AS BEER prices go up nationwide, pubs in Newcastle are struggling to balance their own viability with patrons' growing cost of living.
A schooner of Tooheys New at the Wickham Park Hotel (Wicko) has jumped 20 cents this month, rising from $7.50 to $7.70, due largely to a hike in the alcohol excise tax.
While enjoying a cold schooner at the pub on Friday, Wicko regular Peter Meldrum told the Newcastle Herald that he immediately noticed a price different when he bought a beer for himself and white wine for his wife, Jane, that afternoon.
"A shout has gone from $13 or $14 to around $15. So that's a dollar minimum," Mr Meldrum said. "I usually hand over a $20 note and get a five with some coins back. But this time it was just goldies."
Every February and August the Australian Government increases its excise duty rate for alcohol, based on CPI. In August 2019, the government tax on a keg of full strength beer increased from $35.50 to $35.71 or around 20c. This year, the jump was more than $1.50, taking prices from $37.76 to $39.27.
Wicko owner Marcus Wright said pubs are struggling to keep up with growing costs and have no choice but to pass the prices on to patrons.
"I've been in this industry for 30 years and I've never seen anything like this with so many places struggling to stay viable," Mr right said. "Between the cost of energy, fuel, interest rates and food I wonder how long it's going to be before people decide they just can't afford to go out anymore.
"It's been a tough few years so I really encourage people to get out and support their local, especially those venues that support their communities."
Mr Meldrum, who has lived in Islington for around 20 years, said while the Wicko is one of the more reasonably priced watering holes, he is concerned about the impact of price hikes on the venue.
"Energy prices, fuel and food are so high at the moment that this extra tax just feels wrong," he said. "We are lucky to be in an okay financial position but this beer tax will stop a lot of people going out and I worry about the effect it's going to have on the establishments.
"I'm concerned the workers and the owners of these pubs won't be able to continue. In the meantime they have to deal with abuse from people who are frustrated about other costs in their lives and this just caps it off."
Newcastle and Hunter AHA president Mick Starkey said hotelliers, who rely on a minimal profit margin already, are being squeezed "left right and centre".
From October 1, the minimum wage for hospitality workers will be increased - pushed back from July to give the industry time to recover from pandemic losses.
"There are a whole lot of issues the industry is facing at the moment. We are still struggling from the impact of COVID and all our costs seem to be rising," Mr Starkey said. "Minimum wage and superannuation are set to increase and the only way we can get by is by passing these costs on to the consumer, which we don't want to do."
Mr Starkey said he has been forced to increase a schooner of Toohey's New at his Mayfield pub, the Stag and Hunter, from $7 to $7.50. At his other venue, Customs House, the same beer will now set you back $8.
"Industry averages are telling us that these costs should be higher but we are trying to keep in mind that our patrons are struggling too."
Over in Merewether at the Burwood Inn, a New now costs $7.60, a 30c hike.
Owner Tony Dart says it is the biggest beer tax increase he has seen.
"I'm about to celebrate my 60th birthday and have been in the industry most my life," Mr Dart said. "It's a kick in the guts for us and our customers."
Mr Dart said the increased beer prices still don't cover recent cost jumps.
"I've been speaking to a couple of people saying in these unprecedented times we really should be going up 50 cents."
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