Extract from The Guardian
Greens and Labor urge introduction of a government-backed insurance scheme to protect the devastated live entertainment sector.
First published on Thu 12 Aug 2021 03.30 AEST
Pressure is mounting on the Morrison government to provide a federal insurance guarantee to the live performance sector, with the Greens preparing to introduce a private member’s bill in the Senate.
As rolling lockdowns due to Covid-19 outbreaks in multiple states continue, the live performance industry remains one of the hardest hit sectors from the pandemic.
Last week, the Australian Music Industry Network and the Australian Festival Association released its latest report, finding that since 1 July this year, more than 28,000 live events have been cancelled, resulting in a loss of more than $84m.
“There has been a clear market failure and the government must step in and underwrite an insurance scheme,” said the Greens’ spokesperson for the arts, Sarah Hanson-Young.
“A federal insurance guarantee will plug this massive hole in the insurance market and help get our shows back on the road well into the future.
“The live performance sector isn’t asking for a handout, it is asking for a product that simply isn’t available right now so that they can plan gigs, festivals and events with confidence they won’t keep taking massive financial hits with ongoing restrictions and lockdowns.”
But even with support from Labor in the senate, the Greens’ bill is unlikely to succeed when parliament returns on 23 August, given it will need support of four out of the five crossbenchers.
Even if this is achieved, the bill would fail to get the numbers in the House of Representatives.
On 6 August a coalition of Australian peak music bodies called on the Morrison government to adopt an insurance scheme for live performance similar to the £750m government-backed program announced by the UK last week.
Arts minister Paul Fletcher responded saying the issue of reinsurance for the creative sector was the responsibility of the states, because it was state and territory health authorities that made the decisions on border closures and lockdowns.
“It is decisions by state government health authorities which trigger the business losses faced by producers of arts and entertainment events,” a spokesperson for Fletcher told Guardian Australia.
“Therefore, it is state governments which are best placed to provide cover against this kind of risk.”
However, in parliament yesterday, the prime minister reiterated the coalition’s newfound support for “short sharp lockdowns”, telling parliament:
“It’s important we stay home. It is important we make this lockdown work. It’s important that we don’t give up on it.”
Hanson-Young said now that the PM accepted the importance of lockdowns and restrictions in the Covid health response, the buck passing no longer stacked up.
“It’s a policy his government supports and endorses,” she said.
“Tours also traverse state borders, it is quite obvious a national approach to helping the industry is needed.”
On Tuesday, the government announced an additional $20m for the music industry charity, Support Act, to assist music and performing arts workers who have lost their livelihoods due to the ongoing impacts of the Covid-19 pandemic.
The charity will use the funds to expand its crisis relief program to include live performing arts workers in theatre, dance and circus.
The funding boost to Support Act brings the federal government’s Covid support package for arts and culture to $475m, including a $50m Temporary Interruption Fund insurance scheme for the film and television industry.
The TIF only covers productions that are delayed or cancelled due to Covid-19 infections, however, not those affected by border closures or snap lockdowns.
No claims have so far been made against the scheme.
A spokesperson for the arts minister said 67 productions have been able to attract finance to continue operation, thanks to the guarantee from the TIF, supporting on average 305 people and 158 businesses on each production.
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