Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Patrons will be up for extra $63m a year

Patrons will be up for extra $63m a year, says Hospitality Association President

Proposed legislation will result in $63 million being added to current operating costs for the hospitality industry, which will have to be passed on to the consumer.

This message estimating additional upcoming costs was delivered to the annual conference of the Hospitality Association of New Zealand at its 101st meeting in Christchurch this morning.

The association’s president, Bill McLean, said the estimated cost to the industry of $12 million for extra wages for statutory holidays; $35 million covering the extra week of annual leave being proposed and $16 million for accumulated sick leave cannot be absorbed by operators and consumers will end up paying for it.

“It’s no wonder that there’s been little movement in employee remuneration over the past couple of years, as businesses struggle to absorb Government-imposed costs,” he said.

Mr McLean said that the impending introduction of mandatory time-and-a-half on statutory holidays (additional to the day in lieu employees get), the industry will have no choice but to apply statutory day surcharges … not to increase profitability, but to simply stand still.

He said that the extra week of annual leave being proposed could be the catalyst for some hotels and taverns having to close.

“Margins are already too slender and adding the burden of funding additional employees will simply be too much for some operators to meet and additional staff to cover the extra annual leave would be too much for some operators,” he said.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>