Traders angered at increase

Operators of a mobile trading business took the opportunity presented council's annual plan hearings to personally tell councillors what they think of the 230 per cent increase in fees for the city's mobile traders.

Ricky Lee and Anna Lawrence spent thousands of dollars fitting out a caravan for last summer's crowds, only to be denied access to roadsides by the city council on December 27.

Dutch Queen owners Anna Lawrence and Ricky Lee are opposing the proposed 230 per cent increase in fees.

Because of city council rules they can only operate at private events at the moment, and are now being asked to pay an annual fee of $750 instead of $250.

'Not only are we paying for next to nothing but we are paying an increased amount,” says Anna.

Their regime shows quite clearly that the city council wants to discourage the use of mobile shops. It reflects a short-sighted view as the council continually fail to recognise that if managed properly, mobile shops can enhance a city and build a greater sense of community while increasing small businesses, says Anna.

Cr Gail McIntosh told her the increase was to cover staff time.

Anna says the result will be that staff will have more time, because there won't be as many applications to process.

Putting the price up from $250 to $750 a year is excessive and can only be taken as an indication that city council is not interested in encouraging mobile traders, says Anna.

Read more about the pair's mobile trading here.

Another submitter Richard Prince says his business will no longer consider paying for the council licence.

He makes mobile kitchens for use at events - Mobella Kitchens on Wheels Ltd - and says the $250 a year charge was something they would pay, but they will not pay the increase.

Mobile traders caravans have to meet stringent criteria, says Richard. They have to contain all water and all waste.

'This is not a cheap option,” says Richard.

Mobella's main business is functions. They currently hold a mobile trader's licence, but they don't need it.

The argument that the fee increase will make things fairer for rate paying fixed shops he demolished, saying if the council is so concerned about the ratepayers livelihood they should have reduced rates – rather than reducing the competition by crimping mobile traders income, or at worst putting them out of business.

Shops pay rates for services; water, sewerage, storm water, power. Council's role is to charge for the services they provide – and no services are provided to mobile traders, says Richard.

Jackson Maynard, trading as Mr Barista, will also be speaking to his submission against the fee increase, saying the 230 per cent licence increase is on the back of a series of council imposed restrictions to trade.

He's been restricted from trading in certain locations. Where he trades was first restricted to one hour, then 15 minutes. The number of traders per park or reserve is also restricted, with additional costs imposed in the form of tenders for limited spaces and additional fees charged for some locations.

Now the fee is increased 230 per cent and he wants to know what he gets for the money.

Kathy Steed's submission wants the council to revoke the right of mobile shops to take up precious car parks at Mount Maunganui's Main Beach.

There are now 12 car parks reserved for traders and she says they give the impression of a shanty town.

'It is truly horrible and saddens me greatly,” says Kathy.

She says a family car loads going to the beach with all the associated water toys really need the car parks. The slopes of Mount Drury would be a better place for them to blend in.

17 comments

Tough

Posted on 06-05-2014 07:57 | By The Sage

They don't have to pay rates and other levies business owners do with fixed premises. Comparatively, $750 does not seem excessive.


They want the best of both worlds!

Posted on 06-05-2014 08:14 | By monty1212

How do they explain the fact that they are making loads of profit without having to pay rates as normal traders do? $750 is a very cheep option in my opinion!


I

Posted on 06-05-2014 08:33 | By Capt_Kaveman

dont want any traders in the Mt beach carparks, they need to be over on the flat grass area of Mt Dury, thats the councils hand over screwed up last year on giving bk the hill to Doc


Try paying thousands $ rates

Posted on 06-05-2014 11:19 | By Annalist

No problem with mobile traders but they need to pay a decent chunk of money for the privilege. Imagine what it's like trying to run a business from a shop that pays rent, rates and insurances. $750 a year seems quite cheap compared to what most businesses pay in rates. And as a mobile trader you can choose only the most profitable times to open.


Very Tough

Posted on 06-05-2014 11:52 | By Socrates

I agree with The Sage, all the other permanent businesses are subject to fixed costs all year around. This seems a rather small fee in relation to what these businesses pay and in a lot of cases the mobile business are in direct competition to them. Perhaps a tighter area of operation would be wise instead of the mobile operators being in such close proximity to permanent businesses where they are not required?


