Two Hunter business advocates have spoken out against Newcastle City Council's new $900,000 grant program for events or projects designed to draw more people into areas where traders are struggling to make ends meet.
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Council CEO Jeremy Bath announced the funding pool on Wednesday for the inner city, New Lambton, Hamilton and Wallsend, with money coming a special rate levy businesses pay in the city and some suburbs.
In the statement announcing the program, council said it had terminated funding agreements with business improvement association Newcastle Now and Hamilton Chamber of Commerce "due to significant governance breaches".
But Newcastle Now chairman Edward Duc and Hamilton Chamber of Commerce president Nathan Errington said in a joint statement on Friday that businesses across the city would prefer temporary rate relief rather than grants for one-off events or projects.
They said council should use its 2019/20 budget surplus of $11.95 million to "provide meaningful rate relief to struggling businesses" in the Newcastle local government area.
They also said the special rate levy council collected from businesses in the CBD and some suburbs should be scrapped.
"Events are great, but not in isolation or as one-offs," Mr Errington said.
"We need infrastructure renewed in our smaller town centres and a long-term vision to create sustainable jobs throughout the LGA.
"That is the role of council, yet they are more concerned with attacking business and removing any voice they once had.
"All we are asking for is some temporary rate relief during these very difficult times. Beaumont Street is decaying by the minute."
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