Competitive neutrality questioned
• Competitive neutrality has been questioned regarding the Council’s Bookeasy platform for Blue Derby.
By Taylor Clyne
September 28, 2022
The second element to the hiked waste charges for short term accommodation owners across the municipality surrounds the remission of that levy if such businesses list on the Dorset Council’s new booking platform ‘Bookeasy’.
Business owners are questioning if the move is compliant with the state’s policy as the Council’s model is in direct competition with other booking platforms such as Airbnb and Stayz.
The remission is made at the discretion of the general manager Tim Watson and works to give Council a clear advantage in the business space.
Derby, Winnaleah and Branxholm STA owners having the potential to claim back the $3020 fee if they list on the Council’s site.
While Bridport, Scottsdale and Tomahawk can claim back $1920, however it is less appealing for these businesses given their location and the Bookeasy site being targeted at mountain biking.
The state governments policy states that government businesses should not enjoy any net competitive advantage simply as a result of their public sector ownership and should compete on fair and equal terms with businesses in the private and community sector.
Derby business owner Mark Boxsell said the venture didn’t pass the pub test.
“The council are using a “waste levy” to force people to sign up to their own booking platform which gives an unfair advantage to them over other booking platforms,” he said.
“Maybe rather than bullying people into signing up just make sure the booking platform is easy to use for guests and hosts and then accommodation providers will come on board.”
“Don’t think I’m against finding ways of putting money back into the trails and infrastructure “I think it is beholden to us do that, but it has to be done properly in that is fair to all accommodation providers on a pro rata basis, it has to be legal and watertight so it can’t be dismantled by the big platforms.
“It has to pass the pub test,” he added.
Mayor Greg Howard said he was very much aware of the competitive neutrality laws.
“As a government organisation you cannot use the power vested in you to compete unfairly in the business market,
“However, this only applies to competitors who are Australian based companies or organisations,” he said.
“Rival platform accommodations like Airbnb and Stayz are international companies therefore competitive neutrality does not apply.”
Federal Member for Bass Bridget Archer expressed that she had received a significant amount of correspondence from very disgruntled ratepayers around the fairness and equity of this charge.
"I urge the Council to engage constructively with stakeholders to find a resolution to this issue.
“Councils do have obligations in terms of competitive neutrality but at this stage, I am unsure how this applies to a digital commerce environment,” she concluded.