Shire changes its funding agreement with GORRT

THE Surf Coast Shire has changed its funding agreement with Great Ocean Road Regional Tourism (GORRT) to a more equitable model.

Under the existing three-year agreement, which expires on June 30, the shire provides a financial contribution to GORRT of $154,758, with two agreements: a Funding Agreement and a Heads of Agreement.

In March, GORRT wrote to the council seeking a new equity-based three-year agreement using population as the key metric in the funding formula.

Under this method, the shire’s contribution via a funding agreement would be $135,621 in 2019/2020 (an increase of $55,863 on the existing arrangement) and would increase by 2 per cent annually for the next two years.

Under the Heads of Agreement, the shire also pays $75,000 to GORRT on behalf of businesses that have paid the commercial and industrial differential rate, which enables those businesses to receive a marketing package.

However, despite promotion, take up of this offer has diminished with only 99 businesses subscribing, resulting in an average payment of $757 for a package valued at $385.

At their meeting last month, councillors resolved to accept the recommendation to end the Heads of Agreement and enter into a single Funding Agreement, which would bring the shire’s funding and promotion offering into alignment with other councils along the Great Ocean Road.