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Internal Affairs Minister Nathan Guy must move to reassure sports clubs that they will continue to qualify for funding from charitable grants, Labour Internal Affairs spokesperson Chris Hipkins says.

“I understand the Department of Internal Affairs has recently written to 33 charitable gaming trusts warning them that amateur sport may not be eligible for charity grants from pokies gambling, meaning millions of dollars of funding for grassroots sports could be under threat,” Mr Hipkins said.

The warning follows a court case last year that found the promotion of amateur sport was not ‘a charitable purpose in and of itself’.

“A large number of sports clubs around the country rely on charity grants to operate, and there is great concern that this funding could suddenly stop.

“This situation needs to be clarified as it is unfair that sports clubs already struggling in the current economic climate are facing further uncertainty,” said Mr Hipkins.

“Labour would support any government moves to change the law in order to rectify the situation and guarantee that amateur sports clubs continue to be eligible for charity grants.

“Amateur sports clubs are an essential part of New Zealand’s social fabric. They not only help to promote a healthy lifestyle for New Zealanders but also provide real enjoyment to thousands of kiwi kids and adults.

“The Minister needs to urgently ensure that sports clubs that have relied on charitable grants won’t have their funding suddenly strangled,” Mr Hipkins said.