The front row at Rhythm and Vines in December 2020. Photo / Supplied
The front row at Rhythm and Vines in December 2020. Photo / Supplied
The Government is backing big summer festivals, with a pledge to carry most of the financial burden if organisers have to cancel events.
But a DJ says smaller event organisers were furious today after the scheme was limited to big events hosting more than 5,000 people.
The scheme could cost up to $200 million if summer events implode, but Tourism Minister Stuart Nash said promoters could now plan with some confidence.
"I'm really keen for a great Kiwi summer to go ahead actually, but the thing is, these events possibly wouldn't go ahead if they couldn't be planned with a level of certainty," Nash said this afternoon.
"We are not insuring in any way, shape, or form the profits of these events. It's just 90 per cent of fixed costs," he added.
The Events Transition Support Scheme will cover 90 per cent of unrecoverable costs for paid, ticketed events for more than 5000 vaccinated people, if organisers cancel or postpone due to Covid restrictions.
The scheme covers big events from December 17 this year to April 3 next year, when daylight saving ends.
Auckland DJ Rob Warner said big business would be happy with the scheme but many smaller summer festivals catering to diverse musical tastes were blindsided.
"They are livid about this," Warner told the Herald this afternoon.
He said none of his colleagues in the music business expected the Government to underwrite their events, but smaller festivals were now in jeopardy.
"It's a tricky scenario. Nobody pretends it's not," he said.
"Everyone's trying to be helpful. My perception is the event [organisers] have been positive in promoting public health measures and vaccines."
Warner said instead of attending small, organised festivals, Aucklanders could be drawn to summer house parties with no contact tracing or vaccination requirements.
He said the small, niche music event promoters had tried airing concerns to the Government in recent weeks but had been left disappointed.
Hospitality NZ president Jeremy Smith said the scheme was a great idea, but it could be extended to local venues or smaller events.
"A lot of the promoters and event managers are very nervous," Smith said today. "They're concerned about people not being able to travel."
He said the Events Transition Support Scheme was necessary and overdue.
"It at least gives the promoters some certainty that they can go ahead and book the event without a risk of going bankrupt."
He said smaller venues were also facing some struggles and could use financial support.
"As a bar owner, I'd be a lot more inclined to book musicians to try and give these guys some income. A lot of the local musicians who play in the local venues, they're struggling."
Nash this afternoon said the Government had to draw the line somewhere when deciding on the scale of the scheme.
He said requiring to attendees to be vaccinated provided an incentive for people who still might not be vaccinated.
And he said vaccinations could protect festivalgoers from getting sick.
"Organisers of these festivals are great entrepreneurs who give back to our communities," Nash said earlier.
"They take a lot of risk to deliver fantastic experiences that are part of the cultural fabric of a Kiwi summer and create lasting memories."
Nash, who is also Economic and Regional Development Minister, said organisers of big summer festivals have to make decisions now about whether to proceed.
"An immediate solution is needed this summer."
Organisers needing a potential bailout must be linked to events requiring the use of Covid-19 vaccination certificates.
"The event must have been actively in the market through promotion or ticket sales prior to the announcement of this scheme," Nash added.
The National Party previously called for an insurance scheme for major events, with leader Judith Collins saying $50 million should be allocated.
Collins last month said events had to plan with confidence that lockdowns would not cause significant financial losses for organisers, customers or suppliers.
The scheme's announcement also follows concerns that Gisborne's popular Rhythm & Vines festival could be in jeopardy due to low local vaccination rates.
Co-founder Hamish Pinkham told Newstalk ZB on Friday he was ready to go ahead but was waiting on clarity from the Government.
Prime Minister Jacinda Ardern has repeatedly said Aucklanders would be able to travel this summer and reunite with loved ones after months of lockdown.
When exactly such freedoms would be allowed has not been specified but the PM yesterday indicated some restrictions would be lifted on November 29.
In Wellington yesterday, she said it was likely 90 per cent of eligible adults in all Auckland DHB areas would be fully vaccinated by November 29.
