Board Meeting:
12 – 13 March 2012 / Agenda Number:
9(iii) / File Reference:
CO13

LORD HOWE ISLAND BOARD

Business Paper

Item:

Business Licensing Policy

Background:

At the May 2011 meeting the Board resolved to place the draft Business Licensing Policy on public exhibition for a period of 28 days.

The draft Policy was exhibited from 1 August to 28 August 2011 and resulted in one written response and three discussions with current licence holders. The consensus of the four respondents was favourable towards the intent and objectives of the Policy.

It was decided at the September 2011 Board meeting that, due to the poor public response, a letter would be sent to all commercial operators to advise them of the potential changes to their licensing requirements under the new policy. The letter was sent in February 2012, with comments requested prior to 2 March 2012. A summary of responses is as follows:

·  One plumber, who has not paid the invoice for his business licence for several months, met with the Manager, Business and Corporate Services. He argued that the Board has no legal right to force him to pay for a licence as he is already licensed by the Office of Fair Trading.

·  One hairdresser, who is qualified to practice, wrote to complain about the several unqualified people on the island who are practising as hairdressers and negatively impacting her business.

·  One mechanic met with the Manager, Business and Corporate Services to clarify whether or not he would need a business licence in the future.

Comment:

In order to provide greater clarity, paragraph 2.4 of the draft Policy that was publically exhibited has been amended by deleting the Business Activity “Home Based Activities” and replacing it with “Other Commercial Undertakings (including retailing, commercial services and home based commercial activity)”. Though only a minor change, it captures all other commercial undertakings (such as retail), not just home based activities.

As the focus on licensing is to be based on potential impacts of the commercial activity, it is suggested that the Board remove the $6,000 threshold for operating a business of Lord Howe Island. The reality is that operators under this threshold are probably more exposed than mainstream operators as they may not have appropriate insurance coverage for public liability, third party damage, etc.

If a particular activity is assessed by the Board as having some degree of inherent risk then the activity should be licensed, regardless of the annual income derived by the operator.

The Board may also consider imposing a flat fee of $225 for each activity licensed, excluding public accommodation licences and food premises, which remain as per the Fees and Charges Schedule.

The imposition of a flat fee is administratively simpler, and removes any stigma associated with estimating a particular business operator’s scale of operation and applying a stepped business licence fee. The flat fee structure for commercial operations other than public accommodation licences and food premises would be revenue neutral.

Recommendations:

It is recommended that the Board:

1.  Endorse the attached Lord Howe Island Business Licensing Policy.

2.  Abolish the $6,000 revenue threshold for operating a business activity on Lord Howe Island with effect from 30 June 2012.

3.  Implement a flat fee of $225 for each licence issued, excluding public accommodation and food businesses, with effect from 1 July 2012.

