Federal Opposition gets behind events industry’s call for cancellation insurance scheme

Calls for the Federal Government to underwrite a national insurance scheme to cover operational losses from COVID-19-related cancelation or postponement of business events and live entertainment have been supported by Australian Labor’s Tony Burke, the Shadow Minister for the Arts.

The Labor opposition’s support for emergency cover for the industry follows Burke and Senator Don Farrell, Shadow Minister for Sport and Tourism, listening to the business events sector’s call for further support through a national insurance scheme during an online meeting with representatives of the Business Events Council of Australia (BECA).

Commenting on the discussions about key areas where the industry needs support, Geoff Donaghy of ICC Sydney and BECA’s Deputy Chair advised “given the significant lead time required for the national restart of the business events industry, many parts of our critical supply chain will be faced with the challenge of surviving without functional revenue, noting that any deposits received for future activity must be securely held until services are delivered.

“These businesses will continue to run at a loss for another six months or more.”

BECA has also formally submitted a response to the Live Performance Federal Insurance Guarantee Fund Bill 2021 before the Senate Environment and Communications Legislation Committee - backing in its position that the lack of COVID-19 pandemic related event insurance is a handbrake on confidence and will slow the recovery of the business events industry in 2022.

Donaghy noted “BECA identified risk mitigation as a key challenge for governments to resolve more than twelve months ago and we continue to see this as a priority for recovery.

“A national Commonwealth Government led event insurance scheme, achieved in partnership with state and territory governments, remains our preferred model.”

Explaining that the Opposition had been lobbying the Federal Government for more than a year to introduce an insurance scheme, Burke commented “it’s time for the Federal Government to listen and act.

“The live music and events industry needs an interruption insurance scheme to get back on its feet and plan for its future.

“The Federal Government has been willing to provide such a scheme for the screen sector but not for the arts or live events industry, and they’ve given no reason why.”

Senator Farrell said he looked forward to continuing to work with BECA “to ensure this once thriving industry recovers as soon as possible”, adding “there can be no doubt that the business events sector has suffered significantly as a result of the pandemic.

“In addition, like many other industries, it’s clear that the business events sector can’t just snap back as soon as borders open.”

Event organisers having largely been unable to get insurance to cover the costs of COVID related cancelations has been a major obstacle to recovery for the business and live events industries.

Images: Tony Burke, Australia's Shadow Minister for the Arts (top) and Geoff Donaghy of ICC Sydney and BECA’s Deputy Chair (below).