Minister writes to Yarra City Council on $5000 business fee

Victoria’s small business minister is urging Yarra City Council to overturn a controversial decision to charge Covid-hit businesses $5000 to convert a car space into outdoor dining areas.

Small Business Minister Jaala Pulford has urged Yarra City Council to overturn a controversial decision to charge businesses up to $5000 to convert a car space into outdoor dining areas.

The Greens-led council passed the motion on Tuesday night despite community opposition to the proposal, with Mayor Gabrielle de Vietri dubbing it a “huge step” for business.

But in a letter to Ms de Vietri and Yarra City Council CEO Vijaya Vaidyanath, Ms Pulford has urged the council to overturn the decision.

“This is a major blow to hardworking businesses who are doing everything they can to get back on their feet and I’d urge the council to overturn their decision and back local businesses,” she said.

Jaala Pulford is urging Yarra City Council to overturn their decision. Picture: NCA NewsWire

“Small businesses have shouldered a heavy burden throughout the pandemic and while the council may have experienced a decline in revenue, it doesn’t compare with the drop in turnover that has hit so many in the private sector.

“Councils should be helping businesses get back on their feet, not using them to raise revenue. There is so much more to be gained from amending this policy than using it to extract fees from those who can least afford to pay them.

“Opening up our streets and community spaces will be of enormous benefit to both businesses and councils, and we will have more to say on our plans for the outdoor economy soon.”

Ms Pulford said the Victorian Government had gone to great lengths to assist the hospitality sector in finding ways to trade profitably and in a Covid-safe manner.

Katie Marron is one of the small business owners furious at the decision. Picture: Mark Stewart

It included an $87.5 million package to support outdoor dining, with further funding expected to be announced soon.

All non-Greens councillors voted against the motion to introduce the fees, forcing Ms de Vietri to use her casting vote to pass the motion.

Small Business Australia executive director Bill Lang slammed the introduction of the fees.

“What small businesses need across all of Melbourne is support, not for a local council to be looking at ways of recouping misspent money through taxing a space which is critical to their hardworking local businesses,” he said.

“Such a policy shows the complete lack of understanding of any and all within council to the devastating financial impact that Covid has had upon local traders.

“Anti-business policies such as this are the reason why we need to see greater representation of local business in all forms of government across the state, as right now whether it be the City of Yarra or the State government of Victoria, businesses are being faced with policies that show no respect to those who work so hard to keep the economic heart of our community beating.”