The state that closed for Christmas
The SA government's introduction of part-day public holidays has turned South Australia into a ghost town
According to Restaurant & Catering SA, a recent survey of the restaurant and catering industry has revealed that 66.3 per cent of South Australian restaurants closed for Christmas and New Year's Eve in 2012. This statistic is up on previous year's 19 per cent closure as a direct response to the state government's introduction of part-day public holidays from 7pm on those nights.
The survey revealed that on average, 14 casual staff lost the opportunity to work (almost 13,000 statewide); each of them lost seven hours' work (or $165 earnings per person). Lost revenue for each business is $9207 or $11 million across industry. On top of that, lost GST revenue to the state is $1 million.
Restaurant & Catering magazine and its associated website is published by Engage Content.
All material is protected by copyright and may not be reproduced in any form without prior written permission.
Late in 2011, Premier Jay Weatherill announced new shop trading hours for Rundle Mall on public holidays and at the same time proposed an amendment to the Holidays Act to create additional part-day public holidays on Christmas Eve and New Year's Eve from 5pm (later amended to 7pm) until midnight. The Premier stated that the changes follow an agreement between Business SA and the Shop, Distributive and Allied Employees' Association.
A number of industries met with the Premier and the then Minister for Industrial Relations, Russell Wortley, to present the case for a negative impact for industry, their employees and the public at large. They argued that the penalty rates that are required to be paid over those hours make trade unviable and businesses told the Association that they would close. These concerns were rejected by the government with claims that the stated reaction was unlikely.
The 2013 survey makes it clear that the impact on the community is a significant one. The government has made a decision that has the potential to make South Australia a ghost town over the Christmas holiday period. The impact of the deal and the closure of many businesses is now borne out by reduced pay to staff due to the many businesses that closed, reduced revenue to businesses in the sector and to those industries that supply to the sector. It also greatly reduced 'vibrancy' that the state is committing to generate.
The impact will be exacerbated in future years when those businesses covered by the Hospitality Industry General Award are roped into paying the 275 per cent penalties. That will no doubt lead to further business closures for all hospitality venues—and dire impact on the offerings for South Australians choosing to go out on those nights.
Source: Restaurant & Catering Magazine, 6 March 2013
