Saturday, Feb 22, 2014 at 23:52
It is called Competitive Neutrality Magnus. The following examples are my take on what is happening.
As an example; supposing the Council lifted their budget bottom line by doing private works with their graders while lying idle; government funding departments wanted them to do this as effective use of funds. They had the equipment, the staff on salary and the mechanical workshop. Easy to undercut the local contractor by a considerable margin. They had to be fair and charge the true cost of capital, staff and maintenance.
Enter the free or low cost
campground. Caravan Park has to pay rates and maintenance staff.
Free camp expected to charge a little to cover the equivalent of these costs. In Tasmania where competitive neutrality was I believe incorrectly applied, once there is a complaint, they have to assess the cost and charge, hence a number of formerly free camps (which in some cases pre-dated the caravan park opening in that town) now charge between $5 and $10 even if they didn't want to.
In the case of a showground managed by a committee of volunteers, the camping facilities were there for use during events. Letting a few campers in at a fee comparative to their lesser amenities became a valuable source of fundraising for this community asset. Someone cries foul, and these volunteers have to go through often years of red tape to become authorised to run a caravan park, often having to expend considerable money to meet the required conditions.
Mh
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