GLEN Innes retailers have labelled the council’s proposal to offer national retailer Dimmeys $50 000 to locate a store in town as “flawed” during a public submission at last Thursdays council meeting.
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Australian discount department store chain Dimmeys had asked the Glen Innes Severn Council to provide a “monetary incentive” of $50,000 to establish a store in town.
Premier Store Glen Innes Manager Margaret Ferris said if the proposal were to go ahead council would be offering an out of region retailer an advantage not afforded to local rate paying businesses.
“Anyone is welcome to open a business here, but unfair competition leaves a very bitter taste in my mouth,” she said.
“Dimmeys is asking for help to establish a business in Glen but the Premier Store and Furnished in Glen did not get any support from Council to established a business in town and these businesses are owned by local people with ethical business practices who use their profits to reinvest in the local area, it is highly unlikely Dimmeys profits will be reinvested here.
“If this business requires such a high level of support to establish here than one would have to question what the longevity of it will be.”
Business in Glen (BIG) President Jim Ritchie was more conciliatory towards the council but still expressed concern about the due diligence council had done before floating the proposal.
“BIG feel the council are to be commended on the motivation behind dedicating this money in the budget for business development and stimulus, this is non-conventional thinking which often drives innovation,” he said.
“We are concerned though that Dimmeys is producing something everyone else has got; we see a potential risk to existing jobs in town through competitive pressure on market share.
“Most businesses who have established in Glen Innes have done so via their own funds or possibly an incentive via reduced rent from the landlord.”
Mr Ritchie said it is incumbent upon council to ensure any stimulus leads to investment and commitment to the virtues of the community, a diversity of business and growth and opportunity for townsfolk.
The Glen Innes Severn Council will ask a representative of Dimmeys to address the next council meeting and answer the concerns of local businesses before proceeding any further.
