Illegal chalets cashing in, say motelliers

Ruapehu Bulletin, Volume 9, Issue 393, 2 July 1991, Page 1

Illegal chalets cashing in, say motelliers

Flouters of the accommodation house registration laws are continuing to upset Ohakune motelliers, but there is dispute over what to do about the problem. At a meeting of the Ruapehu South Business Association last Wednesday night, RSBA members and representatives of the

motelliers met council officers and discussed the on-going problem of people not registering their accommodation houses with the council. The motelliers said what upsets them is that - while they obey the law and register their establishments, unregistered houses get off scot free from many of the finanTurnpage2

lllegal chalets

From page 1 cial burdens of being registered. "All we want is healthy competition - on a level playing field," said motellier Jayne Haggart "It costs us dearly to meet all the legal requirements of being registered, while they get away with paying nothing. There's no way we could offer accommodation at the prices they do. "They don't pay GST, they don't pay commercial power, they pack people in to spaces we would never be allowed to, they don't have to pay the thousands of dollars to provide the necessary fire equipment," said the motelliers. Council officer Nicolle Middleton said the council did not have the staff to chase the illegal accommodation houses, and needed the help of individuals to catch them. She said many cases were virtually impossible to en-

force, but the council could do something about the ones that were obviously flouting the law. The motelliers called for the RSBA's accommodation booking office to hand over the names of unlicensed chalets to the council and the idea was initially supported. However member Gavin Moore said the move would kill the booking service the information centre was operating. Member Angus Grimwade supported him, saying the move would create ill-feeling and would achieve nothing in stopping illegal operators. He said winter visitors overall had a strong wish to stay in independant accommodation. "When we ran the accommodation service we tried and tried to fill our Beechers Lodge early, but people insisted on being placed in chalets," said Mr Grimwade. "I don't think it's this group's job to pot people and it would create a bad image for the town as a whole." Motellier Graeme Pike asked what would happen if the motelliers withdrew their support of the RSBA. "We're asking you (the RSBA) for help because we haven't got the numbers," said Mr Pike. "I believe the council should be doing it, not the RSBA," said Mr Moore. He suggested the RSBA help by organising a public meeting of all registered accommodation houses (about 170 are registered in the Ruapehu District, the meeting was told) and

from that meeting an action committee could be formed. Mr Moore said there would be a very strong conflict of interest if the Information Centre were to get involved with policing the law, while accepting bookings for chalets. The meeting heard that to date the Centre had placed about $70,000 worth of accommodation bookings, for which it received commission. That commission was now an important part of the Centre's income. The meeting agreed to accept Mr Moore's suggestion, and also overturned the earlier successful remit which was to get a copy of the register, find out which of the chalets on the centre's books might be illegal and write to the owners informing them of their possible legal obligations.