The coronavirus crisis has brought suffering to many businesses in the hospitality industry which also include a number of Greek establishments as well as many Greek employees.
The Victorian Government announced further support to help pubs, clubs and restaurants survive the effects of the coronavirus pandemic and rebound on the other side of the crisis.
Restrictions to slow the spread of coronavirus have hit pubs, clubs and restaurants hard, and many are struggling to pay the rent.
Unlike commercial tenants, these venues are often in prime development locations, and many operators invest significant capital upfront on the assumption they will hold a lease for a long period of time. They also hold liquor licenses that revert to the landlord in the case of a default on a lease, and this creates a perverse incentive for the landlord to avoid striking a deal which could help their tenant’s business survive.
To help business owners, the state government announced that $40 million from the Business Support Fund will be available to licenced venues with an individual annual turnover of up to $50 million, but who are not covered by the Commercial Tenancy Relief Scheme, for rent relief.
“We are supporting Victorian businesses so they can emerge from this crisis in the best shape possible and quickly rebuild their workforce,” said Martin Pakula, Minister for Coordination of Jobs, Precincts and Regions.
Free mediation services through the Victorian Small Business Commission available under the Commercial Tenancy Relief Scheme will be extended to all tenants who hold a liquor licence, regardless of their size – helping tenants reach agreement with their landlord regarding rent relief during the pandemic.
The Victorian Small Business Commission will monitor the operation of these arrangements and provide advice to the Government.
If required, the Government may seek further legislative changes, enforced retrospectively to 29 March 2020, to ensure these tenants are protected.
The Government will form a steering committee drawing membership from bodies including the Australian Hotels Association, Community Clubs Victoria, Music Victoria, the Victorian Chamber of Commerce and Industry, and Restaurant and Catering Association Victoria to advise on the operation of the fund. Former Victorian Chamber of Commerce and Industry chief executive Mark Stone will chair the taskforce.
