Member for Perth John Carey has hit out at the City of Perth council in an impassioned speech delivered to parliament on Thursday evening, claiming the CBD is "dying."
Addressing the Minister for Planning Rita Saffioti and Minister for Tourism Paul Papalia in his speech, Mr Carey slammed the City of Perth's extensive red-tape laws and their effects on CBD businesses.
"I have had numerous meetings with small businesses and hotels that are concerned about what is happening in the city and the kind of experience that people are having," he said.
"Small business is dying in the city. There are vacant shops, dead streets and a lack of activity.
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"I ask this question of members: what kind of tourism experience does someone have when they leave the Hyatt Regency or Duxton Hotel?
"It is pretty terrible. There is no coffee, unless it is from a convenience store. The area is dead—and this is a serious concern."
Mr Carey, the former mayor of the City of Vincent, said the huge number of fees and compliance laws were to blame for increased office vacancies and reduced trading hours, and extensive red tape had made it impossible to form a branded marketing and active tourist precinct within the CBD.
"Businesses would have to come to get approval for a pot plant. They would have to get approval for a bench. The council would come and inspect it and charge them for it. On top of that, the council would charge them a regular fee each year. Some councils will charge for each chair.
"We have a total scheme that is creating a disincentive to activate our city.
"I note the classic City of Perth response. I always say that it is like the episode of Little Britain when the computer says no."
Minister Papalia responded to Mr Carey's address, and said Mr Carey was "absolutely right" with his concerns.
"This is not a state government matter, but I agree with the member of Perth that silly little things such as putting impediments and hurdles in front of small businesses or larger businesses that want to activate the front of their businesses is just silly; it is ridiculous," he said.
City of Perth lord mayor Lisa Scaffidi spoke with 6PR's Morning Show on Friday morning and said she disagreed with the points raised by Mr Carey.
"There's very dramatic comments that I suppose are typical of a parliamentary speech. But no, he's not right and clearly I think it's a shame that a new Perth MP is being so critical sio early on given that he won't meet with the City- particularly the CEO and myself after several letters have been sent," she said.
"Of course we know Perth is going through an adjustment period economically at the moment after what was such an incredibly heightened economic period, but at the same time we are working so hard to bring vibrancy into the city and the city has come a long way in the last ten years. "
Ms Scaffidi said the city had taken steps to address the issue of alfresco dining areas in Perth, and the council was currently canvassing local businesses to find out their perspectives on the issue.
"We are undertaking an alfresco dining area survey at the moment to get genuine feedback which we always welcome from our stakeholders," she said.
"But at the same time we are seeing preliminary results from that survey indicating that 41.7 per cent of businesses don't believe that the cost of alfresco dining or permits is the issue, and I think it's fair to say that some of the rentals could been issue.
"While he points to the fact that many of these other local governments around the city don't charge alfresco fees- Vincent, Victoria Park et cetera- you look nationally and all other capital cities are charging."
Ms Scaffidi said the "biggest piece of red tape" faced by the council was the Perth parking levy, which requires the City to pay $17 million dollars to the state government annually.
"We would say to the state government, freeze it and preferably cut it and the City of Perth could go a long way then in reducing some of our other charges. At the end of the day we are a business and we obviously need to earn revenue to be able to pay these exorbitant fees," she said.
Last year, WAtoday revealed venues complained about a 30 per cent downturn in trade over the course of the 2016 winter period, and urged the council to consider their alfresco dining area options.
However the City of Perth councillors voted down a six-month trial of alfresco dining in November in favour of a report "on the implications of permitting the preparation of food and beverage on a temporary basis in alfresco areas and its implications on the City of Perth Alfresco Dining Local Law 2009", and a review of its policy in 2017.
The Perth CBD Office Market Census also found the office vacancy rate had reached a 25-year peak, with 25 per cent of spaces in the city sitting empty.
Report author Damian Stone said the increasing number of vacancies was due to a multitude of issues plaguing Perth city.