Bob Baldwin (Paterson, Liberal Party, Shadow Minister for Tourism) Share this | Hansard source

The Competition and Consumer Amendment Bill 2013 relates to the component pricing requirement for the Australian Consumer Law. The bill amends the Competition and Consumer Act 2010 to insert a regulation-making power to enable regulations to be made to exempt certain representations from the component pricing requirement of the Australian Consumer Law, which is schedule 2 of the CCA. The amendment will allow a regulation to be made to place restaurant and cafe menu surcharges for specific days outside component pricing requirement in the ACL. In May 2009, the Trade Practices Act was amended to stipulate that restaurants and cafes were required to incorporate any additional surcharges enterprises listed on menus. The ACCC advised:

No asterisks, no small print. You’ve got to have a separate menu with the prices clearly spelt out.

In other words, restaurateurs must pay inflated penalty rates. But, as they cannot make it known to the public that the inflated prices are down to the government forcing them to pay penalty rates, they must wear the disapproval of the public.

The proposal reflected in this bill was announced in the Australian government's response to the Productivity Commission's Annual review of regulatory burdens on business: business and consumer servicesresearch report 2010 on 13 September 2011. The amendment will enable regulations to be made that will reduce the regulatory burden on small businesses in the restaurant and cafe sector, as identified in the Productivity Commission report. The bill we debate today is not here because the government is the champion of red tape reduction. Today's debate is due to tenacious representation by industry, in particular from John Hart of Restaurant and Catering Australia. As articulated in the coalition's deregulation reform discussion paper of November last year, the Productivity Commission has estimated that reducing the burden of red tape could generate as much as $12 billion in extra gross domestic product each year. I am glad the government has finally gotten around to actioning this undertaking. I hope it signals that this government is finally waking up to the issues of red tape. The slowness of the government introducing even this small token towards red-tape reduction highlights that red-tape reduction is a low priority on its list. That is in stark contrast to the actions of the coalition.

I draw the attention of the House to a couple of examples of where restaurants have fallen foul of the ACCC over restaurant menus: Georges Bar and Grill, Brighton-Le-Sands and Steersons Steakhouse. In September 2010, the ACCC instituted proceedings against four cafes and restaurants for alleged breaches of the component-pricing law by failing to include Sunday and/or public holiday surcharges in their menu prices, involving the restaurants I have named. The ACCC alleged that traders breached section 53 of the Trade Practices Act 1974, which requires businesses show a part of the price payable for a product or service and also provide a single total price for that product or service. The ACCC sought declarations, injunctions, civil penalties and costs. Although the ACCC now claims it was only doing what it felt it had to do, the officiousness displayed by the ACCC in driving media attention tells a much different story. The ACCC indicated this in its media release:

On 28 June 2010, the ACCC issued Infringement Notices to eight traders for having menus that it had reason to believe did not comply with component pricing laws on 20 June 2010. Four traders paid the Infringement Notice and no further action was taken. The court actions are against those who failed to pay the Notice.

The clear message was this: rollover and cop it, and you will endure no more hardship than continued red tape pressure; oppose it and defend your business from ridiculous red tape, and face the full force of the ACCC pursuing the maximum penalties available to it under the law. The traders which paid the infringement penalty notices included Belluci's here in Manuka, an excellent restaurant known to most members of the House and one of Canberra's best establishments, renowned for its great Italian food and its extensive wine list. But returning to the restaurant example in Brighton-Le-Sands where they in breach of the all-inclusive pricing laws with their menus, this bill finally deals with the matter they fought for and is a victory for the proprietor.

This bill needs to be passed so another public holiday does not go by and create some sense of confusion for business operators and consumers. There needs to be a line drawn in the sand so businesses and consumers are no longer confused on how the surcharge applies and businesses can apply it in the correct manner. I am glad the government has finally gotten around to actioning this undertaking. As the member for Wentworth said in this place the other day during the MPI, this government would put an 'arthritic snail to shame' such is the glacial pace in which it discharges its responsibilities. It is slow to act and the people who pay the price are business people. This government is all too quick with a flashy announcement and a immediate release but slow to follow through with legislation unless it is a bill that guarantees a newspaper headline.

