Chamber surprised by business policy

The Peninsula Chamber of Commerce has called Gosford Council's draft Business Improvement District Policy "inadequate" and "hastily prepared without any consultation".

"The business community has been taken by surprise with this policy and Gosford Council's drive to introduce Special Rate Levies in commercial centres," Chamber president Mr Matthew Wales said.

"Major business groups should have been consulted before council set out on a course of seed funding for small BID groups and flagging the introduction of rate levies on commercial property owners.

"Rate levies have been tried before and rejected by the business community as it was seen by commercial property owners and retailers as a way for council to generate revenue for works that should be paid for from council's current budget."

Mr Wales said commercial property owners already paid council "hefty rates".

"While the chamber does not necessarily have a problem with BID programs or seed funding business groups, it should be carried out such that all relevant business organisations are consulted," Mr Wales said.

"The current policy has been crafted without any input from the NSW Business Chamber or local Chambers of Commerce.

"Many of our major employers and commercial property owners are completely unaware of council's push for BIDs and special rate levies."

Mr Wales said the chamber was particularly concerned with the "lack of detail" in the policy including poor eligibility criteria, ineffective key performance indicators and inadequate consultation processes.

"There are no checks or balances in this policy," Mr Wales said.

"Council has indicated that BID programs must be self funding within three years of receiving seed funding of up to $75,000.

"The Policy flags special rate levies as a way of funding these schemes and we would have thought that such an important issue should be discussed in detail with all key players in the business community before being cast in concrete.

"The Chamber is especially concerned that the seed funding is being allocated from the Special Tourism and Business Development Levy that is paid by all commercial property owners yet not all commercial property owners will be eligible to participate in BID programs.

"Council must be careful that seed funding is not used to promote individual businesses at the expense of other businesses that do not have the same access to the funds.

"This would be inappropriate and inequitable."

Mr Wales said the chamber has urged council to review the policy and enter into discussions with key business groups to ensure the BID program is "open, fair and transparent".

Press release, 4 Jun 2010 Matthew Wales, Peninsula Chamber of Commerce