With the ACT currently closed off from much of the rest of Australia, local hospitality businesses have been struggling, with many experiencing more than a 30% drop in trade since early June.
This prompted the Canberra Liberals earlier this week to call on the ACT Government to provide direct financial aid to the sector in the form of emergency cash grants to help keep businesses afloat.
“The reality is that some of Canberra’s hospitality venues have closed, others are contemplating closure and most have suffered a severe hit on takings,” said Shadow Minister for Business, Leanne Castley.
“The hospitality sector needs a survival plan before more businesses go broke and more jobs are lost.”
Minister for Business, Tara Cheyne, said the government has already done “the bulk of what Ms Castley has called for”.
“Examples of this include allowing on-licence venues to sell takeaway alcohol; waiving food business registration fees; and waiving fees for outdoor dining permits,” she said.
Ms Cheyne said the extended lockdowns across Australia that have impacted the local economy are “out of our control” and put it on the Commonwealth Government to come to the table.
“It has always been the Federal Government’s role to provide the bulk of financial support – across Australia – for employers and employees suffering hardship due to the pandemic,” she said.
Ms Cheyne called on the Commonwealth to develop a “nationally consistent approach” where the COVID-19 Disaster Payment is extended to those eligible affected by lockdowns in other jurisdictions.
Canberrans ‘scared to go out’ at present
Owner of Belconnen bar, The Pot Belly, Govinder Toor has had to lay off five staff due to the “massive downturn” they’ve experienced since early June.
“Our bar used to be packed most nights; these days it’s basically empty,” he told Canberra Daily.
According to Mr Toor, The Pot Belly’s “main baseload patronage” is public servants, who have been impacted by the closure of three of the six buildings that government departments occupy in Belconnen.
“The current Sydney lockdown has really impacted us again,” he said. “People are scared to go out at the moment.”
As a music venue, Mr Toor said he missed out on the ACT Government’s Amp It Up! live gig fund money due to his busy schedule.
“I work full time, study law and work at the bar; I don’t have time for grant applications,” he said.
“We’re in a situation now where money has been dispersed unequally.”
Mr Toor suggested anything that could reduce operational costs would go a long way.
“The best thing anyone could do for us right now is reduce utility bills not as a one-off, we’d be very grateful,” he said.
Canberra Business Chamber CEO Graham Catt said local hospitality businesses have taken a “massive hit” since the last week of June, when mass cancellations for the July school holidays took place.
“Many restaurants and clubs have said they have been 30%, and in many cases even more, down on takings,” he said.
Currently Canberra is closed to over 90% of Australia’s domestic tourism market, with lockdowns in Sydney and surrounds, Melbourne and Southeast Queensland, and border closures.
“Our focus right now has been on getting targeted support in the form of cash payments and wage subsidies for Canberra businesses from the Commonwealth,” Mr Catt said.
He said it’s “inequitable and incredibly frustrating” that the ACT isn’t recognised by the Commonwealth as an affected area in need of emergency support.
“Our businesses are doing as badly as others in NSW but because Canberra is not a declared hotspot, there is currently no money for wages or businesses support,” he said.
“With so many small businesses in dire circumstances, and with no Commonwealth assistance, the ACT Government needs to be using every means available to help them.”
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