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The deadlocks brought by the pandemic period in the operation of nightclubs, was discussed by the Commerce Committee of the House of Representatives, where the intention of the Ministry of Finance to draw up a plan to heal the financial blow suffered by the industry was presented.
The problem was raised for discussion following an ex-officio proposal from the Committee's body, with representatives of the Pancyprian Association of Entertainment Centres (PASYDEK), as well as the Ministries of Finance, Labour and Health invited.
According to a document presented before the Commission by the Pancyprian Association of Entertainment Centres, a total of 30 nightclub owners have been affected, 8 in Nicosia and 1 in Dali, 8 in Limassol, 6 in Ayia Napa, 4 in Paphos and 3 in Larnaca, which remained out of operation for a period of 62 weeks on the coast and 76 weeks in Nicosia.
According to PASYDEK, the income of the nightclubs, when the pandemic response measures were in force, was reduced by 100%, as they did not operate at all.
According to PASYDEK, the long suspension of the operation of nightclubs meant that they did not benefit either from the suspension of VAT payments or from the suspension of the payment of loan instalments for six months, as this measure merely postponed the debt and resulted in them being placed in the category of non-performing loans. In addition, PASYDEK pointed out that businesses in the sector did not even receive a subsidy for the employment of their workers, unlike other sectors.
According to PASYDEK figures, all entrepreneurs in the sector as a whole have so far been given financial support amounting to €610,000, with some businesses receiving €2,000-€3,000 in aid for the entire period. Presenting this situation, the Association refers to "unprecedented economic misery."
At the end of the meeting, the Chairman of the Committee and DISY MP, Kyriakos Hatzigiannis, stated that "the industry has exceeded its endurance". He welcomed the fact that the Ministry of Finance is considering a plan to address the problems and curb the exodus of workers from entertainment centres. He added that in the case of workers who could not meet the required period of employment to claim benefits, "an appeal was made to the Ministry of Finance to look into the problem specifically for this industry so that these people do not end up needing unemployment benefits."
He stressed that "these businesses have accumulated a huge burden that they cannot shoulder on their own and therefore, the state's assistance must continue, including for the period to date."
AKEL MP Kostas Kostas, in statements after the meeting, said that the sector had been irreparably affected by the pandemic, as entrepreneurs have only been compensated for 30 weeks of suspension, while they remained closed for more than twice that number.
He called it a "cry of anguish by the PASYDEC" and recalled that the government "did not approve the extension of the loan instalment suspension measure", nor the proposal for the refundable advance payment measure. He concluded by saying that the government should at least now support this sector and take timely decisions after consulting with the owners.
Source: CNA
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