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Mildura hospitality businesses face big lockdown losses

THE owner of three popular Mildura hospitality and entertainment businesses has revealed they have collectively lost more than $1 million during the five lockdowns, leaving 40 staff out of work.

But Liam Wood said massive financial losses were only part of a much bigger devastating picture for all business owners.

"It's almost to the point of despair now," said Mr Wood, who is sole director of Mildura Settlers, Secret Garden restaurant and Rumours nightclub.

"It's a complete unknown how many years it will take to make up all the heavy losses.

"We've also lost the support far too early of JobKeeper, rent relief and the larger handouts from the Federal Government that kept us going through the earlier lockdowns.

"The holiday pays have run out for staff because we've locked down so much over the past 16 months. This is a huge issue for all businesses."

Industry leaders believe tens of thousands of businesses have already gone to the wall across Victoria since the pandemic started in March last year.

But Mr Wood fears there a "quite a few more" in Sunraysia set to fall off the financial cliff.

"The big question for business owners is, do you keep going while we keep getting these lockdowns?" said Mr Wood, who is also a Mildura councillor.

"You need to ask yourself whether this is going to take me years and years to get back to zero, and whether the emotional, physical and financial toll is worth it in the long run?

"There are more questions than answers for all business owners."

Mr Wood said another major concern for hospitality businesses was continuing restrictions when the lockdown ended.

"After the last lockdown (in late May), we only fleetingly had the (Rumours) nightclub open just last week because of people having to be seated and less patron numbers," he said.

"It was fantastic to be back open and firing again, but then we're back into another lockdown.

"What I'm worried about is after this lockdown (due to end at midnight on Tuesday), do we come back out with heavy restrictions again, and is it another five or six weeks until we can open our venue?"

Fellow CBD restaurateur and councillor Stefano de Pieri also hit out at the lack of government support for workers.

Mr de Pieri said the Federal Government's $600 a week for full-time workers who had been stood down was "nowhere near enough".

"If you're doing a normal 40-hour week, $600 in support only keeps you in survival mode," he said.

He joined Mr Wood in calling for a return of the JobKeeper program during lockdowns.

"Previously, life was bearable with this," Mr de Pieri said.

"It's also the broader (hospitality) industry that I'm worried about.

"There are hidden categories such as those in the food supply business, where there have been big stock losses.

"In the majority of hospitality and tourism businesses, we live day to day and week to week.

"It's the same with hairdressers, bookshop owners and the like. We all live in the fog of the cash flow.

"The constant disruptions of lockdowns are taking a major psychological toll, as much as financial."

Prime Minister Scott Morrison this week ruled out a return of JobKeeper.

He said the weekly disaster payments of between $375 and $600 would provide rapid support to people suffering hardship during outbreaks.

"We need to be able to turn this on and turn it off quite quickly, and with the method we've chosen, we are able to do just that," he told reporters.

Victorian Minister for Industry Support and Recovery Martin Pakula said this week that pubs, clubs and other licensed venues would now be eligible for new payments of $4200 on top of the $3000 available for the first five days of lockdown.

Sunraysia Daily

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