Hi All - this is Paul from Holgate Brewhouse and I am mighty impressed with the enthusiasm the AHB members have shown for the microbrewers excise tax relief campaign - Fair Go Craft Beer. Thanks heaps for all the posts and joing our fight! I've been visitnig Canberra and talking with all the pollies for some years now, together with Cam from Goat. It's a hard slog, but we're getting there. We went to canberra in early Nov, and the Petition campaign is part of the process of creating as much NOISE about this issue as possbile prior to the next budget.....ie we want to table the petition in Feb, and we have organised a core group of MPs who are putting together a bi-partisan team of back-benchers to champion the cause and basically get into the ear of the Assisant Treasurer, Mr Chris Bowen.
There is no reason why craft beer should be treated differently than small wine....both are pre-dominately small, regional, family business sectors. So this is what we are gunning for...equality with the wine industry and highlighting that the micro brewing industry is on a knife-edge of success or failure and it should be supported. Most of the general public don't realise that most microbreweries are kept alive and keep operating out of the good-will and passion of the owners. These businesses are not only making a loss, but the owners are getting paid a fraction of the salary compared to what they would earn working for someone else. So why do micro's keep going ?? Passion for the product and the industry....but it can only take you so far, and only for so many years. Already in Vic this year 3 micros have closed down, and one has converted over to getting their beer contract brewed by a larger brewer.
UNder the current tax arrangements, a micro would start making a profit and being able to pay proper market salary's to owners and staff when they are producing in excess of 500,000 litres per annum. Roughly. While most of the small guys are operating in the 50,000 - 150,000 region.
Saving the excise tax and putting this money back into the business would mean the ability to hire - sales staff, 2nd brewer - put some money into marketing and promotion, perhaps buy equipment that will help quality control e.g. lab gear, micro gear, CO2 testing etc. And also pay owmers a bit more salary so they can survive and grow the business, and not have to keep thinking about how they are going to pay the next glass bill, or malt bill.
As some members have rightly pointed out, excise relief won't necessarily result in lower prices - 'cos we'd back to square one in the same position. But prices could come down a bit through market pressures and competition once new entrants come on line. Anyhow with the Government very sensitive about binge drinking, it would be silly to advocate beer prices coming down. And in fact we are actively using the slogan "Drink Less, Drink Better" to promote the image of the microbrewing scene at the opposite end of the spectrum to the alcopop market
Well that's about all from me, sorry for taking up so much of your space! - if anyone has any queries about the campaign or about the tax feel free to post it up or send me an e-mail. And keep up with the good fight
cheers from Holgate