Press Releases

Administration costs

It is not correct that $35 million ‘never makes it outside the Wellington office.’

SPARC’s internal operating costs for 2007/08 are approximately 12% ($12.7 million) of SPARC’s total budget ($105.7 million).

Since SPARC was established in 2003, administrative costs have decreased as a proportion of expenditure from approximately 18 percent to 12 percent of total expenditure.

The figure of $35 million being discussed in the media as “internal” or “administrative” costs actually covers the cost of several of SPARC’s programmes that are delivered directly to the sport and recreation sector.   This includes $21.2 million that SPARC budgeted to invest in 2007/08 on initiatives such as:

• Resources for SPARC’s programmes including Sport Fit, Active Movement, Active Schools, CoachForce, SPARC’s volunteers and officials programme, He Oranga Poutama and Green Prescriptions.
• Push Play. The campaign is complemented by support activities at a local level through regional sports trusts and local authorities.
• Seminar and leadership programmes for staff in regional and national sport and recreation organisations.
• Capability resources for sport and recreation organisations and clubs. Eg. Disability Tool Kits, Club Kit – an online resource to help volunteers run their clubs, a range of resources to develop organisational capability, manuals for primary and secondary school sports coordinators.
• Overall, in addition to the $21.2 million, SPARC has budgeted to directly invest over $71 million into the sport and recreation sector for the year ended 30 June 2008.

Salaries

There are not 47 people earning over $100,000 at SPARC. The correct number is 38 out of 94 employees for 2007/2008.

SPARC’s jobs are sized by Hay Group to ensure salaries are consistent with the market rate.

Website costs and Mission-On

SPARC has not spent $5.5 million on its website.  The website referred to in Mr Key’s speech is www.mission-on.co.nz and is part of the cross-Government Mission-On campaign (involving SPARC, Ministry of Health, Ministry of Education and the Ministry of Youth Development).

Expenditure on SPARC’s corporate website (www.sparc.org.nz) for 2007/2008 was approximately $160,000. This cost includes ongoing maintenance, regular content updates and licence fees.

Mission-On in a package of initiatives aimed at improving the lifestyles of young New Zealanders by targeting improved nutrition and increased physical activity. The outcomes sought are improved health, high educational achievements and a valued ‘kiwi lifestyle.’

The investment made in Mission-On is from a separate budget allocation to the sport and recreation budget.  SPARC is not able to use Mission-On funding for sport and recreation purposes, so it is incorrect to assume that the money used for Mission-On is being taken out of the sport and recreation sector. 

There is $5.1 million allocated for 2008/2009 for one of the Mission-On initiatives which targets two age groups – 5-12 year olds and 13-24 year olds. The purpose of this initiative is to invest in technology based concepts that engage these age groups and encourage them to improve nutrition and increase physical activity.
The breakdown of the $5.1 million is as follows:

• $1.6 million has been budgeted to the Mission-On website (www.mission-on.co.nz). This figure includes updating the content using interactive technology, promoting the site and general maintenance costs.
• $3.5 million has been budgeted for implementing a technology based strategy (concepts still in development) to communicate and encourage 13-24 year olds to improve nutrition and increase physical activity.

30 June

Media statement

Following John Key’s ‘sport for young Kiwis; a national priority speech' in Waitakere today, SPARC would like to clarify the following regarding the $35 million figure referred to as ‘never making it outside the Wellington office’.

SPARC’s internal operating costs, which include staff managing national and regional programmes, are approximately $12.7 million for 2007/08 (12% of SPARC’s total budget). 

SPARC directly invests approximately $66 million into the sport and recreation sector annually.

For more information:

Julia King
Senior Advisor, Communications
SPARC
021490797

Updated | 04 Jul 2008.

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