Are Hobart's services gold-plated and home delivered?

Why does it cost so much more to do business, build a home or simply get things done in Hobart than it does just a few kilometres down the road?

It's a question that must be ask when families are struggling with the cost of living, businesses are battling rising expenses, and our city desperately needs more housing and investment.

We've heard plenty about Hobart's extraordinarily high council rates, and rightly so as they are in another ballpark. But there's another financial burden that hasn't received nearly enough attention: council fees and charges.

From planning permits and plumbing inspections to food trucks and dog kennels, Hobart City Council frequently charges substantially more than neighbouring councils for comparable services. And we're not talking about a few dollars here and there.

Consider someone wanting to build a $650,000 family home. In Hobart, the planning permit application fee is $2,404. In Kingborough, it's just $652, while Clarence charges $659. That's nearly $1,750 more simply because you're building on the Hobart side of a council boundary. For a $1.2 million development, Hobart charges $9,016 for a planning permit, compared with $3,345 in Glenorchy. That's almost three times the cost. On a $20 million development, Hobart charges $48,078, compared with $29,470 in Clarence. These are substantial costs that ultimately flow through to housing affordability and investment decisions.

But it isn't just big-ticket items in our city getting hit unjustifiably hard. Want to make a minor amendment to a planning permit? Hobart charges $480, compared with $295 in Glenorchy. Need a plumbing reinspection? That's $300 in Hobart, compared with $194 in Launceston. Thinking of starting a food truck business? An annual permit in Hobart costs $1,565, compared with just $234 in Clarence. That's nearly seven times as much. Even applying for a kennel licence is $313 in Hobart, compared with $118 in Clarence and Kingborough.

How can these differences possibly be justified? They can’t. Are Hobart's services gold-plated and home delivered? No. A planning application doesn't suddenly become three times more complicated because it crosses a municipal boundary. And a small business owner shouldn't face dramatically higher barriers simply because they've chosen to invest, work and employ others in our capital city.

We regularly hear politicians talking about tackling the housing crisis, supporting small businesses, encouraging investment and revitalising our CBD but what have they tackled to address it in any tangible way? These phrases become hollow slogans when the same politicians put up fees and charges that make achieving them more difficult.

Every unnecessary dollar added to building a home makes housing less affordable. Every excessive fee makes it harder for an entrepreneur to get started. Every additional cost imposed on businesses reduces money available to employ staff, improve premises, expand or even run a viable operation. Hobart must focus on attracting investment, not giving people another reason to take their money elsewhere.

And let's not forget that Hobart residents are already carrying a significant rates burden. It's a double whammy. Ratepayers are charged the highest rates going around and also dishes out some of the biggest fees for services. With increasing attention finally being paid to Hobart's high rates, we must ensure the rates burden isn't quietly shifted into fees and charges instead.

I believe Hobart needs a comprehensive review of every council fee and charge. Every fee should be benchmarked against neighbouring councils, councils throughout Tasmania and comparable local governments interstate. Where Hobart charges substantially more, council must explain why. Where those differences cannot be justified, fees must come down. The entire system should be rebuilt around four straightforward principles: fairness, consistency, simplicity and value for money.

There is also a strong case for the State Government introducing a consistent statewide framework for council fees and charges. The way core fees are categorised should be consistent so apples and apples comparisons are possible and reported.

None of this means councils should provide services for free. Planning assessments, inspections and regulatory activities have real costs, but there's a fundamental difference between recovering reasonable costs, imposing excessive charges simply because the system allows it and using fees and charges to boost income for general purposes.

Hobart's future prosperity depends on being an attractive place to live, work and invest. That requires a council that understands the financial pressures facing its community and scrutinises its own costs before reaching into someone else's pocket.

We need a council that measures success by the value it delivers and customer satisfaction. Hobart residents and businesses deserve a fair go, not another bill. It's time to bring Hobart's excessive fees back to earth.