BOSSES SCORE A PENALTY GOAL

WORKERS NOT SO HAPPY WITH PAY CUTS

It will give them incentive to put on more people and open longer. It’s a job-creation move MARTIN BRADY

GOLD Coast business leaders are hailing cuts to Sunday and public holiday penalty rates as a major boost for the economy, saying the city will benefit more than anywhere in Australia.

Sunday and public holiday penalty rates for up to one million workers in hospitality, fast food, retail and pharmacy will drop by 25-50 per cent depending on the sector.

Yesterday’s controversial decision by the Fair Work Commission involves a staggered introduction of Sunday penalty rate cuts to help workers adjust, while the public holiday reductions kick in from July 1.

The Gold Coast Combined Chamber of Commerce and Gold Coast Restaurant Industry Support Group along with local restaurateurs and small business owners are all cheering the move, saying it will hugely impact the city’s tourism-heavy, seven-day-a-week economy.

Gold Coast Combined Chamber president Martin Brady said it was not just going to be good for business but would create more jobs, particularly for youth.

“I know a lot of local businesses who are running lean on staff or don’t open the hours they want to open because of the pay rates on Sundays,” Mr Brady said.

“It will give them incentive to put on more people and open longer. It’s a job-creation move.”

Mr Brady said it was good timing in terms of freeing up the hospitality and retail sectors on the Gold Coast ahead of hosting next April’s Commonwealth Games.

“Having everyone better staffed and open longer is only going to be good for the Games. The Gold Coast in general will benefit from this more than any other area in Australia,” he said, adding the city was heavy on tourism, retail and hospitality, which were most affected.

“We are a 24-7 city and will be a major beneficiary from this.”

Gold Coast Restaurant Industry Support president and restaurant owner Glen Day said the rate drop would positively impact opening hours and also how many staff would be rostered on for Sundays and public holidays.

Broadbeach’s Surf Parade Coffee Club owner Dave Ben-

nedick said he welcomed the penalty rate cuts as good for the industry but said time would tell how it would affect staff availability.

“It will make businesses much more viable,” Mr Bennedick said. “Weekends here are typically our busiest trading period so it makes it much more viable to operate on Sundays.”

Queensland Labor Senator Murray Watt, opening a Southport office next month, said it was a bad day for lower and middle-income earners and would hit family budgets.

“This is bad for the economy of the Gold Coast and Australia – there is no evidence to show decreasing penalty rates will deliver more jobs,” Senator Watt said.

“If people have less money in their pay packet they have less to spend in the cafes, bars, restaurants and shops so I’m concerned it will actually have a negative impact, especially for an economy like the Gold Coast which depends so much on hospitality and retail.”

Senator Watt said the decision was a double blow for workers a week after Australian Bureau of Statistics figures showed national wage rates were slowing.

There is no evidence to show decreasing penalty rates will deliver more jobs MURRAY WATT