SA Premier Steven Marshall vows to protect Adelaide’s small bar scene, as venues look to open in June
It was the city’s heartbeat before the coronavirus crisis struck. But Premier Steven Marshall has pledged to throw a lifeline to the small bar sector to ensure it can recover.
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Premier Steven Marshall has vowed to ensure the viability of Adelaide’s once-thriving small bar scene as a key part of South Australia’s post-coronavirus recovery.
Mr Marshall’s pledge comes as an industry submission urges state and federal governments to strike the right balance to protect the sector.
Small bars will be able to reopen from June 8 as part of SA’s eased restrictions, but industry advocates say most will remain closed.
Mr Marshall told the Sunday Mail the small bar scene was particularly important for South Australia and Adelaide’s reputation as a vibrant city.
“South Australia has a very vibrant music and bar scene and we are looking very closely at what we can do to support that sector, even if it is just with some baby steps, very soon,” he said.
“I’m concerned sectors like this will die right around the country, and right around the world, but I don’t want this to happen in South Australia.”
A 2019 Adelaide University report attributed the CBD’s small bars and diners to helping city-goers feel safer and reducing alcohol-fuelled violence.
It estimated 1250 jobs had been created since small venue laws were introduced in 2013.
Adelaide City Council deputy chief executive Clare Mockler said it was working with the State Government on options for small bars and businesses with limited indoor space to be able to use outside space adjacent to their premises so they could adhere to social-distancing requirements.
She said activating laneways and/or temporarily closing sections of streets to allow for outdoor dining, shopping, entertainment and other activities was another option.
Mr Marshall would not be drawn on specifics but said the State Government was looking “at all and every step” to maintain the viability of the sector.
“But we have got to do it in a way that does not undermine the gains that we have made in tackling the coronavirus,” he said.
“There would be nothing worse for this sector than opening up only to just close up a few weeks later.”
A submission by the Australian Hotels Association, which represents more than 5000 hotels, pubs, bars and taverns across the nation, warns venues are still accumulating an average $32,750 a month in expenses, including land tax, insurance, electricity network charges and council rates.
Many AHA members fear this could rise to almost $200,000 if venues are closed for six months.
That figure, referred to as the “debt cliff”, does not include rent or mortgage costs that in many cases have been frozen but will need to be paid back in time.
The report, which was handed to federal and state governments, warns small venues are particularly vulnerable, arguing “the tougher the capacity limit, the harder it is for smaller venues to open.”
AHA SA chief executive Ian Horne said capacity limits would result in smaller bars, hotels and pubs struggling to open next month under stage-two restrictions.
Mr Horne said 60 per cent of pubs, clubs and bars in SA may not open until the third stage, expected in July.
He said a strict capacity limit of one person per 4sq m would make reopening in June unviable for many, particularly smaller venues.
“It’s a delicate balancing act between the volume of traffic needed and the volume of money being lost each day pubs are closed or open under these emerging rules,” he said.
Adelaide City Council deputy Lord Mayor Alexander Hyde said small bars were an essential part of the city’s economic and social landscape.
“Absolutely it is a concern,” he said of the struggles facing venues.
Josh Baker, owner of Clever Little Tailor, Pink Moon Saloon and other venues, is confident his bars will stay open.
“It’s going to be difficult with a cap on how many people we’re allowed in the venue,” he said. “We’ll do whatever we can to make business work.’’
Hains & Co owner Marcus Motteram plans to maintain the bar’s usual operating hours but only if staff stay on JobKeeper payments.
The bar has operated online, with virtual tastings, but Mr Motteram said turnover was still down by more than 90 per cent since shutting their doors.