Smoking ban could finish us, say firms

A smoking ban in bars and restaurants could seriously hit revenue, driving owners out of business, the Hospitality Association says.

The group cited the experience of similar establishments in New York, where a smoking ban was shown to have slashed sales by up to half.

"With the very low profitability in New Zealand hospitality businesses, a similar drop in sales will cause widespread business failure and loss of jobs," said Hospitality Association chief executive Bruce Robertson.

The ban was an added burden to bars and restaurants that were also facing struggles with staff pay. Businesses could be forced to pay staff time and a half plus a day in lieu for working statutory holidays, if new proposals come into force.

"Coupled with the Sars [severe acute respiratory syndrome] instigated tourism downturn, hospitality businesses are rightly concerned about the additional loss businesses face from a smoking ban."

Mr Robertson urged the Government to replace bans with a proposed air quality standard developed by the association. He said it would meet health concerns and allow smokers the opportunity to light up.

A New York Post survey found some businesses were on the brink of closure after the ban. Some had laid off staff and cut back workers' hours. Of businesses surveyed, 68 per cent had suffered reduced business.

New Zealand legislation has been through the select committee process and is expected to return to Parliament next month for its final stages.

It proposes to ban smoking in all indoor workplaces including bars, restaurants, lifts, toilets, ships, trains and taxis when they are in use.

Smokers who light up inside could be fined up to $400.

The Smokefree Environments (Enhanced Protection) Amendment Bill called for existing premises to provide separate smoking rooms from 2007.