The City of Newcastle has decided to limit guaranteed funding for business improvement associations to $100,000 each, per year, while also voting to terminate its funding agreement with Hamilton Chamber of Commerce, which was due to be renewed in July.
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Previously, the $1.3 million collected from a special business rate applied to commercial ratepayers in parts of Hamilton, the CBD, Wallsend, New Lambton and Mayfield went directly to the suburbs' respective business chambers. Now, council has decided to make the majority of that funding open to projects of any "community-minded" organisation that seek to develop and promote those areas. City of Newcastle CEO Jeremy Bath said the changes would increase investment in projects that benefit businesses and improve accountability.
Mr Bath said council's decision to terminate its agreement with Hamilton Chamber of Commerce was based on "significant breaches" identified in a confidential report he had compiled.
"Mr Errington is aware of the numerous allegations that have been put to him and another director over the past few months. It is a decision for him whether he wishes to make these breaches public," he said. "I have no doubt that when a BIA is formed to secure events for Hamilton, that festivals such as Beaumont Street Carnivale will be the number one priority to ensure it remains funded."
President of the Hamilton Chamber of Commerce Nathan Errington said he was "confident" the association had not breached the deed.
"We are incredibly disgusted the City of Newcastle has pulled funding from us. There will be no voice left here for businesses. There will be no Beaumont Street Carnivale because the chamber will not have any funding to go toward this event."
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