Hospitality businesses call for an end to COVID-19 restrictions as they strive to keep doors open after end of JobKeeper
Many hospitality businesses may not survive if COVID-related restrictions aren’t eased soon, an industry group has warned.
Tasmania
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TASMANIAN hospitality businesses are fighting hard to keep their doors open after the end of JobKeeper, but remain shackled by ongoing restrictions limiting the number of customers allowed in their venues.
That is according to the Tasmanian Hospitality Association, which says the full impact of the wage subsidy winding up in March would take time to become clear.
The industry group’s chief executive Steve Old said while there had not been a rise of businesses closing since that time, many were doing it tough.
“Just because a business hasn’t closed their doors completely doesn’t mean they’re not struggling,” he said.
“Hospitality people are proud people, they work hard and operators are going to fight to keep their business going and serve their community as long as they possibly can.”
But Mr Old warned many may not survive if COVID-related restrictions limiting the maximum density of patrons continued.
“The longer the Public Health restrictions remain on the industry, the more venues that will close for good,” he said.
Current rules stipulate a maximum of one person per two square metres inside venues.
It comes as credit bureau CreditorWatch reported indications that Australian businesses were in good shape, but remained cautious about the medium to long term.
CreditorWatch chief executive Patrick Coghlan said there was a healthy pipeline of credit inquiries and defaults were lower than at the same time last year.
“It is concerning, however, that twice as many industries reported a deterioration in payment times versus last month,” he said.
“This is to be expected following the withdrawal of JobKeeper — the federal government’s main economic stimulus measure.
“But we won’t really be able to get a true read on economic conditions until the June and September quarters, when businesses will have had time to stand on their own feet for a period without government support.”
It was revealed this week that Tasmania’s unemployment rate was the highest in the nation, at 6.2 per cent in April.
Underemployment dropped from 10 per cent to 9.1 per cent, but also remains the highest in the country.
Mr Old said many venues were struggling to trade viably under the remaining restrictions.
“They’re still only allowed to trade at 50 per cent capacity but they’re still paying 100 per cent of rent and bills, and they’ve been doing that for almost a year,” he said.
He said the industry supported a mandatory contact tracing app on the basis it would be the catalyst for easing of restrictions, but it had no indication of when that may happen.
“Hospitality will be operating in a state of uncertainty as long as the restrictions remain,” Mr Old said.
“It’s going to be hard for anyone to have any level of confidence going forward with these restrictions still in place.”
A Public Health spokesman said restrictions were necessary due to the possibility of outbreaks.
“The recent outbreaks interstate show that COVID-19 is still a very real threat and restrictions remain necessary to limit the spread if an infected person does enter Tasmania,: he said.
“Public Health continues to monitor the situation regularly, including restrictions, as the vaccine is rolled out under the COVID-19 vaccination program.”
‘I’ve had to turn people away’
THE owner of a pub in Hobart’s northern suburbs believes it’s time to scrap capacity restrictions on venues, saying he is missing out on the business of hundreds of patrons each week.
Peter Ryan, who operates the Paddy Wagon on Glenorchy’s Main Rd, said he had been forced to turn customers away because of the rule that stipulates a maximum of one person per two square metres of space.
Mr Ryan took over the pub in April 2019 and was then hit hard when venues had to close early last year to reduce the risk of a COVID-19 outbreak.
He said the state government should be congratulated for the way it suppressed the virus, but with no new cases in the state for many months, it was time for a rethink.
“I’ve had to turn people away from our bistro, we’ve had to take tables away, and it starts to leave a sour taste in your mouth,” Mr Ryan said.
“We don’t have COVID transmission in the community and I feel now is the time to release those restrictions.
“I’m getting a little bit tired of the restrictive nature of what’s been imposed by the health department and the government. I know their intentions are good, but surely the time has come where we can ease those rules.”
Mr Ryan estimated the restrictions were keeping about 50 paying customers away each day at the venue, which is open seven days a week.
He said it was difficult to see capacity crowds at AFL matches across the country when venues such as his were still shackled by rules.
Mr Ryan said while he was limited in patronage, he still had staff to pay, and other regular expenses, including water, rates and electricity.
‘JobKeeper kept them alive artificially’
BUSINESS owners should not feel ashamed to shut up shop if their operations are not viable in the post-JobKeeper world, a group representing Tasmanian small businesses says.
Tasmanian Small Business Council chief executive Robert Mallett said he had noticed some Hobart businesses had chosen to close after the federal government’s wage subsidy ended.
He said an easing of rules during the COVID-19 pandemic meant businesses were legally allowed to trade while insolvent.
“The scary bit I think will be in the next six months for a huge amount of businesses who probably shouldn’t have been in business for the last 12 months, whether they will try and stick it out,” Mr Mallett said.
“JobKeeper kept a lot of them alive artificially. They were on life support.”
Mr Mallett said he hoped as many businesses as possible would survive, but for some, their position would be too dire to continue.
Mr Mallett said for people in that situation, making a “smart decision” to stop trading could be the heartbreaking, yet necessary, measure they should take.
“It could save their house, their marriage and at the worst of times, save their life,” he said.
“Nobody is going to blame you. Everyone knows that it has been tough.
“Now is the time to go and seek professional advice to get someone else to look at your books.
“Small business people are very proud, they don’t want to admit defeat. Tasmanian small businesses have been proven survey after survey to be the most resilient small businesses in the country.”
Mr Mallett said many businesses were thriving, benefiting from Australia’s COVID-safe status relative to the rest of the world, and a willingness to buy local.
Originally published as Hospitality businesses call for an end to COVID-19 restrictions as they strive to keep doors open after end of JobKeeper
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