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Speaker 1: From yesterday, the Australian Taxation Office has increased the excise

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Speaker 1: dudy rates that pubs and clubs must play pay, i

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Speaker 1: should say, on the purchase of alcoholic beverages. So this

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Speaker 1: hike means said ozsies could end up paying reportedly fifteen

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Speaker 1: dollars for a pint of beer. Now joining me in

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Speaker 1: the studio to tell us a little bit more about

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Speaker 1: what this actually means is the National CEO of the

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Speaker 1: Australian Hotels Association, Stephen Ferguson.

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Speaker 2: Good morning to you, Katie.

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Speaker 1: Lovely to have you in the studio. And we've also

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Speaker 1: got the CEO of Hospitality here in the Northern Territory,

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Speaker 1: Alex Bruce, good morning to you.

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Speaker 3: Good morning Katie.

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Speaker 1: Now, honestly, does it get much worse than your beer

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Speaker 1: getting more expensive?

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Speaker 4: Oh look, Katie, you know, especially at this time of year,

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Speaker 4: I suppose with Darwin Cup just gone and plenty of

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Speaker 4: people in town, you'll probably see that the pubs and

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Speaker 4: clubs and restaurants will be having to put up the

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Speaker 4: price of their beer. The difficulty is that the Tax

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Speaker 4: Office every first of February and every first of August

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Speaker 4: increases the beer tax by the mount of CPI. So

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Speaker 4: if you're a tax person, you're a treasury person, it's

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Speaker 4: a really great tax because it's a little bit that.

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Speaker 2: Goes up often.

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Speaker 4: So it's sort of I wouldn't maybe not designed, but

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Speaker 4: it has the effect of nearly being can be unnoticed

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Speaker 4: because it's just that little bit all the time. But

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Speaker 4: what we're saying is that it's really starting to bite

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Speaker 4: now with the CPI rates of hitting six and seven percent,

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Speaker 4: that really sort of hits this tax rate. We asked

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Speaker 4: the last come to do something about it. Unfortunately they

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Speaker 4: never never got around to it. We understand now that

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Speaker 4: with rising cost of living on fuel, interest rates, leg

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Speaker 4: you know, let as eggs that you know, it's probably

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Speaker 4: not priority number one for the new government. But nevertheless,

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Speaker 4: we just think that people should be aware, especially when

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Speaker 4: they're going to order a beer over the next few days.

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Speaker 4: Please don't blame the staff, mean, it's not their fault.

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Speaker 4: It's just simply a cost that's having to be passed

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Speaker 4: on from treasury.

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Speaker 1: How much could people be paying here in the Northern

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Speaker 1: Territory for example, for a beer.

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Speaker 4: Oh look, it depends where you go, but you know,

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Speaker 4: that's what we're worried about it's sort of the price

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Speaker 4: of a fifth. Now it's a schooner in southern language,

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Speaker 4: you know, getting above ten dollars, you know, pint getting

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Speaker 4: up to near fifteen dollars, And we think that's sort

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Speaker 4: of a trigger Thatt'll say to people, Gee whiz, it's

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Speaker 4: too much to go out tonight.

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Speaker 2: I'll stay at home.

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Speaker 4: And the trouble with people staying at home is that

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Speaker 4: the package beer is cheaper, but it means that there's

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Speaker 4: not the employment created, there's not the capacity for people

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Speaker 4: to socialize as much.

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Speaker 2: And that's one of the great things. We want people

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Speaker 2: back out in the venues.

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Speaker 4: When I was walking up Mitchell Street yesterday afternoon, it

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Speaker 4: was fantastic just to see people out and about socializing,

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Speaker 4: especially probably mostly from the South.

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Speaker 2: But if we make it too expensive, they'll stay home.

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Speaker 1: Well, and look, I understand that the argument from some

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Speaker 1: will be that you don't want people drinking too much,

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Speaker 1: that there are obviously social issues and health issues associated

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Speaker 1: with consuming alcohol. But at the end of the day,

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Speaker 1: a lot of people do enjoy going to the pub,

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Speaker 1: having a quiet beer or having a quiet wine with

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Speaker 1: their lunch or their dinner. But then when the cost

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Speaker 1: is going up so astronomically it makes it tough. And

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Speaker 1: as your point it out, if it then means that

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Speaker 1: you're having a beer at home, what's the impact on

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Speaker 1: our pubs and clubs?

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Speaker 2: Well?

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Speaker 4: And also, I mean I think when you talk to

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Speaker 4: most sort of society societal researchers, they'd say that they

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Speaker 4: would much rather people be in a licensed premise, you know,

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Speaker 4: where their supervision about to control levels of intoxication, rather

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Speaker 4: than rather than going home. It's all we're saying, is

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Speaker 4: that about twenty percent of liquors sold in pubs, clubs,

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Speaker 4: restaurants and cafes eighty percent sold for purchase at home

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Speaker 4: or where else. We're just saying, let's have a conversation

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Speaker 4: around there's twenty percent to say, Okay, how should it

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Speaker 4: be treated differently?

