A Red Deer businessman doesn’t think the city is doing enough to police its business licence requirements.
Teah-Jay Cartwright provides a music service under the name TJ the DJ. He said some of his competitors, and others who offer wedding-related services — like decorators, caterers and photographers — don’t have business licences.
Cost is not the issue, said Cartwright. Rather, he thinks unlicensed businesses are less likely to be accountable to their customers.
He said he’s heard from a number of people who have lost money to operators who disappear.
Cartwright believes that anyone who applies for a business licence has demonstrated some commitment to their trade.
They’ve also provided information that could help dissatisfied customers seek redress.
He also thinks businesses without a licence are less likely to pay taxes and other required payments like Workers’ Compensation Board and Employment Insurance contributions.
“If you’re an unlicensed business you’re not going to do any of that, simply because it puts you on the radar . . . and somebody will eventually ask questions.”
Cartwright thinks the economic downturn has resulted in some people seeking quick money in his industry, and others. He’s heard similar concerns from members of a local business networking group and two disc jockey associations that he belongs to.
“Everybody I’m talking to in all these groups, it’s being repeated over and over that we all are suffering from people who are under-cutting what we do, and often not providing the same level of services.”
Carolyn Smith, a licence and permit inspector with the City of Red Deer, confirmed that businesses operating for gain or profit in the city require a licence.
There are exceptions, she added, such as stores that operate within a shopping mall.
“Those businesses, because they are in a commercial-based zoning and the customer goes to the business owner, they require only an occupancy permit.”
Smith said her department investigates complaints about unlicensed businesses, and issues fines to those found to be in non-compliance with Red Deer’s licence bylaw.
The city will also not issue permits to businesses — such as a tradespeople — who do not have a business licence, she added.
But Cartwright doesn’t think the city is being aggressive enough.
Anyone operating a businesses without a licence can simply deny that they are doing so if they receive an official query, he suggested.
Cartwright said he’s raised his concerns with city councillors Paul Harris and Buck Buchanan — both of whom operate small businesses. The Advocate was unable to obtain comment from Harris, and Buchanan said he’d asked deputy city clerk Frieda McDougall to respond to Cartwright.
In her written reply to Cartwright, McDougall confirmed that the Inspections and Licensing Department does investigate complaints, including inspections if deemed necessary. She said the city also reviews material like newspaper service listings.
Fines for non-compliance can range from $250 to $10,000, said McDougall, plus $250 per day for continuing breaches and even the possibility of imprisonment.
She said that the city has no control over businesses in neighbouring municipalities that provide services in Red Deer.
Cartwright said he would like the city to do more to promote its business licence requirements, including with consumers.
“I’ve never been asked once (by a customer) if I have a licence, and that’s a concern to me.”
McDougall told Cartwright that the idea of greater public education has merit.
Smith said Red Deer’s business licence bylaw is being reviewed, so changes are possible.
Cartwright will be watching.
“It’s become a personal crusade of sorts.”
hrichards@www.reddeeradvocate.com