Sally Capp calls for JobKeeper payments to be extended

Lord Mayor Sally Capp has called for JobKeeper payments to be extended beyond the end of the month and for all workers to be ordered back to their offices.

Lord Mayor Sally Capp has called for Melburnians to return to the office. Picture: Jake Nowakowski

The Melbourne Lord Mayor has called for JobKeeper payments to be extended beyond the end of the month and 100 per cent of workers be ordered back to their offices in a bid to rejuvenate the CBD.

Sally Capp told the Sunday Herald Sun the struggling city should be treated as a special case to receive ongoing government financial support, so its hospitality businesses could get back on their feet after costly COVID-19 lockdowns.

A starting point was the Federal Government’s JobKeeper program continuing past the end of this month, and more workers in the CBD.

“The hospitality industry is critical to the City of Melbourne’s economy and provides jobs for tens of thousands of Melburnians,” Ms Capp said.

“There needs to be a co-ordinated approach between all levels of government to support local restaurants, cafes and bars that have been hit hard by the pandemic.

“We would welcome an extension of JobKeeper, or targeted financial support for the sector, from the Commonwealth Government (and) we look forward to the Victorian Government safely increasing capacity limits and allowing 100 per cent of workers to return to the

city,” Cr Capp said.

The call was yesterday echoed by hospitality business owners, some of which said they would battle to stay afloat when JobKeeper ended on March 28.

Victorian Tourism Industry Council chief, Felicia Mariani, said some businesses had already cut staff, “and others are questioning whether or not they can actually go forward”.

“I’ve spoken with many operators who have said they have already told people that they can’t keep them employed (when JobKeeper ends), so these are decisions being made right now … people cannot see a way out of this.”

She said increasing the number of workers in the city would boost businesses’ confidence and bottom lines, but financial support was also vital.

Alex Hill, manager of two CBD bars and one in St Kilda, said the hospitality sector was “still nowhere near pre-covid” and needed all the help it could get.

“The city centre is still only at 40 or 50 per cent of levels seen in February last year,” Mr Hill, who also runs backpacker hostels in the city and is president of Adventure Tourism Victoria, said.

Melbourne accommodation venues were just a quarter full, when they were usually at 80 to 90 per cent capacity this time of year.

“If the public wants hotels, bars and restaurants to make it though another covid-impacted, dark Melbourne winter, so that they’re here next year, we will require a wage subsidy,” he said.

Restaurant and Catering Australia chief Wes Lambert said the Federal Government needed to introduce a HospoKeeper program, while chairperson of Melbourne’s Chapel Street Precinct, Justin O’Donnell, said hospitality businesses shouldering “mountains of debt” after consecutive lockdowns faced going under without JobKeeper.

“As Victorian suffered significantly longer lockdowns than the rest of the country, our businesses have not had the opportunity and time to recover,” Mr O’Donnell said.

“We need JobKeeper to be extended for all businesses that still qualify, so that they have the same amount of time out of lockdown (as businesses in other states) to get back on their feet.

“They must be afforded the same opportunity to survive.”

But Victorian Chamber of Commerce and Industry boss Paul Guerra said allowing hospitality businesses to trade without restrictions, not continuing financial aid, was the best way forward.

“Financial support such as JobKeeper needs to have an end date, we must recognise that it’s future generations who will be lumped with that debt,” he said.

“Surely we can now remove all capacity limits to enable them (restaurants and cafes) to do what they do best, and become viable once again.”

Treasurer Josh Frydenberg has repeatedly rejected calls to extend JobKeeper payments.