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Speaker 2: It should not be taxed the same as something that's

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Speaker 2: going home.

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Speaker 1: Now, if I mean, is it avoidable? If you've said that,

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Speaker 1: it is still going to be something that impacts people

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Speaker 1: if they get takeaway or if they're at the bottom shop,

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Speaker 1: is it still like is it the same amount that

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Speaker 1: it's going to go up?

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Speaker 2: Yeah, it sort of goes up by CPI, but it's

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Speaker 2: across everything.

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Speaker 4: Beer wine wine stacks a little bit differently, but yeah,

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Speaker 4: just up on everything and it's every six months.

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Speaker 1: And then when you talk about the flow on effix

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Speaker 1: obviously for industry, what you know, what impact is it

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Speaker 1: going to have on some of our businesses.

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Speaker 4: Well, if you thought about just a small country pubm

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Speaker 4: which there's plenty in the territory, a pub that sells

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Speaker 4: about ten kegs a week, cornerstyle country pub, that's about

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Speaker 4: sort of two to three thousand dollars a year. Now

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Speaker 4: that you know in Canberra that might not sound a

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Speaker 4: lot of money, but let me tell you in the bush,

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Speaker 4: two thousand dollars out of your.

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Speaker 2: Bttom line, that's a stack of money.

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Speaker 4: And those businesses also as the same as everyone else

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Speaker 4: with a rising cost of living, their face with increased

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Speaker 4: energy costs, you know, food costs and what have you.

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Speaker 4: So someone's got to pay you. The business can absorb

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Speaker 4: it for a while, but ultimately it's got to get

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Speaker 4: passed on to the consumer.

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Speaker 2: We know. The new government's got to know has inherited

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Speaker 2: a lot of problems.

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Speaker 4: They've got a trillion dollars in debt and they're trying

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Speaker 4: to stay on top of it. You know, We're not

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Speaker 4: being unreasonable and asking for the world. We're just saying that, look,

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Speaker 4: along with all those other rising cost of living issues,

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Speaker 4: this is one may not be top order issue for them,

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Speaker 4: but we just want to promise.

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Speaker 1: Something that's alex. What are local business is saying to

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Speaker 1: you at this point in time, what's the industry saying.

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Speaker 3: Oh, look like households in the territory, costs are just

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Speaker 3: going up across the board. Wage costs are starting to grow,

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Speaker 3: which you know, we understand, and at the moment we

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Speaker 3: can't get enough workers anyway. Is still is still the challenge.

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Speaker 3: But energy costs, fuel costs, the trucking company is starting

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Speaker 3: to put on surcharges for everything and because their costs

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Speaker 3: are going up, so everything's being squeezed at the moment.

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Speaker 3: So yeah, unfortunately, we are seeing some menu price rises.

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Speaker 3: Beer price is going up. So I'm sure our loyal

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Speaker 3: customers that you know, particularly the territories that were with

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Speaker 3: us for the last two years when we couldn't have

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Speaker 3: the tourists, they're feeling it. It is good.

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Speaker 2: There's too many events going on in the dry season.

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Speaker 3: You are having to pick and choose at the moment,

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Speaker 3: but it is great to see Darwin as positive as

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Speaker 3: it is, so a lot of smiles in our industry

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Speaker 3: at the moment.

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Speaker 1: Yeah, Well, which is a wonderful thing because it's been

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Speaker 1: a tough couple of years, you know, right across the board,

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Speaker 1: following on from COVID. So it is a great thing.

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Speaker 1: But I know that that cost of living is having

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Speaker 1: a big impact on a lot of people. So at

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Speaker 1: this point in time, I mean when you talk about

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Speaker 1: this spear tax or this tax, is the industry sort

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Speaker 1: of calling for an intervention or some kind of intervention here.

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Speaker 4: Oh, look, we were very active with the last government.

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Speaker 4: We've missed that opportunity. It was in that it was

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Speaker 4: in their last budget. Then they took it out for

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Speaker 4: some unknown reason where I realized that the new governments

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Speaker 4: come in with Anthony Albanezi and Jim Charmers, they've got

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Speaker 4: a whole heap of issues on their plate. We're not

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Speaker 4: seeking to drive the mad on this. We just want

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Speaker 4: it to be there just so they're aware of it,

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Speaker 4: which they are and you know, but we do want

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Speaker 4: to try and sort of get even if it's just

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Speaker 4: a freeze for the next year or so, just to

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Speaker 4: try and take a bit of the heat out of it.

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Speaker 4: But we also recognize that we're in a very long

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Speaker 4: queue with every other rising cost of living, insurance, fuel, energy,

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Speaker 4: everything else.

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Speaker 1: Tough going for people at the moment, particularly you know,

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Speaker 1: we bang on about it almost daily here in the

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Speaker 1: territory about those fuel costs. But then it has an

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Speaker 1: impact on every industry. You know, your petrol prices and

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Speaker 1: those different living expenses and costs that are going up.

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Speaker 1: I do just will get ready to wrap up, but Alex,

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Speaker 1: I do want to ask you. We know it was

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Speaker 1: a massive weekend last weekend with the Darwin Cup. How

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Speaker 1: busy are some of our venues?

