2024 PRESIDENT’S LUNCH SPEECH

From the President

DAVID BASHEER

AHA|SA PRESIDENT, DAVID BASHEER, GAVE THE FOLLOWING SPEECH TO HUNDREDS OF THE STATE’S MOST INFLUENTIAL FIGURES, ALL OF WHOM HAVE AN IMPACT ON THE FORTUNES OF THE HOTEL INDUSTRY.

IT IS INCLUDED IN ITS ENTIRETY SO THAT ALL MEMBERS HAVE ACCESS TO THE MESSAGES BEING DELIVERED TO STATE AND FEDERAL POLITICIANS AND POLICY MAKERS.

For more than 150 years, the AHA has been advocating for an industry that is the heartbeat of any community.

Whether it be through economic storms, social issues – or whenever our political friends temporarily lose their radar – the AHA has and always will, energise friends and engage critics to defend our members.

Members who are remarkable achievers and entrepreneursworking alongside our 27,635 employees to create the best pubs in Australia.

National Awards

This was emphatically demonstrated at the National Hotel Awards.

It was a night of triumph for South Australia, as we scooped no-less than 11 awards, highlighted by the Arkaba and McLaren Vale Hotels winning best Metropolitan and best Regional Hotels in Australia respectively.

Despite having the country's finest pubs, formidable challenges remain.

Alcohol Excise

With 6,670 pubs around the country serving 11 million voters, our customers are searching for a friend in Canberra - one they can vote for at the Federal election.

Australia now has the third highest rate of alcohol tax in the world.

Pub goers fear with the current twice yearly excise indexation rises – actually bugger those polite words “excise” and “indexation” - with the twice yearly tax hikes, we will quickly move from the third highest alcohol taxing country in the world into the gold medal position.

This is such a lazy tax.

No need for the Prime Minister or Treasurer to stand up and publicly justify the tax increase twice a year, every year.

No requirement to skilfully navigate their tax hike though the Upper House.

Finance Minister Katy Gallagher dismissively says this cash cow ‘is something that just happens”.

What a glib comment.

Does the rate of the luxury car tax increase twice a year?

Yet, having a few frothies in a family run hotel has become a luxury.

Too many in Canberra fail to appreciate Aussie Pubs are the second lounge room for so many communities.

This “something that just happens” tax is also an insidious tax on socialising – and mental health.

We all understand the devastating impact of loneliness - and the positivity of mates talking to mates..

For many, this means spending time at their local pub … but today, only if they can afford it.

Allow me to present an uncomfortable truth.

A truth no one wishes to eyeball.

A 2023 Australian Institute of Health and Welfare survey reveals the price of heroin continues to fall. I’m told a joint is half the cost of a pint of beer.

No surprise then in the results from Uni SA’s analysis of Adelaide’s Wastewater that found meth, cocaine and cannabis are all at record levels.

Conversely, alcohol levels are at record lows.

Those finding are consistent with alcohol sales data, which shows a steady decline from the peak of the 1970s.

This relentless tax has gone up every six months for the last 35 years – and as certain as Port Adelaide losing another Preliminary Final - will inevitably go up another 70 times over the next 35 years.

Who knows what prohibitive price a pint of beer will skyrocket to by then?

As Treasury reaps in a whopping $8 billion of alcohol taxes a year, their tax is hitting pub patrons in the hip pocket at a time they can least afford it.

Even the Poms get it.

Last month’s UK budget was the highest tax raising budget since 1993. Yet this is what Chancellor Rachel Reeves announced (watch video).

Ladies & gentlemen - its time!

Our ask is modest. And achievable. We are not proposing any change to the 80% of liquor that is sold off premise.

We are calling for a 40% reduction on the tax levied on all keg beer and spirits served to a customer in the pub.

That translates into a mere 2% reduction - 2% - in the $8 billion annual excise receipts but it will make a real cost of living difference to the customers at the pub, our family hoteliers, and our unfortunate young staff who constantly bear the brunt of patron anger.

It is inside the pub where the jobs are.

It is inside the pub where we have trained and licensed staff serving alcohol in a controlled environment. Drinking inside the pub is the safest form of drinking.

