The Ago on’: Collingwood’s Bendigo Hotel calls last drinks
Melbourne is set to lose another live music venue this month after copping a 300 per cent increase to public liability insurance, as the state government considers offering struggling venues a lifeline.
The impending closure of The Bendigo Hotel on Johnston Street in Collingwood comes as the peak body for live music venues, Music Victoria, confirmed talks were underway with the state government to give venues access to the state-owned insurance company.
The venue, a longtime home of metal music in Melbourne – affectionately known as “The Bendi”– will call last drinks at the end of March, publican Guy Palermo announced this week after 14 years running the venue.
“The whole industry – we’re on our knees at the moment,” Palermo said.
Despite weathering the storm of COVID, Palermo’s rent at the 113-year-old heritage-listed Edwardian-style brick hotel has jumped 30 per cent, while his public liability insurance has jumped 300 per cent from about $20,000 a year to $80,000 since 2020.
Palermo said he hasn’t made a single public liability insurance claim in 14 years of trading. Even then, only two insurers were willing to insure the venue – for no less than $80,000.
“It’s criminal,” he said. “The mafia would not get away with this shit. It’s incredible.”
Inflation has also made a major impact on patronage; Palermo said both foot traffic and spending per person were down 40 to 50 per cent compared to pre-COVID, while costs had jumped by a similar amount.
“Alcohol keeps going up, there’s a beer tax – but we can’t put prices up any more, because punters don’t have money,” he said.
“For example, if we had a sold-out show for 300 people, we would take 30 per cent less over the bar now than what we used to,” he said.
“Most of our punters are in their 30s and 40s – they all have mortgages too, so they are spending less. I feel sorry for them – they’re hurting, but I can’t go on any more.
“I just have to close the doors and settle my debts before we lose the house.”
The Age has previously reported skyrocketing insurance premiums have led to strict “no dancing while drinking” conditions at The Old Bar in Fitzroy, contributed to the closure of rock venue Whole Lotta Love Bar in Brunswick East, and pushed many others to the brink of closure.
Music Victoria chief Simone Schinkel said her organisation was discussing the prospect of getting venues access to the state-owned Victorian Management Insurance Authority as the sector was in crisis.
“We’ve proved there’s been a market failure here,” she said, calling for all music venues to complete a current survey about their insurance hikes over the past five years that can be used as evidence to the government.
“We have [the government’s] ear. We’re now just gathering further evidence. There are so many factors [affecting premiums], but we really have left no stone unturned before turning to the government.
“The urgency is more pressing in Melbourne than [in] other parts of the country. We are seeing venues close now.”
The state government has been approached for comment.
The Bendigo Hotel sits within the City of Yarra, a municipality that is home to the second-highest number of live music venues after the City of Melbourne.
A council meeting this week confirmed the council could not issue council-backed insurance to venues, after a request last month from independent councillor Stephen Jolly.
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