Talks aim to cut se­cu­rity de­posits

Townsville Bulletin - - NEWS - TONY RAGGATT

THE Townsville Cham­ber of Com­merce is work­ing with elec­tric­ity re­tailer En­ergy Queens­land to re­duce se­cu­rity de­posits levied on new busi­nesses.

Rep­re­sen­ta­tives of both or­gan­i­sa­tions met yes­ter­day to dis­cuss con­cerns raised by the cham­ber, and re­ported in the Bul­letin this month, that the size of the de­posits is sti­fling busi­ness. The elec­tric­ity re­tailer may re­quire a de­posit of up to 37.5 per cent of a busi­ness’s es­ti­mated an­nual bill.

A long- es­tab­lished Townsville bak­ery busi­ness told the Bul­letin they were asked for a $ 20,000 de­posit to open at a second out­let, while com­mer­cial agents quoted one re­cent in­stance of a $ 16,000 de­posit re­quire­ment for a 160sq m re­tail ten­ancy in the CBD.

Cham­ber board mem­ber Michael Ko­pit­tke said they dis­cussed po­ten­tial so­lu­tions in­clud­ing En­ergy Queens­land ex­er­cis­ing more dis­cre­tion.

“It was a very pro­duc­tive meet­ing with En­ergy Queens­land Re­tail,” Mr Ko­pit­tke said.

“We are go­ing through some tem­plates and ideas so that when peo­ple look at open­ing ac­counts there are some flex­i­ble op­tions.”

Mr Ko­pit­tke said the two or­gan­i­sa­tions would meet again to set­tle on a so­lu­tion.

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