North Sydney Council to reintroduce outdoor dining fees amid budget deficits, pool rebuild cost blowout

Outdoor dining fees are set to be reintroduced on the lower north shore as a cash strapped council grapples with budget blowouts on a major swimming pool redevelopment.

Outdoor dining fees will be reintroduced in suburbs including Crows Nest.

Outdoor dining fees are set to be reintroduced on the lower north shore as a cash strapped council grapples with budget blowouts on a major swimming pool redevelopment.

North Sydney councillors have voted to reintroduce outdoor dining fees after waiving the charges to support struggling hospitality businesses during the Covid-19 pandemic.

The council had considered waiving the fees for an extra six months from April, but rejected the proposal partly due to the council’s growing deficit – currently tallying $2.4m.

The council’s budget bottom line has been compounded by ongoing cost increases from the North Sydney Olympic Pool development.

The pool’s $63.8m budget was partly funded through a $31m loan and the council has warned there was a likely need for “further adjustments” to fund the redevelopment.

A photo of redevelopment works at North Sydney Olympic Pool.

Construction work on the beleaguered project is running 185 days behind schedule and is not due to open until August – some nine months after the original November 2022 completion date.

The move to reintroduce dining fees has left some hospitality and restaurant owners spitting chips including Rag and Famish owner Peter Calligeros.

Peter Calligeros has spoken out against the reintroduction of fees.

A photo of the Rag and Famish in North Sydney

Mr Calligero said trade at his North Sydney pub remains 25 per cent down on pre-Covid levels

“It’s ridiculous to be introducing fees, especially as half of North Sydney is a work site for the Sydney Metro and trade is nowhere back to where it was,” he said.

“We’ve got half the streets and footpaths blocked off – the council has got to help us out.

“If the council’s in debt it shouldn’t be the businesses that are having to pay it.”

Paul Tam at his Maisys's eatery in Neutral Bay.

Paul Tam – owner of Maisys restaurant in Neutral Bay – said the fee waivers could have supported businesses also experiencing rising inflation pressures.

“Trade isn’t back to normal and the cost of everything is going up,” he said. “Produce is more expensive and staff are more expensive.”

The proposal to extend the fee waiver would have been in line with some councils, including City of Sydney which is waiving fees until 2025. Other councils, however, have already reintroduced fees including Mosman, Willoughby and Lane Cove.

North Sydney mayor Zoe Baker said the council’s financial position meant waiving fees could result in less available funds for other council projects.

A photo of outdoor dining in St Leonards.

“Council has a forecast deficit because of a bad decision to go into a huge overblown swimming pool project and enter into at least $30m loan in debt,” she said.

Councillor Maryann Beregi supported the reintroduction of fees, saying outdoor dining was a “massive privilege” for businesses.

“Effectively outdoor dining is the privatisation of public open space (and by waiving fees we’re) supporting only the business that have the absolute ability and privilege of using public open space for a private purpose,” she said. “If it’s too expensive and their business can’t support it then that’s just the way life goes.”

Outdoor dining fees will be reintroduced in suburbs including Crows Nest.

Councillor Jilly Gibson said the reintroduction of fees could see fewer venues operating outdoor dining areas.

“Outdoor dining fees and the redevelopment of the pool are totally different and attempting to tie the two matters together is ludicrous,” she said.

The council’s decision to introduce fees is expected to generate $969,000 in funding in the next financial year.

The cost of waiving the fees for six months would have tallied about $375,000.

Delays on the pool have been partly attributed to supply chain woes.

Councillor Jilly Gibson opposed the reintroduction of fees.

The council’s decision to reintroduce fees was also based on Australian Bureau of Statistics data showing cafe and restaurant income levels have improved and were “close to pre-Covid levels”.

A North Sydney Council report show a hardship policy will be developed to support cafes and restaurants that can demonstrate financial distress.

“Considering that neighbouring councils are charging outdoor dining licence fees, council’s forecast deficit, the likely need for further adjustment to fund the Olympic Pool, and the capacity of cafes and restaurants to pay, waiving of outdoor dining fees is not recommended,” the council report concluded.

North Sydney Council’s fees and charges show businesses pay up to $680 for each square metre of outdoor dining space used each year.

A comparison to the City of Sydney’s fees show the figure similar is to the $700 businesses have to pay per square metre in Circular Quay, but is higher than fees in Darlinghurst ($340), Pyrmont and Newtown ($250).