The “shadow lockdown” – restrictions in place, the public encouraged but not ordered to stay home – has left Canberra businesses struggling to survive, and many have closed their doors, some permanently.

Many businesses were down 30 per cent or more on their trade, but, unlike in a formal lockdown, they had not received any support, said Graham Catt, CEO of the Canberra Business Chamber.

An ACT government announcement this week that business support measures will be extended to mid-year provides some relief, but business leaders say the government must restore consumer confidence.

A difficult start to the year

Summer (Christmas, December, January) normally sets up small businesses to run for the whole year, Mr Catt explained, but a ‘triple whammy’ – a combination of staff shortages, a slump in trade, and supply chain problems – made it “a very difficult start to the year for them”.

“Hospitality businesses are suffering,” said Anthony Brierley, general manager of the Australian Hotels Association ACT. Some venues experienced a 90 per cent downturn in trade between December and January. “It’s worse than it’s ever been.”

Canberrans aren’t going out, according to Mr Catt; bookings are made but then cancelled, or diners simply don’t turn up. Restaurant customers don’t want to sit inside; nightclubs can’t open (Mooseheads and Fiction both closed indefinitely); and bars are closing early, remarks John-Paul Romano, chairman of the Inner-South Canberra Business Council.

“We’re seeing a real low point in consumer confidence,” Mr Romano said. “Some people are fearful of catching the virus, and so they’re staying at home.

“Whenever there is any restriction – and obviously, the restrictions are needed – consumer confidence falls. People become scared to leave the house, especially those who are elderly. And what we see is a decrease in revenue and sales.”

There had also been a mass exodus from Canberra, he said, as people used up leave accumulated over two years.

Others – including staff – are in quarantine or isolation, or waiting up to six days for COVID-19 test results. And without staff, Mr Catt said, some small businesses have had no choice but to shut down.

Some closures have been reported in the local media; besides the nightclubs, the casualties include the Sfoglia café in Dickson, the Polo Restaurant at the Polish White Eagle Club, and the six-shopfront Kidstuff in Manuka. It might have been part of a national chain, but its closure was a sign of the times, Mr Romano said.

“We’re not hearing about the tens of other businesses that are shutting in the suburbs, or in the CBD, because there’s simply not enough business for them, especially when they encourage public servants to work from home,” he said.

Chief Minister Andrew Barr urged Canberrans to work from home this month to reduce COVID-19 transmission; most ACT public servants haven’t returned to the office, and the public took its cue from those government messages, Mr Catt said.

But another set of directions advises the public to get on with their lives, he continued, and the public is confused. And it’s bad news for business.

“People’s livelihoods depend on those public servants going into their offices and buying their morning coffee,” Mr Romano said.

“Businesses need customers out there consuming, and foot traffic coming through the door,” Mr Catt said.

Business leaders were further irked by what they saw as government indifference to their plight. A fortnight ago, Mr Barr told the Canberra Times that new business support programs were not needed, although existing programs would continue. The ACT’s economy was recovering; in November, the ACT’s strongest ever trading month, retail trade turnover rose by 19.2 per cent ($99 million), and retail trade in the ACT increased by 4.6 per cent over the year to November 2021.

“For the ACT Chief Minister to spruik November ‘retail sales figures’ as a reason for not providing support is completely lacking,” said Tom Adam, president of the Phillip Business Community. “To use figures from one sector from one month out of six months (where five months of losses occurred) shows a level of political expediency that disappoints business owners.”

For many, Mr Catt said, that solid November and early December was “really just compensating for the fact that they had a really challenging year”.

“Business understand the constraints that governments have on them at the moment, and that it is difficult to keep providing cash support,” Mr Catt continued. “But without that, some businesses will face the real prospect of not being able to continue trading.”

