Chalets unfair, say motels

Waimarino Bulletin, 26 July 1988, Page 1

Chalets unfair, say motels

Unlicensed boarding houses are ripping off Waimarino motels, guest houses and commercial lodges.That is the view of a group of motelliers and guest house operators.

The Ohakune Motelliers' Association says unlicensed operators of accommodation houses that are operating on a commercial basis are competing against them with an unfair advantage. The motelliers believe private chalets often fall into the category of commercial operators. Licenscd operators must comply with a large number of fire and health rcquircmcnts

which can be expcnsive. The Fire Dcpartmcnt dcmand that they have fire escapcs and fire safety cquipmcnt. The Health Department demand that certain rcquirements are mct, p a r ticularly i n kitchens, the number of toilets and showers. The number of bcds in any one accommodation unit is subject to restrictions from fire, health and town planning authoritics. The Ohakune motel

group belicve unlicensed accommodation houses are undcrcutting their markct bccausc they don't have to pay the extra costs in-

volvcd in meeting all the legal rcquircmcnts. "Motelliers g o through a lot of rigmarole to get to opcn a motel," said one of the

group. Other factors which put unlicensed operators at an unfair advantagc, say the molclTurn page 2

"Chalets unfair": motels

From page 1 licrs, arc: ihe commcrcial electricity prices the motcllicrs havc to pay while ihe othcrs pay normal residential rates; the cxlra water, sewcragc and rcfuse chargcs the liccnscd operators pay; and GST, which the unlicenscd operators do not pay. "We support the town all year-round while these people are just funnelling money out of the area. We pay commercial rates, which hclps pay for the running of the town, we employ local staff and we buy supplics in the town shops," said a motellier. In June a guest house operator, with the

backing of ihe motcllicrs, wrotc to the Waimarino District Council asking that the Council addrcss the issue of commercial letting of domestic dwcllings. The operator claimed the Ohakune Borough Council had turned a blind eye to the practice in past ycars. In reply the council wrotc saying thcy were invcstigating the mattcr and asked for further information. The lettcr to the council citcd two examplcs of boarding houses that were thought to be unliccnscd. Both were advcrtiscd in the N e w Zcaland Hcrald classificds undcr ihe hcading

'Holiday Accommodalion'. One was named in the advertisemcnt as 'Kaka Lodge'. Kaka Lodge is in Rangataua and is not liccnsed as a commercial accommodation house. The othcr advertisemcnt was for accommodation for groups of six, eight and tcn people in bunks, at $15 pcr person Sunday to Thursday and $20 pcr person Friday and Saturday. The Bulleiin phoncd onc of the numbcrs listcd and found it to be an Auckland travcl agcnt, 'AMA Travcl'. The bunk house, which the ad claims to have bunks for 30 people, is at 90 Miro Strcet, Ohakune. The District Council said last week that as far as they were aware neither of these boarding houses are licensed. District Manager John Murrihy said the council will follow up these 'blatant' unlicensed operators. Mr Murrihy said in the case of the unlicensed operators who were advertising the problem was easily solved. "We will be seeking a licence," he said. He said in other cases the sticking points were proof and definition. It was difficult to prove a chalet had not been rented out privatcly, he said. Legal definition To find out the legal definition of a commercial operation the council is seeking legal opinion and consulting other local authorities. "We've got to be sure of our facts," said Mr Murrihy. He said council's main concern was the safety issue, where illegal operators were

not complying with the fire and health regulations, but that the council was sympathetic to the licensed operators. He agreed it was unfair for two operators to be on different commercial footings, one by breaking the law. The guest house operator called for chalets rented through agencies to be licensed. "I am not against people letting their own chalets out privatcly, however when it is done through an agent I believe it becomes a commercial operation and should be treated as such," h e said. Turoa Skifields and Alpine Property Management were cited as examples of letting agencies. Alpine Property Management, which was sold late last year, had 26 private dwellings on its books, according to the letter. No figures were available from Turoa.