REBEL traders have rejected the state government’s backflip on rents at the new wholesale fruit and vegetable market at Epping, saying it is still too expensive and will send them to the wall.
The government slashed rents at the Epping wholesale market by almost 20 per cent after traders protested at the higher rents they will face when they relocate from Footscray Road, West Melbourne, to the new complex next year.
Major Projects Minister David Hodgett met traders last week and told them the rents had been slashed. He also signalled possible further reductions.
“Factors that contributed to achieving these reductions have included positive co-operation from market tenants over recent months, major progress in construction at Epping, a review of operational costs by the Melbourne Market Authority and positive progress in the warehousing expression of interest process,” Mr Hodgett said.
“After meeting with and listening to the concerns of market tenants, it is fantastic that we have been able to reduce maximum rents at the new Epping Market.
“These reductions will represent, on average, an 18 per cent discount to the maximum rents that were announced in December 2012.
“There remains scope for further reductions once greater certainty over the new market is realised, and remaining risks are reduced.”
Mr Hodgett said all stallholders had signed up to move to the new premises.
“Once again, market storeholders have put pen to paper and indicated their unanimous intentions to move to Epping.
“I am grateful to all storeholders for their assistance and co-operation.”
But John Roach, chief executive of Fresh State, which represents the traders, said the rent cuts were “too little, too late”.
“It’s a forced relocation from Footscray Road to Epping and we expect the rents to be the same,” he said.
The government said the average rent was $385 per square metre a year for fruit and vegetable stands at Footscray Road and was supposed to rise to $531 at the Epping centre, but this had been reduced to $435.
“We have multiple issues with the Epping site, including that there are no ceilings,” Mr Roach said.
He warned that it would be a white elephant unless the government matched rents between the Footscray Road centre and the Epping complex.
He said traders were continuing with plans to open a warehousing complex near the Cooper Street government site to avoid paying “exorbitant” warehouse rents in the government-run site.
