From the President

Key Issues

The following is the speech I gave to politicians and key decision makers at the AHA|SA’s recent Christmas Lunch. In a room crowded with people who affect our daily lives – and businesses – the aim is to table key issues our industry needs addressed.

It is a very great pleasure to echo Annas ’s earlier sentiments and welcome dignitaries and friends.

Thank you to the Premier for his kind words.

This annual lunch has been held continuously since 1960 when political and industry leaders first gathered at the Feathers Hotel .

It presents an opportunity to celebrate the hotel and pub culture that employs 26250 South Australians.

So too, it is a time when the AHA President is afforded the luxury of offering Governments some gratuitous advice.

And, in the spirit of the Xmas season, noting who has been naughty and who has been nice.

The AHA enjoys an excellent working relationship with members of the current State Parliament

This Government deserves credit for being willing to consult - and have largely produced positive outcomes for our members – with Public Holidays being the exception.

More on that shortly.

Equally, we thank the opposition and cross benchers for their readiness to work together on our key issues.

Red Tape

Headlining the naughty list this year is a rampant bureaucracy. Like never before, our industry is being strangled by red tape!

Elected politicians must intervene to curtail the unreasonable growth of regulation and compliance that is now an exhausting burden.

Our members are frustrated by the uncoordinated approach of local, state and federal agencies, who seem incapable of ever speaking to each other.

Escalating obligations have left our family operators being asked to have a back office more resembling the size of BHP.

Some examples:

Existing compliance obligations from local and State Governments ensure our hotels already have high standards of food safety.

Now the Federal Government has jumped in to add its own food safety standards.

They require highly qualified chefs - who may be famed leaders in their field - to do a food safety 101 course.

For 8 hours!

That includes uploading a video of themselves washing their hands.

Once uploaded, a public servant –probably working from the comfort of their own home – will assess if our chef’s hands are clean enough to return to the Chargrill.

A further training course is required for any bar staff whose only food role may be to occasionally toast a pre-made cheese and tomato sandwich.

To me, that makes about as much sense as requiring a politician to do a Manual Handling In The Workplace course merely because – once every 4 years during the electoral cycle – they lift a box of election pamphlets.

There is not a shred of evidence this extra cost is required.

Common sense dictates ANY new layer of obligation would see duplicate Government requirements removed. But that is never the case for this growth industry.

Losing key staff for 8 hours during an acute labour shortage to demonstrate they can wash their hands is not an isolated example. But it does highlight the disconnect between Industry and the bureaucracy.

No presents under the tree for the Fair Work Ombudsman.

Their compliance department presumes our hoteliers are guilty until proven innocent.

In September, Fair Work officials from Victoria descended upon Adelaide and raided a series of hospitality venues.

Surprised and anxious staff were aggressively told to abandon serving their customers. They must have been troubled by what hideous crime their employers had committed, not realising the raids were entirely random.

The raid was just the start of the ordeal. The follow up letters to these victim business owners assumed they had little else to do but answer inane questions for the entertainment of bureaucrats.

One demand was for - and I quote: “correspondence, including those recorded by text, email, electronic messages, WeChat, Facebook messenger, WhatsApp or smartphone applications, detailing shift times and availability for work”.

Translating that from Sir Humphrey Appleby speak, they require us to provide evidence from two-anda-half years ago - the time when we were consumed by the Covid nightmare - to provide evidence how a hotel contacted a casual employee asking them to start their shift 30 minutes earlier.

It is record keeping to the absurd.

The law of the land does not require us to maintain such records.

There are some who drool over the joys of red tape.

Those of us in the real world of employing staff, paying our taxes and keeping the economy turning have more pressing matters to attend to.

The hotel industry has never shirked its responsibility for strong compliance in liquor and gaming.

But like the Crows in that fateful game, the goalposts keep narrowing.

When State Government legislation scrutinised by parliament does not suit the bureaucracy’s agenda, they turn to their new weapons – namely, “guidelines” and “codes of practice’.

The clumsy implementation of extra obligations for our gaming-based loyalty customers has been an embarrassment.

Loyalty is a very useful tracking device to assist in gambling harm minimisation. The overreach by the bureaucracy has seen it kick an own goal.

