Local Government (Mobile Food Vendors) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 15 February 2017).

The Hon. T.T. NGO (12:13): I rise to speak on this important bill. This bill seeks to remove the burdens and inconsistencies which currently exist for entrepreneurs wanting to establish a food truck business. The most important element of this bill is the standardisation of the planning process for the establishment of food trucks. Currently, 68 different approaches in 68 different local councils exist in this area. This bill establishes a statewide approach to ensure each individual council facilitates the establishment of these businesses. This removal of red tape to the regulation of mobile food vending is an important exercise of the state government to ensure that we are continuing to grow our local economy.

This bill's main functions are to: (1) introduce a new definition for mobile food venders under the Local Government Act; (2) ensure that local councils are required to issue a permit for mobile food vendors; and (3), to set out that conditions attached to these food truck permits must be consistent with any associated regulations which the bill creates.

It is the regulations which accompany this bill that outline in detail the proposed statewide approach to food trucks and requirements placed upon councils. I have been told that the government has circulated these regulations amongst various members of parliament and stakeholders. The introduction of the bill and associated regulations means that councils will be required to automatically grant permits for food venders to trade on council-controlled roads within the council area. Currently, councils can refuse permit applications at their discretion or refuse to institute a system for granting food truck permits altogether.

The state government wants to see these businesses thrive, not to be stifled by red tape. Just as importantly, whilst the establishment of food trucks across South Australia represents a form of competition for brick and mortar establishments, I believe that there is significant potential for both industries to thrive. Council will be required to establish location rules specifying council roads where food trucks are able to trade within the council area. Importantly, this gives councils the ability to limit where food trucks can and cannot trade. For example, a council can ensure that food trucks are not trading right out the front of fixed-premises businesses and instead direct them toward areas where they can increase the level of economic activity in that council area.

I also note that this bill was created following an extensive community consultation process undertaken by the state government. In November 2015, the government released a discussion paper outlining potential options for supporting the food trucks industry in South Australia. This discussion paper was then put out for consultation including through the YourSAy website. Following this consultation period, a position paper was then released in May 2016 incorporating the community's feedback and outlining the government's plan to assist mobile food vendors in the future. The formulation of the bill and associated regulations have also involved consultation with existing food truck vendors, industry associations, the Adelaide City Council and the Local Government Association.

I am told that, in the event the bill passes, the Local Government Association has agreed to assist in the rollout of the new system across all councils. The government wants to ensure that all councils are adequately prepared for the rollout of the new system and it is very appreciative of the Local Government Association's readiness to be involved in this process.

Unfortunately, the opposition has indicated that it will not be supporting this bill. The Liberals claim to be the party supporting small business, but here we see them refusing to pass a bill that would assist small business entrepreneurs to enter the market, increase economic activity, encourage more competition in the food industry and reduce red tape. I find that extremely disappointing. With that in mind, I commend the bill to the council.

The Hon. G.E. GAGO (12:20): I rise to support this bill and to make a few comments, particularly around permit fees, hygiene and safety standards for food truck businesses and balancing the interests of fixed-premises businesses and mobile food businesses. In relation to permit fees, the draft regulations impose a maximum fee that councils may charge these mobile food vendors. This maximum permit is currently set at $2,000 for annual permits or $200 for monthly permits, excluding GST.

It is important to note that it is up to councils as to whether they set fees below this maximum level. Some councils may wish to attract food trucks to their area through setting lower fees, whereas other councils might want to dissuade large groups of food trucks in their areas. One way they could do that is by increasing the fee, or at least not reducing it. Under the regulations, operators are required to obtain a permit in each area they seek to trade in; therefore, a food truck operating in three different council areas would require three permits and would be required to pay the three fees associated with each of those council areas.

I would also like to touch on the continued standard upheld for food trucks under the bill and regulations. The regulations make it quite clear that vendors are subject to all South Australian requirements under the Food Act 2001, the South Australian Public Health Act 2011 and the Environment Protection Act 1993 in maintaining the same hygiene and environmental standards as all other food establishments. People can absolutely rest assured that the health and safety standards of these venues is identical to that of fixed businesses.

Food trucks are regularly inspected by councils in the same way that fixed-premises businesses are, and this will continue under the proposed system. The regulations specify that food trucks are not to interfere with the normal operation of roads and must take care to not unduly interfere with things like disabled car parking spaces, footpaths, access points or public transport zones. If a vendor is found to be in serious breach of their permit conditions, the bill specifically provides for the termination of that particular permit. Furthermore, the regulations require the vendor to notify other councils with whom they have a permit that their permit in another council area has been cancelled, so that that can be scrutinised carefully.

