Advocates for Powell River dollars are hoping local consumers will buck the trend of shopping online or out of town and instead spend their money here.
At a recent City of Powell River’s committee of the whole meeting, Kevin Wilson said he was appearing before the committee to encourage the city to look into accepting Powell River dollars. He said it has a net-zero cost to the city and is good for the local economy.
The Powell River dollar program started about two years ago. “We have raised more than $40,000 in new money for local non-profits,” Wilson said. “About $16,000 of that is out in the community in people’s pockets. It encourages people to shop in local businesses because if you have Powell River dollars in your pocket, you have to spend them here.”
The currency has been developed from proponents spending time and money in this community to organize the program. There has not been any government help. However, Wilson said the city could help take the Powell River dollar to the next level, accepting Powell River dollars as a percentage of payment for services and redistributing the Powell River dollars that come in.
“For example, the city could accept 50 per cent of business licence fees in Powell River dollars and 50 per cent in Canadian dollars,” he said. “Experience shows you would not be overwhelmed by Powell River dollars. It would encourage businesses to sign up to accept Powell River dollars.”
Powell River dollars could also be used as currency at places such as Powell River Recreation Complex, according to Wilson. He also said a portion of city grants-in-aid could be given out in Powell River dollars, moving the money out of city coffers. If it was a small enough proportion of the grant, it would not overwhelm the recipients.
Rob Higgin, another proponent, said Powell River, for years, has tried to find ways to keep money at home and it has just become worse with the Internet.
“I heard the courier is one of the biggest businesses in town because people do all their online shopping, it comes in on the courier and that’s money that’s totally lost,” he said. “As we search for ways to encourage people to shop in town, I realized this is probably the best mechanism you could ask for to encourage people to shop in town.”
Higgin said there was a presentation a year ago from a Canadian Union of Public Employees representative regarding the 10-per-cent shift.
“Their research had indicated that a town the size of Powell River could realize millions of dollars in extra economic activity if people would shift their spending patterns by just 10 per cent to local,” Higgin said. “We would really like to encourage city council to encourage the people of Powell River to participate.”
Higgin suggested the city try a limited experiment with Powell River dollars and see what happens.
Mayor Dave Formosa said he was an early adopter of the program in his businesses. He said Powell River dollars are difficult to understand and figure out, but once the program is implemented, it’s simply a matter of using the dollars for a percentage of purchase at participating merchants and businesses.
“From the city’s point of view I think we should ask for a report from our financial officer,” Formosa said. “My concern is, we receive them but how do we spend them?”
Councillor Jim Palm said he attended the inaugural event a couple of years ago to launch the Powell River dollars. Quite recently, he was wondering what has happened to the Powell River dollar because he hasn’t heard anything about it.
Wilson said there have been stories covered by local media outlets and the organizers have been at events such as Powell River Home and Garden show and at Sea Fair to educate the public.
Palm said he has $10 in his wallet that he hasn’t used and he’s looking for an opportunity. He gave the rest of the $50 he acquired to family members and they have recently returned the money because the word is not getting out there.
“I don’t want to be the wet blanket but that’s the reality,” Palm said.
Councillor Rob Southcott said he has Powell River dollars sitting on his desk at home. Some used to be in his wallet but he took them out because he wasn’t taking the time to carry the brochure indicating where the money would be accepted.
“My own personal sentiment and practice is to deal with local business ahead of any business out of town so I am committed to that, but I’m thinking that perhaps the city could add something into our information letter that goes out annually, if it is appropriate for us to support this,” he said.
Mac Fraser, the city’s chief administrative officer, said that if, after the staff report is tabled, the city chooses to adopt Powell River dollars, it would be beneficial for the city to advertise and promote.
