COVID-19 lockdowns and restrictions have been a catastrophe for the local economy, Canberra businesses say.
Some 10,000 ACT businesses have lost at least 30% of their turnover, the ACT Government believes, and are eligible for the Business Support Grants that opened yesterday, 26 August.
For many businesses, Canberra Business Chamber president Graham Catt said, the situation was approaching critical level.
“Businesses are desperate for support. We’re already two weeks into lockdown, and tourism, accommodation, and many hospitality businesses have had massive downturns in their takings for two months now due to lockdowns and border closures around the country.”
“If businesses are not essential, they are closed. They haven’t been able to access their businesses to process internet orders. Or do deliveries. Or click and collect. The construction sector is shut down. Building and renovations have halted.
“There’s no income coming through the door. There’s no JobKeeper coming to the business. They’ve had to stand down staff.
“Businesses are incurring their running costs, or a percentage of them, with no sales and no income.”
Mr Catt said more support would be needed beyond lockdown to keep many businesses afloat. “Today’s situation is vastly different from 2020.”
John-Paul Romano, Chairman of the Inner-South Business Council, agreed.
“Businesses will not be there after lockdown if the Government does not move to support them quickly; these businesses employ many people in Canberra, especially casual and gig workers.”
Johnathan Davis, Greens spokesperson for Business and the Night-Time Economy, said many small businesses had been affected by a drop in walk-by trade, particularly in shopping centres.
“This is a tough time for small businesses, families, students, and our whole community who in one way or another have had their lives interrupted and challenged by the pandemic,” he said.
“It’s a real credit to the entrepreneurial spirit of many small business people, especially those I’ve seen in my electorate of Tuggeranong, who have adapted in these challenging times and managed to pivot their business in varying ways to meet their changing markets.”
For instance, he said, the Markets in Wanniassa had become one of Canberra’s most prolific makers and distributors of home-made masks, while Little Theo’s takeaway in Kambah had mastered social media marketing (as well as some of the best pizzas in Canberra).
Canberra Liberals leader Elizabeth Lee called on Chief Minister Andrew Barr to provide a plan on how some businesses could safely recommence operations within the health advice.
“The Chief Minister keeps telling the community that he and his team are working with industry to establish safety protocols to work toward safely reopening some business and construction operations. But what we are hearing from industry and business owners is that there seems to be a lot of talk with no certainty or concrete plan. This must change, and change quickly.”
The business community, Ms Lee said, needed greater certainty about safety protocols to re-commence trading (click-and-collect and contactless delivery operations for non-food businesses), and what the transition out of lockdown would look like.
“For many industries, including hospitality and entertainment venues, opening up while observing particular capacity restrictions is simply not economically viable. Businesses would likely be forced to forego the Commonwealth disaster payments that are currently keeping them afloat or lay off staff.”
An economic plan, supported by the health advice, that detailed the key public health milestones the ACT must achieve for restrictions to be eased would give hope and confidence to the many thousands of businesses affected by this pandemic, Ms Lee said.
The Chief Minister has said that transition out of lockdown will be a phased approach, and several days without community transmission is an important milestone.
“Greater clarity about what these milestones are is required, and if there is a failure to reach these milestones, what other contingency plans are in place,” Ms Lee said.
“There is also great fear that many sectors will lose skilled staff from their industry for good should their trade continue to be restricted with no clear plan as to when and how they will be able to re-commence operations.”
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