Local businesses fear 'punitive' Dine and Discover undercover compliance checks

Focusing on venues' proper use of vouchers and COVID safety compliance, the covert investigation will be carried out by Liquor and Gaming officers who will refer violations to Service NSW.

Businesses found to have breached the terms and conditions could be suspended, deregistered or have to return the funds raised through the program so far, something Wagga businesses said would be devastating to small business.

Fitz Cafe owner Lincoln Woo said he would rather investigators work with businesses rather than try to catch them out.

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"I would rather them come in and have a chat with us, try to work with us rather than against us," Mr Woo said.

"We're not trying to break rules, we're trying to keep with the regulations and make as many sales as we can."

Mock Orange's Roslyn Mitchell said she thought it was fair to hold businesses to account over COVID compliance, but questioned the method used.

"I find it pretty unfair that we work hard at being COVID compliant and other joints don't, so on some level I think it's a good thing for the safety of our nation, however at the same time I do worry that it feels punitive and adversarial rather than supporting us to try and get it right," Ms Mitchell said.

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The Dine and Discover program provides NSW residents aged 18 with four $25 vouchers - two for use on dining and two that are valid at participating entertainment and recreation businesses.

As for the potential repayment of Dine and Discover revenue, the long-time cafe owner was unimpressed.

"I just think it's seriously poor form, you'll shut businesses with that sort of approach," Ms Mitchell said.

"I think they're better off trying to help us to comply and to be honest I think we need more focus on individual responsibility, for those that aren't complying."

Mr Woo said keeping up with changing regulations was tricky for small businesses in particular.

"It's definitely been a challenge to keep up with daily or monthly changes, to try and constantly monitor the rules while getting updates," he said.

"It's especially hard during peak times, you're trying to keep everyone safe but also keep a business running."

Liquor and Gaming Compliance Director Dimitri Argeres said the focus would be on COVID compliance more than specific Dine and Discover regulations.

"While we are looking at compliance with the Dine and Discover rules, our focus remains on venues doing the right thing in terms of COVID safety," Mr Argeres said.

Mr Argeres told The Daily Advertiser Service NSW would decide when and if businesses would be de-registered or required to return voucher funds. He said Dine and Discover businesses can face consequences from both Service NSW for non-compliance, and from Liquor and Gaming for breach of the Public Health Act.

"The terms and conditions for the Dine and Discover include a requirement to comply with the COVID-19 measures," Mr Argeres said.

Wagga Business Chamber's Serena Hardwick said while enforcing compliance was entirely suitable, the chamber would prefer to see government bodies work in partnership with businesses.

"Having regulators come through is fine but this is the industry you're trying to help recover from COVID," she said.

"Is doing fines the best way or is education and assistance the best way?"

"Hitting a business with a $5000 fine is not helping them to recover, I think it would be better if it was a more transparent and looked as a partnership rather than investigation."

The recent crackdown comes as QR code usage in shops and hospitality venues dropped by more than 45 per cent across the city over the past three months.

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