Salamanca Market stallholders lock in new fees as council expenditure is scrutinised

As Salamanca Market stallholders lock in new fees, the council’s budget for frills like buskers, ‘puppy parking’ and celebrity chefs has been criticised. LATEST >>

Set among the historic Georgian sandstone buildings of Salamanca Place in Hobart, this famous market attracts thousands of locals and visitors every Saturday of the year. Photo - Alastair Bett ESCAPE 15 May 2022 TOP GEAR

Fee increases for Salamanca Market stallholders will be in line with CPI after a decision by the Hobart City Council, meanwhile the council’s budgets for buskers, ‘puppy parking’ and celebrity chefs for the market has been scrutinised.

Salamanca Market Stallholders Association president Emma Hope said the option chosen by the council was a win for stallholders.

“Common sense has prevailed. We sincerely thank all elected members for their support and for recognising how significant Salamanca Market is for Hobart,” Ms Hope said.

“Tonight’s decision will ensure the sustainability and vibrancy of the market into the future.”

Salamanca Stallholders Association President Emma Hope. Picture: Chris Kidd

Before the council arrive at its decision at Monday’s meeting, Ald Marti Zucco questioned how much the council spent on frills at the market.

A council officer said it spent $45,000 per year on buskers, $12,000 on its celebrity chef program and $10,000 for “puppy parking”, where the RSPCA looks after dogs.

After Mr Zucco suggested it was actually $19,000 per year. The council officer said the cost varied from year to year.

“I find it extraordinary that we are looking at the market as an obstacle cost, that if we don’t do ‘X’, it’s going to cost us another $54,000 for next year,” Mr Zucco said.

“Yet we pay $20,000 a year for puppy parking.”

Ald Louise Bloomfield suggested the council adopt an option where stallholders pay CPI every year for the life of the five year agreement, capped at 10 per cent.

She also proposed amendments, including that stallholders be provided with a statement on the council’s expenditure related to the market, such as entertainment, legal costs, materials and repairs.

“[Stallholders] aren’t asking us for a handout, they’re asking for a good environment for them to trade within,” Ms Bloomfield said.

“I do think the council will find over all the benefits of this will far outweigh any potential cost.”

Hobart City Councillor Louise Bloomfield. Picture: Chris Kidd

Ald Simon Behrakis said stallholders should be told how much the council was spending on certain items.

“Without knowing how much council’s spending on certain things or how much council is losing, it is impossible for the stallholders to know whether or not their money’s being spent effectively or fairly or reasonably,” Mr Behrakis said.

“As a council we need to make sure we’re exercising a similar level of financial discipline and not asking everybody else to tighten their belts.”

Ms Bloomfield’s amendments were accepted.

Cr Ryan Posselt moved an amendment, which suggested choosing option one, a nine per cent annual increase for five years, while abolishing the marketing levy from the agreement, which would save stallholders $4.60 per day, but it was lost.

‘We want autonomy’: Salamanca stallholder’s final plea to council

The council’s decision on Salamanca Market fees, could spell the end for many stallholders, stallholder association president Emma Hope says.

The council will vote on its revised agreement for stalls holders on Monday, which offers three options.

The first is a nine per cent annual increase over the five year agreement, meaning stallholders fees will have increased by 45 per cent by the end of the period.

The second option which is recommended by council officers, is that stallholders pay the difference between the 2023 site fee valuation and the current site fees plus Consumer Price Index each year from 1 July 2024.

The third option is that stallholders pay CPI every year for the life of the agreement, capped at 10 per cent.

Ms Hope said the near doubling of the fees could spell the end for many businesses.

“We all have very small profit margins, particularly with costs going up of stock and materials and actually sales are down,” Ms Hope said.

Hobart City alderman Louise Bloomfield and councillor Louise Elliot, Salamanca Stallholders Association Vice President Nadi Tanase and President Emma Hope. Picture: Chris Kidd

She hoped the council would make amendments to certain clauses in the agreement.

“We want to have autonomy over our businesses,” she said.

“There’s a clause about whether we should move our stalls around, that could be to the detriment of a lot of stallholders who bought stalls because of location.”

Ms Hope said belied the council needed to look elsewhere to find savings.

“They’re spending money on activations and puppy parking, celebrity chefs, things that aren’t necessarily for the betterment of the market,” she said.

Salamanca Market. Picture: Chris Kidd

Ms Bloomfield compared the extra market revenue to the more than $2m loss from the Doone Kennedy Aquatic Centre in the 2022 financial year.

“The argument was it was supplying the community with a service that was unique to Hobart but there are other pools, there are other aquatic centres,” Ms Bloomfield said.

“I think we have questions and I will be looking into that later on … I do firmly expect we will have to look at some good cost cutting.”

Ald Louise Elliot said the council needed to repairs its relationship with stallholders.

“The council has been treating the market as its plaything,” Ms Elliot said.

“We need to look at the bigger picture and make sure the relationship between the council and the stallholders is one of trust and transparency

City of Hobart acting CEO Kat Panjari warned option three would leave the council’s bottom line worse off.

“The City would be $54,000 worse off in year one under this model and compared to the recommended option, which would compound over the period of the agreement and fails to address the difference between the valuation and current site fees in any manner,” Ms Panjari said.