Taxes Taking Their Toll

I just enjoyed a lovely function as a guest of the Australian Hotels Association.

As a past publican, there's still a romantic attachment to the industry that glosses over the hard work attached to running a successful pub.

There are old school publicans who ran their businesses for decades and managed to maintain a good sense of humour despite the challenges of the job.

Those challenges include the long hours, a demanding customer base and ever increasing costs and regulations.

It was the latter that was brought home to the luncheon guests.

Running a pub, or any other business for that matter, is now running through a bureaucratic minefield.

You need to have plans, papers, schedules, and procedures for all manner of ridiculous, government-induced protocols.

There's a financial cost attached to all of them, which is why a pint of beer can cost as much as $20 at your local.

Many of those gathered told me tales of staff caught stealing money, products or time that they didn't fire because they desperately needed staff. Their hope was the staff member would learn from the experience and wouldn't do it again!

The $50 per hour 18 year old glass collector was also brought up as well as the taxes on alcohol.

The latter resonated with me, especially after my time in Paraguay.

Alcohol costs there are a fraction of what they are in Australia.

A six-pack of beer is a few dollars. A litre bottle of Bacardi Rum was $9 (in Aust it is closer to $90) while wine was much more affordable.

The price differential is almost entirely due to taxes and regulations.

I am an unabashed fan of the hospitality industry.

They provide food, drink and entertainment for so many people. In doing so, they provide plenty of jobs too.

In South Australia, there are 28,000 direct employees of the AHA member hotels.

That's 28,000 families that survive off of providing the services and welcome you experience when you go to your local for a drink or a feed.

As successive governments pile costs onto the industries they consider can most cope...or are part of the sinful commerce brigade, they also make life more difficult for everyday Australians.

You can step back five decades, before all the well-meaning programs were imposed on business and ask, are we any better off?

I don't think we are.

“Pubs are, disturbingly, where I hatch most of my best idea-sculptures: possibly it's something to do with the disinhibiting effects of alcohol, or maybe it's just having company to yack at.”
Charles Stross