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Speaker 3: Some customers might think too busy? He is the answer, Katie,

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Speaker 3: Please bear with us. We are running under understaffed almost

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Speaker 3: in every part of our industry at the moment. But look,

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Speaker 3: it is great. Right down the track is chockers. You

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Speaker 3: don't want to be on the highway at the moment.

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Speaker 3: You'll get stuck behind caravan after caravan after caravan. But

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Speaker 3: how good is it after a couple of years that

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Speaker 3: we're back at that and we are working with both

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Speaker 3: levels of government nationally through some of the visa stuff

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Speaker 3: that we're pushing for but also the territory government. You know,

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Speaker 3: they are aware of our workforce shortages. It is national

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Speaker 3: that is across industries and next year will be even

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Speaker 3: bigger and better than this one.

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Speaker 1: Now, one of the downsides I guess so that some

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Speaker 1: people are reporting is that they're saying that some hotels

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Speaker 1: are charging really high rates for a room. Are they

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Speaker 1: being fair or what's going on?

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Speaker 3: Look, there are a lot of bookings from last year

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Speaker 3: for Sydney and Melbourne, people that went into their long lockdown,

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Speaker 3: they held the credits. They're up here this year having

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Speaker 3: that long sought after holiday with us, which is fantastic.

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Speaker 3: They are at a lot lower rates, but it is

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Speaker 3: fair to say you look at the spot rates for

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Speaker 3: what's left and there isn't much left. They're quite high.

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Speaker 3: But it's not right to take that rate and say

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Speaker 3: that hotel is running one hundred percent At that rate,

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Speaker 3: they're making a MOTSA. There's a lot of bookings from

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Speaker 3: last year on credit that are still in the system,

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Speaker 3: and yeah, we look at it, and to be honest,

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Speaker 3: I think the accommodation hotels they do take a longer

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Speaker 3: term view. We won't want to address this, but it

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Speaker 3: is the Airbnb and those short term letters. We are

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Speaker 3: hearing horror stories of people being canceled, kicked out and

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Speaker 3: then the site gets relissed it five times ten times

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Speaker 3: of value. So there are territorians participating in that market.

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Speaker 3: They know who they are, they know that they're charging

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Speaker 3: a motza at the moment for their Airbnb product. They

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Speaker 3: need to be part of the conversation too, if we

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Speaker 3: want to look at it.

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Speaker 1: So I mean, fundamentally, I suppose we want to make

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Speaker 1: sure that we've got as many tourists flowing into the

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Speaker 1: Northern Territory as possible. We want to make sure that

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Speaker 1: you know that we are making ensuring that their experience

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Speaker 1: is a positive one. You know, from what you've said

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Speaker 1: there there are some concerns with some people with their

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Speaker 1: Airbnbs or other kind of rentals, holiday rentals. But do

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Speaker 1: you feel as though the you know, from the hotels perspective,

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Speaker 1: that they are getting that fair treatment.

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Speaker 2: It's been such a topsy turvy period.

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Speaker 3: You know, you've seen stall development projects and proposals for

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Speaker 3: new hotels down at the waterfront and left, right and center,

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Speaker 3: little mindle all the rest of it. None of it

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Speaker 3: seems to get off the ground. So I do think

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Speaker 3: we are at a capacity constraint when we're at peak season,

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Speaker 3: and we do need more certainty from this government if

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Speaker 3: we're actually going to see more product brought in and

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Speaker 3: more capacity.

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Speaker 1: Hey, just very quickly before I let you go, because

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Speaker 1: there's been a lot of discussion over the last week

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Speaker 1: or so about this two kilometer rule when it comes

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Speaker 1: to anti social behavior and one of the ways that

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Speaker 1: we can try and deal with her. You and I

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Speaker 1: have spoken about We were talking about this back in May,

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Speaker 1: and it's sort of back on the agenda.

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Speaker 2: Now.

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Speaker 1: Is it something that you think would help with the

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Speaker 1: anti social behavior from the hospitality industry perspective.

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Speaker 3: Absolutely, we think it's a no brainer. We don't think

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Speaker 3: this targets people. We don't think this is about criminalizing

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Speaker 3: alcoholism that should be treated as a health response or

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Speaker 3: we respect all of that. This is about setting a

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Speaker 3: standard of behavior in Darwin particularly, and all visitors, no

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Speaker 3: matter where they come from, need to adhere to that

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Speaker 3: higher standard. We should not be turning a blind eye

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Speaker 3: to some of the antisocial behavior that as a community

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Speaker 3: we have to cop and put up with every day.

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Speaker 1: Well, we're going to be catching up with the Lord

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Speaker 1: Mayor of Dao and Combat scarleus in just a couple

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Speaker 1: of moments, but very big thank you Alex Bruce, the

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Speaker 1: sea of hospitality here in the northern Tira and the

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Speaker 1: National CEO of the Australian Hotels Association, Stephen Ferguson, thank

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Speaker 1: you both so much for your time.

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Speaker 2: Thank you