Hotels and their customers have deserted loyalty in droves.

This has diminished an existing harm minimisation tool.

History says hotels will pay the cost for the bureaucracy to fix this issue.

In addition, we now have the investment killer of ill-conceived new rules for any hotel redevelopment that includes modifications to a gaming room.

This over cautious approach signals delays and added costs for building. Two criteria that scare investors into keeping their money in the bank or to invest in another State.

The laundry list of added Government obligations is long, and I will spare you the ordeal of hearing them all.

We are envious of the refreshing approach taken by the Minns Government in NSW.

They have appointed a Minister for the Night-time economy and a commissioner for the 24-hour economy, then set about reinvigorating Sydney’s nightlife. They’ve introduced legislation to stop NIMBY neighbours from shutting down pubs with vexatious noise complaints, including protections from complainants who move into an area where a hotel has been long established. Hear hear to that!

NSW are also providing encouragement for venues that HOST live music by reducing their licensing fees, and allowing them to stay open beyond their licensed hours.

Premier Minns said the moves were:

“simply common sense and another step in removing Nanny state restrictions and red tape that have stifled the fun out of Sydney.”

Once, we prided ourselves on being the fun loving larrikin Aussies.

Today, we have lost all proportion.

In an environment where alcohol consumption is falling - especially amongst the young – somehow we have become the most uptight country on earth.

After a post covid bump, bank credit card data confirms our industry is now in negative territory with demand falling by 20% in some areas.

Despite this, Governments have formed have an unhealthy appetite to exert unreasonable control over how we run our businesses.

Easter Sunday

The AHA was extremely disappointed to see legislation rushed through the last sitting week of State Parliament to add an additional public holiday in South Australia every year from 2024.

Four consecutive days of public holidays over Easter will force pubs to restrict their trading for that period - or close.

The AHA proudly supports its workers.

Recently we were traveling partners with Governments on a range of issues including Wage Theft and pay day super.

We were isolated by ALL other employer groups and big business when- we were only ones - THE ONLY ONES - to not scream from the sidelines but to have the temerity - to be at the table with Minister Bourke working together on the Federal Government’s signature Closing the Loopholes bill.

We are not here to punish our workers who give up their time on Easter Sunday.

So, on the presumption that the intent of the revised legislation was not simply to add an additional public holiday to the calendar, the amendment moved by the Liberal Party to swap Easter Saturday with Sunday made perfect sense.

Someone has to pay for the extra public holiday.

Or those of you who voted for this legislation without realising who that someone is - it is the publican sitting right next to you today.

Don’t give me the consistency argument that “every other mainland state and territory has Easter Sunday as a Public Holiday, therefore so should we”.

That argument conveniently ignores the fact only SA & NT workers enjoy BOTH the 2 day part day public holidays for Xmas Eve and New Years Eve.

Of the 11 stakeholder submissions received as part of the Government’s brief flirtation with consultation back in January, only one advocated for Easter Sunday to be declared a public holiday. One out of 11!

It is never too late to change unfair legislation.

If the Government remains unmovable on both Easter Saturday and Sunday being public holidays, it can still show the consistency it craves.

It can restore the balance by abandoning the two part day public holidays from 2024.

The revised public holiday schedule is a first strike against the Malinauskas’ Government’s ‘business friendly’ credentials .

Labour Shortage

Our industry desperately requires more staff in our workplaces.

The world is now filled with influencers. The influencers our industry requires come in the form of career counsellors and parents. We need them to understand a career in hospitality – or any other trade, is as noble as a university degree.

In this regard, I acknowledge the supportive efforts of the Education Minister Blair Boyer, and his predecessor, John Gardner.

Critical to our labour shortage are the key pillars of migration and housing.

The Malinauskas government deserves a tick for their efforts in both these areas.

There is a lot of elitist talk about skilled migration. A job that cannot be filled is no less valuable because it does not require formal qualifications.

The person who invented the wheel never held a Masters’ degree.

Local Government must accept their responsibility to ease the housing shortage by assisting in the facilitation of new developments.

That assistance can be as simple as getting out of the road.