The National Party understands our pubs are a vital anchor in Australian communities and have pledged to take action.

Ahead of the Federal election, we look forward to the two major parties pledging the same cost of living relief to support our 11 million customers.

Housing And Migration And Airbnb

Migration will be a key battleground at the Federal election.

The AHA holds a bi partisan position - we don’t like either party’s policies! Our members are now reporting numerous examples of overseas workers unable to renew their visasand being sent home.

In too many cases, their positions have not been filled.

These migration policies are primarily driven by our housing shortage.

Frankly, we are trading one problemfor a bigger one.

The rapid rise of Airbnb and other short stay platforms has decimated housing stock around the globe.

In South Australia, Airbnb removes 7,772 homes from the long-term rental market.

In the business pages of today’s Advertiser, adjoining residential properties are advertised as “An Airbnb opportunity”. Two more houses lost!

Since its launch in Australia 12 years ago, Airbnb has grown at a phenomenal pace - with 8,836 listings in South Australia alone.

But shared houses make up only 12% of all listings.

There exists a rare opportunity for South Australia to take a bold approach and lead the nation, to quickly return those 7,772 homes back to renters.

Canada and New York have taken real action that our State can replicate.

New York has resolved that Airbnb hosts must register with the City and physically share the living quarters with the guests for the duration of their stay.

This has returned more than 18,000 dwellings for long term renters - in just a matter of months.

In Montreal, Vancouver and Toronto, that figure is 19,000 homes.

This actually reflects the original Airbnb concept of letting out a spare room to tourists rather than losing a whole dwelling for short term holiday stays.

South Australia’s housing crisis and migration opportunities would be transformed if we adopted such a policy.

Now South Australia is not New York, and I concede some regions where tourist accommodation is more scarce would require a carve out.

Equally, it would be sensible to allow short term stays during peak events - as we saw when we hosted the Grand Prix.

But reverting close to 8,000 houses back - in a relatively short period

- to long term rentals would increase our available rental stock by six times. Six times!

That excess housing supply would open up enormous economic advantages for South Australia over every other State.

London, Amsterdam, Paris, San Francisco, and next month Perth, have all tackled Airbnb’s erosion of the rental market by placing caps on short term stays.

In Barcelona, the Mayor has called for a total ban on Airbnb by 2029 to end his city’s housing nightmare, claiming: "We are confronting what we believe is Barcelona's biggest problem".

Migration Settings

Our State must remind the Feds not every migration setting needs to target Parramatta and Marrickville.

Mt Gambier and Port Lincoln also count.

South Australia will require an extra 2,080 cooks and chefs over the next 10 years, along with another 970 accommodation, restaurant and hotel managers.

Already, we rely upon 900 permanent and temporary migrants each year to fill existing gaps.

And still that is not enough.

When we triumphantly fill our hotels for Gather Round, who is going to cook the meals and clean the rooms?

Who will wait the tables at that prestigious international conference?

Up until 2017, employer-sponsored migrants were approved for virtually any occupation, provided there was a proven skill need.

This programme was incredibly responsive to fill local skill gaps.

Now Canberra tells US what our skill shortages are.

This Australia-wide approach discriminates against smaller cities like Adelaide, and absolutely against our regions.

We need to return to the model where employers were the experts on their workforce needs, not some Canberra bureaucrat.

Overseas students, too, are a critical supplement to our workforce.

We commend the State Government for resisting any Federal push to unreasonably cap South Australia’s overseas student intake.

Any cut would not only reduce our staffing pool but also reduce the dollars students - and their families – pour into our economy.

Last weekend, the Liberal Opposition announced that it will adopt - as policy - the AHA|SA’s long standing proposals for a shortening of cooking apprenticeship and the introduction of mentors along with a range of other measures.

We welcome any initiatives put forward to improve our falling apprenticeship retention rates, and look forward to continuing to work with all sides of the Parliament and the revamped Industry Skills Council to deliver important boosts to our skilled employment needs.

Junior Wages

The push to pay junior employees full adult wages will place even greater pressure on our labour force and hamstring youth employment.

