The owner of Nanaimo鈥檚 Landlubber Pub is applauding city council for shaving business licence fees for bars and nightclubs as COVID-19 safety restrictions hammer sa国际传媒鈥檚 drinking places.
鈥淓very dollar counts these days. I鈥檒l take it,鈥� owner Andrew Pederson said Thursday at the Bowen Road pub, which has been in his family since 1996.
Nanaimo council voted this week to reduce 2021 business licence fees for liquor-primary establishments to $165, the standard rate for most businesses, from $1,100.
Along with similar businesses, Pederson has cut seating drastically. The pub now accommodates 75 customers, down from 150 pre-pandemic. Pederson understands the logic behind the safety measures, but they have affected profitability.
The Landlubber has reduced staff by one worker and is taking part in the sa国际传媒 wage subsidy program aimed at assisting businesses during the pandemic.
Reducing the licence fee levels the playing field, because food-primary restaurants with built-in sports bars pay the standard $165, he said.
Coun. Sheryl Armstrong said her motion to reduce business licence fees is temporary until COVID-19 is under control. She won unanimous support for the proposal at this week鈥檚 council meeting.
The normally higher fees for liquor-primary operations, which include downtown nightclubs, are intended to offset the cost of the Barwatch program, which uses RCMP officers working on overtime, she said.
鈥淲e are asking them to pay for a police service that isn鈥檛 happening right now,鈥� she said.
Because of the virus, drinking establishments are running like restaurants and should be paying the same rate, Armstrong said.
Nanaimo has 29 liquor-primary licences. Reducing the fees will cost slightly more than $27,000.
Since the pandemic, the sector has laid off staff, reduced seating and faced an 8 p.m. cutoff time for serving liquor on New Year鈥檚 Eve, Armstrong noted. Coun. Ben Geselbracht backed Armstrong, saying: 鈥淔or one year only, I think it is fair to give them a break.鈥�
Statistics sa国际传媒 said Thursday that food services and drinking establishments saw sales decline by 27.3 per cent in the first three quarters of 2020, compared with the same months in 2019.
Drinking places and special food services saw the largest decreases in the category in 2020 because of limitations on indoor gatherings and full closures. Sales at drinking places declined 44.8 per cent and sales of special food services were down 45.3 per cent over the first three quarters of 2020.
