Hospitality sector review completed, Government to cut red tape for businesses

The Government says it is slashing red tape for hospitality businesses to help operators survive after years of tough trading conditions. This morning’s announcement by Regulation Minister David Seymour and Tourism and Hospitality Minister Louise Upston followed the Ministry for Regulation’s review of the hospitality sector. Seymour said the announcement was about “getting rid of dumb rules” which contributed to businesses closing their doors. “Everybody has a favourite cafe, bar or restaurant they wish was still open. “If we are going to unlock New Zealand’s potential, we need to let Kiwi businesses get on with business,” Seymour said. He said the sector was “hit hard” by the Covid pandemic and the “dumb rules” made it harder to bounce back. The review heard from a food truck business that considered setting up in Australia because the process in New Zealand was so bureaucratic. He said when the vendor explored this option with Australian regulators, they were given one contact and a clear pathway to set up the business. Meanwhile, in New Zealand, they had to meet 13 officials from eight central and local government agencies.The vendor said the pathway to set up was “incredibly confusing and complex”. High-profile restaurant closures in recent months have included Auckland waterfront restaurant Harbourside Ocean Bar Grill and Karangahape Rd cafe and bar Verona.What are the sector’s problems? The review identified multiple problems with how the sector was regulated, including businesses having to provide the same information multiple times, often to the same regulator.Seymour said businesses sometimes had little certainty about timeframes, with some decisions taking “too long”.He said it was found that alcohol licensing and renewal processes could be inefficient, disproportionate to risk, and ineffective in some cases.The review also found licensing and registration fees were too high for some businesses, not always transparent, and did not cover regulators’ costs.Seymour said the review heard from a food truck vendor who considered setting up in Australia because the process in New Zealand was so bureaucratic. Photo / Mark MitchellFood safety requirements and checks were found to be sometimes ineffective, inefficient, or not proportionate to risk.Disproportionate regulatory barriers that affected the provision of transport services were also identified.Seymour said building consent and planning requirements were also found to create unnecessary costs and delays for temporary structures such as marquees.“Now, we’re fixing those problems. In the coming weeks, Ministers will be deciding which recommendations to accept, and the next steps,” he said. Upston said the hospitality sector was a $21.4 billion industry, employing more than 193,000 people across the country. “We’re backing Kiwi businesses and supporting a stronger visitor economy.“As several of the recommendations highlight, hospitality issues often span multiple portfolios and agencies. That is why I will develop a Hospitality Action Plan to provide a co-ordinated framework for priority hospitality initiatives across government,” Upston said. She said she intended to continue working in partnership with the sector to remove barriers to growth, support businesses and workers, and ensure hospitality could thrive.