House of Assembly Fifty-Third Parliament, Second Session (53-2) 53 2 Parliament of South Australia House of Assembly published Bills Local Government (Mobile Food Vendors) Amendment Bill Local Government (Mobile Food Vendors) Amendment Bill Local Government (Mobile Food Vendors) Amendment Bill Introduction and First Reading Introduction and First Reading Mr PICTON House of Assembly Kaurna Mr PICTON (Kaurna) (10:49): On behalf of the Premier, obtained leave and introduced a bill for an act to amend the Local Government Act 1999. Read a first time. Second Reading Second Reading Mr PICTON House of Assembly Kaurna Mr PICTON (Kaurna) (10:49): I move: That this bill be now read a second time. In recent years, food trucks have brought a new element to South Australia's food culture and have allowed entrepreneurs to enter the hospitality market in an affordable and flexible setting. Mobile food vendors have brought creativity, opportunity and innovation to South Australia. They have generated interest in South Australia's food and produce, improved Adelaide's street life and enhanced our state's reputation as a tourist destination. The government wants to ensure that food truck operators have the opportunity to start their businesses and reach consumers without first having to tackle an inconsistent and burdensome regulatory environment. In order to achieve this outcome for mobile food vendors, we need to ensure that our laws keep pace with the changing approaches to running a food business. Unfortunately, the permits and conditions imposed by councils under the Local Government Act 1999 have become overly complex and inconsistent. For example, some councils are only providing permits for certain types of businesses, such as ice-cream vending, or only issuing permits limited to a few defined foreshore zones, with some not allowing food truck businesses at all. Further, other councils were reducing the number of permits altogether. In November last year, the state government decided to act upon the challenges for our mobile food vendors, releasing a discussion paper asking South Australians to have their say on how we can better encourage these growing businesses. A positive response was received to the paper, including support for the suggestions of a simpler regulatory environment, consistent permit arrangements across the state and providing greater certainty for those wanting to invest in a food truck business. In May this year, the government responded to this feedback and released a position paper on food trucks in South Australia, and the introduction of this bill, the Local Government (Mobile Food Vendors) Amendment Bill, is the first step to implementing the measures included in that position paper. The key intention of this bill is to cut red tape and to provide a universal regulatory system for both new and existing operators. I seek leave to insert the remainder of the second reading explanation in Hansard without reading it. Leave granted. This Bill will amend the Local Government Act 1999 to introduce regulation making powers to enable the Government to set out the key elements of council permits, and ensure consistent conditions on permitting, permit fees, operating hours and locations are not unduly restrictive on these businesses operating under this permit system. Regulation should recognise what makes food trucks different – the ability to move around. This is a key element of the Government's approach to the regulation of food trucks. Regulation on food trucks should be consistent across council areas, but respect local differences. Without State Government regulation, this will not be the case. The new regulations – which will be provided to Parliament in draft form in the next sittings to inform debate – will establish that councils will no longer be able to restrict: the number of permits that can be issued (no minimum or maximum); operating hours (outside special events); and the type of food that can be sold. The regulations will also establish maximum annual permit fees, with the requirement to provide daily, monthly and pro rata rates to encourage flexibility, and require councils to establish location guidelines to specify where food trucks can trade. The Government does recognise the need to allow councils the scope to accommodate the particular circumstances of their local area. As such, councils will continue to be able to set the locations for food truck trading in response to local needs. We expect councils will take an approach to these guidelines that encourages trade and activity in their areas. It is important to note that food trucks will still be required to comply with all relevant health and safety regulations—indeed as all food-based businesses—fixed or otherwise—must. Councils will also be able to cancel a permit if a serious breach of permit conditions takes place – for example, if a food truck seeks to trade in an unsafe location outside of the location guidelines. We want to see all food businesses thrive, no matter what form of trade they adopt. These measures are not intended to create undue competition with fixed premises. The aim is to help new and existing entrepreneurs and innovators try a different mode of trading that provides mobile delivery of food options across South Australia. The evidence from the Adelaide City Council's own study showed very minimal impact upon existing fixed businesses from food trucks. In addition, some well-known operators have already transitioned between or employ both mobile and fixed trading as it has suited them in the market. This is a real demonstration of the role of the food truck industry as an entrepreneurial incubator. This Bill is vital to creating a simple, consistent and encouraging environment for our mobile food vendors. Current and prospective food truck entrepreneurs must be given the opportunity to further contribute to our State's economic growth and to promote South Australia's reputation as a premier food destination. I commend the Bill to the House. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement 3—Amendment provisions These clauses are formal. Part 2—Amendment of Local Government Act 1999 4—Amendment of section 4—Interpretation A definition of mobile food vending business is inserted. 5—Amendment of section 222—Permits for business purposes Section 222 is amended to require a council to grant a permit for a mobile food vending business (subject to the regulations). 6—Amendment of section 224—Conditions of authorisation or permit Section 224 is amended to require a condition imposed by a council in relation to a permit for a mobile food vending business to be consistent with any requirement prescribed by the regulations. 7—Amendment of section 225—Cancellation of authorisation or permit Section 225(1) is amended to limit a council's power to cancel a permit relating to a mobile food vending business for breach of a condition to situations where the breach is sufficiently serious to justify cancellation of the permit. If a council cancels a permit relating to a mobile food vending business, the council can set a period (not exceeding 6 months) during which another application for such a permit cannot be made by or on behalf of the holder of the cancelled permit. Schedule 1—Transitional provision 1—Transitional provision Holders of existing mobile food vending business permits are entitled to surrender their permit and obtain a fresh permit issued under the new scheme for such permits proposed in the measure. Any annual fee or charge paid for the surrendered permit must be refunded on a pro rata basis. Debate adjourned on motion of Mr Pederick.