Now you see it, now you don't

31 May 2004

“Now you see it, now you don’t,” says Hospitality Association as prices are about to rise.

Drinkers are about to be hit again with a price hike due to tax inspired price increases, and the Government could and should have backed off this time round, says the Hospitality Association of New Zealand.

“We implored the Minister of Finance [Dr Michael Cullen] not to hit our patrons with an increase. “The Holidays Act legislation will drive prices up and the effects of the smoke free legislation won’t be known until late this year, but it’s expected to have some sort of negative impact,” says Hospitality Association chief executive, Bruce Robertson.

Regrettably, our plea went unheeded,” he said.

“It’s all very well for Dr Cullen to act benevolently with his budget, but less than a week later he’s taking some of it back with the increases the manufacturers will have to apply and our members will have to pass on to the consumer,” says Bruce Robertson.

“For some beneficiaries the largesse in the budget will be eroded before they receive it. “It’s unnecessary and inflationary at a time when the industry needs tax cuts rather than tax hikes,” Bruce Robertson said.

ENDS

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