Tasmanian Hospitality Review - December / January 2023

EDITORIAL

Labor Leader and Shadow Minister for Tourism, Hospitality and Events Rebecca White

As one of Tasmania’s leading industry employers, it is fantastic to see the hospitality industry enjoying a resurgence after the difficulties and challenges of the past few years. The uncertainty of the past three peak seasons has made way for what looks like being a bumper summer, with cruise ships returning to the state and tourists coming here in droves. But, alongside the optimism is a growing concern among many Tasmanian businesses about the soaring cost of power. Since the Liberals broke their promise to de-link Tasmania from the National Electricity Market, prices have gone up by 12 per cent. Analysts are predicting prices will go up by a further 20–25 per cent by the middle of next year, adding another $500 to the average annual household bill, with an even bigger impact on businesses. Many businesses across the state in the process of re- contracting their power deals with providers are now facing a 50 per cent increase on previous contracts. This translates to thousands of dollars and, as many operators have told us, they simply can’t afford it. It is beyond galling that this is happening because the Liberals abandoned their “Tasmania First” energy policy and exposed our state to chaos in the national market.

Labor governments in Tasmania built the vast majority of our renewable energy assets and the state is now powered by 100 per cent renewable energy.

So there is absolutely no reason why we are paying for a global rise in energy prices.

After the Liberals broke their promise, Labor has been fighting on behalf of our businesses and households to cap power prices, saving the average household $500 a year, and businesses thousands. Unfortunately, the government has voted down our attempts even though Labor’s legislation was based on the same price cap legislation the Liberals introduced in 2018. We are also pushing for a rebate scheme, which would make rebates per megawatt hour available to eligible businesses – helping business that are re-contracting during this period of price volatility. Given the importance of our small businesses to the hospitality and tourism industry the Labor team and I are determined to do whatever we can to ease the burden and support the businesses that contribute so much to Tasmania’s economy and way of life.

I wish all hospitality operators and workers a successful and prosperous season and a very merry Christmas.

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