Victorian small business to be hit hard by public holidays

“THOUSANDS of Victorian small businesses will foot the bill for the costs of the two new public holidays being introduced by the Andrews Labor Government this year,” said VECCI Chief Executive Mark Stone.

Mr Stone’s comments come in the wake of the Victorian Government formalising a new public holiday for Easter Sunday (5 April 2015) that, when coupled with the proposed new public holiday for grand final eve (2 October 2015), will impose significant costs on  small business, and the Victorian economy.

“The new holidays will result in both lost productivity and higher wage costs for small business at a time when many are facing difficult trading conditions,” said Mr Stone. 

“On grand final Friday, the cost to pay many of Victoria’s almost 2 million full time employees not to come to work could reach $543 million for the day.”

Additional wages for the retail, accommodation, food services and recreation industries are estimated to cost small business owners $105 million for the two holidays as wages can be 50 percent higher on Easter Sunday and 150 percent higher on grand final eve.

The two new holidays widen the disparity between public holiday arrangements across Australia and will result in Victoria having a nationwide high of 13 days, compared to states like New South Wales with 11 and Queensland and Western Australia with 10.

VECCI recognises the introduction of two new holidays was a pre-election commitment of the Government.  However, their significant costs highlight the consequences of making populist decisions at the expense of good public policy.

VECCI urges the Government to carefully consider impacts on business, especially small business, when making future decisions in respect of public holidays.

The December 2014 quarter VECCI-Bank of Melbourne survey of business trends and prospects examined the impact of penalty rates on business operating costs and found that if penalty rates were changed, businesses would give more hours to existing staff, hire more workers or reinvest the savings back into their business.

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

ENDS