F&B Magazine

There are always consequences

This Christmas/New Year period saw an increasing number of hospitality outlets staying closed on the statutory holidays. This has been an increasing trend since the Holidays Act came in to effect on 1 April 2004.

With the Holidays Act 2003 the government decided that they know best. The government decided that employees and employers were unable to negotiate their own working arrangements on statutory holidays and that they would set the rules. Supposedly employees were being exploited and only the state could determine what is fair and reasonable.

Government clearly has the right to make these decisions. However they cannot walk away from the consequences of those decisions. Hospitality operators respond to the operating environment they are confronted with. The additional cost imposed by the Holidays Act to open on statutory days is simply another one of those factors they must consider. The harsh reality is that unless a hospitality business can generate a much higher level of turnover than normal then it is very likely that they will lose money by being open. Even those appropriately charging a surcharge are struggling to recover the increased costs.

The consequence is that more and more hospitality operators are saying why should I subsidise the public enjoyment of a coffee, a refreshing beverage or a meal on a statutory day.

The government by deciding that they know best what employees should be paid on statutory days have forced hospitality operators to make sensible economic decisions. It is an unfortunate consequence that this means they are no longer open to serve a public which are out there looking for service while holidaying.

The government claim that they want to see a thriving, growing economy, they are also very supportive of a strong and growing tourism sector. If the government is really serious about wanting to see the New Zealand economy grow then they should stop interfering and let employers and employees get on with it and make arrangements that best suit all parties. Regrettably there are always consequences and with the Holidays Act the government are inhibiting growth, employment and service to the public.

Bruce H Robertson
Chief Executive
Hospitality Association of NZ

7 February 2008