Melbourne City Council defends decision to reintroduce outdoor dining fees for traders

Pubs and restaurants have hit back at plans by Melbourne Council to reintroduce fees for outdoor dining spaces after a pandemic pause.

Traders have criticised the return of outdoor dining fees. Picture: David Crosling

Melbourne City Council has hit back at claims that the inner city is still dead, and is defending its decision to reintroduce fees for outdoor dining spaces.

A council-commissioned survey has found that two-thirds of respondents visited the city between April and June, up from 45 per cent in the third quarter of 2021.

But several traders have sent submissions to the council criticising the move to bring back, from October 31, outdoor dining fees that were suspended during the pandemic.

A 50 per cent discount on the charge will apply until June 30.

Australian Hotels Association chief executive Paddy O’Sullivan said the fee waiver had been of great assistance, but the long journey out of Covid posed considerable ongoing challenges to pubs and hotels.

After promoting outdoor dining to reinvigorate the city, the council is now reintroducing fees. Picture: Tony Gough

“Re-imposing fees for footpath occupancy would have an untenable financial impact on venue operators, and be counter-productive in respect of outdoor dining options being available to customers,” the AHA submission said.

Carlton bar owner Andrew Leonedas said businesses were struggling with costs, especially as some dining parklets had been damaged by rain.

“Council now says the cost of repairs lies with the business owner,” he said.

“This is unfair, as they have inherited a faulty product.”

Restaurant owner Kern Kapoor said traders needed more help, with food costs rising by 40 per cent.

“There is a shortage of workers that has meant staff wages have risen by 30 per cent. We’re working harder to just break even,” he said.

Traders say the fees come at a time they are already dealing with rising food prices. Picture: Ian Currie

Speaking after the council decision, Premier Daniel Andrews questioned why Town Hall thought its move would be good for business.

“It doesn’t make sense, but that’s a matter for them, and I’ll let them explain it,” he said.

Lord Mayor Sally Capp told the Herald Sun that it was easy to argue that everything should be free.

“And some people are making arguments to pursue political agendas, but many people are truly fascinated by what is happening in the city after two years of lockdowns, and the data tells an interesting story,” she said.

The independent council survey found that the 76 per cent of respondents who came to the city between April and June each spent on average $181 on shopping, hospitality, events and other sectors.

This compared to $163 the previous quarter.

More than 90 per cent of those interviewed said they would consider visiting the City of Melbourne for leisure, much higher than Chadstone (57 per cent) and Melbourne’s bayside suburbs (51 per cent).

Ms Capp said Melbourne was booming as more people flocked to the city to enjoy world-class hospitality, spectacular creative offerings, and other events.

There’s a new rhythm to the city, with weekend and night-time activity frequently going above and beyond pre-pandemic levels,” she said.

Docklands’ night-time economy had also bounced back, with activity at New Quay reaching 147 per cent of 2019 levels, according to foot traffic data.