No crisis: Night-time Economy Minister Tara Cheyne, backed by Treasurer Chris Steel, stands by the support package. Photos: Ian Bushnell.
The ACT Government won’t budge on providing direct financial support to the ailing hospitality businesses in the light rail construction zone, urging them instead to take up to the fullest what is already on offer.
Businesses have welcomed the government’s support package announced on Monday (12 May), but it falls short of the rates relief, rent assistance and even wage subsidies they have been calling for
The government will provide free evening parking from Wednesday to Sunday in certain car parks, outdoor dining permit fee waivers and liquor licence fee relief from 1 July 2025.
It will also fund an advertising campaign to bring more people into the city.
Ant Arena owns five venues on London Circuit and welcomed the announcement, but said it was more about headlines than actual impact.
Mr Arena’s business took a $45,000 loss last month, and he said the fee relief would not go far enough.
“If I’m losing money hand over fist because of things that they’re doing, then I don’t want to be paying any of those taxes and fees,” he told ABC radio.
“The parking is … helpful — but it’s not super helpful, I don’t think it’s going to move the needle that much.”
However, the government ruled out more financial help, although it would consider other measures during the construction period.
“We’ve been very clear from the beginning in engaging with businesses early on that we wouldn’t be providing direct financial assistance,” Treasurer Chris Steel said.
Cafes facing the fenced-off light rail construction zone on London Circuit. Photo: Michelle Kroll.
Mr Steel said the package was based on feedback from businesses, particularly the parking.
“One of the key things that they told was that parking, in particular free parking, would help to attract and provide an incentive for Canberrans to come and frequent their businesses during this period of time,” he said.
Mr Steel said the advertising campaign would launch mid-year, highlighting the fact that these businesses are open.
He rejected comparisons to the COVID restrictions, saying the businesses couldn’t operate at all then.
“These businesses can still operate and we will be supporting them to continue to operate,” Mr Steel said.
Night-time economy Minister Tara Cheyne rejected claims that the sector was in crisis, saying COVID had a really long tail and there was a “stack of external factors” impacting businesses, including the shadow of public service cuts during the election and insurance costs which were outside the government’s control.
“The best thing that people can do is back the businesses, and to be quite honest, talking about a sector that’s in crisis, does not exactly inspire consumer confidence,” she said.
Ms Cheyne said wayfinding in the area was much improved, something she experienced for herself at the weekend.
“I was at Bleachers yesterday [Sunday], I believe one of Mr Arena’s venues, for close to four hours … I walked past Ameche and Ameche was packed for Mother’s Day, and that’s terrific. We want to see more of that.”
Ms Cheyne urged businesses to apply for the government relief and support that was already on offer to boost the hospitality sector and night-time economy.
“Nothing that the government does to support businesses replaces or is a substitute for patronage,” she said.
Both ministers sidestepped questions about calls for a night-time economy czar or taskforce to drive the sector.
Independent MLA Thomas Emerson: “Business owners are used to being able to get someone on the phone and get things done.”
Independent MLA Thomas Emerson, who has been backing the affected businesses, said he understood the government may not want to set a precedent with direct financial assistance, but a rates holiday seemed the obvious thing to do.
He said a night-time economy czar would be a first point of contact and have the power to make decisions.
“Business owners are used to being able to get someone on the phone and get things done. That’s how they operate,” he said.
“This is about having someone within government whose role is not just to let them know what the rules are, but to partner with them and try to activate their businesses and the nightlife in our city.”
Property Council ACT & Capital Region Executive Director Ashlee Berry said while free parking and licence fee reductions were a good start, they were “a drop in the ocean” for businesses that have been hanging by a thread since construction on light rail Stage 2A began.
“This announcement shows the government has listened, but Civic’s challenges are far bigger than free parking after 5:30 pm,” Ms Berry said.
“We are seeing businesses struggling to survive, staff hours being cut, and an atmosphere that feels more like a construction zone than the vibrant heart of our city.
“Without more meaningful action, many won’t make it through to see the long-term benefits of light rail.”
Ms Berry said the Property Council had called for a dedicated Night-Time Economy taskforce in its pre-budget submission to bring government agencies and industry together to address safety, crime prevention, and activation challenges.
“We need a serious, coordinated effort to breathe life back into Civic after dark. That means better safety, better promotion, and better support for our hospitality, arts and entertainment venues,” Ms Berry said.
