Adelaide City Council waives outdoor dining fees, freezes other charges, makes it free for events

Struggling city hospitality operators won’t be hit by council fees for outdoor dining. But that’s just the beginning of good news for CBD businesses and ratepayers.

Struggling hospitality businesses within the Adelaide CBD have been spared from the reintroduction of outdoor dining fees.

Adelaide City Council voted on Tuesday night to reject a move by senior financial staff to include the fees on an annual register of fees and charges.

Elected members also decided not to charge for events and use of the parklands while also freezing all other fees and charges.

The bid to reintroduce outdoor dining fees sparked outrage from hotel, restaurant, cafe and bar owners who have been hit by escalating costs in the wake of the pandemic.

They also threatened to undermine a multimillion-dollar strategy by the council and state government to rejuvenate the city.

Eros Kafe owner Jim Dimitropoulos outside the popular Rundle St restaurant. Picture: Tom Huntley

The outdoor dining fees were waived in 2019 to support the hospitality industry before being extended in 2020 and 2021 during the peak of the Covid-19 outbreak.

Their inclusion by senior financial managers in the schedule of fees and charges for the next financial year caught councillors by surprise.

The schedule included a 3.5 per cent CPI increase for most other council fees and charges services, which was removed.

The changes were introduced by North Adelaide ward councillor Mary Couros, who told the meeting businesses across the city – not just hospitality – were “hurting”.

“There has been a lot of discussion about hospitality, yes hospitality is hurting but so the whole economy is fragile at the moment,” she said.

“At this point in time it is not feasible for us to be increasing our fees and charges.

“Everyone across the board is doing it tough, there should be a blanket freeze on all our fees and charges”

Councillor Mary Couros during an Adelaide City Council meeting at Adelaide Town Hall. Picture: Brenton Edwards

Cr Couros received support from other councillors, including political rival Phil Martin, who sent a letter at the weekend to North Adelaide businesses about the possible reintroduction of outdoor dining fees.

“We were told (by staff at a recent workshop) that unless there was an express view from council opposing them (the outdoor dining fees), that they would be applied,” he said.

Cr Martin said he supported waiving the outdoor dining fees, along with making it free to hold events and to use the parklands.

“I look forward to seeing this policy in practice,” he said.

Cr Alexander Hyde said he wanted to know how the outdoor dining fees had been included on the fees and charges schedule prepared by the council’s financial manager.

“Was there a decision made by the senior leadership team,” he said.

Lord Mayor Sandy Verschoor during an Adelaide City Council meeting at Adelaide Town Hall. Picture: Brenton Edwards

Chief executive Clare Mockler said it had happened while she was on annual leave and she would provide an answer when she had spoken to the individuals involved.

Lord Mayor Sandy Verschoor defended the inclusion of the outdoor dining fees, saying it was standard practice to annually list all proposed fees and charges for council approval.

“This is the normal process we go through every budget cycle,” she said.

“Every year we look at and approve our fees and charges.

“There may have been an appetite to put them (outdoor dining fees) back in but it is a decision for council every year whether we want to waive them or not.

(With hospitality operators) there was a clear understanding that we were not trying to affect their businesses in any way.”

The total cost of freezing all fees and charges, not charging for outdoor dining, making it free to use the parklands and to hold events in the city had not been calculated.