Botany Port tax will hurt residents: CEO
RANDWICK Council’s decision to beef-up the Port Botany business rate will ultimately hit the pockets of consumers across Sydney, the port boss has said.
Southern Courier
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RANDWICK Council’s decision to beef-up the Port Botany business rate will ultimately hit the pockets of consumers across Sydney, the port boss has said.
On July 1 the council created a New Port Botany rates zone for all those operating in the port precinct.
Port bosses have said it equates to an 83 per cent rate rise over three years — compared to the 19.9 per cent rate rise for residents.
NSW Ports chief executive Marika Calfas, said the rise was unfair, particularly given the council doesn’t provide any services at the port.
“We don’t object to paying reasonable rates as the port is part of the local community,” Ms Calfas said. “However when the port is seen by council as a key funding source for council projects, this should not be supported as it has broader economic consequences with costs being passed on to consumers through higher price of goods and increased supply chain costs.”
Ms Calfas said the port will pay $4.8 million in rates this year compared to $2.6 million last financial year.
The council said the rise brought Randwick’s rates in line with Bayside’s. The port is split across both local authorities.
A council spokeswoman said it would use the additional cash to pay off the interest on a $27 million loan funding several projects. “Given the large volume and value of imports coming through Port Botany, together with the overall significant cost base of the port operations, this rate increase is immaterial to the per unit cost of imports,” she said.
But Ms Calfas said while the business rate was now the same as Bayside Council’s, the value of land in Bayside was less so the port would end up paying more to Randwick Council.
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