‘We have no choice': Bar owners drive a levy to make sure the music won't die
In a move that its owners claim is an Australian first, Sooki Lounge in Belgrave will begin charging customers a $1 levy to help cover the costs of public liability insurance the bar has identified as a threat to its ongoing operation as a live music venue.
'We have no choice,' says Stephen Crombie, who runs the venue in the foothills of Melbourne's Dandenong Ranges with his partner, Suzana Pozvek. 'But I don't want to just whack up the booking fee because it needs to be educational.
'I need the customer to understand that's where it's going, and that Oztix [the venue's online ticketing partner] is not gouging and Sooki Lounge is not gouging here.'
To that end, he plans to share a video explaining the move on social media in the next two weeks, including his latest premium, a copy of which is already on public display at the bar.
'Insurance' is probably not the first word that springs to mind when you think live music (the words 'sex, drugs and rock 'n' roll', on the other hand …) But for many venue operators who have been struggling to stay afloat since the disruptions wrought by COVID and ongoing cost-of-living pressures, the issue is an absolute chart topper.
Loading
Multiple inquiries into the state of live music and the festival scene have heard that the soaring cost of public liability insurance is a key factor in a crisis that has plagued the sector for more than four years.
The increase for cover on Sooki's 330-capacity venue – which is open four nights a week and is only occasionally sold out – has been massive. Pre-COVID, it cost about $15,000 annually. The latest bill, issued less than a fortnight ago, came in at $61,035. To pay it, Crombie and Pozvek need finance, and that increases the total to about $65,000.
It's little wonder then that so many venues have simply given up. According to an industry survey released in late 2023, more than 1300 had closed doors or stopped hosting live music since the pandemic, which is about one-quarter of all the sector's venues in Australia. More recent figures are not available, but anecdotal evidence suggests the situation has not improved, as higher living costs and the trend to lower alcohol consumption on premises continue to blow holes in the business model.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
3 hours ago
- Perth Now
Ford Ranger PHEV built for choice not compliance, says exec
Ford Australia has launched the Ranger PHEV to broaden customer choice, not meet emissions regulations, according to senior global product executive Jim Baumbick. The Ranger PHEV joins a growing collection of electrified Ford models in Australia that includes the all-electric Mustang Mach-E SUV and E-Transit and E-Transit Custom vans, as well as a plug-in hybrid version of the Transit Custom. All will serve as key pillars of Ford's initial response to the New Vehicle Emissions Standard (NVES) in Australia, with sales of the greener vehicles set to help offset fines accrued by dirtier models in the lineup such as diesel versions of the Ranger and the Everest SUV, as well as the petrol-powered Mustang sports car. However, Mr Baumbick says that Ford was working on diversifying its Ranger lineup well before the strict new emissions regulations were announced, and that the Ranger PHEV complements its other ute offerings. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert 'This is not a compliance play, it's a portfolio of options,' Mr Baumbick told Australian media at the international launch of the Ranger PHEV. 'At Ford, we want to let the customers choose so they can pick the right tool for the job. 'The regulatory requirements in Australia have changed very rapidly, faster than normal process. But we already had this in development, and we'll continue to enhance the portfolio. 'We're launching it now, but we didn't do this because of the new requirements. It's part of our overall mission to offer a portfolio of options.' Despite his insistence that the plug-in hybrid version of the Ranger wasn't an emissions-led project, Mr Baumbick admitted that Ford was caught on the back foot by tightening regulations across the globe. Supplied Credit: CarExpert The ink officially dried on the Australian Government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it regulations designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. 'Going electric isn't a light switch,' explained Mr Baumbick. 'We're trying to move as fast as we can, and when things change quickly there are development lead times, so stay tuned. 'It's going to be a portfolio of solutions over a longer arch of time. We're going to continue to improve the efficiency and emissions of our systems and a migration to hybrids over time will make a big contribution to the challenge of reducing emissions. EV will play a significant role, but it's got to be the right tool for the job.' Supplied Credit: CarExpert As for the other measures Ford is set to take to survive in the Australian market, the brand is committed to shielding consumers from the financial burden of NVES fines. 'We're not jacking up prices due to our regulatory status,' Mr Baumbick asserted. 'As we always have, we continue to work on our broader mission to improve year over year. Every model is going to continue to improve.' MORE: Explore the Ford Ranger showroom
7NEWS
3 hours ago
- 7NEWS
Ford Ranger PHEV built for choice not compliance, says exec
Ford Australia has launched the Ranger PHEV to broaden customer choice, not meet emissions regulations, according to senior global product executive Jim Baumbick. The Ranger PHEV joins a growing collection of electrified Ford models in Australia that includes the all-electric Mustang Mach-E SUV and E-Transit and E-Transit Custom vans, as well as a plug-in hybrid version of the Transit Custom. All will serve as key pillars of Ford's initial response to the New Vehicle Emissions Standard (NVES) in Australia, with sales of the greener vehicles set to help offset fines accrued by dirtier models in the lineup such as diesel versions of the Ranger and the Everest SUV, as well as the petrol-powered Mustang sports car. However, Mr Baumbick says that Ford was working on diversifying its Ranger lineup well before the strict new emissions regulations were announced, and that the Ranger PHEV complements its other ute offerings. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. 'This is not a compliance play, it's a portfolio of options,' Mr Baumbick told Australian media at the international launch of the Ranger PHEV. 'At Ford, we want to let the customers choose so they can pick the right tool for the job. 'The regulatory requirements in Australia have changed very rapidly, faster than normal process. But we already had this in development, and we'll continue to enhance the portfolio. 'We're launching it now, but we didn't do this because of the new requirements. It's part of our overall mission to offer a portfolio of options.' Despite his insistence that the plug-in hybrid version of the Ranger wasn't an emissions-led project, Mr Baumbick admitted that Ford was caught on the back foot by tightening regulations across the globe. The ink officially dried on the Australian Government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it regulations designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1. 'Going electric isn't a light switch,' explained Mr Baumbick. 'We're trying to move as fast as we can, and when things change quickly there are development lead times, so stay tuned. 'It's going to be a portfolio of solutions over a longer arch of time. We're going to continue to improve the efficiency and emissions of our systems and a migration to hybrids over time will make a big contribution to the challenge of reducing emissions. EV will play a significant role, but it's got to be the right tool for the job.' As for the other measures Ford is set to take to survive in the Australian market, the brand is committed to shielding consumers from the financial burden of NVES fines. 'We're not jacking up prices due to our regulatory status,' Mr Baumbick asserted. 'As we always have, we continue to work on our broader mission to improve year over year. Every model is going to continue to improve.'
Perth Now
4 hours ago
- Perth Now
Future focus as inflation blare dims but change needed
The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement."
