2018-08-07 S&O Agenda - Att 1 to Item 7 - Public Interest Test Report

Negative licensing
Local              Existing               Potential            Residents/tenants      Immediate         Tourist              Pensioners’          Backpackers’
government         operators              operators                                   neighbours        operators            representative       Association
                                                                                                                             bodies
Low negative        Low negative          Neutral              Neutral                Low negative      Low positive         Low negative         Low negative
impact              impact                                                            impact            impact               impact               impact

Some benefits       A small reduction     Potential            Two scenarios are      Potential for a   Tourism industry     Potential for an     Potential for an
accrue from         in operating costs    operators benefit    possible. On one       decrease in       should benefit       increase in          increase in
reduction in        would result from     from removal of      hand standards         amenity           through greater      complaints from      complaints from
administrative      removal of fees       barrier to entry     could decline          through loss of   competition in the   residents.           residents.
burden but these    but this is offset    and knowledge of     through removal of     Council power     market.
are offset by the   by higher fines for   “rules” prior to     Council in assessing   to set site
potential for       non-compliance        entry. However,      new operators prior    specific
increased           and a greater         higher fines apply   to entering the        conditions.
complaints and      onus on operators     for non-             market and loss of
loss of fees.       to ensure             compliance and       power to set site
                    compliance.           there is a greater   specific conditions.
                                          onus on operators    On the other hand,
                                          to ensure            residents could
                                          compliance.          benefit from
                                                               increased
                                                               competition in the
                                                               market with
                                                               improved
                                                               product/service,
                                                               greater choice and
                                                               differentiation
                                                               between providers

Overall, the analysis of costs and benefits has determined there would be a net cost in moving to a negative licensing regime. While some benefits would
accrue to operators, these are offset by higher fines for non-compliance. Other stakeholder groups would be negatively impacted as a result of loss of Council
power to set site specific conditions.
Summary and conclusions
The analysis has showed that there would be a net cost to the community in moving to a negative licensing regime. This alternative is not viable and should
be set aside.
The analysis has also determined there would be only a limited benefit to the community as a whole in moving to a co-regulation regime.


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                                                                                                           ATTACHMENT 1 PIT Report - Administration LL SLL 2018