The bottomless pit

As the government imposes more regulations and costs on us, where will the money come from?

It never ceases to amaze me that a succession of Governments think that our businesses are a well of funds that they can keep dipping into. The carbon tax is the latest assault on our operating margins. Restaurant & Catering Australia benchmarking data shows that the 3.6 per cent return on income has already been diminished to an average loss. The potential increases in electricity costs particularly, that result from the carbon tax, will place many more business below the line of sustainability.

With the enormous cost increases we have endured recently, where does the Government think the money will come from? In the past many operators have absorbed the increases in costs that have been imposed through regulation. Even at the onset of the GST, many restaurateurs and caterers did not increase prices as much as they could. Given the current knife-edge profitability, this can’t happen this time.

The ACCC has warned small businesses about misleading consumers about the impact of the carbon tax on business. Are  we compelled to make price increases due to indirect carbon tax costs known to our customers?

I don’t know about you but my well is looking pretty dry. When costs go up even further, I am going to have to pass them on to my customers.

Brien Trippas
President, Restaurant & Catering

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