Lockdown Causing Carnage to Businesses
Western Victoria MP Bev McArthur used Constituency Questions in last week’s parliamentary sitting to ask the Treasurer about the impact on businesses from the state lockdown and the Government’s Business Support Fund.
The August Sensis Business Index revealed that more than 54% of businesses in Melbourne expect a damaging decrease in profitability over the next three months, exactly twice the 27% of Sydney businesses which expect the same.
It also revealed that 49% of all those surveyed in hospitality and accommodation declared the lockdown had had a ‘severe impact’ on their business, with 35% laying off staff.
Across all sectors, 38% of Melbourne businesses are either ‘fairly worried’ or ‘extremely worried’, with 13% expecting to go out of business within 12 months.
Mrs McArthur said, “My constituents are rightly afraid of the knock-on effects outside the tram tracks, even without any further regional lockdown—already 5 per cent don’t believe they will last the next year.”
“Business has borne the brunt of the government’s COVID response, and so my question to the Treasurer is: what fundamental changes will you make to rebuild the damage done, re-balance the sacrifice made and allow enterprise to thrive in Victoria?”
The Government’s response to the financial damage caused by the lockdowns to businesses has been thee implementation of the Business Support Fund. The Business Support Fund eligibility criteria include participation in the JobKeeper scheme.
Mrs McArthur raised the issue of a constituent who is not eligible for JobKeeper and therefore also precluded from the Business Support Fund grant, “which would defray rent, rates, utilities and other non-payroll costs which have remained constant despite the [business’] reduced cashflow.”
“This cliff-face approach to business support threatens viable businesses with closure, when almost identical neighbouring employers may get full grants.”
“If the aim is to support business, Treasurer, not to create inflexible bureaucracy, is there any room—avenue—to seek discretionary review in such cases?”
26 August 2020