City of Sydney Splashes Cash On Small Bar Owners

December 11th, 2008

While the Greens are supportive of the City’s Laneways Policy and are keen to see these sometimes charming city spaces activated for all kinds of cultural and commercial purposes, we do not support cash hand outs of public money to private “for profit” businesses in order to promote laneways. Such a scheme requires council to predict and fund “winners” and there is no guarantee that this expenditure will do anything other than line the pocket of a private business person.

At the meeting of the Cultural & Community Services Committee on Monday 8th December 2008, councillors considered a recommendation to approve of a $20,000 cash payment to two young businessmen to assist them to open a small bar in one of Sydney’s laneways. The proposed location of the bar is in a building that trades onto Sussex Lane from a building that has been vacant for three years. I opposed the payment.

The Laneways Business Development Program was passed at a council meeting on 4th August 2008. The policy was opposed by Greens and Labor Councillors, but was rammed through by the Clover Moore Party who had to rely on the support of the sitting Liberal councillor in a 5-4 vote. The policy allows for a cash payment of up to $30,000 as a matched grant to set up a small bar in one of the city’s laneways.

This kind of payment to private business interests is asking for trouble. Also, given Clover’s hand wringing in the media about alcohol saturation in Sydney it seems rather ironic that she now wants to fund the start-up of a new bar.

I was particularly disappointed at the total lack of detail in the report. All we were told is that the business was called Small Bar Pty Ltd. I have no idea whether or not this entity is even capable of running a business.

Greens supporter and barrister, Roger de Robillard, generously conducted a search of the company which reveals that it has two directors, Mr Luke Heard and Mr Chris Lane, both aged 25 years and neither of whom are city residents.

We wish both these people well in their business career but see no reason to give them a cash handout to start up their own business. They can take a risk in the market with their own money just like everyone else and I see no reason why the City should be funding them.

This is poor public policy and an irresponsible way to use ratepayer’s funds. If the City wants to promote laneways they should do it by collaborating with a Chamber of Commerce or by including laneways in the City’s growing events calendar and leveraging off these initiatives to attract people to Sydney’s laneways. The bar owned by Messrs Heard & Lane would then benefit from this promotion. I have no problem with that.  We could also offer rate incentives and discounted footpath licenses as further incentives. Cash handouts like this are just corporate welfare.



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