1 00:00:00,000 --> 00:00:02,320 Speaker 1: A bit of concern in the brewing industry between those 2 00:00:02,440 --> 00:00:05,160 Speaker 1: going under and the cost of the exercise tax. Government 3 00:00:05,160 --> 00:00:08,559 Speaker 1: confirmed yesterday tax is coming four point one percent as 4 00:00:08,560 --> 00:00:11,320 Speaker 1: of the first of July. Executive director of the Brewers Association, 5 00:00:11,400 --> 00:00:13,720 Speaker 1: Dylan Firth is with us. Dylan, very good morning to you. 6 00:00:14,640 --> 00:00:15,240 Speaker 2: Good morning Mike. 7 00:00:15,360 --> 00:00:17,600 Speaker 1: How would give us a word for your industry at 8 00:00:17,600 --> 00:00:22,600 Speaker 1: the moment? Miserable, upbeat, suicidal, brilliant? What's your word? 9 00:00:23,079 --> 00:00:25,000 Speaker 2: Our getting through? I think is probably the word we 10 00:00:25,079 --> 00:00:28,200 Speaker 2: want to use. It's pretty tough out there, like mini sectors, 11 00:00:28,960 --> 00:00:30,640 Speaker 2: and you know, the brewing sector for a number of 12 00:00:30,720 --> 00:00:33,000 Speaker 2: years has been relatively flat. There's not a lot of growth. 13 00:00:33,240 --> 00:00:35,839 Speaker 2: There's some bright spots, but I think you know, in 14 00:00:35,840 --> 00:00:38,680 Speaker 2: this economic climate, discretionary spend is down and we see 15 00:00:38,680 --> 00:00:41,280 Speaker 2: it through the hospitality sector. It thinks are pretty tough 16 00:00:41,280 --> 00:00:41,680 Speaker 2: out there. 17 00:00:41,800 --> 00:00:44,239 Speaker 1: What's the tax designed to do? Stop us drinking or 18 00:00:44,280 --> 00:00:45,040 Speaker 1: just collect money? 19 00:00:46,159 --> 00:00:47,519 Speaker 2: Well, it does a bit of both. I mean a 20 00:00:47,600 --> 00:00:49,720 Speaker 2: subscribed as doing that, but it does get taken into 21 00:00:49,720 --> 00:00:52,080 Speaker 2: the consolidated funds. I mean there's about one point three 22 00:00:52,120 --> 00:00:54,600 Speaker 2: billion dollars it's taken last year and it's not ring 23 00:00:54,680 --> 00:00:57,760 Speaker 2: fence for anything. In particular. So we've seen an increase 24 00:00:57,760 --> 00:00:59,760 Speaker 2: over the last three years of a combined close to 25 00:01:00,040 --> 00:01:03,800 Speaker 2: eighteen percent, and it's linked to inflation each year, so 26 00:01:04,120 --> 00:01:05,960 Speaker 2: you know over the previous government in this one and 27 00:01:06,000 --> 00:01:08,640 Speaker 2: they've decided to continue it at this rate. But unfortunately 28 00:01:08,640 --> 00:01:11,600 Speaker 2: it's not really a sustainable system when it's got levels 29 00:01:11,600 --> 00:01:14,080 Speaker 2: of inflation, and we've seen that because people aren't spending 30 00:01:14,080 --> 00:01:16,480 Speaker 2: money and there isn't growth to be able to sustain. 31 00:01:16,760 --> 00:01:18,800 Speaker 1: So here's your problem. You want them to pause like 32 00:01:18,840 --> 00:01:20,560 Speaker 1: they do in Britain at each budget they seem to 33 00:01:20,560 --> 00:01:22,560 Speaker 1: go all to be no increase in the excience this year, 34 00:01:22,560 --> 00:01:24,360 Speaker 1: but you want it to pause until you would argue 35 00:01:24,360 --> 00:01:26,760 Speaker 1: inflations back under control the economies, right, But then what 36 00:01:26,880 --> 00:01:29,080 Speaker 1: will happens. You'll come back on the program going na, na, no, 37 00:01:29,240 --> 00:01:31,440 Speaker 1: we need another year's pause, won't you? You want it forever. 38 00:01:32,600 --> 00:01:34,200 Speaker 2: I've looked pausing just one of the things that have 39 00:01:34,240 --> 00:01:36,160 Speaker 2: gone on around the world, and we've advocated for a 40 00:01:36,240 --> 00:01:38,440 Speaker 2: number of things. You look at Canada, for example, who 41 00:01:38,480 --> 00:01:41,440 Speaker 2: saw high levels of inflation and they have a similar 42 00:01:41,440 --> 00:01:44,560 Speaker 2: system and they capped at two percent this year. You know, 43 00:01:44,720 --> 00:01:46,959 Speaker 2: we think that that's a good option. We've also said 44 00:01:47,319 --> 00:01:49,520 Speaker 2: there's an opportunity to put a separate key rate in 45 00:01:49,640 --> 00:01:53,200 Speaker 2: for supporting hospitality businesses, so a lower rate specifically for 46 00:01:53,240 --> 00:01:54,960 Speaker 2: tat beer. So the number of things out there you 47 00:01:55,000 --> 00:01:56,760 Speaker 2: could do and look at the end of the day, 48 00:01:56,760 --> 00:01:59,200 Speaker 2: if it's linked to a sustainable increase over the years 49 00:01:59,200 --> 00:02:01,440 Speaker 2: of around one three percent, like we say to the 50 00:02:01,480 --> 00:02:04,040 Speaker 2: reserve banks to keep inflation there, I think that's something 51 00:02:04,080 --> 00:02:05,000 Speaker 2: that industry could handle. 52 00:02:05,160 --> 00:02:07,040 Speaker 1: Not a bad argument, Dylan, appreciate your time very much, 53 00:02:07,080 --> 00:02:09,680 Speaker 1: Dylan Firth, Executive director of the Brewers Association. 54 00:02:10,280 --> 00:02:13,200 Speaker 2: For more from the Mic Asking Breakfast, listen live to 55 00:02:13,320 --> 00:02:16,400 Speaker 2: news talks that'd be from six am weekdays, or follow 56 00:02:16,440 --> 00:02:18,000 Speaker 2: the podcast on iHeartRadio.