Cronulla Chamber of Commerce members have unanimously voted to suspend payment of the Cronulla special rate levy until they have a say in how it is spent.
A decision by Sutherland Shire Council to change the way Cronulla’s special rate levy is distributed away from promotions and towards infrastructure improvements has angered chamber of commerce members.
At the chamber meeting this morning at Cronulla RSL Club, council staff told members that funds raised from the levy would be held in reserve and they would have a say where it would be spent in Cronulla.
But chamber members were in no mood to accept the changes.
Chamber president Mark Aprilovic moved a motion that payment of the levy be suspended following the Cronulla Spring Fair.
“We are not paying it,” he said. “I’m happy to pay the levy if there is a purpose.
Unless there is a purpose, we should suspend it until it is redirected back to promotions.”
The levy was introduced in 1988 to promote Cronulla CBD with funds to be distributed under the guidance of Cronulla Promotions Limited (CPL), a company consisting of four directors voted by the chamber and one council member.
The levy raised $541,000 in 2015/16 from 310 ratepayers in the Cronulla CBD to be spent on events and promotions.
This has been matched by council to stage events including the Cronulla Easter Show, school holiday entertainment, Spring Festival, gift card promotions, Christmas entertainment and Mother’s Day.
The chamber meeting was addressed by Fred Williams who was secretary of the Chamber of Commerce for a number of years and involved in the creation of the Mall.
He spoke about formation of the committee to turn Cronulla into a Mall in 1988 and the setting up of Cronulla Promotions Ltd.
“Money should not be taken from the Special Rates Levy when it was specifically set up for the Cronulla Mall,” he said.
A council staff officer said that while the council had decided not to continue using the money raised by the levy for promotions, the money would be used in the Cronulla area.
The council would work with the Chamber of Commerce on the best way of spending the money.
Chamber member Julia Spiteri of Syltoria Hair Glamour said, “Why don’t we just remove the Special Levy? There is talk of a Cronulla master plan and three years on we haven’t seen anything.
“There will be no Cronulla Spring Fair, no Cronulla Easter Show. I understand changes have to be made but I don’t think it is fair the council took away the CPL and the voice of the chamber,” said Ms Spiteri who was a member of the CPL.
“They want to get rid of the CPL so that no one can keep a check on what the council will do with the money.
“They still want to collect the money but they don’t want to be accountable.
‘’Consulation has been very one-sided. We haven’t had a say, just been told what to do.”
Chamber member Jenny Leonard of Jenerate Financial Planning agreed.
“It seems like a dictatorship at the moment,” she said.
“We are putting money into a marketing plan but there is no plan.”
Chamber member Tony Rea said, “Is it ethical to have a special levy that was instituted by a Local Government minister and then for the council to decide that the levy will be used for another purpose?
“Was there any consultation with the Minister for Local Government before this decision was taken?”
The meeting heard from councillor Carol Provan and candidate Michael Forshaw.
Cr Provan said the council had a new general manager whose role was to make the council more efficient and this was one of the things he felt the council had to do.
“We will find new ways to promote the mall,” she said. “I think we will go from strength to strength.”
Council candidate Michael Forshaw said he could see that Cronulla Mall needs improving.
“But I don’t accept the view that Cronulla doesn’t need promoting,” he said.
“There’s lots of ways that Cronulla could be promoted in the future.
“It looks like this will end events like the Easter Fair which attracts thousands. This is the opposite of promotion.
“You never cease to promote one of your most valuable assets that brings tourists in.”
Mr Aprilovic said the Cronulla special levy was introduced for a purpose, to promote Cronulla.
“Now there is no purpose,” he said.
“We have lost the plaza manager and the funds have been isolated.
“We are in limbo. We need to move forward.
“We should suspend it until it is redirected back to promotions.
“It seems like the only way the council will listen to us.”