City pubs and clubs warn of job losses if State Government bans smoking

City pubs are warning of job losses and huge hits to revenue if the State Government goes ahead with plans to ban smoking in all outdoor dining and drinking areas.

Under the plan, smoking would be allowed only in "discreet" designated areas where food or drink is not served from 2016.

The Australian Hotels Association says it has received hundreds of negative responses from its members on the statewide plan, for which consultation ends on October 31.

Stag Hotel and Duke Of York owner Peter Holden said the ban would have "a massive impact" on trade.

"I would suggest it would decrease our business by 20-25 per cent, potentially costing six to eight jobs (at the Stag)," he said.

"I may as well start collecting empty bottles for a living."

He said even more jobs would be at risk at the Duke because of its large beer garden which holds 190 people.

Worldsend Hotel owner Evan Katsaros predicted up to a 25 per cent drop in trade that would threaten jobs.

"It's fair enough we have had to deal with bans inside but governments keep shifting goalposts and established businesses are the ones that suffer," he said.

"People should be free to make their own choices in the open air."

Gilbert St Hotel and Benjamin On Franklin owner Luke Saturno said smokers would inevitably head outside on the street carrying their drinks, putting venues at risk of hefty fines.

"It's definitely an overkill," he said.

"Non-smokers don't have a problem with smokers outside. There's no complaints at all."

In 2011 the government committed to an outdoor smoking ban by 2016.

Health Minister Jack Snelling released an SA Health discussion paper on the ban in August, after the Cancer Council accused the government of dragging its heels.

The paper estimated a cost to businesses of $10.7 million over five years - less than $300 a year per venue - for staff training, monitoring, signage, and building works for smoking areas.

The banning of smoking in enclosed areas of pubs and clubs in 2007 had not resulted in a downturn in trade and it would be "highly unlikely" to follow an outdoor ban, the report said.

It also pointed to the health benefits for patrons and hospitality workers.

Australian Hotels Association SA general manager Ian Horne said the report's claims on revenue were "absolute nonsense" because gaming revenue alone had dropped $140 million across SA in the first three years after the indoor smoking ban came into effect.

Mr Horne said wages were up to 45 per cent of licensed venues' expenses, so any dip in trade would mean job losses.

"This strikes at the very core of the viability of the industry," he said.

Mr Horne welcomed the brief mention of alternative options in the Government's report, including making 50 per cent of alfresco areas smoke-free, or banning smoking in outdoor dining, but not drinking areas.

SA Health said no decision had been made on an outdoor ban.

Source: The Australian, 23 October 2013