Local Government (Mobile Food Vendors) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 1 March 2017.)

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (16:54): I believe there are no further second reading contributions. With that, I would like to thank honourable members who have contributed to the debate on this bill. There appears to be a need to reiterate the importance of this bill following its successful passage through the lower house. The purpose of this bill is to put in place a universal, consistent system for the permitting of mobile food vendors, otherwise more commonly known as food trucks, across this state to encourage these innovative, entrepreneurial businesses to succeed.

This is not an idea that came out of thin air. By examining the operation of the Adelaide City Council's currently oversubscribed permit system, other inconsistent council arrangements for food trucks, and by listening to the voices of the South Australian community via consultation, it became apparent that the current approach to regulating food trucks was and remains in need of reform. Mobile food vendors are currently subject to different regulatory schemes in each council area they seek to trade in, resulting in inconsistent and sometimes non-existent permit arrangements. This has led to these types of new businesses having their operations unnecessarily curtailed, as well as councils themselves having to come up with individual arrangements with no guidance.

This is not about blaming individual councils, but there is no doubt that the current wording of the Local Government Act has led to inconsistencies and a thwarting of the entrepreneurial spirit of mobile food truck vendors and their ability to trade around Adelaide to provide interesting food and beverage options for South Australians. This is a point that the member for Kaurna in another place has consistently made during debate on this matter.

The current system does not work, and this bill will address this by setting in place a consistent, universal system which supports councils to issue permits to these types of operations and provide them with an opportunity to trade. This is not a leg-up over fixed businesses. The government wants all South Australian businesses to succeed. This is simply about allowing food trucks to operate as they are designed to do, as mobile businesses to meet local demand and support local activity.

For the benefit of members present I would like to outline some of the amendments that have been made to the draft regulations and an amendment the government has filed to the bill, taking into account the feedback provided by the Local Government Association and select councils in a recent round table facilitated by the member for Kaurna, as well as feedback from members of the crossbench. The Local Government Association and a group of six councils, gathered together by the Local Government Association, recently met to provide their feedback on the bill and regulations. Following this meeting the LGA provided a number of suggestions to amend the regulations, all of which we have accepted and incorporated into our draft regulations.

The government has put forward an amendment, adding a penalty provision to apply to any food truck that breaches the conditions of their permit, which will be moved during the committee stage. The government is committed to ensuring the smooth implementation of this new system in cooperation with the LGA and councils, and thanks the LGA and councils present at the consultation session for their helpful contributions to the draft regulations. I note that an amendment was made to the draft regulations early on, following discussions with the Hon. Kelly Vincent, to include express reference to mobile food vendors not interfering with disabled parking spaces, an important requirement for food truck venders to take note of.

The government has also been in discussion with the Hon. John Darley on a number of points within the draft regulations and bill, and we are hopeful that the Hon. Mr Darley will come to support the bill, given the substantial negotiations the government has undertaken to resolve concerns that have been raised.

With the purpose of the bill set out and changes to regulations addressed, I would like to respond to some of the specific concerns, in particular those raised by the Hon. David Ridgway. Firstly, the honourable member stated, 'The bill does nothing.' This is just not correct. As set out, alongside other measures the government has put in place for food trucks, this bill is about ensuring that mobile food vendors, which are innovative and exciting new South Australian businesses, get the opportunity to operate successfully. It puts in place a simple, consistent approach to support councils to issue permits to these food trucks to enable them to operate across Adelaide and the state without being caught up in 68 forms of local bureaucracy.

It was also contended that this bill imposes a blanket rule for every council, which we submit is not the case. The bill does introduce a statewide system and prevents councils from interfering with types of food sold and the hours that the food trucks might trade, but it is our belief that the market is best placed to determine these types of things, not individual councils. As has been reiterated, the regulations accompanying this bill allow councils to determine location rules, allowing them to customise a location according to where food trucks can best generate new economic activity within their council area.

Another suggestion is that a restriction on permits is required to protect pre-existing businesses. The government has been clear on multiple occasions that this bill is not about pitting mobile vendors against fixed premises or preferring one form of trade over another. We want all South Australian businesses to thrive, no matter what mode of trade they adopt. Both fixed premises and food trucks contribute to the economic prosperity and vibrancy of the state. This bill is, very simply, about ensuring that mobile food vendors have appropriate opportunities to trade and to move around the city, to provide economic activity and community benefit, particularly in those areas where there is a lack of commercial eateries.

This a point that came up repeatedly in consultation. People do not want to see mobile food vendors competing directly with their favourite local coffee shop or bakery. They want to see them near the sportsground on the weekend to provide an option where there is currently nothing available. The aim of this reform is to help both the new and existing businesses try a different model of trading that provides mobile food delivery food options across South Australia.

Burger Theory, Phat Buddha, Low and Slow, Sneaky Pickle and Abbots & Kinney have all transitioned from mobile-only businesses to having fixed premises. Others operate in both modes or operate both a food truck and a catering business. It should be noted that the current impact of food trucks on fixed businesses is low. The Adelaide City Council's own economic analysis found that food trucks had an estimated impact of 0.15 per cent on the Adelaide council region.

The analysis, surveying 105 businesses, found that there was no noticeable connection between the decline in trading hours of fixed premises and their proximity to food trucks. It has also been stated that suddenly somebody can pull out in front of them and take their business away from them. This is not the case. As I have stated, councils will be able to prevent this via the use of location rules.

It has also been suggested that, rather than this, the government should be looking at ways of reducing the cost of doing business. I would suggest that we are committed to doing just that. We understand the pressure on small businesses and are committed to making South Australia the best place to do business by continually removing barriers to business growth, accelerating approval processes and making sure our regulations support opportunity rather than create burdens.

We are already in the process of creating the lowest taxing regime in Australia for businesses. We have reformed our workers compensation system and are pursuing further red tape reduction measures. It should be noted that food truck vendors also face fixed costs, including warehousing, maintenance of their vehicle, electricity and gas, cost of the preparation stages, wages, rates and waste removal. It is true these businesses do not have to cover the cost of certain elements, such as bathrooms, but they also do not benefit from having these facilities.

It has also been suggested that mobile food vendors are there to provide a service when you have a bigger community event or when fixed businesses are not able to cope with demand. We do not agree with this viewpoint. Increasingly around the world, mobile vendors are providing new options and making cities more engaging and interesting places.

Mobile vendors still have an important role to play during events, but they should have the opportunity to trade at all times of the year as other businesses do to provide greater economic activity and community benefit across the city and the state. Mobile food vending also represents the perfect opportunity for people to get a foot in the door in the hospitality industry and start a new business that might one day become a fixed business. It is not a question of either/or: both modes of trade can succeed at once, and there are myriad examples nationally and internationally to attest to this.

Again, I emphasise the importance of seeing this bill's passage through this place in order to help these small entrepreneurial businesses thrive and expand. I look forward to contributions in due course in the committee stage in dealing with this bill.

Bill read a second time.