RETAILERS who work from home found themselves in a spin when Uralla Shire Council prohibited "retail" business in rural and residential zones.
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Almost 140 people spilled out onto the streets at a public meeting to discuss the interpretation of the term "retail" in the Local Environmental Plan and concerns about a 'relationship breakdown' between the council and business owners.
The retail issue was sparked when an application was made by a business owner to do something from home, Uralla Business Chamber president Teresa French said.
"Council denied that application because they said it's retail and you have to be in a commercial premises," she said.
"They had been working like that for years and other people were doing it, so they inquired and got confused.
"The council had been asked and hadn't given a clear answer to the community, so the community wanted to know what the definition is and what we we're allowed to do."
With the outbreak of COVID-19, many businesses moved or expanded into online retail to keep afloat when shops were locked down.
Northern Tablelands MP Adam Marshall and councillors were at the meeting to hear the concerns of business owners.
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Ms French said Mr Marshall explained to the community that the issue of what constituted "retail" was one for the council, not for the state.
"COVID-19 has impacted our town quite heavily, especially in this year the way things have gone our foot traffic through the town has dropped dramatically and a lot of the businesses depend or rely on that," she said.
"I know a number of people who have built websites triggered by COVID-19 because they felt they needed to."
The chamber is creating a report to the council.
The Express contacted USC mayor Michael Pearce for comment.