Market stall holders have scored a victory with Warrnambool City Council voting they be exempt from a $600 annual fee.
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Councillors voted unanimously at Monday's meeting to introduce an itinerant trading policy, which would include a fee of $600 per year or $350 for six months.
But amendments made to the policy following a dramatic consultation period will see individual market stall holders and traders "explicitly" exempt.
The fee will instead be covered by market organisers, who will be required to enter into a council-approved licence and pay the fee, which will depend on the size, nature and likely impact of the market.
A draft policy released in February caused outrage among operators, who believed the city's thriving market scene would be decimated if the policy was introduced.
Council received 264 submissions during the consultation period - 75 per cent of which were from concerned market stall holders, organisers and members of the public.
Councillor Michael Neoh said council did not wish to slow down the city's innovation and enterprise.
"It is a commonsense approach to have a fee for the organisers, rather than charging the small stall holders," he said.
The itinerant trading policy will not apply to footpath trading, promotional activities, free community services, registered charity fundraising or individual market stall holders as part of a council-approved market.
Fees collected will fund maintenance of the areas used for itinerant trading, including excess waste and litter removal, administration and on-ground inspections required by council staff to ensure permit conditions and licences are followed.
Warrnambool's Fresh Market organiser Tania Ferris said the support received from small businesses and the community during the consultation period was "absolutely outstanding".
"It was really the community that spurred the changes for this policy," she said.
"I had many consultations with council while the draft was out and it's very clear that council listened to the views from small local businesses, market stall holders and the community."
Mrs Ferris said the policy created better security for stall holders that ran under the Fresh Market.
"It allows the creative culture Warrnambool has created to stay active," she said.
"And it shows that council sees the diversity of small business within Warrnambool. Small businesses come in all different shapes and sizes.
"Small businesses running under a market should be seen as other small businesses are seen in Warrnambool. But we also need to be on a level playing field, we all need to be financially contributing."
Mrs Ferris said she was in support of paying the annual fee and that market stall holders would not incur any additional costs.
"As the market organiser I believe it's my responsibility to pay that fee rather than the individual stall holders," she said.
"They already pay a stall fee to be part of the Fresh Market so they don't need to pay another fee on top of that. This policy will not be financially impacting them."
Mayor Tony Herbert said he supported the policy as well as the community consultation that "erupted".
"Having spoken with one of the main itinerant trading bodies over the weekend, they have expressed overwhelming satisfaction that council have taken on board the advice and recommendations," he said.
"I was very pleased to hear that this particular person very much felt they had been listened to and the policy had been changed.
"We want to encourage this growing use of public spaces. This policy acknowledges a wonderful growing industry in Warrnambool.
"One of my main concerns was that in our attempt to regulate and control this, we would discourage the opportunity that we want to provide. I am very pleased that over the next 12 months we will keep the policy fairly well monitored and look at the impacts that it was originally set up for - to encourage this activity but with levels of control."
The policy will be reviewed in 12 months.
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