Chapel St traders say rate rise could be ‘final nail in coffin’
Businesses are hanging on by a thread in retail strips as the coronavirus crisis devastates the industry but Stonnington Council wants to raise rates for business owners.
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Business owners struggling to keep their shops alive have been hit with a rate rise by an inner city council.
With retail businesses haemorrhaging money due to COVID-19, Stonnington Council has proposed a 2 per cent increase in rates in its draft budget.
The council says the rise is required due to a “significant fall in revenue and a severely impacted economy as a result of the pandemic’’.
But business leaders have pleaded for the plan to be scrapped at a meeting on Thursday night, claiming store owners have endured an 85 per cent downturn in foot traffic since March.
Chapel St Precinct Association president and business owner Justin O’Donnell said the proposed rise would heap pressure on retailers already “on the edge’’.
“Businesses are absolutely being decimated and to actually argue they need to increase rates because the economy is in dire straits is completely out of touch with what is going on,’’ he said.
“For some, it could be the final nail in the coffin.
“Every little thing that businesses can do to survive is critical right now.’’
Council spokesman Jim Carden said the proposed increase was in line with CPI, similar to other Melbourne councils and within the State Government’s cap on rate rises.
A one-off 2 per cent discount would also be offered to businesses that paid in full upfront.
“It is necessary for us to continue to provide the critical services the community expects,’’ he said.
“The cost of maintaining our streets and parks, waste and recycling, leisure facilities and important maternal and aged care and other community services continues to rise every year.’’
He said the proposed rise would also helps Council’s community recovery efforts such as waiving fees and charges, rent relief, business advisory and mental health services and cash grants.
“We understand business is doing it tough and we have provided a range of measures to support our community through this time,’’ he said.
Instead of raising rates, Mr O’Donnell said the council should “look at tightening its belt just like every business needs to.’’
“Businesses have had to make staffing cuts, cut back on overheads and costs but council don’t seem to be doing that,’’ he said.
“For example, the Mayor spent $107,000 on renovating his office in March, so it’s a bit rich to say they need to raise rates because they are doing it tough themselves.’’
The Draft budget projects a surplus of $22.19 million.
The final budget is due to be adopted 31 August.
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