Anyone in our pubs who serves alcohol, regardless of age, is already paid at the full adult rate.

And fair enough. They are doing the same jobs as older full wage earners.

But to pay an 18-year-old industry entrant full adult wages to pick up glasses will see publicans stop employing these kids.

I ask: How many people in this room have rung their local publican seeking a job for their teenage daughter or son?

And we are happy to help. It’s a good, reliable source of labour.

There are so many fantastic examples of young kids, who trained as a junior, now having important, well-paid jobs in our industry.

The General Manager of my pubs, Rebecca, who is here today, is just one example.

Commercial reality dictates our members can’t justify paying an 18-year-old glassie --who is not fully work ready - $49 per hour on a Sunday, plus Super to clear that table.

These ‘own-goal’ reforms will hurt the very cohort they aim to assist.

It is your kids and grandkids that will miss the opportunity to start their working life in a pub.

Red Tape

The constant layering of red tape is unsustainable.

Hoteliers have over 100 compliance actions we must tackle as we try to perform our daily business tasks.

And now, green tape - including mandatory climate reporting - will only add to this burden.

So, here is a message for any legislator - or regulator - who thinks just one more bit of red tape won’t be a problem (watch video below).

This is no laughing matter for our members and their staff.

Our small and family business owners are now expected to have a corporate structure more resembling Santos.

Business is crying out for politicians to champion our cause.

Someone to ensure Government departments talk to each otherand the other tiers of Government - to minimise onerous and duplicated burdens

Just when all appeared lost, last night we learnt our Minister for Liquor, Andrea Michaels, who happily is also the Small Business Minister, has after consultation with the AHA released a draft Liquor Licensing Bill that has identified a number of red tape reduction measures.

These cost saving measures are welcomed by the AHA|SA.

Liquor Licensing Irregularities

The granting of some new restaurant licenses suggests it is red tape for some - but not for others.

Liquor licensing laws in this State have been watered down, and no-one in the bureaucracy has bothered to inform our politicians.

It makes a mockery of the Parliament that passed the current licensing laws in 2017.

Some of these licenses are trading well beyond their conditions. A cursory scan of their social media sites reveals many are operating as fully licensed bars.

While pubs are threatened with fines for placing a sign in the wrong area, we have restaurants illegally selling takeaway wine with apparent impunity. One even had the audacity to have a fridge labelled “Take Away Only”!

To appreciate how far liquor licensing laws have softened, now your local snack bar can sell alcohol – and do so free of many of the obligations imposed on our hotels.

We have Sushi Trains with happy hours from 3pm. The Bean Bar gets in much earlier with a 12 noon to 4pm happy hour.

The Bean Bar proudly promotes a bucket of 4 beers for $20 or if you prefer, on the way back to the office, an expresso martini for $14.

Time to change their name to the Beer Bar!

It is obvious some of their franchisees have no interest in complying with licensing laws as drinkers are able to treat these cafes as their front bar.

The AHA will always protect its members’ businesses – especially given the absence of a level playing field.

But it runs far deeper.

When small bars were added to the SA Licence categories in 2017, much was made of creating a vibrant city centre.

That small bars must be confined to the CBD has unambiguously been the will of the Parliament.

But it appears the authorities are happy to overrule Parliament’s intentions.

They choose, by their own volition, to extend small bars to the suburbs and even the regions, using a Restaurant License as their cover.

I remind those granting such licenses that the Objects of the Restaurant and Catering section of the Licensing Act are clear. It states:

“The supply of meals is to be the primary purpose of the business, with liquor sold with or ancillary to a meal."

Burger bars in the suburbs receiving a restaurant license but seeking to sell liquor until 1am surely would raise alarm bells.

They trade like a full-blown bar but conveniently add grilled burgers as their optional food offer.

Word is spreading. Awaiting judgement is a restaurant on Prospect Road wanting to vary its license to sell liquor from 8am to 4am. AM!

Our issue is compounded by the apparent disinterest of authorities in enforcing license conditions.

