By Al Edwards, Business Co-ordinator
Before an advertisement or sign can go up it must go to the National Works Agency. - File
A NUMBER OF advertising hoarding companies are outraged at the decision by the Kingston and St. Andrew Corporation (KSAC) to charge an arbitrary yearly fee for putting up signs and hoardings, for which they claim there is no provision in the KSAC Act.
A senior executive at one notable outdoor advertising company, speaking on condition of anonymity, said: "This decision amounts to an unjustified tax on people. The KSAC for years has been charging a hoarding fee for advertising signs. A few years ago the KSAC said we are not only going to be charged a fee for outdoor signs but for every kind of sign that there is. So, for example, if you have a sign on your property advertising Al Edwards law practice, the KSAC would charge you every year for that sign on your property. We found that unjust and so we went through the appropriate law and there is no provision for that, well none that we can find.
"What the law has is a provision for the KSAC charging an application fee. Once that application is granted then the sign should be granted for a period of no less than five years. If that sign is not been given permission for a period of five years then a reason must be given and the reason must speak to public safety and immunity - that's what the law states."
Companies have entered into discussions with the KSAC with a view to seeking resolution on this issue but feel that the Corporation sees this as a means of generating funds through Local Government operations. The hoarding advertising fees charged by the KASC range from $2,500 to $40,000
per year.
Another area of contention is that if a sign displays many messages the KSAC charges for each message. So if a hoarding displays three messages it will charge three separate fees. The companies feel that this should be managed through a regulatory framework as opposed to the current system, which they view as ad hoc at best.
Another sign operator pointed out that all the small merchants conducting business in downtown Kingston will have to pay fees for signs advertising their operations and services. About two years ago a number of sign companies, as a group, entered into negotiations with the KSACin an attempt tobring order to the signage industry, and a Memorandum of Understanding (MOU) was drafted.
When contacted yesterday, a spokesman in the signs department of the KSAC said: "They can look all they want in the laws but we have a directive from the Ministry of Local Government to impose and collect signage fees. We are the only body allowed to grant permission for the placement of signs and advertisement hoardings in the Kingston and St. Andrew area. You are quite welcome to speak with Mr. Ewers, who is in charge of that area of things, and I will invite you to come down and see our fee structure. We act on behalf of the Minister, you got it?"
Only last year, a number of sign companies outlined areas of concern as follows:
1. A proliferation of signage appearing around Kingston and St. Andrew for which the KSAC had not granted permission.
2. The KSAC's approval process was onerous and, on average, took several months to process, and in some instances took more than a year. Thus, if the KSAC's compliance procedure were adhered to, many businesses would have to open without signage in place.
3. There are a number of types of signs that can be erected without express consent from the authorities, for example, certain categories of business identifications, services and "For Sale" signs. The KSAC was not recognising a number of these exemptions.
4. The KSAC was removing signage from private premises without adhering to the requisite notice procedure.
5. The KSAC was charging a "hoarding fee" for all types of signs. Our legal advice is that there is no provision within the relevant laws for such a fee.
The KSAC is attempting to implement a regime whereby owners of signs must pay an annual fee for their signs. In some cases the fee per sign is in excess of $20,000.
Still another sign company boss, who also requested anonymity said: "The KSAC has continued to attempt to implement its hoarding fee regime. Those who do not comply do not get permission to erect their signs or are met with threats to having their signs torn down.
"There are also complaints of victimisation by the KSAC of those who oppose this position. The KSAC's actions in this matter are little better than cheap thuggery and cannot be allowed to continue. If the KSAC is not restrained they will have succeeded in placing another tax burden on the business community. They will also pose a certain threat to a number of companies within the signage
industry."
Before an advertisement or sign can go up it must go to the National Works Agency (NWA) where a processing fee is charged.
The Financial Gleaner managed to obtain a letter from the NWA regarding new processing fees for advertisement applications. It reads: "After careful and detailed assessment of the approval process, it was found that the cost of processing one application is substantially in excess of $500. The approval process involves site visits and other activities, including technical and administrative functions. The NWA has been absorbing this additional cost and can no longer carry the financial burden.
"Effective January 2, 2003, the NWA will be increasing its advertisement processing fees for billboards/signs and banners to $2,500 and $1,000 respectively".
The planning and research officer at the NWA, Stephen Shaw, said: "As far as putting up signs and advertisement hoardings, banners and posters in Kingston and St. Andrew is concerned, that lies within the jurisdiction of the KSAC. The NWA charges a processing fee and once permission is granted by the KSAC, the NWA checks out the location, ensures that technical directives are met and that the sign or hoarding in question is not an obstruction. I am not too sure of the precise role of the KSAC in this matter and I will refer you to my superior, Mr. Patrick Rose." Mr. Rose was unavailable for comment on going to press.
