SA publican’s crusade to keep the price of a beer down in the face of rising electricity costs
ONE of Adelaide’s most prominent hoteliers says he has been forced to cut staff hours, skimp on stock and delay renovations because of soaring utility costs — all to keep the price of his beer from going up.
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A PROMINENT hotelier says he has been forced to cut staff hours, skimp on stock and delay renovations because of soaring utility costs.
Tony Franzon, whose family owns The Bath, The Cremorne Hotel and the Hyde Park Tavern, says he will pay more than $120,000 for electricity at each of his pubs this year — a 30 per cent jump in the past two years.
As the State Government spruiks its $550 million plan to fix SA’s energy crisis, Mr Franzon told the Eastern Courier Messenger he was “worried for the future of Adelaide” because of utility prices.
“It is a simple economic equation,” Mr Franzon said.
“My business is devalued (because of utility costs), we’ve had to cut back on staff, reduce hours … we are a lot tighter with our suppliers.
“If you are thinking about renovating your facilities, maybe you have to stretch that out for longer.”
Mr Franzon said while the government’s new energy plan — which includes building a $360 million gas-fired power station and Australia’s biggest battery storage facility — would prevent widespread blackouts, he disputed predictions it would lead to lower electricity prices.
He is callingon the government to instead wind-back payroll tax, deregulate trading hours and spend big on infrastructure — such as trams — to reboot the economy.
“I do not care about renewable (energy) … I just care about a young kid not getting a job,” he said.
“The way things are going, it is no wonder that Caroma have moved out, that Coke have moved out.”
Australian Hotels Association SA general manager Ian Horne said recent blackouts and the high cost of electricity had created a “calamitous situation for business”.
“The high cost of electricity undermines the viability of a hotel,” Mr Horne said.
“With pubs, they cannot pass on the costs to the consumer — you are not going to see places charge $15 a beer because they (the customer) will just go somewhere else.”
Energy Minister Tom Koutsantonis said the government’s energy plan included incentives to increase gas supply, which would “put downward pressure on prices”.
