Fearing for the future of the amusement and attractions industry AALARA and the Showmen’s Guilds announce stop work campaign

In an effort to raise the profile of the insurance crisis impacting amusement and attractions operators, events and regional shows, the Australian Amusement, Leisure and Recreation Association (AALARA) and the Showmen’s Guilds of Australia have today advised that members across the country will commence a series of stop work campaigns from Saturday 7th May.

The planned action results from fears expressed by the Showmen’s Guilds and AALARA that ‘the show won’t go on’, slamming the Federal Government’s backtracking on a promise to support a Discretionary Mutual Fund (DMF) for the amusement and leisure industry.

Explaining the action, AALARA President, Shane McGrath stated “while this action is unfortunate, our industry has been left with no option. As an industry we employ thousands, entertain millions and mean so much to so many.”

Slamming last week’s rejection by the Federal Government of financial support for a DMF to the industry, McGrath advised “the peak industry association has been working with the Federal Government for 14 months on a solution to the public liability crisis that has been an existential threat to the industry.

“We have experienced a market failure that has seen insurance premiums increase more than 300%, while some operators have been unable to achieve any insurance at all. This has resulted in amusement rides excluded from events, sitting idle in theme parks or in sheds across the country.”

On 6th December 2021, the Australian Small Business and Family Enterprise Ombudsman released a final report into the insurance crisis facing Australia’s amusement, leisure and recreation sector, declaring the Show Must Go On.

The 42-page report found that a Discretionary Mutual Fund provided the most practical and durable solution to enable the industry to remain operational in a hardening global insurance market. In the Report, Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman said “the clear and present danger is real. The sector employs over 7,000 people and contributes $1.84 billion to the economy in total. This inability to secure insurance coverage puts thousands of jobs at risk and means many of the attractions people know and love are on the brink of being a thing of the past”.

McGrath advises that “the Ombudsman’s report supports our position in establishing an industry owned and operated DMF. We have jumped through many hoops, invested significant member funds at the encouragement of the government and completed all the required due diligence, only to be denied support at budget time.

“As an industry our members provide the attractions that underpin Australia’s tourism industry, they provide the amusement rides at agricultural shows and local school fetes which are such important community events. Our members have waited patiently as their association worked through the process and feel that the government, the system, has failed them.”

Supporting AALARA’s stance, Australasian Showmen’s Guild President, Aaron Pink added “many of our members have struggled over the last few years through floods, bushfires and COVID.

“The insurance crisis is having a devastating effect on our industry, especially amongst smaller operators who are experiencing an inability to gain insurance. An industry DMF will increase safety and make affordable coverage available for generations to come.”

AALARA cited a number of theme parks, which have struggled through lockdowns, having been forced to pay up to $1.5 million for insurance this year when four years ago they secured coverage for $150,000.

AALARA added “for an industry that has been decimated by COVID-19 over the past two years, this is the final straw for many operators who have had to close for good, through no fault of their own.”

Image: Perth Royal Show.