Yarra City councillor seeks to overturn plan to sting Covid-hit eateries

Outrage is growing over a Yarra City Council plan to slug businesses up to $5000 to convert car spaces into eateries, and one councillor is seeking to scrap the “crazy fees”.

Yarra City Council is facing increasing pressure to overturn a controversial decision to charge businesses up to $5000 to convert a car space into outdoor dining areas.

Businesses have slammed the move, saying it will make a post-Covid recovery almost impossible, while the state government has urged the council to overturn the decision.

The fee is more than double any other council in Victoria.

Now Yarra councillor Stephen Jolly, who voted against the decision, will seek to have the motion rescinded when council next meets on October 19.

“Yarra Council made a huge mistake on Tuesday,” he said.

“I urge my colleagues to listen to the outrage of the community and support my motion at the next meeting to scrap these crazy fees.”

Minister for Small Business Jaala Pulford wants the council to overturn the decision. Picture: Ian Currie

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.

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.

“The Greens believe that the high fees are actually a favour to small businesses,” Mr Jolly said.

“In politics, it’s a big mistake to swallow your own propaganda. They need to come down from their ivory tower and actually talk to ordinary people.”

Minister for Small Business Jaala Pulford has also urged the council to overturn the decision.

“On behalf of the Victorian government and the many struggling cafes, pubs and restaurants in your local government area, I urge you to reconsider this policy,” she said in a letter to Ms de Vietri and council CEO Vijaya Vaidyanath.

“As you would be aware, small business has shouldered a heavy burden through the Covid-19 pandemic.

“While governments at all levels have experienced revenue decline, this does not compare with the profound drop in turnover that has hit so many in the private sector, with hospitality particularly impaired.”

Yarra councillor Stephen Jolly is moving to rescind the motion to slug small businesses to convert parking spaces to eateries. Picture: Alex Coppel

Despite warnings the new outdoor dining fee structure would be excessive, sources told the Herald Sun the cash-strapped Yarra City Council was desperate to pass on its ongoing financial woes to business owners.

It included recouping more than $600,000 in lost revenue from parking fees and fines because of the new outdoor dining car space parklets.

Ms Pulford said the council’s decision to charge “exorbitant” fees for the parklets undermined other efforts to boost a post-Covid recovery.

Neighbouring council Darebin still has no plans to change its policy to waive the fees, while the City of Stonnington and City of Melbourne this week each voted to continue waiving fees of $1200 and $2000 respectively.

Ms Pulford said further funding assistance for the hospitality sector was expected to be announced soon.