Business Hunter says it expressed concerns to City of Newcastle about a proposed outdoor dining policy, despite the council claiming the organisation expressed "strong support" for the concept.
Newcastle council has adopted a new annual fee for businesses wishing to keep tables and chairs outside permanently, ranging between $4000 and $7000 depending on the size of the area.
The council told the Newcastle Herald on December 29 the draft policy received "strong support from key industry stakeholders such as Business Hunter".
But Business Hunter sought to clarify its stance after that response, saying it and other industry groups raised a number of caveats in expressing 'in principle support' for the proposal when it was first discussed.
"The caveats were particularly focused on the capacity of business to pay a fee which previously did not exist," Business Hunter CEO Bob Hawes said.
"We also were keen to understand how this proposal would fit into broader intentions to implement a range of strategies the City of Newcastle has adopted concerning business attraction and activation to make sure there isn't a conflict or a disincentive based on the charges under this policy."
The Herald reported on December 30 that several hospitality businesses had panned the fees, saying they were exorbitant and discouraged them from pursuing outdoor dining.
Newcastle's three Liberal councillors voted against the policy when it was approved in December.
Liberal councillor Jenny Barrie said $4000 was "far too high" for a small business budget.
"Business owners would not even be able to spend that amount on marketing to promote their business," she said.
"Why support a policy that hits small businesses who are operating under financial stress already?
"Many are managing to operate with staff shortages, high operating costs and some are experiencing a reduction of customers due to the extremely high cost of living."
Mr Hawes said Business Hunter was keen to work with the council to grow Newcastle's visitor and night-time economies.
But he said City of Newcastle's policies needed to complement night-time economy and business activation reforms being proposed by the state government, as well as foreshadowed changes to business improvement district arrangements.
"The city still has before it an opportunity to realise further dividends and community benefits from the massive public and private sector investment that coincided with the revitalisation and we don't want relatively minor policies or charges to potentially cut across or diminish these opportunities," Mr Hawes said.
"Accepting that the issues are complex it is far more effective to consider policies and charges in this broad context and if possible, avoid ad hoc or one off changes that risk stifling progress.
"We also need to remember that this policy will apply to the entire Newcastle local government area and what might be right for a busy inner-city street location may have dire consequences in local suburbs, trying to build and retain local business."
