After the night gastronomy in particular suffered from Corona closures and, according to their association, about 10 percent of companies have closed, the prospects are not rosy either. The number of clubs and discos has fallen from almost 3,000 to 2,700, says Stefan Ratzenberger, president of the Association of Austrian Night Gastronomes (VÖNG). “The future is just as uncertain and without perspective for some.”
In addition to high inflation and energy costs, many discotheques and clubs are currently groaning not only due to a lack of staff, but also due to changing nightlife habits, says Ratzenberger. Many couldn’t start going out at 16 because discos had to stay closed until they turned 18.
Ask for an additional energy cost model
In any case, in order to find the employees more easily, “attractive models for students and a tax-free premium model for returners to the (night) gastronomy are needed,” according to a VÖNG demand. To compensate for the high energy costs, a specially defined additional energy cost model for the night gastronomy, analogous to existing models, and a temporary uniform tax rate of 10 percent on food and drinks in the (night) gastronomy are also appropriate. Debt and equity should also be treated equally for tax purposes.
Criticism of COFAG for requesting reimbursement of the grants
In addition to the difficulties mentioned, according to Ratzenberger, there is also “the current campaign by COFAG (Covid-19 Federal Finance Agency) to demand the return of rent subsidies” in the wake of the state support for corona. “This only leads to a further shift in the problem, as many landlords no longer have the rent payments they have received. This leaves the landlord in a liquidity problem, which ultimately comes at the expense of the tenant,” says Ratzenberger. such an approach must not lead to further bankruptcies”, he calls for “clarification of pending rent payments”.
COFAG is currently investigating to what extent grants and guarantees have been improperly obtained and is reclaiming the corresponding amounts. It may well be that the requirements for financing have changed or that credits have been issued that must be taken into account when financing.
COFAG’s approach to awarding reduced subsidies for rented properties is in compliance with the regulation and the law, according to the Hoteliers’ Association (ÖHV). It pointed out that rents for business premises that could not be used due to lockdowns had to be reduced according to the Supreme Court and that a comparable decision for rental contracts was lacking.
COFAG justifies itself
The agency states that COFAG strictly adheres to the legal requirements for awarding grants, which it has received from the legislator. “If a rented property was not (fully) usable due to an official entry ban, then the rent relevant for the subsidy must be reduced accordingly,” it says. As a result, COFAG would demand repayment of a commensurate subsidy for fixed costs and compensation for losses. “So the legal requirements for granting grants by COFAG are clear.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
