Government sports grants ‘crippling’ small clubs warns Kerry councillor

By Alastair Tibbs, The Kerryman

A Kerry councillor has sounded the alarm on government sports grants “crippling small clubs” who are having to pick up the bill on loan interest rates.

Councillor Niall O’Callaghan warned local clubs could be paying up to €20,000 in interest rates above what sports capital grants have gifted them.

The Community Sports Facilities Fund – formerly the Sports Capital and equipment Fund – is the primary means of providing Government funding to sport and community organisations.

However, as with other government grants, clubs must first spend the money before they can be reimbursed by the scheme. This often involves the clubs taking out loans which require interest repayments not covered by the sport fund.

“A lot of the funding from the central government is crippling small clubs,” said Cllr O’Callaghan.

“This idea that you have to use an intermediary, use their money to pay the bill, and then turn around and have to pay interest on that, it’s crippling clubs.”

Clann Credo provides loans to community groups and amateur sports clubs, offering lower interest rates than traditional lenders.

The company has loaned over €125 million to more than 1,000 community projects nationwide since 1996 and is currently running a €10m community sports loan fund to help community groups access sports funding.

“They’re doing a great service,” said Cllr O’Callaghan regarding Clann Credo, “but it’s costing clubs €18,000, €19,000. Money that they should be putting in their clubs and their young people for the development of the sport.”

He asked for Kerry County Council to talk to government departments and look to remove the intermediary in sport funding schemes.