Taste of Tasmania stallholders demand levy refund amid claims of lost sales

About half of the stallholders at the Taste of Tasmania are demanding the refund of a 10 per cent council levy, saying the new cashless system at this year's event cost them money.

The criticism comes as concern is also voiced that the event is becoming too focused on alcohol.

The Hobart City Council's annual food and wine festival finished on Sunday but questions have emerged about how much money the new payment system made.

Thirty-nine stallholders have written to the council complaining about its handling of this year's event.

Patrons could only pay for food and drink with their bank card or a special card they could load money onto under the new cashless system.

Stallholders said the new system resulted in lost sales.

There were also claims of discrepancies with transaction records, with some saying there were out by more than $4,000 a day.

It was also the first time that a 10 per cent surcharge on all items was included.

Stallholders are demanding council refund the 10 per cent levy, saying the problems not only lost them sales but cost them money.

Acting Deputy Mayor Ron Christie brushed off the criticism and said teething problems were expected.

He said the system was a success and would be used next year.

"We appreciate that there was some glitches, but this is the first time that technology like this has been introduced in any festival in Australia and we are heading forward as the most innovative festival in the nation," he said.

Profit needs to go back into festival: alderman

The council said the aim of the surcharge was to make the event cost neutral.

Alderman Marti Zucco estimated that will turn Taste from losing almost $500,000 to making about $900,000.

"It actually costs the ratepayers of Hobart about $420,000-odd to run the event," he said.

"There's the potential that council, on 10 per cent, could be raking in somewhere around the $900,000 mark," he said.

But that figure is in dispute.

Alderman Christie said it would be more like $100,000.

Alderman Zucco said any profit the council made should be re-invested in the festival.

"From my point of view, if you're going to go into having a Taste that's running at a profit you've got to be sure that the reinvestment be put into improving that event and not putting it into other things," he said.

Taste must not lose food focus: Hospitality Association

The Taste is an opportunity for producers from around Tasmania to showcase their produce to the thousands of patrons that pack through the gate.

But the Hospitality Association's Steve Old said that opportunity was not capitalised on this year and there was too much emphasis on alcohol.

"Realistically, the Taste is all about the food and the great produce we have here in Tasmania, and what we've got to make sure we don't lose is the focus on that," he said.

"I think maybe over the last couple of years we have taken away a bit from that.

"I saw on the weekend we don't have as many regional producers there as what we've had in the past."

The Hospitality Association is open to meeting with Taste organisers before next year's event.

"We would love to sit down with the Taste and make sure that we talk to them about future events and make sure that the focus purely is on food and the great produce we have here in Tasmania," Mr Old said.

Source: ABC news, Richard Baines, 4^th January 2016