The hospo industry has been having a rough time lately. As a lifeline, the Victorian government will now hand out $40 million to bars, pubs, clubs and restaurants that are struggling to pay the bills during the pandemic.
The cash will be given to licenced venues which make less than $50 million each year and aren’t able to access rent support already. In other words, smaller bars, pubs and clubs around the state.
“Pubs and clubs are a vital part of Victorian life and it’s important that size does not mean that operators are locked out of support and protections in lease negotiations,” the state’s Minister for Jobs Martin Pakula said on Sunday.
“We are supporting Victorian businesses so they can emerge from this crisis in the best shape possible and quickly rebuild their workforce.”
In announcing the cash injection, the Victorian government even called out landlords over what it described as a “perverse incentive” not to compromise with their tenants on rent.
If a bar goes under, its valuable liquor licence automatically goes to the property owner, meaning landlords could actually benefit from evicting their tenants.
Just how much each bar, restaurant and club will get is yet to be determined. That will be up to a committee comprising of the Australian Hotels Association, Community Clubs Victoria, Music Victoria, and the Victorian Chamber of Commerce and Industry.
On top of this, the government is offering a free mediation service to all tenants who hold liquor licences, so that bars can negotiate lower rent while the lockdown forces them to stay closed.
