The island’s pubs need support from the government or risk going under, the Licensed Victuallers Association is warning.
Chairman of the LVA, Guy Armstrong-Rossiter, says the future of pubs and bars are at risk as they can’t open, but still have bills to pay.
From June 1, cafes and restaurants can operate outside seating areas.
On-licence premises may only serve drinks with a meal and this must be consumed in their outdoor seating area.
Some pubs have been able to provide takeaway and delivery food services.
But Mr Armstrong-Rossiter said this doesn’t support ’many small pubs that do not serve food and have not been able to trade in any way and therefore have zero income’.
He added: ’The same small pubs are also likely, due to size, to be in the latter of any opening phases so it is imperative that the assistance reaches them soon.’
Businesses have been eligible for a £3,000 grant and the Salary Support Scheme is helping to retain employees but the hospitality industry has not been given an indication of any further support.
This is in contrast to the tourism accommodation sector where the Department for Enterprise and the Treasury are supporting hotels, guest houses and other businesses using an industry measure called ’revenue per available room’ or ’RevPAR’, which uses a calculation based on the average revenue per available room.
The money is to enable accommodation businesses to pay their local suppliers for goods and services received.
For example, a four star hotel is eligible for £21.25 per room, per day up until June 2020.
Mr Armstrong-Rossiter, who is the manager of the Rovers Return pub in Douglas, said that unless similar support is afforded to the pub trade, some business may not reopen at all.
He suggested that a similar model of giving pubs a grant based on fire regulation numbers could be a way to support the industry.
Mr Armstrong-Rossiter said the industry ’desperately needs help’ after insurance companies confirmed they would not be paying out.
This follows on from comments from Bushy’s boss Martin Brunnschweiler made to Isle of Man Newspapers earlier this month.
Mr Brunnschweiler (pictured below) said: ’I’m very disappointed with the insurance industry.
’Certainly in our trade, we’ve been told by our insurers that although our policy seems to cover business interruption they won’t be covering this.’
’My understanding is that they’ve said if they had to pay out everyone then the insurance industry would go bust.
’My view on that is the insurance companies need to be going to government and getting loans or whatever so they can honour the policies that have been taken out.
’We’ve diligently paid our policies and now I feel like they’ve been taking money under false pretences if they are now not willing to pay out.’
Last week, when changes were announced for restaurants and cafes, Chief Minister Howard Quayle offered little for pubs and bars. He said the government ’may be able to find a way to allow them to open in a different or limited way’.
He added: ’But we, and they, accept that it may be some time before we are able to have a pint while propping up the bar.’