Sydney live music venue closure sparks debate over government grant effectiveness

The impending closure of Sydney's MoshPit Bar has ignited a debate over the efficacy of government grants aimed at supporting the city's live music scene. The popular Erskineville venue announced it would shut its doors in November, citing escalating operating expenses and dwindling income.

MoshPit Bar had received substantial funding from both federal and state governments, totaling over $100,000 in recent years. These grants were intended for improving music infrastructure, including soundproofing and accessibility. The venue received $64,000 from the federal Revive Live grant scheme and $87,000 from the NSW government for upgrades. It also benefited from a $30,000 federal grant to support emerging artists.

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The cost of alcohol goes up every six months and people feel it. A schooner of beer's $11, it's a huge amount. People are just staying home.

Despite these investments, MoshPit owner Mitchell McLennan explained that the grants, while helpful for venue improvements, could not sustain the business. "The cost of alcohol goes up every six months and people feel it," McLennan said. "People are just staying home."

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Why weren't the actual drivers of venue considered when this grant was approved? The minister needs to be able to assure the public that when a substantial amount of their taxpayer funds is invested in something, there is a transparent process for how it will deliver lasting value.

NSW shadow arts minister Chris Rath questioned the NSW government's grant allocation, particularly the $87,000 provided for "enhancing accessibility" when the venue's closure stemmed from rising costs. He called for a transparent process to ensure taxpayer funds deliver lasting value. The Liberal opposition proposed cutting payroll tax for small and medium businesses as a measure to support Sydney's nightlife.

Federal Arts Minister Tony Burke defended the grant program, stating that investing in venues like MoshPit was "worth the risk." He acknowledged the difficulty venues face but emphasized the government's determination to support live culture. Burke announced an additional $12 million for the Revive Live grant scheme, aiming to back venues nationwide.

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Even though they're private venues, every extra bit of assistance at the moment makes a difference. It is devastating when we lose one, but we are determined to make sure that that live culture throughout the country is something that survives. You've just got to take the risk and keep investing and keep providing because for a whole lot of venues, that investment actually will be the difference.