Warrnambool trader levy poised for defeat

city warrnambool
The proposed compulsory trader levy for Warrnambool is set for defeat after a swell of opposition to the idea.

OPINION

[dropcap style=”font-size: 60px; color:#A02F2F;”] A [/dropcap] compulsory traders levy to fund Commerce Warrnambool is poised for defeat on the back of a successful grassroots campaign to knock the idea on the head.

The votes have been collated by the Warrnambool City Council, and Bluestone understands that of the 1330 traders that would be affected by the levy, 688 – or 51.7% – took the time and effort to vote “no”.

As with any vote, not everyone filled the form out absolutely correctly, or on time, and after taking such things into account, the “no” vote settles at 49.2%.

While this brings the objections just short of an absolute majority, it would be a very brave (or foolish?) council to fly in the face of such strong opposition.

As such, it is not surprising that council staff have recommended that the levy proposal be dropped when the council meets next Monday (1/12) to vote on the issue.

In addition to a trader vote, anybody could put in a submission either for or against the levy – 36 people put in submissions against the proposal, while only five wrote in support.

city centre_6
Empty shops in Warrnambool’s CBD are a result of a downturn that is proving hard to turn around.

[dropcap style=”font-size: 60px; color:#A02F2F;”] T [/dropcap]his is nothing short of a crushing defeat for the levy and a remarkable result for the Facebook-based Warrnambool Traders Action Group which marshalled the “no” vote.

Let’s not forget that the weird voting system applied by the Local Government Act meant that only traders who objected to the levy had to physically vote.

Those who didn’t respond were seen as being in support of the idea, even if, for example, they were interstate, sick, or may have been too busy or otherwise distracted by life events to put pen to paper.

Given this, 688 objections and 36 submissions against the levy is a huge show of dissatisfaction and an indication of how angry most traders are that the idea made it this far.

Because let’s be frank, the proposal never got off to a good start.

shops_2
While the levy idea was new, some of its proposed projects – like a shop local campaign – were not.

[dropcap style=”font-size: 60px; color:#A02F2F;”] B [/dropcap]luestone readers will recall that most traders only discovered the full extent of the levy after reading our story back in May, when it was revealed that Commerce Warrnambool wanted to raise $600,000 a year by applying a compulsory levy to all traders, including those in the industrial estate.

The levy would be in place for five years and rise by 5 per cent a year, with Commerce Warrnambool in charge of deciding how the money would be spent on promoting the city, encouraging people to shop local and lobbying on behalf of business.

Nobody doubts that local business needs a serious boost, but asking them to fund a newly formed body that had yet to demonstrate its capabilities in marketing, promotion or advocacy was ambitious, at best, and naive at worst.

After a trader backlash, led by the Warrnambool Traders Action Group, the levy total was halved to $300,000 a year and capped at $300 a year per business.

Despite this, the proposal failed to ignite any excitement and the revised Commerce Warrnambool business plan contained very little that had not been tried before, such as shop local campaigns, Christmas decorations and car raffles.

The talk around town – and we heard it everywhere we visited – was not how great the levy idea was, but how to get rid of it.

traders_4
Warrnambool still needs a wide-ranging conversation on how to revive its retail heart.

[dropcap style=”font-size: 60px; color:#A02F2F;”] G[/dropcap]iven the council has since received only five written submissions in favour of the levy, it appears that even the 12 members on the Commerce Warrnambool board have not been inspired to each write a letter of support.

And so the levy will – or should – be put out of its misery on Monday.

The question now is where to from here for Warrnambool business? As we wrote last week, the latest local business survey indicates these are glum times for many businesses, which is such a contrast to what we saw when travelling through Traralgon earlier this week.

This slightly smaller city than Warrnambool was jumping: a few empty shops, yes, but still bustling.

Traralgon is the biggest city between Pakenham and Canberra and Warrnambool is the biggest city between Geelong and Adelaide: they should both be thriving.

Could it be the free, timed parking in Traralgon that helps? Lower rents? A mix of big-name stores (Officeworks, Big W, Harvey Norman etc) and niche traders?

This is the conversation we are still yet to have.

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Trader levy halved – a victory for voices

Soul_Shopping_2
Commerce Warrnambool has heavily revised its plans for a compulsory levy to try and lure shoppers back to the CBD, but will its ideas win over traders? Image: Soul Shopping.

 OPINION

[dropcap style=”color: #a02f2f;”] I [/dropcap]t has been a long and often heated battle, but the proposed compulsory traders levy to raise funds for Commerce Warrnambool is now fully transparent and more realistic in it aims – purely through the power of grassroots action.

