Lifeline not enough; Melbourne business owners call to open up
Desperate Melbourne businesses are begging the state government to let them open up sooner as they slam Daniel Andrews’ $3 billion coronavirus lifeline, saying it would not spare them from “economic armageddon”.
Victoria
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Battling businesses have savaged the State Government’s $3 billion coronavirus lifeline — declaring opening sooner is the only way to spare them from “economic armageddon”.
The plea came as Premier Daniel Andrews extended Victoria’s state of emergency and disaster orders.
It means Melbourne will be in lockdown with a curfew until at least October 26.
Top restaurateurs, small business leaders, the Australian Hotels Association and the Australian Industry Group say they are disappointed with the long-awaited support.
But it won praise from industry heavyweights including Crown and the Victorian Chamber of Commerce and Industry.
Mr Andrews unveiled the $3 billion package as Victoria begins its slow path out of lockdown. “This is very, very significant, but it’s what’s needed,” he said.
He dashed any hope of Melbourne opening up earlier than the road map forecast of October 26, saying it was “highly unlikely” the city would meet case number thresholds.
They require a statewide average of five or fewer cases and fewer than five mystery cases in the previous fortnight.
Restaurateur Chris Lucas, who owns city eatery Chin Chin, said the grants of up to $30,000 were a “drop in the ocean” for some businesses.
“It’s economic armageddon,’’ he said. “Some businesses have not been operating since March. A lot of these have debts of hundreds of thousands of dollars.”
Australian Hotels Association president David Canny said: “Some people will be really happy — but for others it is just scraping the surface.”
“Many of our pubs and hotels are facing financial ruin — a debt cliff.”
The rescue package includes the $1.7 billion deferral of payroll tax, $251 million in cash grants of $10,000- $30,000 for pubs, clubs, restaurants and cafes and $27 million in waived liquor licensing fees.
An additional $822 million would be made available for a business support fund and $15.7 million to help exporters establish new trade channels.
Ai Group Victorian head Tim Piper said payroll tax should have been waived.
“We are extremely disappointed,’’ he said. “It means this debt will continue to hang over businesses which may not have recovered enough by the time they need to repay the government.”
Small Business Australia executive director Bill Lang said 300,000 owners had been ignored.
“These are the heart and soul mum and dad businesses of Australia who are facing a day of reckoning when rents, leases, bank loans and other accumulating debts, which have been on deferral, are called in,’’ Mr Lang said.
However there may be hope yet, after Industry Support Minister Martin Pakula said a further announcement relating to sole traders would be made in coming days.
And despite criticism, some welcomed the package.
VCCI chief executive Paul Guerra said it would provide hope for many businesses, with targeted support for the hospitality and tourism sectors plus hair and beauty businesses.
“It will be a lifeline for those businesses in desperate need that are not likely to be able to open for some time under the current government road map,’’ Mr Guerra said.
In a statement, Crown also welcomed the assistance.
“A vibrant hospitality industry gives Melbourne its unique edge and this support package will help the industry get through these difficult times,’’ it said.
But Opposition Leader Michael O’Brien said: “It’s just not enough. This government has just caused so much harm to business by having these overly harsh restrictions and closures,’’ he said.
Prime Minister Scott Morrison welcomed the measures, noting that additional help was needed for Victoria because of the scale of the second wave and its effect on the economy.
But Federal Health Minister Greg Hunt said: “We can do better.”
“Here is the opportunity to work together ... to help redesign the road map to bring forward those triggers.”
Hair salon owner Tom Donato, who employs more than 30 people in five shops across Melbourne, said the support would help but was surprised it did not include more assistance for landlords because their rents ultimately affected businesses such as his.
“The rent will be the killer,’’ he said.
RELIEF COMES TOO LITTLE TOO LATE FOR HOTELIERS
Country pub owners say cash relief to save their businesses has come too late.
Anita Donlon, from rural lobby group Beef It Up Australia, said many hotels in Victorian country towns — some of which had survived drought and bushfires — were now threatened by the state government’s COVID-19 closures.
The pubs played a vital role not only in community life but by supporting farmers’ mental health, Ms Donlon said.
Sunday’s announcements would do little to help.
“The business grants, well the horse has bolted,” she said. “We should never have been in this situation in the first place.
“You can’t throw a blanket approach on to a state.”
Ms Donlon said measures like stamp duty relief would not provide immediate assistance “because properties are not being bought and sold”.
“In Bendigo, we have hoteliers screaming out for them to put a halt on council rates. That money should have been put there and consulted with regional LGAs,” she said,
Leanne Fanning, who has owned the Boorhaman Hotel and Buffalo Brewery in Victoria’s northeast with husband Greg for nearly 21 years, said she was “devastated”.
“There was no help for sole traders — all they are looking after is the big people, not the little people,” Ms Fanning said.
She said their community relied on them and she did not believe politicians in Spring Street understood that.
As sole traders, the Fannings were unable to access any government support and were “just scraping through”, she said.
“They just sit in their office but none would understand the reality of rural living and being a sole trader,” Ms Fanning said.
“We work seven days a week and get nothing; the locals are literally keeping us going.”
— Andrew Koubaridis and Mandy Squires
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