LOCAL trader Nick Osborne has sent the following letter to business owners across the town about the Penarth Business Improvement District (BID) proposals and ballot:

You will shortly be receiving in the ballot post your ballot paper for the proposed Penarth BID.

We believe that it is in the best interest of Penarth businesses that a NO result is returned.

In brief here are our reasons:

Costs to businesses. If you vote YES or fail to vote you could be legally required to pay an additional two per cent of your Gross Rateable Value in one lump sum in April and for the next five years. This will mean a percentage increase in your rates payable of much more, possibly a five per cent increase. Will you benefit? Further, perhaps you can afford this, but can your neighbour? You will be committing not only yourself, but your neighbouring business as well.

It’s undemocratic. BID companies override democratic principles by transferring rates-funded council responsibilities to the hands of management companies motivated largely by business profit. Creative boundary drawings and levy discounts for big companies create an imbalance in the ballot towards a “yes” result. Here in Penarth, Tesco has been given a huge 74 per cent reduction in its levy fee whilst still retaining their full “aggregate rateable value” voting power. There are 227 businesses in Penarth that qualify to vote. If only 50 of them responded and 26 vote yes, then the BID will be adopted, which would result in 11 per cent of traders dictating to the majority. Is that fair?

Running costs. If the BID goes ahead your levy would produce £85,000 in the first year. Administrative costs alone in this year would total in excess of £30,000. Is this value for money? The Town Council has already spent £20,000 of our money in promoting the BID with the ultimate aim of reducing the Vale Council’s costs in supporting town traders. Since local authority services (police, library and town council) will also have to pay, domestic rate payers are also indirectly affected.

Little active enthusiasm for the BID. Past experience suggests that very few traders have the time or inclination to contribute voluntarily as illustrated by the exceptionally poor attendance at BID meetings. Only two or three qualifying businesses attended most BID meetings and only 12 out of the 227 that were eligible to vote were at the final pre-ballot meeting and some of those were against the BID. Would you become a Director?

BID failures. There are numerous examples of BID failures and we have within our own town a company which tells us that in the BID areas of Swansea and Bath (where the company has shops) “It’s a disaster”. Does this bode well? Braintree has had its BID disbanded after only seven months, Weymouth BID is suffering serious issues, whilst in Canterbury 50 traders are being taken to court for refusing to say the levy.

Mid-sized businesses will bear the very brunt of the fees. Large companies are either left out completely or given huge ‘discounts’ whilst small businesses do not have to pay at all. Also some businesses in the area will suffer a competitive costs disadvantage to similar business just outside the area.

Some BID businesses will gain nothing but will have to pay, eg businesses based within the area but whose customer base lies beyond, such as internet based businesses, industrial businesses, non-visitor/non-tourist businesses.

We want to see Penarth develop to become a vibrant and thriving town just as much as any other business or resident. However, we firmly believe that the BID proposal is not the right way forward and could do more damage than good. We hope you will vote NO in the forthcoming ballot and that thereafter we can all move on to a fairer and better way of improving commerce within Penarth- and do it ourselves.

You have plenty of time to vote (until March 2) – so there’s no need to rush. Your vote will affect your neighbour. Think hard before you vote – but do vote!

From Nick Osborne and on behalf of 30 other businesses.

If you wish to discuss this matter further please call Nick on 02920 705924.

An open blog website for your posts and comments can be found at www.questionpenarthbid.org