Opinion: Seafood labelling regulation will punish your local fish and chip shop

As NSW Small Business Commissioner, time and time again I hear from small businesses struggling under the weight of red tape. Governments at all levels have pledged to reduce red tape but the new country of origin labelling for seafood in restaurants, cafes and takeaway shops is another real-life example of more red tape that will frustrate and punish unsuspecting small businesses.

This is an issue that has been floating around for some time and numerous submissions have been made raising concerns with the proposed regulation, despite these concerns in November last year it was agreed to implement country of origin labelling for seafood when it is sold in hospitality settings. This will require hospitality businesses to display information about the origin of menu items containing seafood.

So how will the regulation operate? Think about your local family-run fish and chip shop. While they may proudly serve Australian seafood, they may from time to time have to substitute with imported seafood if local supply is interrupted. Under the proposed country of origin labelling regulation this business would need to replace or update printed menus and menu price boards, even if the supply arrangements are only temporary or involve only a single item on the menu. This is an exercise that will cost a business thousands of dollars each time and add to the cost of your next takeaway order.

What was presumably a measure to support the Australian seafood industry, a worthy ambition, but may well see small businesses source more imported seafood options rather than risk the considerable costs of having to change menus and menu boards each time calamari rings are in short supply.

In an Australian government discussion paper on this issue, one of the examples used to explain the proposed regulation was the supply by a local pizzeria of a marinara pizza.  The case study discussed the ingredients used on the pizza and how these should be labelled to ensure compliance and contemplated how the prawns, fish, anchovies etc would be labelled.

A change to any of these ingredients under the scenarios triggers a legal obligation on businesses to change menus and menu boards.  You could be forgiven for thinking this is part of a script for a future episode of the ABC’s Utopia, but sadly no, this is real and a version of this regulation is proposed to be introduced in less than 12 months.

Given the current cost of living pressures, it seems unlikely consumers would be willing to pay more for their seafood, especially given you can simply ask where it’s from or buy from trusted sources.

It is important that we support the Australian seafood industry and improve the information provided to customers. However, the proposed country of original labelling regulation for the hospitality industry if enforced will punish unsuspecting small business operators and potentially do more harm than good to the industry it was designed to support.

Next time you order from your favourite takeaway or café ask the owner or staff what the impact of changing all their menus on their business if they have to substitute one seafood ingredient from Australian to imported.  When I asked a collection of these businesses they advised the average cost associated with making substantial changes to physical printed menus was $2,820, and others reported costs would be more than $10,000. Remember this is per menu change not an estimated cost per annum.

Surely there are better ways to inform consumers and support the Australian seafood industry that don’t involve punishing small businesses and consumers.

Chris Lamont is the NSW Small Business Commissioner and a supporter of small businesses and the Australian seafood industry.