Evaluation Process - Regulatory Impact Statement on two proposed new public holidays in Victoria
Wimmera Development Association submission
Wimmera Development Association provides economic and community development across the region, including the municipalities of Hindmarsh, Horsham, Northern Grampians, Yarriambiack and West Wimmera. We welcome the opportunity to provide a regional perspective on the allocation of two new additional proposed public holidays in Victoria.
Wimmera Development Association supports the state government’s intentions to increase tourism revenue across the state and provide additional leisure time in principle; however the introduction of additional public holidays is not the most appropriate method. Before a final decision is made the following impacts need to be considered:
· Increased wage costs
o The Wimmera Health Care Group has indicated that they incur an additional $80,000 per day to maintain services on a public holiday as opposed to a normal day.
o Horsham Rural City Council’s direct salary and wage costs in payment of an additional public holiday is in the order of $53,000 in lieu of staff attending work. Overhead costs for buildings, plant and utilities are still incurred.
· Business Trading
o The regulatory impact statement highlights the following benefit
Encouraging more visitors to Victoria’s regions. Additional public holidays could also provide tourism-related benefits to regional Victoria and the businesses in those regions.
Small businesses in regional Victoria may choose to close their business for the day rather than pay staff penalty rates. Tourists to regional Victoria will not have the ability to experience all there is to offer when businesses are closed.
o HRCC economic and business development officers have made contact with various accommodation and café businesses to gage their experiences with the recent Easter Sunday public holiday. Due to the additional wage penalty costs only one CBD café chose to open. Several accommodation premises chose not to employ staff for normal duties, with owners/proprietors doing the work themselves.
· Productivity
o The loss of a working day detrimentally affects productivity, progress with capital works, normal services and functions within businesses.
o With the lead up to Christmas, September is a very busy period for businesses. One less day will result in extra strain placed on both the business owner and employees.
The regulatory impact statement clearly shows that the lost economic cost from the new public holidays, estimated to be between $717 million and $898 million annually far outweigh the additional leisure time estimated at between $156 million and $312 million annually.
Wimmera Development Association urges the Victorian Government to reconsider the continuation of two new proposed public holidays for the benefit of regional Victoria.
Wimmera Development Association
03 5381 6500