The restaurant and catering sector have been waiting since September 2011 for the government to bring this legislation forward following the government's announcement—almost two years to follow through on fairly straightforward matters. At that time, I welcomed the announcement the government would be removing the burden on restaurants and cafes to provide separate menus on weekends and public holidays that incorporate service charges. This is a policy change that the coalition have been advocating for quite sometime, along with major tourism, catering and hospitality services peak bodies. Two years ago, my release said: 'Today's action is long overdue'. Two years and six months ago, the ACCC issued fines ranging from $6,000 to over $20,000 against restaurants that were non-compliant, with the commission arguing that it was compelled to do so under the law. As I said in my media release at the time, this is a government that burdens small business with bundles of red tape and then claims to be their champion when they remove it.

Whilst this change to the Australian Consumer Law is welcome, I urge the government to continue to find other ways to lift red tape on struggling restaurants and hotels. Restaurants are subject to costs and adverse policies that hamper their ability to grow and to hire more staff. A second week has been spent on menus for what is only a relatively minor issue when compared to other costs faced by the restaurant and catering industry. Ay far the most effective thing the government could do would be to drop its carbon tax. The restaurant and catering sector is one of the most exposed Australian industries under Labor's carbon tax plan. Restaurants and cafes stand to pay significantly more to run their dishwashing machines, ovens, lights, vacuum cleaners and office equipment should Labor's carbon legislation continue. Additional costs built into the cost of food inputs could see many restaurants and cafes around Australia close.

So it is appropriate that the House consider in the context of this bill the underlying reasons why Australian restaurants need to charge a surcharge on public holidays. There are many but it is particularly twofold: the high cost of labour, including especially the business cost of weekend penalty rates, and the fact that Australia does not have a tipping culture.

On 5 September 2012 ABC radio in Hobart broke the news that the now former tourism minister, the member for Batman, backed a penalty change push:

The Federal Tourism Minister hopes a review of awards by Fair Work Australia will ease wage pressures on the hospitality sector.

Martin Ferguson told delegates at a national hospitality conference in Hobart he has received many appeals from businesses struggling to pay weekend loadings and penalties.

He said weekend and public holiday ''penalty on penalty" issues were a major obstacle for the industry in challenging economic times.

The minister said it was important the penalty provisions were considered in Fair Work Australia's review which was expected to be completed by the end of the year.

This sort of practical, business minded approach by the member for Batman was the cause of plaudits given to him on both sides of this House upon his announcement that he would not contest the next election.

In relation to weekend penalty rates, which are one of the main reasons why restaurants have to put surcharges on their menus on Sundays and public holidays, the then tourism minister told ABC radio:

"That would go a long way to satisfying some of the difficulties that they've got at this particular point …

"I hope the bench of Fair Work Australia has given proper regard to the input of the tourism industry in this context because I understand that is the key issue to industry at this point in time."

As I said, the main reason why there is a surcharge needed on restaurant menus on Sundays and public holidays is the increased penalty rates that operations are faced with.

In the moments left to me, I will point to another reason why penalty rates need to be addressed. The tourism industry is a predominantly Friday, Saturday, Sunday and public holiday industry. That is when its peak operational periods occur. It is just strange that during that peak operational period the wage costs are so expensive. A lot of operators, particularly in rural and regional areas, shut down on Sundays and public holidays. There is no tourism pleasure in taking a trip away on an extended weekend where you travel on the Friday night to book into your accommodation and go out on Saturday to have your meal and then get up on the Sunday and have to go in search of a cafe or restaurant open, only amplified on the long weekend Monday. As I said, this does not happen so much in the cities as in rural and regional Australia. Tourism is all about the experience. If people go on a holiday weekend, in particular, and there is nowhere open for them to have their lunch or dinner or for entertainment then it is not a good experience and the reality is that people will not come back. They will also spread the word that the town, business or area is not open to business.

I think what needs to happen is that there needs to be a serious review by Fair Work Australia about how we can engage more Australians into work, and that includes the restaurant and catering industry. One of the ways of doing that is by addressing the issue of penalty rates for the tourism sector, which relies on people to stay open at an affordable rate on Sundays and public holidays. I commend this Competition and Consumer Amendment Bill 2013 to the House. It is just disappointing for the restaurant and catering industry in particular that it has taken so long—over two years—to get to this point and that penalties have had to be paid and people have struggled to stay in business.

Sitting suspended from 13:44 to 15:30

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