The state's upper house has voted against giving police officers new dispersal powers in a bill to repeal the offence of begging.
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The bill brought on by the government last year, after it was first mooted by the Greens, sought to remove the offence from the Police Offences Act.
This was after a person appeared in Hobart's Magistrates Court on a number of begging offences.
In removing the offence, the government wanted to enhance the powers police officers had to encourage a person to move on if they deterred people from visiting a business or a public facility.
If police determined a person was exhibiting intimidating or harrassing behaviour in a place and did not comply with a direction to move on, they would be arrested for this - but not for begging.
Labor members did not vote against this clause in the House of Assembly, but did so with a number of independent members in the Legislative Council.
Nelson independent MLC Meg Webb labelled the clause appallingly hypocritical and discriminatory.
Police Minister Mark Shelton urged Labor support the move-on clause when the bill returned to the lower house.
This clause does not have the support of the Greens.
Parliament will sit again on October 13.