Covid-19 Restrictions (Impact on Night-time Economy)

– in the Scottish Parliament at on 27 August 2020.

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Photo of Pauline McNeill Pauline McNeill Labour

2. To ask the Scottish Government what impact the Covid-19 restrictions have had on the night-time economy. (S5O-04510)

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

We are fully aware of the impact that the coronavirus has had on Scotland’s important night-time economy. As well as support provided to businesses through our in excess of £2.3 billion financial package, including specifically through business grants and pivotal enterprise resilience fund support, we have also cautiously lifted restrictions on the sectors where the evidence shows that it is safe to do so.

Our latest route map phase 3 update, published on 20 August, gives an indicative reopening date of 14 September for certain indoor live events and indoor entertainment centres, following the enabling of hospitality to reopen, with precautions, from 15 July.

Photo of Pauline McNeill Pauline McNeill Labour

I asked the minister specifically about the night-time economy, which generates £2 billion-plus for the Scottish economy. Many operators in that sector do not feel that there has been adequate communication with them about the long-term plans.

The ban on music in pubs and clubs is affecting patronage because it makes them less attractive places to be. Glasgow, the city I represent, is hugely dependent on the night-time economy and it is very scary to think that there might be huge job losses if there is not more support for the industry.

The situation will get worse if there is still a lockdown in October. I therefore must ask the minister whether he is aware that the night-time economy industries have said that up to 80 per cent of operators will have to make redundancies if there is no further direct support forthcoming. If the minister foresees that the night-time economy, including pubs and clubs, will be closed in October by Government decisions, will the Scottish Government supplement the furlough scheme before it comes to an end?

I would like to know specifically whether the minister has considered whether the Government will supplement the furlough scheme for the night-time economy. If it does not, tens of thousands of jobs will be lost.

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

Ms McNeill has raised a number of issues; I will try to cover as many of them as I can.

On the final, substantive point, we have already called on the UK Government to extend the furlough scheme. That is what we should be uniting to do. That is what the Scottish Parliament collectively should be doing. We recognise that the end of furlough could represent a potential cliff edge for businesses, in this instance in the night-time economy, but also in the economy as a whole.

The fundamental thing is that we do not want any sector to be closed for any longer than is necessary. We are in the grip of a public health crisis, so it is not safe to open certain sectors. We are working to ensure that they can reopen as soon as possible.

The Deputy Presiding Officer:

Thank you. I encourage brief supplementary questions, please.

Photo of Maureen Watt Maureen Watt Scottish National Party

As we have recently seen in Aberdeen, local lockdown restrictions have meant further pressure on local hospitality businesses. Can the ministers advise what further support has been provided to businesses that have been affected by these temporary measures in Aberdeen? Does he agree that the UK Government could put emergency funding in place and facilitate flexible business support at short notice in the event of local lockdowns?

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

Not only do I agree with the member’s final point, but we have already acted on it. Fergus Ewing wrote to the chancellor on 14 August seeking an extension to the eat out to help out scheme.

For our own part, we have allocated £1 million directly to Aberdeen City Council to provide £900,000 of one-off grants to hospitality businesses that have been directly impacted by the restrictions, and a discretionary fund of £100,000 for businesses that have been impacted but were not directly specified in regulations.

Photo of Patrick Harvie Patrick Harvie Green

With the unprecedented challenges facing businesses in the night-time economy, I am concerned that we could see another race to the bottom on standards. Those businesses that have chosen to take on the extra costs of paying above the real living wage or to invest in staff training or have taken on additional costs, such as giving staff the cost of a taxi home in the early morning hours, must not be the businesses that we lose.

We must ensure that we support responsible operators. What can the Scottish Government do to ensure that those high-quality operators are not the ones that are pushed over the brink, with the result that we lose them? What can it do to make sure that nobody falls through the cracks? I am thinking of the comedy clubs that should be treated as arts and cultural organisations, but which at the moment are treated as purely commercial ones.

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

A range of support has been provided for comedy businesses through the funds that I mentioned earlier, but we are working with the Live Comedy Association to better understand some of the challenges that the sector faces and to see what other support might be available.

I agree with the thrust of Patrick Harvie’s question. He knows that the fair work agenda is something that I and the Scottish Government—[

Inaudible

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Of course, we are encumbered by not having responsibility for employment law, but we have published a specific fair work charter for the current period, which has been signed jointly by us and the Scottish Trades Union Congress. We are calling on all employers to uphold fair work standards. If I get any examples of places where that is not happening, I will be very willing to take that up directly with the individual businesses concerned.