Small business in rate danger

One of Bunbury’s biggest property owners claims the proposed changes in rates by the Bunbury City Council will hurt the small business sector.

Citygate Properties director Geoff Prosser said under the council’s proposed changes he would pay $672,899 in rates, an extra $140,000 or 26.3 per cent, next financial year for the Homemaker Centre.

Under the council’s proposed changes, properties in Bunbury will have an average rate increase of 6.6 per cent.

The plan will mean CBD property owners will pay less rates, but industrial and other commercial property owners, such as Mr Prosser, will pay more.

Mr Prosser said he would have to pass this extra cost onto the tenants, which would hurt small business.

“What the council has to realise is small business tenants have to pay and small business trading is not that flash at the moment, ” he said.

“I have put a submission to council to say the proposed rate increase is an unjustifiable, unfair and unwarranted burden on small business.

“It is not sending the right message to make Bunbury competitive. Bunbury is becoming uncompetitive with surrounding shires.”

Mr Prosser said the rates for Minninup Forum would also increase by 35.9 per cent.

The owner of Martin Burns Bedroom Furnishings in the Homemaker Centre, Martin Burns, said the increase would make his rent unaffordable.

“As a small family business we budgeted for five per cent not 26 per cent, ” he said.

“We can’t afford this hike, but we are forced into it because we have to pay the rent.”

Bunbury Mayor Gary Brennan said the council recognised the importance of small business to the economy, with the sector being the biggest local employer.

“Council staff have attended forums to provide advice and receive feedback from the business community and only a handful attended, ” he said.

“There was very little response to the initial submission period regarding the change to a single rating system.

“To date there have only been a handful of submissions received regarding the proposed 2014-15 rates.”

Public submissions close on July 17 and a final decision on the rate increase will be made by the council at its budget meeting on July 30.