The Andrews Government in Victoria has this week announced two rounds of additional business support funding, including special provisions for hotels and pubs throughout the State.
On Sunday a $3 billion package was announced and on Monday another $290 million program unveiled, much of this earmarked for a move toward hospitality transitioning to post-COVID conditions.
The relief brings cash grants* of up to $30,000 per venue for hotels, pubs, clubs, bars, restaurants and reception centres, determined by venue capacity and location. Authorities have also waived liquor licence fees for 2021.
Businesses with payroll up to $10 million will get cash grants of $10-20k according to size, and government is offering access to digital programs to help businesses adapt to online solutions.
While the relief is welcomed, the AHA has not lost sight of the plea for earlier easing of restrictions.
“We have been closed since March, so this is a most welcomed assistance package,” offers David Canny, President of AHA (Vic). “The government is recognising our plight, but we call on them to rethink their roadmap to recovery.”
Canny cites how the Association’s 1,450 members and their 52,000 employees have been severely affected financially and mentally throughout the shutdown, and stresses country hotels and pubs should be the first allowed to open, many being more than 100 kilometres from an active COVID case.
The AHA is calling for a “fair, reasonable and co-operative” platform for industry in line with other sectors now operating again, noting how hospitality staff are already experienced and trained in customer safety measures, and embracing the six COVIDSafe principles outlined.
“We are COVIDSafe to open,” says Canny. “Many of our pubs and hotels are facing financial ruin – a debt cliff – through the disproportionate effects of the government’s Stage 4 restrictions. Their debt burden is rising daily and for many this is becoming unsustainable.
“We need to be allowed to reopen. There needs to be trade-offs between lives affected and livelihoods lost. We have strong and proven plans for our industry to be COVIDSafe to operate and are ready to sit with government to allow us to implement them.”
Monday’s announcement sees $100 million in support for sole traders, and much of the balance of the $290 million focused on helping small and medium-sized hospitality businesses reconfigure spaces to facilitate outside dining. There will be funding for the conversion of courtyards and rooftop spaces, as well as furniture, coverings and safety screens.
Victorian Premier Daniel Andrews referenced New York as an example of how the hospitality sector has been returned to “something approaching normal” much faster through the use of footpaths and curb-side parking, and public spaces opened up to pop-up cafes, restaurants and bars.
The government’s reopening roadmap announced last week has businesses reopening in metropolitan Melbourne late October, and the Premier believes the planned changes will be welcomed and may even become permanent.
“This summer will be unlike any other,” said Andrews. “We will change the way the city operates and indeed the suburbs and indeed regional cities.”
There has been $100 million put to the City of Melbourne – the Melbourne City Recovery Fund – in partnership with the City of Melbourne, to bolster the roughly 16,500 businesses registered in the city. Another $30 million has been allocated for supporting COVIDSafe events and activities, when these are deemed safe.
Australian Venue Co (AVC) has been one of the State’s hotel groups pleading for greater orchestrated easing, revealing it is losing $2,000 a day at each of its 32 Victorian pubs. AVC welcomes the new financial support measures, which CEO Paul Waterson suggests might tide more operators over to reopening.
“It’s timely, and will help bridge the gap in these last couple of months for venues who are on a knife’s edge, and there are many.
“Hopefully for some people this will make a meaningful difference between being able to open again or not.”
*Grant eligibility criteria will be detailed when applications open.