From the President

A CEO FOR THE AGES

DAVID BASHEER

WATCH VIDEO: https://youtu.be/3hFRKyyze8Q

For many people in our industry, Ian Horne is the only face they have known as CEO of the AHA|SA. After 31 years of reporting AHA news, Ian has become the news!

Typical of Ian’s care for the organisation, he has kept both myself and our Executive Council fully briefed on his plans, assuring a smooth handover to our next CEO.

Ian has shaped our industry like few others. His impact has been pronounced in tourism, training licensing, gaming and industrial relations - always for the benefit of our membership.

Ian’s list of achievements is long:

• our members would have had their local supermarket as a competitor to their bottle shops.

• our accommodation members may well have been saddled with a crippling bed tax.

• we would not have enjoyed the benefit of gaming, or more recently the critical technology changes that rejuvenated a flagging industry.

He has led the nation’s best-practice, industry-led harm minimisation response that saved us from even more draconian gaming legislation.

Oh, and in 2018, Nick Xenophon may well have been SA Premier! These achievements barely scratch the surface of the accomplishments Ian has achieved for our membership.

Having had the privilege of observing Ian’s remarkable capacity to navigate the often complex political process, I can confidently say there is no one better in this State. He works his way around the corridors of power with consummate ease. This is because of the enormous effort he takes in developing and nurturing relationships on all sides of politics, combined with his rare capacity to instantly sum up a political issue and how it might affect members. Sometimes, the resolution of issues is played out in the public domain. But on countless other occasions, Ian’s backroom dealings means that issues are settled before they draw external attention.

It was during the two dark years of COVID-19 that Ian’s experience and perception was relied upon most. His capacity to work through an incredibly complex period, where there was no playbook to call upon, saved many of our members’.

Sixty and seventy-hour weeks were not uncommon. At this time, Ian’s greatest asset, his ability to assemble an outstanding team around him, rose to the fore. Our hotels, from major international accommodation venues in the CBD through to the countless mum and dad owned country pubs, would not have emerged from COVID-19 in the shape they did without Ian’s extraordinary advocacy efforts.

Today, Ian has a leadership role nationally with our AHA. He was a driving force behind the long-planned merger of our accommodation division TAA with the Accommodation Association. Furthermore, with gaming reform now a widespread national debate, his wisdom and experience are constantly called upon.

Throughout his time at the AHA|SA, Ian’s wife Lyndsay has been a wonderful support, and has always been warmly embraced by the AHA|SA family.

Ian will remain in the role until midyear. We have started an extensive process, including external advice, to find the best possible candidate to enhance Ian’s legacy.

Being a member-based organisation, the Executive Council took the instant view that it is critical we undertake an exhaustive process to fill this key role. It is critical we exhaust all possibilities to ensure the AHA|SA secures the leader demanded of an organisation of our importance and status.

We are in the fortunate position that Ian will leave the AHA|SA in a very strong position. One that our next leader will be able to grow as we continue our 152-year history of advocating for our membership and protecting our members’ fortunes and interests. We hope to announce a new CEO before the end of April.

WE ARE NOT GIVING UP

The ridiculous twice-annual CPI excise on alcohol has bitten particularly hard this time, generating predictable media interest. It remains a concerning issue for all industry participants, but especially our members.

The AHA|SA has written to the Government, recommending that the excise for all liquor be frozen for 12 months.

The increase in beer tax announced to take effect on 1 February 2023 will mean that the tax has gone up by around 8% in the past six months. Hotels are having to pass on almost 90 cents of tax on every pint of beer they pour.

We estimate these increases will cost a small pub around $5,400 a year and come after several years of difficult trading conditions associated with COVID-19 restrictions.

As pubs are still trying to rebuild and pay back debt after the pandemic, and consumers are faced with rising living costs, this would assist the broader community and the Australian hospitality industry. A 12-month freeze would:

• Not force hotels to pass a tax increase onto consumers, thus increasing the cost of living.

• Not create a further price disincentive for people to visit their local hotel, thus decreasing business sustainability and confidence.

We will continue to prosecute this argument. Governments are all under budgetary pressure, but our members and customers appear to be a soft target.

NOT COOKING WITH GAS

In a sleepy summer, one story you may have missed is Federal Labor agreeing to implement a Greensled plan to switch households and businesses from gas to electricity in May’s budget.

The Greens secured Labor’s support for the electrification scheme in exchange for supporting Anthony Albanese’s sweeping energy intervention last year. With the cost of food soaring and profit margins in our food operations more wafer thin than ever, this ideology is the last thing our pubs need right now.

Over 95% of our commercial kitchens run on gas. The cost of refitting commercial kitchens in our venues would soar well into the tens of thousands of dollars per venue.

There is simply no capacity to recoup these costs by increasing menu pricing. Others far more qualified can prosecute the argument that sacrificing gas for electric kitchens will diminish food quality and lead to longer service times.

Canberra based architect, Shannon Battisson, joins the honour roll of those with nothing to lose, yet happy to ignore the fate of our family-owned businesses. She proudly states her new home is totally electrified, including the hot water system, stovetop and heating the pool.

At a build price of $800,000, Ms Battisson said her gasless home was “not cheap”.

“I was really hesitant at first to give up the gas stove, because what I liked about gas cooking was the speed at which you can control it,” she said. “It’s instant with gas and I was not convinced it would be the same with induction. But we decided to give it a go and we’ve never looked back.”

It is comforting to know that because a cashed-up architect can afford to convert her home to electricity, then every battling hospitality business around the country must be able to do the same.

To date, we have seen little detail. For the record, the AHA is a leader in reducing emissions and the transition towards renewable energy. We would support measures designed to assist this, but would not support measures that penalise businesses that are not yet able to make the transition.

Needless to say, the AHA is already an active participant in discussions and has made representation to the Federal Government.