Republic Hospitality CEO Blair Impey. PHOTO: ARCHIVE
Hospo operators to take council to High Court over al fresco fees
Queenstown hospo businesses are launching legal action over Queenstown council’s al fresco dining charges.
Republic Hospitality boss Blair Impey tells Mountain Scene they’d hoped council would use "common sense, defer and review" the proposed increased outdoor dining fee charges — which come into effect on December 1 — but they’re refusing to budge.
In a statement, a council spokesman says the current (2024) outdoor dining policy states it’ll be reviewed every three years.
"Council has no plans to review it in the meantime."
While council initially advised businesses of increases to use public spaces for outdoor dining in 2019, that was put on ice due to Covid.
Consultation was opened earlier this year — but associated fees weren’t shared till it was finalised.
Dining charges range from $600 per square metre in The Mall to $250/sq m in other parts of the town centre.
They’re also charging a $450 licence-to-occupy application fee for each establishment with an existing licence.
Hospitality New Zealand head of membership Darelle Jenkins says the membership organisation’s position remains unchanged.
"The council’s consultation process wasn’t transparent."
Impey: "They talked about things like what umbrellas would look like, but never mentioned anything about the fees."
It’s on that basis Impey says the legal challenge, to the High Court, will be made.
"Literally we found out [yesterday] that we should [take action]," he says.
"I’ve already got legal advice as to how this process goes, so we will be going to the lawyers."
One of Republic’s venues, Soda, has been slapped with a $51,000 bill — that’s up from the $3200 the business currently pays to have outdoor seating overlooking Lake Whakatipu.
"My understanding, from legal advice, is if you apply to the High Court for a judicial review, that effectively injuncts us from paying the increase," Impey says.
"We just wait until a decision is made as to whether we should pay that increase, or not."
Jenkins says HNZ’s continued to work with councillors on the issue, and says they "now understand why this is a big deal for the sector" and remains hopeful they’ll reconsider the fees.
Queenstown Business Chamber of Commerce chief executive Sharon Fifield says they’ve suggested to council the timing is "really poor".
"It’s come at a really tough time.
"From what I understand, council staff aren’t budging on it ... but hospitality businesses ... haven’t budgeted for it, they haven’t forecast it, it’s come as a bit of a surprise, the quantum of the increases being so large."
Fifield agrees businesses have battled through Covid and have endured particularly soft winter and spring trading, and have been preoccupied trying to "keep the doors open and the lights on".
"They’re not reading the fine print of policies all the time, as council might expect.
"They need to be properly consulted when they’re being hit with a fee increase of this proportion.
"They don’t have endless amounts of money, as it might seem, they have been doing it tough.
"I just think, from council, there needs to be a bit of recognition of that — they want the CBD to be vibrant, they need to support that to happen."
Queenstown mayor Glyn Lewers couldn’t be reached for comment yesterday.
