18 December, 2025
hobart-car-dealership-ban-deferred-amid-intense-council-debate

A contentious proposal to ban new car dealerships in Hobart’s central business district has been deferred to a workshop following a heated council meeting. The motion, which was described as “half-baked” and an affront to the automotive industry, was introduced by Councillor Ryan Posselt during the Hobart City Council meeting on Monday.

The proposal aimed to prohibit new broadacre car yards in central Hobart, suggesting instead that alternative sites be identified on the city’s outskirts. However, the motion was put on hold after Councillor John Kelly successfully moved to defer it, emphasizing the need for proper stakeholder consultation and comprehensive data collection.

Debate Sparks Heated Reactions

“This is a huge thing to do, and we’ve got a lot of business confidence riding on this sort of thing,” Kelly stated, criticizing the lack of consultation with affected businesses. He labeled the motion as “nothing more than a half-baked, attention-seeking motion that is just a pathetic thought bubble,” arguing it was an insult to everyone involved, from large business owners to first-year apprentices.

The proposal faced significant opposition from the Tasmanian Automotive Chamber of Commerce (TACC) and the Tasmanian Chamber of Commerce and Industry. Both organizations warned of potential harm to the local economy and the creation of sovereign risk issues for existing landholders.

TACC Chief Executive Peter Jones stated, “The proposal would inflict severe and unjustified harm on businesses, consumers, and the broader Tasmanian economy.”

Support and Opposition: A Divided Council

While the proposal drew criticism, it also gained support from housing advocacy group YIMBY Hobart. The group argued that car yards represent a “terrible use of central city land” that could otherwise be developed for medium-density housing. As of September, Tasmania’s social housing waiting list included 5,336 households, highlighting the pressing need for residential development.

Defending his proposal, Councillor Posselt emphasized its future-focused nature, noting that 45,000 square meters of central Hobart land is currently allocated to vehicle sales and servicing. “When do we say enough and use our inner city land with an eye to the wellbeing of the people that we represent rather than the multinational corporations that the brands represent?” he questioned.

Posselt suggested that converting this land into four-storey buildings could create 200,000 square meters for residential, retail, and hospitality uses, potentially reducing CBD traffic congestion.

Background and Implications

The motion was triggered by news that car dealership company Tony White Group purchased the 11,800-square-meter former K&D site on Melville Street from the University of Tasmania for $31 million. Posselt clarified that the proposed ban would only be prospective, ensuring that existing businesses would remain unaffected.

Despite the proposal’s deferment, council officers indicated that planning amendments are already being developed to prohibit large car yards while allowing smaller showrooms as a discretionary use. This move suggests a shift in urban planning priorities, potentially paving the way for more sustainable and community-focused development in Hobart’s CBD.

Looking Ahead

The decision to defer the motion reflects the council’s recognition of the need for a balanced approach that considers both economic impacts and urban development goals. As the workshop progresses, stakeholders from various sectors will have the opportunity to voice their concerns and contribute to a more informed decision-making process.

Meanwhile, the debate underscores the broader challenges faced by urban centers worldwide as they grapple with competing demands for land use, economic growth, and community welfare. The outcome of Hobart’s deliberations may well serve as a case study for other cities navigating similar issues.