ACT govt rules out business loans and grants, hospitality package welcomed

Struggling Canberra businesses won't be offered ACT government grants or loans to help them through the economic fallout of coronavirus.

Chief Minister Andrew Barr says the government could only offer help for ailing industries through fee and tax relief.

It came as the government on Friday announced a $6 million hospitality rescue package which would rebate some electricity and water fees and further ease liquor licensing.

It has been welcomed by industry but other hard-hit sectors are still waiting for help to come their way.

Mr Barr said the government was working on getting longer term assistance to all industries that needed it.

Other states such as Victoria have offered one-off grants to eligible small businesses.

Phillip Business Community president Tom Adam, who also owns Canberra Martial Arts, has called on the territory to implement a similar program. But Mr Barr said the government was limited to offering help through rebates.

"We will be looking to ways we can help those industries, but if they don't pay any tax to us or any fees and charges then our capacity to rebate anything is obviously limited," he said.

We will be looking to ways we can help those industries, but if they don't pay any tax to us or any fees and charges then our capacity to rebate anything is obviously limitedChief Minister Andrew Barr

He said it was up to the Commonwealth government to offer grants or loans as the territory lacked the mechanisms to do so.

Australian Hospitality Industry ACT general manager Anthony Brierley said the package was crucial support that had been eagerly awaited.

"It is an investment from the ACT government for the survival of our industry. It will help us see through the difficult times, so that our businesses can refill Treasury coffers on the other side," he said.

"While the best financial relief is the ability to trade with more customers, this package is more comprehensive than we had anticipated.

"Industry and government can't do it alone. We need Canberrans to keep finding a way to support our local hospitality industry."

Opposition leader Alistair Coe said the chief minister took too long to deliver the hospitality support package.

"The Canberra Liberals pressed for urgent red tape reduction, tax concessions and energy relief months ago. While better late than never, its disappointing that small businesses doing it tough had to wait so long," he said.

Mr Coe wants the government to fast-track the easing of restrictions for the industry."

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If Mr Barr really wants to help our small businesses and strengthen our economy, he would work harder to allow the hospitality sector to re-open to more patrons with strict social distancing measures."

Under the hospitality package, cafes and restaurants will receive a $1000 rebate on their electricity bills.

Pubs, bars and restaurants may now be able to serve takeaway alcohol and offer a delivery service for up to a year.