The Newcastle Independents say they support replacing the city's controversial business levy with a pool of money from existing commercial rates to spend on boosting sales and jobs.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Independents, who are challenging Labor in the lord mayoral vote and in wards across the city in December's local government elections, announced the policy on Thursday.
They say the city should scrap the Special Business Rate levied on commercial landlords in five precincts and instead use 5 per cent, or $2.9 million, from existing commercial rates on projects and activities across Newcastle.
Two of the Liberals' ward candidates, Blake Keating and Callum Pull, issued a media statement the same day supporting scrapping the SBR, and Liberal lord mayoral candidate Jenny Barrie also said she supported axing the scheme.
The Independents' policy comes after Labor attacked their plan to remove the SBR last week. Labor said scrapping the SBR would be "ripping support away" from small businesses as they recovered from the pandemic.
The Independents countered on Thursday that 5 per cent of existing commercial rates revenue amounted to double the amount raised by the SBR.
"Removing the SBR takes a burden off struggling small business during our post covid recovery and combined with a proposed rates freeze will help all businesses in the LGA," they said.
They said the council had collected $59 million in commercial rates last financial year, up from $40.5 million in 2014-15.
The Independents' lord mayoral candidate, John Church, said on Thursday that the SBR was "never council's money to spend".
"It was always meant to be a levy handed to business precincts to distribute according to their specific precinct needs," he said.
Deputy lord mayor and Labor spokesperson Declan Clausen said the Independents' plan was "spin" and "policy on the run".
"John Church is now proposing to cut revenue while introducing a new spending program," he said.
"How is he going to offset this new program? The community deserves to know what services and jobs he will be cutting to fund his policies."
He said the SBR had funded events such as Wallsend Christmas Carols, the Big Picture Festival, Sci Fi Spectacular in Civic Park and Newcastle Food Month.
"The reformed SBR program is now implemented in an open and transparent way," Cr Clausen said.
The SBR levy, and the business improvement association (BIA) scheme it supported, has been beset by controversy during the council term.
City of Newcastle chief executive officer Jeremy Bath cut off funding to the Newcastle Now BIA in 2018 over what he regarded as its failure to submit business plans and sacked two council staff members overseeing the scheme.
A District Court judge subsequently found Mr Bath had been "plainly wrong" in his reasons for sacking one of the staff members and that Newcastle Now had submitted adequate business plans.
In the 2019, the council set up a panel including lord mayor Nuatali Nelmes and three staff to decide who would receive SBR funds in each precinct.
In the news
- Hunter remains biggest COVID-19 contributor in NSW
- Unrenovated Hamilton East house sells for $2 million
- Charges after gun allegedly pulled outside Denman pub
- GP Access services to be slashed after funding cut
- Car of interest in Stacey Klimovitch Stockton murder investigation
- 'Pretty intense': hero of Kurri Kurri house fire tells his tale
- Knights: Pearce explains why he wants to say au revoir
Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
