Eateries face outdoor table fee hike

Octagon eateries are far from satisfied with the Dunedin City Council's decision to serve up a 25% increase in outdoor table fees.

The change, which comes into force today, will see cafe, bar and restaurant owners asked to pay $125 each year - up from $100 annually - for each outdoor table with seating.

It is one of several council fees and charges, ranging from residents' parking permits to dog registration fees, which increase today, as a result of changes introduced with the 2010-11 annual plan.

However, Octagon business owners spoken to yesterday said they were not happy at the increase.

With some of the businesses having more tables outside than inside, the increase could add hundreds of dollars to their costs.

"I wouldn't say happy is the word I would use," Mash Cafe & Restaurant owner-manager Jo Verberne said.

Her business had 12 tables outside, and 10 inside, and so was unable to avoid paying the extra fee.

"If we didn't have them [tables] out there, we would lose half our business. It's just a cost we have to bear."

Barakah Bar & Tapas manager Duncan Robertson said the timing of the extra cost could not be worse.

"It's in winter ... it's a lot more difficult to incur because we are not as busy."

The business had nine tables inside, and 24 outside, shared between Barakah and Di Lusso Bar next door, he said.

"Two-thirds of our restaurant seating is outside, so it's not particularly great for us. It's a big deal. It's a lot of coin," he said.

However, council development services manager Kevin Thompson defended the charges, which were the result of a decision by councillors last year, signed off during 2010-11 annual plan deliberations earlier this year.

The table charges were introduced in the 2004-05 year at $100, and had not increased until today, he said.

The costs compared favourably with other centres, such as Christchurch and Queenstown, and were small when measured against the benefits Octagon businesses received from expanded outdoor dining areas, he said.

"It's opened up, at a very cheap rate, the opportunity to seriously expand their businesses.

"Hence an extra $25 a year is not a lot. Personally, I think it's very reasonable."

The full list of new council fees and charges came into force this morning, and would be in force until September 30.

A second list would be prepared by mid-September and come into force when GST increased from 12.5% to 15% on October 1, although not all fees would increase again.