Details of Launceston council’s $8.5 million care and recovery package revealed

A northern council is set to launch a huge assistance package to aid businesses through the coronavirus crisis.

LAUNCESTON City Council will spend a minimum of $8.5 million on a nation-leading package to prop up struggling small businesses, organisations and individuals if it is passed at next week’s council meeting.

Councillors voted for council staff, the Northern Tasmanian Development Corporation and its member councils to develop the draft Community Care and Recovery Package at last Thursday’s meeting.

The full details will be revealed on Monday.

Launceston Mayor Albert van Zetten on Friday said the package would provide assistance to struggling businesses for the next six months and would be paired with a recommended 0 per cent rates rise in the municipal area for the 2020-21 financial year, and a proposed accelerated $40 million capital works program between July 2020 and April 2021.

The proposed package includes $4.2 million in rates relief for eligible commercial businesses, $586,000 in rental relief on council-owned facilities, a $700,000 business grants package, a new rates charges hardship policy, and more than $465,000 in fee relief for businesses.

Ald van Zetten said the package would result in eligible small businesses paying no rates for six months.

Businesses likely to benefit from the scheme include small retailers, restaurants, cafes and local service providers.

Banks, bottle shops, supermarkets, chemists and large retailers would generally not be eligible for the scheme.

Small businesses within the excluded categories and all other ratepayers – including residential – in financial distress, may be eligible for relief under the rates hardship policy, depending on their circumstances.

Launceston Mayor Albert van Zetten, front. The Launceston City Council has proposed an $8.5 million assistance package for businesses in the region. Picture: PATRICK GEE

Ald van Zetten said while council had no statutory power to compel landlords to pass on rates savings to tenants, the message was clear.

“It’s our view that Launceston commercial property owners have a clear obligation to pass these savings on to business tenants,” he said.

Ald van Zetten said the $40 million of capital works projects would depend on support from the State Government and would be split over the next financial year.

He said despite the scope of the spending, council would remain in a strong financial position with healthy cash reserves.

Deputy Mayor Danny Gibson said the $700,000 business grants pool would support innovation for businesses adapting to new online markets.

It would be delivered in grants of up to $1000 for professional advice from an expert panel and up to $7000 for businesses to implement online solutions.

Launceston Chamber of Commerce CEO Neil Grose said the council was leading the nation

and the package would support businesses in the medium term while state and federal governments provided short-term stimulus.

Mr Grose said relief from rates, fees and charges would be critical as businesses seek to stabilise and then re-establish after the crisis.

“It will save businesses,” he said.

“This will save people’s mental health. They know that council’s out there looking out for them and I will just make the point, at $8.5 million or thereabouts, is absolutely fantastic on a national level.

“We would encourage all the other regional councils around Launceston to come to the party as well.”