‘We are just scapegoats’: Businesses in call for full compensation
TOURISM and hospitality businesses are demanding full compensation for lost income after the new two-week hospitality lockdown saw many customers cancelling hundreds of existing bookings.
Nicola Sturgeon is expected to reveal more details on a £40 million Scottish Government fund to help the sector cope with fresh restrictions.
Pubs and other licensed premises across most of central Scotland will be forced to close for just over two weeks from today, while those in other areas will have new regulations to comply with.
The First Minister said her administration was attempting to “the best of our ability” to strike a balance between protecting lives and the needs of businesses.
But firms say they have been hammered by a raft of cancellations.
The latest measures are designed to provide a “circuit-breaker” against the rising number of Covid-19 cases in central Scotland.
Although there will be no travel ban in any of the areas, people in the Central Belt have been urged to avoid public transport unless it is “absolutely necessary” and advised not to travel outside of the health board area they live in if they do not need to.
Gary Curley, a director of Skyeconnect, and the Sligachan Hotel and Seamas’ Bar in Skye, has been hit hard. “The hotel was fully booked for October,” he said.
“Not anymore. There have been a flurry of cancellations overnight as a result of concern and utter confusion about the rules.
“We have already closed Seamas’ bar. This is devastating after we worked so hard to create a welcoming, but utterly safe environment.
“We now face a long winter with no income.
“The Government’s £40m support package for the hospitality sector is a joke. It equates to less than £1,000 per week, per business across Scotland.
“The damage has now been done to our sector and we urge the Government to fully compensate all businesses affected by the Government’s measures.”
Elsewhere, a Scottish business owner facing the closure of 11 venues said the weakened hospitality sector was being made a “scapegoat”.
Manager of Buzzworks Holdings Kenny Blair also said the latest restrictions could be the “last straw” for companies.
Out of his 12 venues across Scotland, Mr Blair said just one – Lido in Troon – would be financially viable if operating on the basis of takeaway only.
The businessman, who employs around 500 people, estimates he will lose £1 million in revenue over the 16 days. He said: “We have the impact on
staff who are fearful about what the future is for them, and it substantially weakens businesses like ours from a financial point of view.
“Many businesses in hospitality across Scotland are already substantially weakened and this may be the final straw for them.
“We are hoping that we get to re-open 16 days after we close, but if that’s not the case we will have to make some serious decisions about our workforce.”
For Mr Blair, the mitigating measures put in place within restaurants and pubs have made them safe spaces for socialising.
He believes forcing them to shut will only lead to people congregating in other, less safe, settings. I think we’ve been made a scapegoat in this,” he said.
Ms Sturgeon said there were “ongoing” discussions with businesses, trade unions and others. She added: “I don’t expect these decisions to be welcome or popular, they are tough decisions, but they ultimately have to be made by government.
“And every day right now we are facing decisions where we literally have lives in one hand and jobs in the other.”
On the £40 m being made available to help businesses affected, Ms Sturgeon said her Government had “dug as deep as we can” within its “finite budget” to find the cash.
However, she was pressed by Greens co-leader Patrick Harvie on how it will be spent. He said: “How many full pay jobs will this amount protect and does it match the scale of need?”
Mr Sturgeon responded: “We hope to announce detail of how the £40m will be allocated shortly.
“Our current expectation is the funding will be distributed through a two-tier support system, that we would look at grants for affected businesses based on rateable values but also that we would look to deploy a discretionary fund for businesses impacted by the restrictions, even if they are not being required to close.”
There have been a flurry of cancellations overnight as a result of... utter confusion