Last month, people I can personally vouch for, went to a venue in the southern city fringe which operates under a restaurant licence. They sat there for over two hours with drinks only. At no point were they told they had to order food to be able to consume alcohol.

Remind me again of that wording of the Licensing Act?

If the business wants to trade this way, it must apply for the correct license and fulfill its obligations –not backdoor the parliamentary process.

New applications must require:

1. That more detail of the proposed operation be provided to allow CBS to make an assessment as to which license category is the most suitable

2. The applicant must be educated about their licence conditions

3. Enforcement of those conditions by CBS and LEB is essential.

Gaming Harm Minimisation

With our pubs long leading the way in gaming harm minimisation, interstate Government officials have descended upon Adelaide over the past 18 months to see what they can learn from us.

The Tourism Minister should be grateful for the extra revenue the AHA is generating for our visitor economy.

These measures have been Industry funded - avoiding any taxpayer contribution.

They include:

• Facial recognition

• Automated risk monitoring

• Cash access restrictions

• Modest load up limits on gaming machines - a world away from casinos that have load up limits up to 50 times greater than South Australian pubs. This means the risk of money laundering in our venues is virtually eliminated.

• Our early intervention agency, Gaming Care, and our staff training are both recognised as nation-leading initiatives

• Furthermore, we are one of only two states who allow third party barrings, no state has a longer mandatory shut down time for trade, and our maximum bet has been halved since 1994.

• Allowing for inflation, that maximum bet has actually reduced by 77%

• And unlike the Eastern States, we do not allow volatile Link Jackpots.

We continue to improve our safety nets.

Last month, we teamed up with Consumer and Business Services Minister, Andrea Michaels, and Human Services Minister, Nat Cook, with the Take a Break initiative to allow at risk players to more easily ban themselves.

A South Australian hotelier’s reward for leading the nation in harm minimisation is to pay the highest rate of gaming tax in the land!

By comparison, the tax levied on that online casino based out of Uzbekistan is zero.

According to the Government’s own research, gambling participation in Australia, declined between 2011 and 2019 whilst online gambling doubled.

Online problem gambling rates sky-rocketed from 12 to 30%.

You get the trajectory…

In an era when anyone can have a casino in their pocket, online gambling is able to flourish unabated while our members remain the target.

So I ask this: consider the South Australian landscape each time an impressively taxpayer-funded agency or researcher finds a new reason to target our members and their legitimate businesses.

Businesses that contribute $5.5 billion annually to SA's gross state product, pay $755m in rates and taxes, and pay $943m of wages to South Australian workers each year.

Vale Malcolm Hill

It was with sadness that we learnt in May of the passing of AHA|SA Life Member, Malcolm Hill.

Malcolm was the long-time manager of the Berri Hotel and served on our State Council for 17 years.

He was a revered figure in both the business and sporting communities.

Past President Peter Hurley was one of several business and sporting luminaries who superbly eulogised Malcolm’s wonderful life.

The AHA’s deepest sympathies are extended to his wife of 62 years, Ann, and family.

Thank Yous

To all our corporate partners, thank you for your support. When you choose to support the AHA, you make the statement you are not merely a bystander in our $1 billion a year supply chain. You are truly friends, each and every one of you.

Thank you to our State Council and Executive, particularly Senior Vice President Matt Binns, Vice President Luke Donaldson and Treasurer Sam McInnes for your outstanding contributions.

To Anna Moeller, who in a relatively brief period has placed her own touch on our organisation, to Owen Webb and the team, our members are so fortunate to have a group of committed professionals advocating for their interests.

Ladies and gentlemen, thank you for the honour of your attendance today. To you and your families, have a safe and happy Christmas. You are always welcome in any of our 590 member establishments.

2024 was again a year when tourism and events were central to our members’ success.

We remain highly appreciative of the Premier’s personal energy to assist our industry’s post-Covid recovery.

Beyond room nights and bustling bars and eateries, these events have transformed the way not only interstaters, but South Australians ourselves, view this State.

The Business Council of Australia offered a glowing endorsement of the South Australian economy.

This State has a good story to tell.

David Basheer, AHA|SA President