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Hospitality and housing feeling the pinch

01 Jul, 2009 11:44 AM
THE hospitality and housing industries are waiting with baited breath to see how much of the extra utility costs they can absorb before having to pass it on to customers.

Mojo’s owner Noel Brunning said the eatery would be under more pressure thanks to the rise in gas, electricity and water costs.

He said their gas bill was already extremely high and was not looking forward to the rise.

“We use gas for cooking and hot water, both of which we use a lot of,” Mr Brunning said.

Mr Brunning said while Mojo’s would try and absorb as much of the extra costs as possible, there was only so much it could take.

“It’s just another charge we’ll eventually have to pass on,” he said.

“We’ll just have to use our services a little more efficiently.”

Bunbury Steam Laundry manager Julie Scobie said she would be hit by a 22 per cent gas tariff increase when their current contract with suppliers ends.

The industrial laundry service looks after 85 per cent of hotels in the South West.

“We’ll have no other option than to pass it on to consumers,” Mrs Scobie said.

“I’m not looking forward to that part at all.”

The Housing Industry Association said there could also be price rises in its sector, depending on whether manufacturers are forced to increase their prices.

“It’s very dependent on what contracts manufacturers have with the energy providers,” HIA professional services advisor David Endersby said.

He said it was too soon to tell for sure because it was not known where and when the price hikes would hit manufacturers.

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Serving food will become a lot more costly for Mojo’s owner Noel Brunning pictured with apprentice chef Josh Pickett.
Serving food will become a lot more costly for Mojo’s owner Noel Brunning pictured with apprentice chef Josh Pickett.
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