3 March 2000

The Ashburton Shire Council is aware of the special circumstances of living in a remote locality, and the effect that this has on the availability of certain goods and services for the community. The Shire’s Home Occupation Policy reflects this need, and encourages small businesses to establish their market.

At the ordinary meeting held on 15 February 2000, Council reviewed its Home Occupations Policy and reiterated its support of this policy, considering that it provides for improvements in the standard of living in its communities.

The Council’s review of its Home Occupations Policy was prompted by recent criticisms from the business community in Tom Price that the policy was detrimental to some businesses which have established within the commercial area of the town centre. It had been suggested that these businesses were being placed at a disadvantage when trying to compete with Home Occupations because of the overhead costs faced by these businesses which Home Occupations did not have to meet. These included Council rates on commercial premises, staff costs and sometimes more stringent regulatory compliance costs.

Commenting on the review of the Council’s policy, Shire President Councillor Brian Hayes said "the Council needs to be mindful of National Competition Policy Principles which effectively prevent the Council from restricting competition in the marketplace unless it can be demonstrated that the benefits to consumers and businesses by applying a restriction outweigh the costs".

"Council supports the objectives of the National Competition Policy where competitively neutral principles are applied to businesses. This Policy involves the removal of legislative restrictions to increase the level of competition in the economy and to assist in producing improved job opportunities", he said.

"Whilst it is accepted that Home Occupations do enjoy some advantages to businesses operating from the commercial precinct they are also significantly restricted by the Council in the scale of their operations, their inability to employ staff outside the family of the business proprietor and limitations on the number of clients who can attend the business at any one time" Cr Hayes said.

He added "We live in a remote part of Australia where access to goods and services is significantly restricted. The Council takes the view that cottage industries are a legitimate form of commercial enterprise which serve identified needs in the community. It is a simple case of demand and supply".

"The Council is concerned to ensure that it does not unnecessarily interfere in normal market forces", Councillor Hayes concluded.

For further information, contact Council’s Manager Technical and Development Services, Mr Jason Gick on (08) 9189 1029.