PENALTY RATE battlelines have been drawn afresh ahead of an upper house inquiry into growing the state's economy. Up to 20 interest groups are understood to have lodged submissions to a Legislative Council committee probing challenges facing Tasmanian businesses. Underpinning the inquiry will be close scrutiny of the federal Industrial Relations Act, which dictates penalty rates. Speculation is mounting that MLCs will be lobbied hard to break away from the nationally consistent pay framework and push for lower penalties in Tasmania. The idea has riled Unions Tasmania, who insist the argument that penalty rates inhibit economic growth has been proved wrong time and time again. Lining up against the unions are hospitality operators, who argue labour cost loadings are a major disincentive to trade. In a written submission to the inquiry, Unions Tasmania secretary Steve Walsh argued any shift away from the Australian framework ignored the interplay between supply and demand, and would fuel a false economy. Mr Walsh insisted if a product or service were in demand, it would be profitable, pointing to inner-city Launceston and Hobart hospitality businesses to illustrate his point. ''They are not closed on weekends because of penalty rates,'' he said. ''They are closed because the demand for their product collapses.'' Mr Walsh said hospitality businesses in suburban areas thrived on weekends because city workers flocked there on their days off. He also argued cutting workers' penalty rates would reduce their own capacity to pour money into the state's coffers. ''For a large number of employees, from cleaning, to nursing, to hospitality, penalties make up one third of their take home pay,'' he said. Mr Walsh insisted slashing penalties would make it less attractive for employees and job seekers to remain in their home state, and put others off moving to Tasmania for work. But Tasmanian Hospitality Association general manager Steve Old said his members were finding it unviable to trade on Sundays and public holidays when required to pay staff up to 275 per cent more. ''It means businesses are either choosing to stay closed or opening knowing that they are going to lose money,'' Mr Old said. ''We want a hospitality sector that is employing as many people as it can and contributing the state's economy, not being forced to hang out a closed sign because it is simply too expensive to open.'' The inquiry will hold public hearings later this month.
PENALTY RATE battlelines have been drawn afresh ahead of an upper house inquiry into growing the state's economy.
Up to 20 interest groups are understood to have lodged submissions to a Legislative Council committee probing challenges facing Tasmanian businesses.
Underpinning the inquiry will be close scrutiny of the federal Industrial Relations Act, which dictates penalty rates.
Speculation is mounting that MLCs will be lobbied hard to break away from the nationally consistent pay framework and push for lower penalties in Tasmania.
The idea has riled Unions Tasmania, who insist the argument that penalty rates inhibit economic growth has been proved wrong time and time again.
Lining up against the unions are hospitality operators, who argue labour cost loadings are a major disincentive to trade.
In a written submission to the inquiry, Unions Tasmania secretary Steve Walsh argued any shift away from the Australian framework ignored the interplay between supply and demand, and would fuel a false economy.
Mr Walsh insisted if a product or service were in demand, it would be profitable, pointing to inner-city Launceston and Hobart hospitality businesses to illustrate his point.
''They are not closed on weekends because of penalty rates,'' he said.
''They are closed because the demand for their product collapses.''
Mr Walsh said hospitality businesses in suburban areas thrived on weekends because city workers flocked there on their days off.
He also argued cutting workers' penalty rates would reduce their own capacity to pour money into the state's coffers.
''For a large number of employees, from cleaning, to nursing, to hospitality, penalties make up one third of their take home pay,'' he said.
Mr Walsh insisted slashing penalties would make it less attractive for employees and job seekers to remain in their home state, and put others off moving to Tasmania for work.
But Tasmanian Hospitality Association general manager Steve Old said his members were finding it unviable to trade on Sundays and public holidays when required to pay staff up to 275 per cent more.
''It means businesses are either choosing to stay closed or opening knowing that they are going to lose money,'' Mr Old said.
''We want a hospitality sector that is employing as many people as it can and contributing the state's economy, not being forced to hang out a closed sign because it is simply too expensive to open.''
The inquiry will hold public hearings later this month.
