CO-OP CONCEPT FLOATED
Public meeting draws favourable support but no decisions made

3 February 2010

CATHY HARBISON AND IAN LEWIS

JUDGING by last Wednesday night’s public meeting to consider starting another hardware business in Casterton, the community wants it but who is going to take the first step?

More than 100 people turned out to the meeting and demonstrated their support for the re-establishment of such a business following the sudden closure of Peden’s Store in December last year.

The meeting was organised by local businessman Clyde Lawrence who believed there was a demand for such a business in the town.

He said before the meeting that he was unsure how a new enterprise would be structured but was confident a cooperative of local residents and business people could be the way to re-open the store.

He cited the Bunyip Hotel in Cavendish as an example of how local townspeople worked together to keep their local hotel open by forming a cooperative to run the business.

He said the concept worked well for Cavendish and could see no reason why it would not work for Casterton.

Mr Lawrence told the gathering he had called the meeting because he was a patriotic person who didn’t want to see Casterton lose any more businesses and decline from being a thriving town to a place with no shops.

He said the purpose of the meeting was to look forward and consider all options, including the community buying the old Peden’s store to lease to a hardware business, forming a co-operative to run a hardware business or any other suggestions people had.

Determine reasons for closure

Glenelg Shire economic development and tourism manager Gary Bebbington said it was important for the community to determine why the previous hardware business had closed, whether it was through lack of business, the recent global economic downturn or some other reason, and whether or not a new business would be economically viable.

On a show of hands it was clear that there was unanimous community support for a hardware business in Casterton and a definite preference for local ownership of such a business.

Coleraine hardware owner Quentin Baudinette told the meeting it would cost about $100,000 to start up a hardware store but it would be cheaper if an existing business added hardware to its core retail business.

Peter Leake then earned himself a round of applause for his upbeat assessment of the issue.

“We all love this little town, and things can be done,” he said. “With enthusiasm, local support and the co-operation of the population anything can be done if you try hard.”

He then outlined the history of Coleraine’s Bendigo Community Bank which now employed five people and had an annual turnover of several million dollars.

“Don’t let us drift like other small towns. Don’t get frightened. Have a go – you belong to Casterton,” Mr Leake said.

Adrian Bunnik endorsed Mr Leake’s comments and suggested it would be sensible to start with a small business. “Basic equipment and basic materials, it will grow in no time,” he suggested.

Business to look at new lines

Pat Gill from Farm Supplies told the meeting his business had attempted to fill the hardware gap since Peden’s closed but had waited until the outcome of the meeting before further developing the hardware lines.

He agreed that local ownership was essential and said that Farm Supplies had been forced to diversify to hold its market share since many farms were sold to the blue gum industry and adding hardware to its core business made economic sense.

Local builder and president of the Casterton Business and Tourism Association Michael McNamara said the town needed another locally owned private business.

“We need to work hard to retain and build the businesses we have in Casterton, and we need to work together as a community to make the best of it,” Mr McNamara said.

He confirmed the association did have a role to play and said it would discuss the issue at its next meeting.

Mr Bebbington said it was important for the community to consider where the town was going to be in 10 – 15 years time and what sort of service industries would be in town.

He stressed that any business needed to be economically viable and cash flow was a problem for any business at the moment.

Mr Lawrence suggested it was time for the meeting to think about how the community could fill the hardware void in Casterton by going public and asking for someone to come into town to set up a hardware business.

How much to start?

He said he had been through Peden’s old store and the building appeared to be in a generally sound condition.

The discussion then free-wheeled over the possible cost to buy the Peden’s building at auction (a figure of up to $150,000 if several buyers were interested was suggested); the reality that builders no longer buy all the materials they need for a n extension or renovation from one source; whether it would more viable to support Farm Supplies and Casterton Agricultural build up their hardware lines or support a new dedicated hardware business; to the need for a hardware business to be open on Saturday afternoons.

Local builder Tim Foster said he currently spent around $100,000 on hardware at L.A. Walker’s in Hamilton but would prefer to support a local business and thought other local builders shared his view.

Several people spoke about the negative impact the closure of Peden’s, Southridge Cafe and the old supermarket had on shops at the top end of town and the general appearance of the shopping centre.

Elders’ manager Sim Flanders said the meeting had been worthwhile in getting the community to start thinking about the issue.

The meeting agreed to convene after the Peden’s auction unless someone bought the building to use as a hardware store again.