Talks aim to cut security deposits
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.