Make it easier

Posted on 06-05-2014 15:19 | By Mariana

Setting aside 12 car parks for the convenience to buy food & drinks at the beach is NOTHING. These traders do not use any services from the city and a 230 % fee increase seems like a lot. How many cups of coffee would you need to sell then before showing a profit? Remember these traders do not have extensive menu's. Gosh, those few traders at the beach can hardly be compared to a shanty town!


kiwiana

Posted on 06-05-2014 15:37 | By YOGI BEAR

Mobile shops are part of Kiwi land, to tax them out of the world is really bad. The shops permanently fixed can not cope with big/busy times anyway so what is the issue here. Just a bunch of officials needing something to do and everyone else pays.


What a shame

Posted on 06-05-2014 16:29 | By sojourner

What a shame to be landed with this kind of excessive increase for such a mindbendingly stupid reason after investing so much money to get started in a small business. The reason makes no sense for the amount of the increase. If I were them I would move to another city and make a go of it there.


Fees

Posted on 06-05-2014 17:39 | By Tyraone

How dare the greedy Tauranga Council raise the mobile vendors fees they provide an excellent service leave them alone. Like everyone else they are trying to make a living at least they are prepared to work. GREEDY MONEY HUNGRY TAURANGA COUNCIL.


We need beach foodies!

Posted on 06-05-2014 17:50 | By donmac

The mobile traders that I see are hundreds of metres away from the retail foody shops at the Mount and only cater for walk-by customers - a necesary service for beach users. Hardly a threat to the always-busy places like Coffee Club and Slowfish. They provide what has become a niche service that successfully complements the static shops. Pleae, please, don't put them out of business!


Fee is supposed to reflect costs

Posted on 06-05-2014 18:05 | By Murray.Guy

230 per cent increase in fees for the city's mobile traders is supposed to reflect 'actual costs', not act as a deterrent or as a revenue collector. Just one more example of this City Council choosing NOT to apply the level of integrity to it's processes the community demands. It is beyond the realm of reason to expect us to believe that from one year to another staff time has increased 2.3 times! We all recall the outcry when fees for brothels were significantly reduced, the TCC response being, the fees must reflect 'actual costs'.


Council Greed

Posted on 06-05-2014 22:02 | By EyeSplice

Since the Mobile Vendors are NOT using any form of service which would be supplied in a building (toilets, water, etc)and are on four wheels just like any other truck or van, they should not be charged such exorbitant fees to run their business. Since they already live in the area, they are paying their rates. Council needs to be able to clearly justify the necessity to increase such charges - Or is transparency something that Council lacks??


Here we go again

Posted on 06-05-2014 22:03 | By Ross01

And I thought that we had elected a group of councilors sympathetic to the cause of making this city a vibrant and happening place. Keep it up council and slug everybody for what you can. Here's a thought council; install water troughs at the beach roadside and charge people to wash their feet so they don't carry sand on to your roads. That would save you time and expense in sweeping the roads


Rubbish

Posted on 06-05-2014 22:13 | By The Sage

What a lot of bollocks. I wonder if any of the comments above would be made from retailers, cafe or restaurant owners? I think not. If they really want to run a business so badly go and rent premises, buy equipment, hire staff and take all the real risks business owner have to take along with paying rates and every other levy that is imposed on them. I think back to when they used to run craft markets in the red square in Tauranga and I used to feel sorry for the retailers back then. All care and no responsibility. Harden up.


$750 probably does represent the true cost

Posted on 07-05-2014 10:54 | By Annalist

But in any case it's cheap compared to paying rent on a shop every day of the trading year plus rates and insurances. And funnily enough those rates pay for all sorts of things around the city. Perhaps mobile traders should pay rates on the area they occupy. That would be more fair. Or should shopkeepers close down and all become mobile traders


$750 is too cheap, where's the integrity?

Posted on 07-05-2014 15:30 | By Councillorwatch

Compare that to the rent and rates everyday businesses pay. Even worse, ratepaying businesses pay rates to support things like tourism development and events that attract tourists. Hope these councillors stand by the ratepaying businesses of Tauranga. Let the mobile traders trade of course, but they should pay a decent share just like others. Were ordinary ratepayers subsiding the true cost of mobile trading in the past???


$750 is heaps too more, where's the integrity?

Posted on 15-05-2014 23:51 | By YOGI BEAR

What do you get for it? What pay back or return is in it? looks like just a means to keep a few more officials overpaid and nothing more to it than that.


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