We know that the vibrancy of Adelaide, particularly our CBD, has been a major objective of this government. We have made a number of significant reforms to assist in creating a vibrancy in not just our business areas, but also in the living spaces, particularly around our Adelaide CBD. We have made many changes to our liquor licensing laws to make it easier, for instance, for small bars to establish themselves, especially in our laneways. Everyone in this place would have to agree that that has been a huge success. From being fairly dingy and dark little alleyways, these laneways now have vibrant restaurants, clubs and other food venues.

We have also made a number of significant reforms to ensure that we particularly make our entertainment area within the CBD safer for everyone to be able to enjoy. We know that in the past we have had some fairly significant issues with drunk and disorderly behaviour and the violence and disruption associated with that. This government, again, made a series of legislative reforms to assist in improving the safety and the public access to our entertainment areas. For instance, we introduced legislation that made barring patrons who demonstrated unacceptable behaviour from our pubs and clubs possible.

Also, we introduced lockouts to help improve the drunk and disorderly behaviour on the streets, and that has also met with considerable success. Our hospitals in the city area have reported a drop in the number of drunken presentations and also injuries associated with violence from drunken behaviour. We have been very successful in helping to improve the vibrancy of Adelaide and I believe this legislation assists in doing that as well.

I am sure there is not one person in this chamber who has not, at one point in their lives, enjoyed the convenience of a mobile food van, whether it is a cup of coffee, a hot dog or a pie floater. There are some food trucks that have a wonderful array of delights like pancakes and all sorts of things—and I know the Hon. John Gazzola has availed himself of several of these mobile food vans in the past.

They can contribute to the vibrancy of our city, generally speaking, but they also help liven up specific events by providing an array of interesting and quite delicious and exciting foods for spectators. For instance, from my own personal example, I live not too far from the Parklands and there are a number of really large sporting events and other public activities that go on in the Parklands, and there are many areas around the Parklands that are a long way from fixed food venues, a considerably long way.

There was an event, not long ago, occurring in the Parklands and there, in a series of parking bays, were about four or five different food and beverage mobile vans. It really made that sporting event come alive and I know that the spectators enjoying that sporting event really appreciated the convenience of having those amenities there. As I said, not only was it a fabulous convenience for those people, but it helped bring a degree of vibrancy to that particular event.

Finally, I would like to outline the balance that is sought between fixed and mobile food businesses in these changes. The bill and regulations seek to get the balance right between fixed-premises businesses and mobile food businesses. Clearly, this legislation is designed to make sure that we do not, in fact, damage fixed businesses but, rather, set up a system of mobile food vendors in a way that helps complement the fixed businesses and in a way by which councils can have some control over that.

It helps bring new entrepreneurs into the marketplace at a comparatively low start-up cost, which is a good way to help us support the start-ups of new businesses but, as I have indicated previously, in limited locations. There are a number of restrictions to those locations, which I have already outlined.

The regulations outline that councils will be able to determine location rules outlining where food trucks can trade. These location rules can come in the form of a map, for instance, indicating where food trucks can trade, or it could be a blanket metre rule. For example, they can establish a simple distance rule and leave it at that. Through giving councils the power to determine locations of trade, the balance between fixed premises and mobile food vending businesses is evened out.

I note that councils are also able to amend their location rules whenever they choose, in order to better suit trading activity. For instance, if they have events coming to their council area in locations that do not have very many fixed businesses, then they can change rules and alter fee structures in such a way as to encourage mobile food vendors to come along and trade in that particular area.

These proposals are not intended to create undue competition with fixed premises. Their purpose is to increase the number and variety of food options in the market. I believe there is plenty of market space to accommodate both. I have given a very good example of the Parklands. Some Parklands areas have very few fixed food and beverage venues associated with them. We know that the legislation around our Parklands is incredibly strict—and so it should be; that legislation is there to protect our Parklands.

I know that each and every one of us in this chamber enjoys the wonderful Parklands that surround this city, but the downside to that is that it does restrict the ability for venues to be able to establish themselves in some areas around the Parklands where, for instance, there are large sporting and other public groups. For instance, an organisation might have their end-of-year picnic barbecue there and include all family members. So, there can be large gatherings in a public space and, as I said, many locations do not have easy access to other food venues.

These vendors have no regular daily customer base. They are subject to weather conditions in terms of generating revenue and have to pay for water, electricity, gas and taxes just like fixed premise businesses do. Moreover, often food trucks are stepping stones to establishing a fixed premise business. Examples that spring to mind include Burger Theory, Sneaky Pickle and Low & Slow.

This bill seeks to establish an easier system of regulation for mobile food vendors, establishing consistency across council areas, increasing economic activity and promoting entrepreneurialism. It is extremely disappointing to learn that the opposition is not going to support this very important bill that, as I said, does help establish consistency, increase economic activity and promote entrepreneurialism. With those few words, I commend the bill to the house.

Debate adjourned on motion of Hon. J.S.L. Dawkins.