Adelaide Small Bars

The Hon. T.T. NGO (15:37): I rise to speak about Adelaide's thriving small bar scene which has become an important part of Adelaide's CBD. The Liquor Licensing (Small Venue Licence) Amendment Bill, introduced by the Labor government in 2012, made it easier for small bars to open in our city's underused laneways. No doubt, this reform helped to stimulate Adelaide's nightlife, bringing more people to once quiet lanes. These small venues add appeal to our city and I am told Peel Street and Leigh Street are attractions for visitors to South Australia. Bars have also opened throughout our CBD including in Bank Street, Gresham Street and Union Street.

These small bars proudly showcase South Australian produce, craft beer, spirits and wine. I expect this has important flow-on benefits for our producers and economy. Local signature drinks also bring national attention to our bars. Big Seven Travel published online this year the 50 best cocktail bars in Australia, which featured nine local cocktail spots. Almost one-fifth of Australia's best are in Adelaide. Despite growth and benefits, this popular scene is threatened by the Marshall Liberal government's small bar tax.

Following a 2016 review of the liquor licensing bill, the Marshall Liberal government decided to implement a new risk-based licence fee structure. The Liberal government's new high-risk location fee will hit all bars situated in areas deemed to be in a high-risk location. This fee might apply to Hindley Street now, but there is no protection against it creeping into Hindley Street's connecting laneways, such as Peel Street and Leigh Street.

We must remember the small venue licence changes gave entrepreneurs the opportunity to start up small businesses. Given other initiatives of the former government, it was a chance to bring more energy and vibrancy to our commercially underused laneways. This was win-win. Now, Treasurer Lucas and Premier Marshall are essentially telling entrepreneurs and small business owners to be careful if you want to take a chance of a new business idea that requires a liquor licence, and if you do have a go, especially in a potentially risky location, make sure you have a contingency budget for higher liquor licence fees.

Most concerning is that this new fee structure puts Adelaide's popular laneway bars and nightlife culture at risk. If fees continue to rise and high-risk locations expand, small bars might be forced into earlier closing times and wage or job cuts just to increase the government's takings.

I understand the 2016 review also identified small venue licences should be made available beyond the CBD to include North Adelaide. This suggestion, which could grow local small businesses, has not been implemented. Instead, this government found a way to money grab through a scheme originally aimed at stimulating growth and supporting small business.

For other small bars not licensed as a small venue, the new fee scheme hits harder. Bank Street Social bar co-owners expressed that they expect their liquor licensing fees to rise by over $5,000, which could cause price increases for patrons. It is unfortunate that a small business that has worked so hard to make a name for itself is being hit with significant and unexpected fee increases. For some venues, such increases could be the difference between just surviving and shutting the doors.

Our unique laneway bars support local producers and our venues have grown to flourish over the past seven or eight years. Imagine what we could accomplish if we focused on supporting their innovation and growth instead of punishing them by increasing fees because of their location.