A FLURRY of community donations and the prospect of selling its car park have enabled the embattled Mount Gambier Community Returned and Services League to postpone its meeting with an Adelaide-based insolvency firm today.
The league was set to go into voluntary administration this morning, but has managed to survive another day largely due to the generosity of the community.
“Make no mistake, we are still desperate for cash donations, but are very grateful to those who have come forward thus far,” RSL vice-president Chris Smaling told The Border Watch yesterday.
“We are urgently appealing to the community to support us in our hour of need – we need their help to get back on our feet again.
“We are currently in a day-to-day struggle just to keep our heads above water.”
Meanwhile the RSL has on Monday moved a step closer to selling its Ferrers Street car park after a City Council meeting has proposed to lift restrictions prohibiting the league from doing so.
Council chief executive officer Mark McShane said yesterday the independent Development Assessment Panel lifted the planning requirement for an additional RSL car park during its recent meeting.
At the same meeting council recommended lifting the land management agreement on the property.
A decision on the recommendation will be made at council’s Tuesday meeting.
Mr McShane said if the recommendation is ratified the RSL would be able so sell the land without any restrictions.
“Council is aware of the RSL’s long and proud history in the city and of its current financial predicament,” Mr McShane said.
“Obviously we would not want to see the institution succumbing to financial difficulties.”
Mr Smaling said the league’s car park could be sold for up to $250,000 if council decides to lift a land management agreement on the property at its meeting next week.
“If the agreement is lifted we can immediately put the car park up for sale and hope for the best,” he said.
“The money could certainly assist in helping us stay afloat.”
RSL committee member Peter Zukauskas said he was positive “the situation could be turned around”.
“Now that we have managed to defer our meeting with the solvency firm, we have an opportunity to move forward with the support of the community,” he said.
“I’m positive we could turn the situation around if given the chance.
“We already have City Council support – including that of the mayor – and with our community behind us we are positive we can make the necessary changes to become profitable again.”
Like RSLs across the state and country, Mount Gambier’s league has in recent years battled because of a rapidly declining membership, economic downturn and overall lack of community support.
In addition, the organisation has not been able to cope with repaying a $2m debt incurred in 2009 to build its current premises.
It has been paying interest of around $200,000 a year just on the loan amount, in addition to day-to-day running costs and salaries.
