When we left the temporary market at the pound yard bridge yesterday, the position was that, first, the Social Investment Fund promised the new market would be finished in October; and second, the City Council would review the proposed increase in rental charges for the vendors at its caucus yesterday. Well, it was reviewed and Deputy Mayor Phillip Willoughby today told us that they have reached a cost saving compromise with the Hotchandani Group - who they are renting the space from. The good news is that the vendors will have to pay less of an increase, but they will still have to pay something.
Phillip Willoughby - Deputy Mayor
"The Council will be subsidizing a hefty sum. We might look in terms of the right off subsidy and otherwise in terms of the cash as well as the vendors. We might not raise it up to the ten but you need to partnership with the council at this time to bear a portion of this cost and not left solely the entire cost on the council, nor is the Council placing the entire burden on yourself. So we have restructured it to say that this is win-win situation for all involved."
Jules Vasquez
"The vendors may argue that if you all received such a mark down in the rental then you all don't need to pass on anything on to the vendors just leave it as is."
Phillip Willoughby
"No that won't be a fair equation because from the calculation we are seeing here if we would choose the monies collected from the bus $3,264.00 and you subtract from the $6,000 there is a shortfall of $2,736.00 a month there about. We are saying that now we would have to subsidize this including the write-off and providing all other features that needs to go in to the Council and this is variable and fix cost."
Jules Vasquez
"You mean that you still have to pay for the maintenance and upkeep of the market."
Phillip Willoughby "Exactly so. The personnel, security, upkeep, facilities and so forth. We have to maintain that."
Jules Vasquez
"Is this a firm final and clear position that yes the vendors will have to shoulder some of this burden?"
Phillip Willoughby
"Well I trust that based on the discussion providing that Central Government wants to accommodate the initial write-off. And the Hotchandani says well the $6,000 is safe then we proceed and say, 'Hear what we are at this amount. We came down to here, work with us.'"
According to our reports the proposed tax write-off for the Hotchandani group could be as much as 68 thousand dollars. That still has to be approved by the ministry of local government. One proposal is that those vendors who are paying five dollars a day rental may have that increased to seven dollars and fifty cents a day.