The AHA has a five-point plan we will soon present to the State Government to seek assistance and funding to alleviate our labour shortage.

Firstly, support us in our advocacy with your federal colleagues to modernise training requirements –to better reflect today’s society and be truly competency based.

The current 50% Apprenticeship dropout rate is an alarm bell that the system is broken.

For today’s Generation Zeds, a fouryear apprenticeship belongs to their parents’ era.

Shortening apprenticeships by removing unnecessary training modules will save, rather than diminish this State’s fabulous food reputation.

Pubs don’t butcher their own carcasses or bake their own bread – yet these redundant skills are required to complete your Chef qualifications.

Secondly, establish financial incentives to encourage apprentices to complete their training. Milestone payments are a proven inducement to keep Apprentices in the job.

Furthermore, tools of the trade allowances for those in training was a small cost to the budget that was cruelly abandoned by the Weatherall Government.

Assisting chefs of the future with knives or uniforms would be a quick win in this cost-of-living environment.

Thirdly, we must rescue the regions.

• Apprentices must pay for transportation and accommodation to go to trade school in Adelaide when local facilities or staffing does not allow adequate training.

• That is hardly an incentive to bolster completion rates.

Technical colleges in the regions are a step in the right direction. The AHA is liaising with the Education Department – to assist regional centres to have the appropriate training pipeline.

Fourthly, the data clearly shows that employing formal mentors for trainees substantially lifts completion rates.

Finally, COVID shutdowns branded hotels as an unreliable employer.

We did the hard yards back then for the greater good.

Now help us to recover by providing assistance to promote our industry and the employment opportunities that lie within.

Fixing the long-standing labour shortage requires serious political will.

Without it, hotels continue to find themselves under resourced and poorly placed to meet future workforce needs.

Events

Events and conferences in South Australia fill our hotels, bars and restaurants.

Tourism equals jobs.

Those at the Industry coalface will tell you there is STILL work to be done to fill the formidable black hole in our winter months.

This can best be relieved through an expanded bid fund, targeting major conferences during that period.

Data from Business Events Adelaide reveals a conference delegate will spend $650 a day compared to $200 per day from the leisure tourist.

Beyond a conference, delegates extend their stay to explore the regions and become advocates for the State - returning with their families.

We applaud the State Government’s strategic priority and the $40 million Major Events Fund that has introduced on-going events such as Gather Round and Liv Golf.

Events have become a critical part of our $9.9 billion visitor economy, and this State does it better than anyone.

That’s why LIV at Grange was named the World’s Best Golf Event for 2023.

But there is one glaring omission from our glittering events calendar and that is a show stopping horse race that attracts the best jockeys, trainers and horses from around the country.

We are the only mainland State not to be playing in this space.

There is a deal to be done to make this happen. It’s a deal around taxation equality with a long list of winners: regional tourism, wineries, SA racing, an improved State budget, and our pubs.

SA racing does not operate on a level taxation playing field.

Foreign-owned bookies, like Sportsbet and Ladbrokes, pay a tax rate less than our local TAB.

The tax benefit offshore bookies enjoy assists them to bombard us with those endless betting adds, along with other marketing and sponsorship initiatives.

I have never understood why a punter on his phone at a pub backing a horse with a foreign owned bookie, pays less tax than his mate backing the same horse with our local TAB.

Our hotels who rely on pub Tab revenue are missing out.

If foreign based multi-nationals are making a living from South Australians having a bet-they must contribute their fair share of tax.

We call upon our State Government to follow the lead of other jurisdictions and move to a more level taxation playing field.

That deal should include coercing TABCORP to put serious money into a headline grabbing race in our State-as they have done elsewhere.

The $16million TAB Everest which takes over Sydney each October is racing’s best example of what can be achieved.

Our race can differentiate itself from other States by taking it off Broadway.

Why not run it at Balaklava paired with a Barossa Valley wine festival?

Or we run the Coonawarra Cup in Mt Gambier to celebrate that famous wine region.

TAB has a unique ability to provide world-wide betting pools, bringing in unprecedented attention on our regions from Asia.

This is one tax increase the AHA can support because it is based around fairness and only affects a handful of multinational betting companies who make an undersized contribution to South Australia.

