GEORGE TOWN: The Penang Turf Club (PTC) is a profit-making enterprise and hence it is only right for the club to pay quit rent at commercial rates, Penang Chief Minister Lim Guan Eng said on April 8.

Commenting on PTC president Datuk Ong Eng Khuan’s statement that the club has been asked to pay RM6.1 million in quit rent at the commercial rate by the Land and Mines Department for 2008, 2009 and 2010, Lim said the action was justified.

Lim said when the zoning of the PTC land was changed in 2007 by the previous administration from open space to mixed development to facilitate the development of the doomed Penang Global City Centre (PGCC) project, the commercial rates were applicable.

The Land and Mines Department in late February sent a revised quit rent assessment notice of arrears for the PTC and revised the quit rent from RM493,045 to RM2,363,559 per year, an increase of 4.79 times. Hence, the PTC now owes RM6.1 million in quit rent for 2008, 2009 and 2010.

Showing journalists the PTC’s annual report and accounts ended Nov 30, 2009, Lim said the organisation clearly made profits.

“The club earned interest of RM1,693,633 for its fixed deposit of RM48,543,279 and its surplus before tax for 2009 was RM3.87 million and surplus after tax RM3.13 million while revenue was RM39,900,971 for the same period.

“Clearly the PTC is making money, so rightfully, even if the land has not been redeveloped, it has to pay the commercial rates,” he told reporters at the Penang Skills Development Centre (PSDC).

He said the state government was willing to hold discussions with the PTC on the matter.