Economic prospects seemed bleak for Yackandandah when a handwritten notice appeared in the window of the town’s only petrol station announcing it would close in less than a fortnight.
The owner had been trying to sell the business, but could not find a buyer.
Locals in the small north-east Victorian town feared losing the petrol station would trigger a financial spiral because if people had to buy fuel in bigger centres nearby, they would probably do the rest of their shopping there too.
This March marks 20 years since a group of seven local people took control of the town’s economic destiny, investing $1000 each to form the Yackandandah Community Development Company.
They took over the petrol station to see if it had a future.
Mark McKenzie-McHarg, who was among the first group of shareholders, said the community realised commercial forces would not save them.
“We didn’t have Shell or BP looking to build a new petrol station,” he said.
Starting the company helped turn Yackandandah into the thriving town and tourism destination it is today, with historic architecture and popular mountain biking trails in the alpine foothills.
Although it operates as a commercial entity, the company is entirely owned by the community. Decisions about its future are not made in distant boardrooms.
Up to half its profits after operating expenses go to community projects and the remainder is returned to shareholders as dividends.
But when the community company took over the petrol station, it was hemorrhaging about $500 a week.
It had just two bowsers. Its position on the main street meant it was very difficult for more than one car to fill up at a time.
The company decided to find a better location and raise funds by opening up to other local shareholders.
In December 2002, the business structure changed from a private company to an unlisted public company, so it could sell shares without listing on the stock exchange.
A few months later applications for shares closed, with the company receiving 473 applications and raising more than $412,000. The shares sold for $100 each. Today they are worth about $293.
The company used the capital to build a new service station nearby, which opened in December 2003, before expanding the business to include rural supplies and hardware two years later.
Now it employs 14 casual workers as well as two-full time employees and two permanent part-timers.
The company also publishes the local paper, Yackity Yak, although the publication is financially self-sufficient. It will print its 100th edition next month.
Company chairman Ian Fitzpatrick said the formation of the community company inspired other businesses to invest in their future, helping reverse the narrative the country town was in decline.
“It grew the confidence of the business owners in this town,” he said. “It changed the mood of the place to ‘we’re not going backwards’.”
Yackandandah has a lively village atmosphere with a range of businesses, including art galleries, cafes, a millinery and clothing boutiques.
Mr Fitzpatrick said issuing shares to local people meant they were helping the business simply by spending money at the service station.
“Now that they’re shareholders they’ll go out of their way to buy fuel here,” he said.
In the 2020-21 financial year, the business sold almost 3 million litres of petrol, delivered a surplus of $262,639 before tax and provided $11,686 in community sponsorship.
Over the years the company has supported many community organisations, buying equipment for local sports clubs, backing projects at the Yackandandah Primary School and helping the local CFA buy firefighting equipment.
Ironically, the business is now working to reduce its financial reliance on fossil fuels and will soon build a charging station for electric cars.
Yackity Yak editor Ali Pockley, who is also company secretary, said the company’s success meant it had the freedom to invest in worthy local projects and the community was not constantly asking for government help.
“We’re not relying on the council to do everything,” she said.
Indigo Shire mayor Bernard Gaffney said the company exemplified Yackandandah’s fiercely local spirit.
“It became their number one priority and it worked,” he said. “It binds them together.”
Extracted from Brisbane Times