Gas

An obsession with the premature phasing out of gas in our kitchens is a worrying development.

The Victorian and ACT Governments are removing gas from new connections.

Now the Greens have announced South Australia should follow suit.

We thank the Legislative Council for its swift response to head off that threat last month.

Only last week, it was reported the Adelaide City Council has the early extinction of gas high on its agenda. Energy policy must be established at State and Federal level, not rest with Local Government.

It is absurd to think one hotel would be operating under an energy policy completely different to the pub in the neighbouring Council area.

To this end we are comforted by the assurances from both our Premier and State Energy Minister Tom Koutsantonis on their view of our State’s future reliance for gas.

Over 95% of our commercial kitchens run on gas.

The cost of retrofitting kitchens to electricity would be tens of thousands of dollars per hotel.

That cost must be passed on. Prepare for the $40 Schnitzel.

The Holy Trinity of any energy policy must be reliability, price and emissions.

Energy policies must be based around technology and demand –not blinkered by ideology.

Natural Gas is increasingly underpinning this country’s energy security.

It needs to remain as Australia’s transitional energy source as we usher in the low carbon fuels of the future.

Hotels are part of this journey. We have embraced solar. We have brought in more efficient refrigeration and air conditioning to reduce our carbon footprint.

The AHA is working with Green Industries SA to deliver a world leading Sustainability Program to guide our hotels.

If gas is abruptly disconnected, it will become government’s responsibility to compensate venues as part of an orderly transition to an alternate energy source.

Acknowledgments

The long-term face of the AHA, Ian Horne, retired in July.

One of the most formidable business figures in South Australia, Ian’s strong relationships with influential stakeholders allowed him to change policy direction in this State like few others could hope to from outside Parliament .

During his 31-year career, Ian was at the centre of some of this State’s most divisive debates. But it speaks volumes of the man that he departed with the full respect of both friends and adversaries.

Jay Weatherall, whilst Premier, noted: “Ian Horne is the best and most trustworthy political lobbyist in this State”.

In recognition of Ian’s legacy, he has become the first non-publican to be awarded AHA Life membership.

Post AHA, Ian has not chosen the slow lane. He sits on a number of key Industry boards including Tourism Australia.

The transition to Anna Moeller as CEO has been seamless.

Anna is very much her own person, with a clear vision for how the Association can best represent our membership.

And any of our political friends thinking dealing with the AHA may become more comfortable, quickly discovered Anna can give as much grief as Ian did on his very best day!

Anna is blessed to have inherited an outstanding team who service our members with distinction.

The membership thanks each and every one of you for your dedication and commitment.

I am proud to lead the AHA State Council Industry leaders all who advance the cause of our members with passion, care and intellect.

Particular thanks to Senior Vice president Matt Binns, Vice President Luke Donaldson, and Secretary/ Treasurer Sam McInnes.

For 16 years, Jayne Jeffries has chaired the AHA’s self-funded early intervention agency Gaming Care. Jayne transformed Gaming Care into a Nation- leading model for harm minimisation and staff training. Jayne retired from her position in October, and we thank her for her outstanding contribution.

To our corporate partners, you truly are industry friends and we thank you for your support.

Congratulations to the major category winners at this year’s Awards for Excellence: Mount Lofty House, The McLaren Vale Hotel and The Cremorne. In a coup for the Duxton Pub Group, the Cremorne was awarded Best Hotel in Australia at our National Awards

I am pleased to acknowledge three industry trailblazers.

Congratulations to Lisa Matthews and Loretta Wilmshurst, who were inducted into our Woman in Hotels Hall of Fame.

And a special congratulations to Peter Hurley. The Peter Burnett medal is as an AHA National award that recognises an individual who has served our industry with distinction in advocacy, operational and philanthropic work. Peter became the first South Australian to be recognised for this prestigious award.

MERRY XMAS!

Ladies and gentlemen, thank you for the honour of your attendance today. Your invitation confirms your value to our Association.

We wish you and your families a safe and happy Christmas.

Having previously heard from the Premier, it is now my pleasure to introduce to the stage the Leader of the Opposition David Speirs to respond.