Luke Mangan: PM should take inspiration from NSW’s business lifeline

The NSW government has today thrown the hospitality industry a lifeline, but the federal government now needs to step up and follow suit, writes chef Luke Mangan.

After nearly two years of devastation, it’s heartbreaking to see so many NSW restaurants, cafes and tourism businesses forced to close their doors or cut their services during what should have been their busiest period.

The Omicron wave decimated what many businesses had expected to be their lifeline or pathway back to success. Businesses looking forward to a summer holiday boom to save their bottom lines were blindsided. We’d only had a taste of our long awaited summer before it was stolen from us.

The entire sector, made up of mostly small or family businesses, has been struggling – from our fine dining restaurants to the small cafes, wine bars and local pubs – that are the backbone of our community.

Luke Mangan, owner of Sydney restaurant Glass Brasserie, is holding out hope for his industry’s Covid recovery. Picture: Justin Lloyd

Late last year we saw glimmers of hope as our restaurants once again buzzed with energy and the economy started to roar back to life after Delta. Sydney’s Open for Lunch was meant to be the beginning of our recovery – then Omicron hit.

Business owners who were already grappling with a nationwide skills shortage became crippled with their staff either sick or forced to isolate. And people started cancelling their bookings and laying low as case numbers surged.

Today we have reason to remember that summer is not over yet, and there is much to look forward to.

The NSW Government has stepped up and thrown a lifeline to many small businesses in the hospitality industry that are on their deathbed. Today’s Small Business Support Program announcement will help to restart our once vibrant hospitality industry and secure the employment of more than 300,000 people. It will mean hardworking Australians can stay employed — from farmers to suppliers and kitchen staff, and the flow-on benefits are enormous.

NSW Premier Dominic Perrottet, Tourism Minister Stuart Ayres, Luke Mangan and fellow chef Kylie Kwong launch Sydney's Open for Lunch. Picture: Destination NSW

I applaud this government, under the leadership of Berejiklian and now Perrottet, for their support of NSW small businesses during the pandemic. Today’s announcement will give our sector a much-needed shot in the arm to help us survive Omicron and get back doing what we do best, every day and night of the week.

The subsidising of the cost of rapid antigen tests will directly support hospitality and other sectors hit hardest by COVID-19 restrictions. Furthermore, an additional two months of rent relief will help small businesses make it through this difficult time, while grants will support commercial landlords who suffer hardship as a result.

The new small business support program follows other measures, like the Dine and Discover program.

Recognising the connection of the arts, tourism and hospitality sectors, the increased financial assistance for the performing arts sector will give people a reason to come back to the city and enjoy alfresco dining with entertainment. More patrons frequenting our restaurants and cafes means more people employed, more revenue and more flow on economic benefits.

These measures are on top of the continued Dine & Discover program (which I’ve praised many times), temporary payroll tax relief and a safety net for cancelled music festivals. Premier Dominic Perrottet and Treasurer Matt Kean have listened to small business owners in the hospitality industry and acted.

There is no doubt the NSW Government’s support will directly benefit our industry and provide immediate significant flow-on benefits for the NSW economy. But we also need the federal government to consider policy changes to support the long term viability of our industry.

The NSW Premier and his Treasurer Matt Kean listened to small businesses and reacted accordingly, Luke Mangan writes. Picture: Adam Yip

The Federal Government saved countless businesses with their JobKeeper initiative – and for that our industry is incredibly grateful – however the national skills shortage has the potential to devastate our industry even more than Covid has.

Without more people in the Australian workforce and a focus on skills and training, many businesses will be unable to open their doors. When the pandemic hit, thousands of international workers returned to their home countries and now businesses are struggling to reopen because there simply aren’t enough Aussies to fill vacancies.

Industry has been calling out for a Covid Recovery Visa that would enable businesses to access overseas talent in a safe way. When there aren’t domestic workers to fill the vacancies we must be able to rely overseas workers. Furthermore, the relaxing of work restrictions for foreign students and working holiday makers would help fill significant shortages in positions like baristas, cleaners and wait staff.

Staff and skills shortages have forced bars and restaurants to shut early, or altogether. Picture: Jonathan Ng

The Federal Government should also be focusing on skills and training within the hospitality sector. With a $7.1 billion investment in skills, including the National Skills Commission, surely there is something that can be done to attract and skill young Australians for the jobs in our industry.

The restaurant industry is tough – long hours, small profit margins and high overheads – but it is rewarding. I want to see our industry grow and flourish, and see young Australian’s making a name for themselves as leaders in our sector. I want to see Australia produce the next global hotel chain boss or next World’s Best Chef or have ten restaurants in the World’s 50 Best Restaurants list. But we can’t do this without the operating environment and policy settings.

Experts say our state may have reached a peak in Omicron cases, but it would be foolish to think this will be the last variant we’ll face. In July last year I started promoting the #jabsforjobs campaign and I believe the sooner people get their booster shots, the sooner we can get our economy thriving again.

Our battle against COVID-19 is not yet won – far from it. But there is light on the horizon once again. This new support from the NSW Government means businesses have the confidence to hold on, plan for the future and once more become the beating heart of our state.

They say good things take time, I just hope it’s not too late! It’s been a struggle since December 13 and as I’ve said before it’s like a lockdown without having a lockdown.

Here’s to good food and good times …

Luke