Extending small-bar licences to suburbs would hurt existing bars, Lord Mayor Martin Haese says

LORD Mayor Martin Haese has fired a warning that if small-bar licences are extended into the suburbs it would “kill the goose that laid the golden egg”.

31/05/15 Adam Chesters who owns Sound pond, a small underground music bar in Rundle St for a story about Adelaide's small bar revolution being restricted to the CBD after the state government again pushed back a review of our small bar laws. photo Calum Robertson

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LORD Mayor Martin Haese has fired a warning that if small-bar licences are extended into the suburbs it would “kill the goose that laid the golden egg”.

His comments come in the wake of Australian Hotels Association general manager Ian Horne labelling 2016 a “grim” tipping point for venue operators in the CBD as supply greatly outstrips demand.

Mr Haese said the hyper-competitive small-bar market could implode if discussions to make small-venue licences available in the suburbs are advanced.

“We’ve had so much supply growth and they (small bars) are so good and we want those who have taken the risk to survive and prosper — and they must survive and prosper,” Mr Haese said.

“It worries me considerably should there be any suggestion of expanding this offer to the wider geographical area because it may actually implode.

“It’s just a question of too much too soon and we need to take this in very measured, strategic steps ... we sure as hell don’t want to lose them.”

Mr Haese said if an expansion was considered, North Adelaide would be the next logical step but any further out could put a considerable strain on the pioneering small bars the city has spent so much time developing.

“I think it would be extraordinarily premature to consider an expansion of the geographical areas of the small venue licenses,” he said. “To embark on any considerable geographical expansion for small-venue licences will really kill the goose that laid the golden egg.”

To keep the small-bar scene thriving, city population growth must be on the up. More than 1800 apartments are set for completion by early 2017 with 12 buildings currently under construction.

More than $352m has been spent on CBD residential projects which can accommodate nearly 3500 residents.

This, coupled with increased tourism opportunities, is part of Mr Haese’s vision to build a bigger audience for the small bars.

“We need to provide a more captive audience or captive market for what we’ve already got,” he said.

With more than 60 city small bars and seven more licences pending, Mr Haese refused to be drawn on whether a tipping point had been reached.

“That introduces the discussion about quotas and I do understand on some degree that the government is very reluctant to talk about quotas because it’s a very protectionist form of legislation,” he said.

“I’m unsure about that ... the way the government can manage supply and demand of course is through geographical boundaries.”