Fast food giants may face super-sized rates bill

If an idea being considered by a Melbourne council takes off, major fast food chains may soon have to pay much higher rates to local government.

Darebin City Council is examining the proposal to charge higher rates to fast food restaurants to discourage them from doing business in the area.

The idea has been welcomed by a health group, but the fast food giants say it would be unfair unless the same policy applies to every food outlet and snack bar.

Councillor Gaetano Greco says the move is in the interests of the public's health.

"Within Darebin Council, we have the highest incidence of type 2 diabetes in all of the state of Victoria, so it is a really pressing issue for us," he said.

"It is something that really requires a bit more research, a bit more attention."

He says his proposal is being taken seriously by the council, which has agreed to investigate it.

"If we can somehow control the spread of fast food chain outlets, it will most likely lead to a decrease in diabetes and also a decrease in obesity," he said.

"I am waiting on the report from our council office, but my preference would be to focus on the major fast food chain outlets because they would have a greater capacity to pay."

Higher rates

Local councils in Victoria have the power to charge higher rates to some businesses - up to 400 per cent higher - under the right circumstances.

Municipal Association of Victoria president Councillor Bill McArthur says other councils will be watching what happens in Darebin with interest.

"Councils have a role in community health and wellbeing and play a very active part in that area, but this would be a matter for the community to discuss with the council and whether they can actually demonstrate the criteria of equity and efficiency grounds remains to be seen," he said.

The council's idea also has the attention of a coalition of health groups called the Obesity Policy Coalition.

Its executive manager, Jane Martin, applauds the idea.

Reality

Naturally the idea of being hit with higher rates does not appeal to the major fast food providers, but they may not have to worry at all.

Cr Greco admits it is still a long way from reality.

"This is only the beginning. I have just put up the idea and I think we are showing some sort of leadership in relation to this," he said.

"It is not something that I have heard being done in Victoria, let alone in Australia, and we need to do some research, cover all our bases, and if we see that it can be done then I don't see why we should not pursue and investigate this option further."

A spokeswoman for McDonalds says if higher rates are introduced they should not just apply to particular businesses or foods.

KFC is also keen to make sure it is not singled out.

A spokesman says if such a policy were applied consistently it would hit every food outlet, restaurant and snack bar in the local area.

Source: ABC News, 15 May 2012