Prepared By: Bill Monks Manager Business & Corporate Services

Endorsed By: Stephen Wills Chief Executive Officer

LORD HOWE ISLAND BOARD

BUSINESS ACTIVITY LICENSING REGIME – PART 4 LHI REGULATION 2004

No. / Business Activity / Why is a licence being issued? / Legislative Authority / Inspection Frequency / Licence Fee per annum / Licence Conditions & Criteria /
1 / Swimming Pools and Spas / Public Health and Safety; Hygiene / Public Health Act 2010; Public Health (Swimming Pools and Spa Pools) Regulation 2000 / Annual / Cost Recovery - Water Test / ·  Disinfection
·  Cleanliness
·  Childproof Fencing
As per Regulation – inspection by Environmental Health Officer.
2 / Entertainment Venues and Events / Noise, nuisance and amenity; Waste and wastewater / Protection of the Environment Operations Act; Noise Control Regulation / As required / Monitoring costs if complaint(s) received. / A person must not cause or permit any musical instrument or electrically amplified sound equipment to be used on a premise in such a manner that it emits noise that can be heard within a habitable room in any other residential premises (regardless of whether any door or window to that room is open):
(a)before 8 am and after midnight on any Friday, Saturday or day immediately before a public holiday, or
(b)before 8 am and after 10 pm on any other day.
3 / Environment Related Activities (including Tourist Operators) / Environment protection and compliance with PPP Plan of Management; Public safety and amenity / Lord Howe Island Act 1953; Lord Howe Island Regulation 2004 Clause 72; LHI PPP Plan of Management / Annual / ·  Encourage ecologically sustainable and culturally appropriate visitor use.
·  Demonstrate a high standard of appropriate behaviour towards the PPP and marine environment.
·  Have a sound understanding of safety and environmental issues related to proposed activities.
·  Have extensive knowledge of, and experience and skills in proposed activities.
·  Provide a quality service to clients.
·  Hold the minimum required level of public liability insurance ($10 million).
·  Meet the general and specific standards for the type of activity proposed, and carry comprehensive safety and recovery equipment for those activities.
4 / Film Production and Photography / Environment protection; Marketing and cultural impacts / Lord Howe Island Act 1953; Filming Approval Act 2004 / As required / On application / A filming approval authorises the approval holder to carry out in the designated area to which the approval relates any filming activity, in accordance with the conditions of the approval, that is specified in the approval even if the carrying out of that activity is prohibited or not permitted by or under:
(a)the National Parks and Wildlife Act 1974, or
(b)the Wilderness Act 1987, or
(c)the Marine Parks Act 1997, or
(d)a statutory rule or any other instrument made under an Act referred to in paragraph (a), (b) or (c).
5 / Flammable and Combustible Liquids / Public Health and Safety / Occupational Health and Safety Regulation 2001; Code of Practice Storing & Handling Dangerous Goods 2005 / Annual / ·  Gas cylinders are to be stored in a position so that the pressure relief valve is in contact with the vapour in a well ventilated area (usually upright).
·  The cylinder is protected from falling, damage and excessive temperature rise.
·  Do not allow combustible material or waste to accumulate in or around where the cylinders are kept.
·  If an oxidising gas is stored (e.g. oxygen), keep at least three metres away from a flammable gas cylinder (unless part of a set).
·  An occupier must ensure that all persons (including members of the public) are not exposed to their health and safety arising from dangerous goods at the occupiers premise.
·  An occupier of premises at which dangerous goods in bulk in a container are present must ensure that:
(a)the container and any associated pipework are provided with stable foundations and supports, and
(b)any pipework or equipment connected to the container is installed so as to prevent excessive stress on the container, pipework or equipment, and
(c)the container and any associated pipework are protected from deterioration.
·  An occupier must ensure that in each place at the occupier’s premises where dangerous goods are stored or handled, provision is made for containment of spills or leaks.
·  In the event of a spill or leak of a dangerous good, the occupier must clean up, dispose or otherwise make safe the spillage.
6 / Food Businesses / Food safety compliance / Food Act 2003 / Bi-annual / As per Fees and Charges Schedule / ·  The nominated food safety supervisor for premises is a person who:
(a)holds a food safety supervisor certificate that has been issued within the immediately preceding period of 5 years, and
(b)does not hold the position of food safety supervisor for any other premises or for a mobile catering business, and
(c)has the authority to supervise other persons handling food at, or from, the premises and to ensure that the handling is done safely.
7 / Commercial accommodation / Compliance with Local Environment Plan / Lord Howe Island Act 1953, Lord Howe Island Regulation 2004, Clause 70; Lord Howe Island Local Environment Plan 2010 / Annual / $618 per bed licence / ·  The Board may carry out, at any reasonable time, an inspection of any premise to which the licence relates.
·  A person must not hinder or obstruct the Board while the Board is carrying such an inspection.
·  The conditions of a licence may be altered, modified, added to or revoked by the Board at any time during the currency of the licence, either on its own motion or at the request of the licensee.
·  Site plan of accommodation with room numbers / name to be provided.
8 / Footpath and Alfresco Dining / Public Health and Safety / Lord Howe Island Act, 1953 / Annual / Permissive Occupancy Rental / ·  Outdoor, footpath or alfresco dining and drinking areas must be kept free from pest animals and pets.
·  Ensure regular cleaning of footpath dining areas, including removal of food debris and waste.
·  Seal openings where pipes pass through external walls to prevent pests such as rats and mice entering food handling areas.
·  Use chemical sprays, baits or traps to kill or remove pests from the area.
·  Smoking is not permissible in outdoor dining areas.
9 / Other Commercial Undertakings
(Including retailing, commercial services and home based commercial activity. Examples of home businesses include sewing and alterations, home office for a trade related occupation, photography studio, commercial cooking, book-keeping, etc) / Noise, nuisance and amenity; Public Safety / Lord Howe Island Local Environment Plan 2010; Noise Control Regulation; Protection of the Environment Operations Act / Annual / ·  Must be an acceptable activity under the LHI LEP 2010.
·  The external appearance and character of the house is not modified to accommodate the home business.
·  The area of the house used for a home business is capable of reverting back to a house if the home business ceases.
·  Must be operated by a person who is permanently residing in the premise.
·  Goods are stored inside the house or in a dedicated storage area.
·  Is low impact and commensurate with the scale of development and adjacent premises.
·  Does not impose any greater load on infrastructure than would reasonably be expected from the residential use of the premise.
·  Generates traffic which is consistent with the residential premise and adjacent premises.
10 / Personal Appearance Services
(Personal Appearance Services (PAS) include hair dressing, beauty therapy, or skin penetration procedures (eg tattooing, body piercing or any other process by which the skin is penetrated and in which blood or other body fluid is an expected result) as provided as part of a business transaction). / Public Health and Safety / Public Health Act 2010, Public Health (Skin Penetration) Regulation 2000 / Annual / ·  Ear piercing guns with disposable cartridges are recommended.
·  Piercing guns are to be cleaned and disinfected between clients.
·  New disposable gloves are to be worn for each client.
·  Sterile gloves should be worn when handling sterile instruments.
·  In the case of the carrying out of a procedure where disposable sharps are used, have a sharps bin.
·  Hairdressers must be qualified to act in accordance with the Hairdresser’s Act 2003 or the Apprenticeship and Traineeship Act 2001.
11 / Waste Transporters / Public Health and Safety; Dangerous Goods Transportation? / Occupational Health and Safety Regulation 2001 / Annual / ·  All waste effluent is to be delivered to the WMF during business hours.
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