The Invercargill Licensing Trust is shedding jobs and suspending grants as the realities of the COVID-19 lockdown bite.

Chief executive Chris Ramsay said hospitality and tourism were the two sectors hardest hit by the COVID-19 pandemic and it was having dire consequences for ILT, which was now facing the prospect of staff restructuring.

“To reach this point is heart-breaking. Our team is a tight-knit one and the decision to consider restructuring has come with a lot of angst,” he said. 

“The reality is the negative economic impact of COVID-19 is not going to ease any time soon and we are unlikely to be able to sustain our full quota of staff in the current environment.

“We are not immune here – hospitality and tourism have borne the brunt of this crisis and our survival relies on both. The vast majority of our businesses have been unable to operate since lockdown began in late March and, while we have continued to pay all our staff during this time, unfortunately it is not sustainable going forward. Even at Alert Level 2 the restrictions imposed will seriously impede our ability to trade profitably.”

ILT had been focused from the outset on protecting its 600-plus staff, including initiating pay cuts across its executive team and board indefinitely.

“Every decision we have made since this pandemic hit has been to try and save jobs. We’ve assessed every possible scenario but the reality is we may not be able to save them all.”

Mr Ramsay said consultation with staff would be initiated immediately.

“It’s incredibly tough to think of the people and their families who will be hurting because of the downturn in the hospitality and tourism industries and that extends well beyond ILT,” he said.

“These are unusual times and we are all doing our best to navigate our way through them. ILT is committed to a strong recovery and we look forward to one day being in a positive position to expand our team again when the demand is there to do so.”

A flow-on effect to community funding was inevitable with ILT anticipating significant operating losses to continue for quite some time and ILT Foundation funding not being generated due to venues which house gaming machines being closed.

“Our ability to continue to provide the level of funding we historically have is seriously constrained and, as we have advised all potential recipients, this will affect our grants decisions.”  

Funding applications to ILT and ILT Foundation will be received but placed on hold until further notice.

“Once we are again in a position to do so, our trustees will continue to focus on making the best decisions for our Invercargill community,” Mr Ramsay said.

“We recognise those organisations who rely on this funding would appreciate definite timelines and an indication of funding levels from us. However, like everyone, we are working in unpredictable times and in an uncertain economy.

“Our community is at the heart of our organisation and can be assured we are doing everything in our power to recover quickly.”