September 2011

 

Tasmanian free-camping threatCouncils 'must compete on equal footing'

No move to ban free camping: Regulator

Caravan parks complain of unjust tactics

By Dennis Amor
Have your say

THE Office of the Economic Regulator in Tasmania has denied it wants to outlaw free camping in the Apple Isle.

Chairman of the Economic Regulator Glenn Appleyard told Caravanning News there was no recommendation to ban free camping, adding: "It can’t do this anyway."

The assurance came after the independent Regulator investigated four complaints from private caravan park operators over councils providing camping at a nominal fee or free of charge.

It decided that Kentish, West Coast, Latrobe and Central Highlands councils had acted unfairly against the parks by providing free unpowered caravan and camping sites.

A quick check by Caravanning News indicated that powered sites in Tasmania cost from around $20 to $45 a night while unpowered ones were up to $5 cheaper.

Tourism Industry Council of Tasmania CEO Luke Martin reportedly said he understood that councils were trying to do the right thing by providing free camp sites to encourage visitors to their regions.

Mr Appleyard said one of the Regulator's roles was to investigate complaints from private businesses which could not compete on the same footing as government bodies providing the same services.

"This usually comes about because the government body has not taken into account rates and taxes that a private operator has to pay," he said.

"With caravan park services, the private operator sets their prices to cover all costs, including rates, taxes and public liability insurance, and adds a profit margin.

"To compete on an equal footing, the local council should also be taking these costs into account. If a council is offering free or reduced cost camping then it is meeting the costs from other sources such as ratepayer funds.

"This gives the council a competitive advantage over the private operator and could ultimately drive the private operator out of business."

The Regulator recognised that, particularly for larger touring groups, private caravan parks may not have sufficient space to cater for all visitors.

"The Regulator also accepts that many motorhome travellers don't require the range of services offered by private caravan parks," Mr Appleyard said.

"However, neither of these points changes the fact that councils need to charge prices that reflect the cost of providing camping facilities under what’s known as 'competitive neutrality principles'."

He said that with each of the four complaints the Regulator had considered whether the council and the private operator were 'competing on a level playing field' in providing camping services.

"In all four cases the Regulator found that the councils were breaching the 'competitive neutrality principles' because the councils were not taking into account all their costs in pricing their camping services," Mr Appleyard added.

Local Government Minister Bryan Green, who ordered the errant councils to apply the principles, afterwards said Tasmania was still "very much open for business" for caravan and motorhome tourists.

"Tasmania has long been an attractive destination for people who enjoy freedom camping or having parking facilities available for overnight stops for caravans," he said. "We will continue to promote this market to our world-class destinations."

Mr Green said the State Government was working with local government, tourism operators and industry stakeholders to look at the broader issues and propose a statewide policy and uniform pricing methodology for councils for freedom camping and self-contained caravans and motorhomes.

"I am aware that councils are keen to support economic growth in their municipalities, particularly in regional areas where they and Tourism Tasmania are actively encouraging caravans and motorhomes to visit.

"It is also crucial for these smaller communities to attract and maintain viable tourism businesses, including privately-owned caravan parks.

“The Regulator’s findings only ensure that there is a level playing field for private operators."

Mr Green said he understand that some councils found it difficult to balance the competing demands of regulatory requirements, economic benefits, consumer demands and ratepayer requirements when providing low-cost or free parking sites for caravans.

The government would develop a 'directions paper' to support councils in their decision-making and propose a statewide policy and uniform pricing for freedom camping and self-contained caravans and motorhomes.

Mr Green said he expected to receive the paper by the end of this month.

"There will be an opportunity for key stakeholders, such as the Caravan Industry Association of Tasmania, the Caravan and Motorhome Club of Australia and the Tourism Industry Council, to make submissions," he added.

Representatives from the Department of Premier and Cabinet's Local Government Division, the Local Government Association of Tasmania, the Department of Treasury and Finance and Tourism Tasmania are collectively preparing the paper.

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