Slim pickings for small retailers

It is the opinion of the Peninsula Chamber of Commerce that over one million dollars will be injected into the local economy when an American fast food store is operational (Peninsula New, January 7).

Before the development was approved by Council it was a restaurant, but now it is a fast food store.

Council should review the classification.

Where does the cool one million dollars come from and where does it go?

If a retailer is paying one million dollars in wages, it is safe to estimate that they will be turning over around five million dollars per year.

This means that before the benefits of the cool million flow to the local economy five million will pass through the fast food retailers cash registers.

Every man, woman and child in Umina must spend $311 per year on American style fast food to ensure the five million dollar turnover that will trigger a proposed one million dollar injection into the local economy.

The figure of $311 is based of the estimated annual turnover of five million dollars divided by the population of Umina which was reported as 16,031 by the 2011 census.

That is an additional $1244 of discretionary spending per year for a family of four.

After we find - spend - waste the additional $311 per year on food of questionable nutritional value, where will the cool million go?

The Peninsula Chamber of Commerce suggests that small retailers will benefit.

I disagree.

I believe the biggest share of the $1 million injection will fall into the coffers of Wesfarmers (Coles, Coles Petrol, Liquorland and Bunnings) and Woolworths (Woolworths, Woolworths Petrol, BWS and the Ocean Beach Hotel).

After payments to telcos, energy providers, council rates and spending at alternate retail centres such as Erina Fair, Tuggerah and Hornsby, there will be slim pickings for small retailers.

Much closer to $7.77 than one million dollars.

Based on what I have seen on current affair programs, it is safe to predict that many small retailers will be forced out of business by the ruthless approach to competition as executed by the national chain stores that are now anchored in Umina.

Tru-Value hardware is the first casualty.

All these new jobs that the Peninsula Chamber of Commerce is taking credit for are well hidden by the supermarkets.

The new employees are certainly not manning the check-outs.

The choice is serve yourself or face a prolonged wait.

There will be no boost for the local economy.

Any cash injection will be a mere drop in the bucket as millions will be trucked away from the Peninsula by the avaricious national and multi-national chains that have recently dropped anchor in Umina.

The next step will be that the big business community will lobby Council for an increase in the population density of the Peninsula so their profits can increase.

If you oppose Gold Coast style high rise apartments on the Peninsula act now.

Send a letter or email to the mayor or the councillors to advise them that the Peninsula Chamber of Commerce does not represent you.

The mayor's email address is lawrie.mckinna@gosford.nsw.gov.au.

Other councillors email addresses are shown on Gosford Council's website.

Be heard, be loud, don't be shy.

Move out of your comfort zone and have your say.

Email, 15 Jan 2013

Tim Haylor, Umina