Hospitality industry served regulatory relief

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Minister for Regulation David Seymour and Minister for Tourism and Hospitality Louise Upston have today welcomed the completion of the Ministry for Regulation’s Hospitality Sector Review, which will make it easier and cheaper for hospitality businesses to open, and easier for them to do business. “Everybody has a favourite café, bar or restaurant they wish was still open. Today’s announcement is about cutting red tape and getting rid of dumb rules which can contribute to closures,” Mr Seymour says. “If we are going to unlock New Zealand’s potential, we need to let Kiwi businesses get on with business. “The sector was hit hard by Covid. Red tape and dumb rules made It hard for the sector to bounce back. The rules and regulations are imposed by so many departments that they’re difficult to fix. That’s why we set up a Ministry with a mandate for cutting red tape; to fix the problems no one else can. “For example, the Review heard from a food truck which considered setting up in Australia because the process in New Zealand was so bureaucratic. On exploring this option with Australian regulators, they were given one contact and a clear pathway to set up the business. In New Zealand, they had to meet with 13 different officials from 8 different central and local government agencies. They said the pathway to set up was incredibly confusing and complex.” The Review identified a number of problems with how the sector was regulated, including: “Now, we’re fixing those problems. In the coming weeks Ministers will be deciding which recommendations to accept, and the next steps,” Mr Seymour says. "Our hospitality sector plays a vital role in New Zealand's economy – it supports jobs, local communities and the experiences of domestic and international visitors across the country,” Louise Upston says. “The hospitality sector is a $21.4 billion industry, employing more than 193,000 people across the country. We’re backing Kiwi businesses and supporting a stronger visitor economy. "As several of the recommendations highlight, hospitality issues often span multiple portfolios and agencies. That is why I will develop a Hospitality Action Plan to provide a coordinated framework for priority hospitality initiatives across government. "I intend to continue working in partnership with the sector to remove barriers to growth, support businesses and workers, and ensure hospitality can thrive as part of a growing New Zealand economy.”

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