Council suspends small bar grant

The City of Sydney say the suspension of the Laneways development grants, commonly known as the ‘small bars’ grant, is a normal part of ongoing processes for all grants and is likely only temporary.

Adopted by Council in August 2008, the program provides matched cash grants for streetscape improvements, art, culture and small businesses which may include small cafes and bars featuring live music, specialist retail, fashion outlets and galleries.

While the program has been suspended for a review following allegations of maladministration a City of Sydney spokesperson said a review process is common for grants of this type and it could be reintroduced after a short break.

“The City is reviewing the laneways program to ensure that it continues to meet the program’s objectives,” he said.

“In its two years of operation, the City’s Laneway Grants Program has contributed to revitalising our laneways by encouraging and helping new businesses to start up.”

While Greens Councillor Chris Harris has been a vocal opponent of the grants, labelling them ‘corporate welfare’ he says he supports small businesses, including bars, and the revitalisation of the city’s laneways.

“We don’t need to supply these grants to get people to open small bars,” he said.

“The grants are to individual businesses and we don’t think that’s the right way to spend public money.

“Well over 20 bars have opened since the changes, most of them without a grant.”

But founder of Eskine Street’s ‘Small Bar’ and recipient of a Council grant, Chris Lane, says the grant helps businesses that would otherwise be struggling to make ends meet.

“I can’t really see the grant being a negative thing at all,” he said.

“If Sydney’s got a goal of revitalising the laneways, the sort of people they want doing it are the young, creative people wanting to take a risk.

“They don’t always have a huge amount of capital to start with [and] it’s hard to borrow from the banks, so Council’s putting their money where their mouth is.”

The Council review is expected to be completed by the end of 2010.

By Simon Black