THE campaign against small bars in the city is a big mistake, writes David Penberthy.

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THE campaign by the Australian Hotels Association against small bars in Adelaide is a classic example of commercial self-interest dressed up as community high-mindedness.

The proposal to make it easier and cheaper for people to obtain small bar licences would inject some new life into this town.

Yet it is the subject of a hysterical and craven campaign by the hotels lobby which would deny people choice as to how they enjoy themselves.

Shorn of its deceit, the AHA's position is that there should be two types of venues in Adelaide - pubs which offer meals, drinks and gaming, and the meat markets and blood houses which make Hindley Street such a deeply unpleasant late-night destination.

The AHA opposes any increase in the very limited number of small venues which have opened over the past few years.

It is all about the maintenance of profit.

Not so, the AHA counters. Armed with some bodgy push polling, the South Australian branch of the AHA says that 72 per cent of people believe the CBD already has enough bars, pubs and clubs.

The framing of the question in this survey was obviously desired to elicit such a response. The survey avoided giving respondents the chance to say whether they would like the option of going to a small, quiet place to enjoy themselves in a different way.

It misleadingly sounded like the AHA - of all the organisations - was trying to harness community sentiment that drinking has reached saturation point. It was the AHA as the Women's Christian Temperance Union.

The AHA, of course, would love it if we all drank more. The problem it has with the prospect of people drinking at new places is it could create competition for its existing member base.

Someone should do some research on how many people would "defect" from their local if a groovy wine bar opened around the corner. I doubt many would.

I can't imagine there're too many blokes down at the Port who have abandoned the Colac Hotel because the Pinxos wine bar has now opened in Leigh St.

If there were more small bars I would still go just as frequently to my excellent local, the Goody Park. Say what you like about tapas, but it's pretty hard to beat a parmy and a pint of pale, and the kids love getting their free Zooper Dooper and goodie bag with their kid's meals.

But small bars just give us another choice. And if there is any sector that is well-positioned to absorb a little bit of extra competition - if indeed the competition will even be notable given the unlikely drain on existing patrons - it is the cashed-up hotel industry.

A small factoid from last month's state Budget: so far this year gamblers have lost $562.9 million on poker machines in South Australia. Even that figure is not enough in the eyes of the hotel industry, as at the same time last year they lost $566.5 million.

Asked about this apparently lamentable shortfall, the man leading the push against small bars, AHA president Ian Horne, said people were becoming more cautious with their discretionary spending.

Well, good. If people are gambling a bit less, we shouldn't be lamenting it but encouraging it.

Just as we should be encouraging the creation of an additional new drinking culture that challenges the view that ripping out your pool table, your band stage and dart boards to cram in the maximum number of poker machines is the modern-day definition of hospitality.