In a revised motion to go to the Warrnambool City Council on Monday (Sept 1), the annual levy – which will operate for five years – has been halved from $600,000 to $300,000 and no trader, be they commercial or industrial, will be asked to pay more than $300 per year, compared to up to $6000 in the initial plan.

Commerce Warrnambool President Tony Herbert had hoped the council might kick in the remaining $300,000 from general revenue, but this has not happened. Instead, Commerce Warrnambool has gone through its budget and emerged with a more modest plan to promote and market Warrnambool.

For starters, the budget for a full-time executive officer, support staff and other management and communication costs has been cut from an initial $200,000 to $95,000, with a suggestion that the executive officer could be either full or part time.

This does away with concerns that the levy would do little more than pay for the salary of someone sitting behind a desk, enjoying a very nice job for the next five years.

Advertising has been cut from $120,000 a year to $75,000 and plans to take on the Warrnambool Business Awards and attend the Regional Living Expo – both of which are currently handled by the council – have been scrapped.

a-frame traders
The promotions may not be simple as this one, but Commerce Warrnambool has outlined its plan in more detail. Image: Unknown/Facebook

[dropcap style=”color: #a02f2f;”] I [/dropcap]mportantly, Commerce Warrnambool has also set down – for the first time – very clear projects that will be funded by the levy.

They include three promotional activities in the first year for a total cost of $80,000: a shop local car giveaway; a spring produce promotion and a Christmas promotion.

It also includes projects for business support, education and networking: four professional development workshops (total cost $20,000) and four networking activities (again $20,000).

The strange idea of raising $100,000 each year toward “an infrastructure project” has also vanished, thank goodness, because this was fraught with difficulties around who would decide what project was worthy and how it would be chosen.

Will those traders who were heavily opposed to the levy warm to the revised plan?

Perhaps not – remember they never asked for a levy in the first place – but at least now there is air and light around what Commerce Warrnambool will do with the funds. This is far better than its “trust us” approach that came with its first plan that asked for $3 million over five years, despite having no runs on the board in terms of delivery.

city warrnambool
The revised levy proposal sets out a more modest budget and details how the money will be spent to promote the city of Warrnambool and support businesses.

[dropcap style=”color: #a02f2f;”] T [/dropcap]here is also, in the paperwork before council, a very clear process outlined for the first time as to how traders can object to the levy.

Traders no longer have to worry that they won’t be notified (they will, as will landlords) or that they will miss out on lodging an objection.

The documents tell us that, once the notification is given, they have until November 3 to make an objection or written submission (or both) and, if so inclined, can have a say at the council meeting on November 17.

See all of this information above? This is how transparency works; this is proper process, and if all of this detail had been laid out clearly from the very beginning, then perhaps the levy idea would not have fallen into a ditch.

For this we can thank the tenacious grassroots lobbyists within the Warrnambool Traders Action Group for doing their bit to ensure democracy is alive and well in Warrnambool: that when it comes to public funds and accountability, everyone has a right to ask questions, no matter how prickly or how “annoying”.

This is not an easy thing to do in a regional city, where networks are tight and long in the making.

It takes great courage to risk falling out with friends, or customers, or business colleagues because you dare to challenge an idea that you are being told is “good for the city”.

For what its worth, we have had a small taste of the consequences of running against the grain here at Bluestone.

book launch
The packed book launch for ‘Warrnambool; This is Home’ at The Last Coach: an event that never happened, according to the local newspaper.

[dropcap style=”color: #a02f2f;”] R [/dropcap]eaders will know that, last week, I launched my small book “Warrnambool: This is home” and that this book, written before Bluestone began, features 30 iconic Warrnambool places and faces, including Kermonds, Mack’s Snacks, the Materia Bros, Ryans Removals etc.

More than 80 people crammed into the launch at the Last Coach, including members of these wonderful Warrnambool families, but was there a word about it in the local newspaper? No, despite, ironically, two of the paper’s longest-serving reporters being featured in the book.

Why was this so? Because I am part of Bluestone Magazine? Or because we occasionally question the newspaper? (Just as the newspaper’s reporters occasionally challenge us: we consider it healthy debate). I don’t know, but we find it deeply troubling that the only newspaper in a major regional city appears to have a blacklist.

This is why what the traders action group has achieved over the past six months is so important – and its impact goes well beyond what you might think of the levy.

By using grassroots activism – social media, shoe leather, door knocking, posters on windows and whatever else it takes – it has refused to be silenced and has, under considerable stress and strain, won the battle for transparency, accountability and due process.

It has shown that you can speak out, and up, and while it can be exhausting and wearing, you can be heard.

This is what makes it an important victory for us all.

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