ACT Government extends business support measures

This week, however, Tara Cheyne, ACT Minister for Business and Better Regulation, announced:

• The Small Business Hardship Scheme closing date had been extended from 31 January to 28 February. Businesses can claim (or reapply, if they have already received a payment) up to $10,000 per ABN for expenses during January and February.
• The food business registration fee waiver and the annual licence fee waiver for liquor licences (nightclub, restaurant and café, bar, general, catering, special, and club) have both been extended from 31 March to 30 June. The liquor waiver was effectively a 50 per cent reduction, Ms Cheyne said.
• $500,000 for a second round of the Amp It Up! grants for live music and performance venues. Last year, the scheme contributed almost $800,000 to local live music businesses, including 23 venues, by offsetting costs for live performances and gigs, she said.

Mr Catt welcomed the extension of the Small Business Hardship Scheme, but worried that for some small businesses, “particularly those who really struggled throughout last year,” the scheme and licence fee waivers “aren’t going to be enough to actually get them through”.

Similarly, Mr Adam was happy the government had extended the program, but was “concerned that for many businesses, it may be too little, too late”.

Business leaders had implored the ACT Government to support small businesses (those under $750,000 of annual turnover) for three months after the lockdown, to help them through the tough times, Mr Adam said – “But this was ignored, and sadly businesses don’t have any more savings.”

Government should restore consumer confidence

The cash grants would support businesses, which needed to pay staff and rent, Mr Romano said – but cash grants were not the solution.

“What we need is consumer confidence; we need people to come back out and spend money,” he said.

The government should make sure consumers feel safe to visit a restaurant or café, Mr Catt agreed.

He wanted government messaging encouraging and reminding the public that business (especially small and local business) needed their support. During last year’s lockdown, Canberrans had learnt to buy goods and services online; the government should send a strong message to buy local.

“When we support a local business, we support the whole Canberra economy, we support the whole city,” Mr Catt said.

Government should waive liquor fees for six months and ease restrictions

Mr Brierley wants the ACT Government to completely waive liquor licence fees from 1 January to 30 June. He said the government had reneged on its August 2021 promise to include liquor licence fees in the Scheme, leaving businesses to pay those fees for the three months their venues were closed.

“In the current trading conditions, and in light of the ACT Government’s previous promise, a three-month extension of the 50 per cent discount on liquor licence fees is financially immaterial,” Mr Brierley said.

Restrictions were harsher than NSW, where patrons were allowed to stand up to drink, Mr Brierley said. “The ACT’s restrictions have frightened customers into staying at home.”

A spokesperson said the government’s public health settings provided some controls over the spread of COVID-19 in the ACT, while still allowing businesses to function.

“The ACT regularly reviews its Public Health and Social Measures to ensure they remain proportionate to the risk that is being managed,” the spokesperson said.

“Asking patrons to remain seated while eating and drinking reduces movement in certain higher risk venues and mingling between groups which [mitigates] transmission potential.”

Check In CBR a deterrent; accelerant needed

Check In CBR deterred some customers; Mr Romano wanted the government to decide whether it should continue.

“Each one of those restrictions is something else for a customer to think about,” Mr Romano said. He had been told by customers: “Maybe it’s just too much work to come into the shop, and so they won’t come in at all.”

A spokesperson said the government was reviewing Check In requirements in light of recent changes to test, trace, isolate and quarantine arrangements. Further information would be available over the coming weeks.

Mr Romano called on the government to bring back the commercial tenancy agreement (which made it more difficult for landlords to end businesses’ leases) for two months.

More broadly, he wanted more government-sponsored events. It was, he thought, “a shame” the Multicultural Festival would not happen this year, but it could be reimagined on a smaller scale in different town centres on different weekends, showcasing different cultures. They should also back events like Skyfire and the Canberra Show to make sure they happen.

“The modelling suggest we have almost, if not already, reached our peak,” Mr Romano said. “We need a bit of an accelerant from the government to push us back into the new year. Otherwise, businesses are going to trip and fall.”

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