HOSPITALITY businesses could be forced to close when the Commercial Tenancies Relief Scheme ends January 31, says Canberra Business Chamber CEO Graham Catt. 

Introduced on April 1, at the height of Canberra’s covid lockdowns, commercial landlords were issued waivers and deferrals on charges they’d usually pay and were legally mandated to pass that relief on to their tenants through initiatives such as rent relief, says Mr Catt. 

Canberra’s COVID-19 local business commissioner Brendan Smyth says while the relief period had to end at some stage, the government has put in place a number of programs focusing on tourism and hospitality.

“All of the programs the government has in place, including [the] $2 million ‘More Than’ campaign, the money for safe tourism, the existing events fund to get events up and going again, will help hospitality,” he says.

However, Mr Catt says it may not be enough, saying businesses, especially those in the hospitality and tourism sector, may suffer two hits – one of increased rents and the other hit could see them being pursued by landlords for deferred rent payments.

Commissioner Smyth says business are still protected by the national code of conduct and that deferred rental debt accrued during the relief period can be repaid during the “reasonable recovery period”, the rights to which are enshrined in the code, during the duration of the lease or up to 24 months later – subject to negotiation.

But Mr Catt still fears that the hospitality sector will, in the coming quarter, have to take a hard look at their financial position and may find they’re not able to keep trading.

“Those who haven’t got the money in the bank or the money on the balance sheet to carry on through and keep trading are also those that are going to be the most at-risk to that change,” he says. 

“It is important to remember, while there are businesses that are doing well and trading okay, there still is a proportion that are not and it is important that we make sure we continue to provide the support needed to those businesses as well.”

Mr Catt says business groups across Australia, including the business chamber, are also calling on the government to renew the Jobseeker program, particularly for hospitality businesses.

“There is a general recognition that relief should be specific to some of those sectors that still are at risk and still are affected,” says Mr Catt, referring to the hospitality and tourism sectors.