Holidays Act hurting eateries, survey shows

It's being suggested the Holidays Act is damaging our kudos with tourists.

A Restaurant Association survey shows less than one third of the country's eateries were open on the Christmas and New Year public holidays because of the Act, which forces businesses to pay time and a half.

National's Industrial Relations spokesman Dr Wayne Mapp said business just can not afford to stay open or charge more.

But he said that has a negative impact on our burgeoning tourism industry.

He said tourists expect places to be open.

Dr Mapp said New Zealand is more dependent on tourism now than it was back in the 1960's and 1970's.

But he said businesses are forced to charge them extra, or close down and miss their patronage all together.

Dr Mapp said the government needs to get with the times and change the legislation to be more flexible and reflect contemporary times.

He suggested having different leave and pay rates depending on the importance of the holiday.

Restaurant Association CEO Alistair Rowe said paying staff time-and-a-half as the Holidays Act requires wipes out an eatery's slim five per cent profit margin.

Mr Rowe said one Ohope Beach cafe owner who opened and lost money is not likely to make the same mistake next year.

Mr Rowe said she calculated she would have had to charge customers 27 per cent extra to break even.

- NEWSTALK ZB