to maintain standards without it.

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