Lack of support taking toll on hospitality sector

Tasmanian Labor
  • Hospitality sector struggling as another restaurant closes
  • Nothing in stimulus package for sectors most in need
  • Immediate support needed to save businesses and jobs
  • The closure of another Tasmanian restaurant demonstrates the need for urgent support for the state’s hospitality sector.

    Labor Leader Rebecca White said while the easing of restrictions has allowed numerous businesses to get back to work, the hospitality sector continues to struggle.

    “Labor has been calling for long-term support for the sectors hardest hit by the pandemic, including the hospitality and tourism industries,” Ms White said.

    “News that another Hobart restaurant – Oddfellows – has fallen victim to the COVID-19 shutdown and is closing its doors permanently, is further evidence of the devastating effect this crisis has had on the state’s hospitality industry.

    “The need for ongoing social distancing means many similar businesses will continue to struggle and need urgent assistance.

    “We know the importance of the building and construction sector to the economy and the government’s infrastructure program announced last week contains some important measures.

    “But there was nothing for hospitality or tourism, even though many of these businesses are already on the brink.

    “It is concerning that these are the industries where job losses have been the greatest, with women and young people worst affected

    “Just the day before the government’s announcement, independent economist Saul Eslake warned that an increased construction spend would not necessarily help those hardest hit by COVID-19 job losses, and called for long-term support for the tourism, hospitality and arts sectors.

    “The government must heed this warning and provide the kind of support necessary to stop more businesses going under. An inclusive stimulus package is urgently needed, which goes beyond just one sector so as many jobs as possible can be saved.

    “This latest development is a reminder of the severe impact on the hospitality industry and Labor urges the Federal Government to extend the JobKeeper payment beyond September for the worst-affected sectors to ensure we don’t have a further contraction of the economy and more job losses.

    “With some hospitality businesses missing out on the State Government’s Small Business Emergency Support and Hardship grants, I would also urge the Premier to undertake his review of the program swiftly before more businesses are forced to close.

    “We want to see all Tasmanians share in the benefits of a rebuilt economy. We need to start with those most in need.”

    Rebecca White MP

    Labor Leader

    /Public Release. View in full here.