Norton Street Festa organisers face budget shortfall as inflation sends operating costs soaring

Organisers of one of Sydney’s most popular street festivals are grappling with rising inflation pressures that has sent event operating costs soaring – but a local council is refusing to hand the event a lifeline.

The event draws massive crowds to Leichhardt.

Organisers of one of Sydney’s largest and most popular street festivals are grappling with rising inflation pressures which has sent event operating costs soaring – but a local council has refused to hand the event a lifeline.

The organisers of Norton Street Italian Festa are scrambling to secure new sponsorship agreements to plug a major shortfall in funding required to stage this year’s event.

The Norton St Festa is one of Australia’s largest celebrations of Italian culture and has been an institution in the Leichhardt landscape since 1986.

Last year, the event drew a record crowd of about 200,000 people who turned out for the array of food stalls, live music performances and entertainment.

But despite the popularity of the event, organisers are feeling strain of rising inflation that has resulted in a sharp rise in event management costs including electricity, security and traffic management.

At the same time, there has been a reduction in sponsorship support for the event – including from many local small and medium businesses who are also impacted by the current economic climate.

The event is a celebration of Italian culture.

Mark Chapman, president of the Leichhardt and Annandale Business Chamber which helps organise the event, recently made an impassioned plea for Inner West Council to provide a one-off $10,000 contribution to help stage this year’s event.

“The last 12 months have seen many challenges arise from increased costs caused by inflation and other economic factors,” he said.

Local chamber of commerce president Mark Chapman.

“Unfortunately we’re experiencing a shortfall from the decline in sponsorship and the budget for this year’s event is a real concern.”

Despite his plea, a majority of councillors rejected the request. Councillor Mark Drury – who voted against it – said the council already provides $60,000 in support for the event and warned an additional contribution could set a precedent for other local events.

Leichhardt residents Rachele and Patrick O’Reilly – who have helped organise the Festa for the last 12 years – say this year’s event is currently facing a budget shortfall of $20,000 due to the economic challenges of the last 12 months.

“The event is mostly run by volunteers on very tight margins and no one’s in it to make money, we put it on because it’s such an important event for the community,” Mr O’Reilly said.

The festa includes food stalls.

“The cost of everything’s gone up – electricity, labour, event management, road closures, security and even the cost of stallholder tents have risen from $70 to $170.

“We’ve approached every possible sponsor in the area and the big issue is the corporate world is really struggling with sponsorship dollars.

“It’s very challenging but we’re determined to keep the event continuing into the future.”

Balmain State MP and Inner West councillor Kobi Shetty – who called for the council to provide the $10,000 contribution – said the success of the event had a flow on effect to local businesses.

The entertainment includes live cooking demonstrations.

Balmain State MP and Inner West councillor Kobi Shetty said the event provides a boost for local businesses.

“We’ve had no trouble as a council throwing large sums of money to other things councillors might think important (such as) the Bay Run and sporting clubs,” she said.

“People are facing a cost of living crisis to an extent we haven’t seen in decades and similar impacts are hitting our local festivals”.

The challenges facing the Norton Street Italian Festa are also being felt by organisers of other major events including Ferragosto in Five Dock, run by Canada Bay Council.

Canada Bay mayor Angelo Tsirekas said event running costs including for security and stage management “had ballooned”.

This year’s Norton Street Italian Festa is due to be held on October 30.