SA lockdown: Businesses brace for short-term pain, millions of losses

The lockdown will cost SA’s economy millions in lost wages, spoiled food and wastage – with local industries reeling from the six-day shutdown.

Six days of an economic shutdown in South Australia will result in millions being lost in wastage and wages, but businesses are being told the “short-term pain” will be worth it in the long run.

But Australian Hotels Association SA chief executive Ian Horne was critical of the shutdown.

He said the restrictions appeared more severe than Victoria ever had with the result the state had lost its “most lucrative” trading period of November and December, which sustains the industry through the slow times of the year.

“This lockdown strategy will simply add to the continued pain and loss for business and their workers. The ramifications of this decision will add to industry failures,” Mr Horne said.

“This is a significant burden for hotels and hospitality and 10 hours shut down notice totally inadequate.

Marshalls under pressure at Blackwood as the community gears up for lockdown. Picture: Ben Brennan.

“Our industry will need significant State Government financial help to survive this shutdown and the aftermath of continuing restrictions.

“SA is paying a high price for repatriating expats. It seems like a ‘home goal’ has been scored”.

He said millions of dollars would be lost in spoiled fresh food, lost wages and significant wastage.

Restaurant and Catering Industry Association of Australia chief executive Wes Lambert said the industry was “very disappointed and shocked”.

“We are seeing an immediate standing down of staff and cancellation of bookings and events.”

Australian Retailers Association chief executive Paul Zahra said the “severe nature” of this lockdown and lack of consultation has blindsided industry.

“We remain optimistic about Christmas retail trading despite this set-back.”

However, Business SA said while the circuit breaker will send shockwaves through all SA businesses, it is absolutely needed.

“Business SA supports this and encourages every single business owner to support these measures,” chief executive Martin Haese said.

“All businesses and workplaces will be closed with only supermarkets, petrol stations, medical centres, critical infrastructure, public transport, airport and freight services, banks, post offices and childcare for essential workers will be allowed.

“This will hurt. But short-term pain will be better for our economy in the long run if we want any chance to continue the great strides in recovery that was occurring prior to Parafield Gardens outbreak.”

COVID-19 testing at Victoria Park (Photo by David Mariuz/Getty Images)

Property Council of Australia SA executive director Daniel Gannon said the swift and decisive action will maximise the likelihood of South Australia staying safe.

“Melbourne was locked down for 112 days – we’re looking at six days of tough measures. It won’t be easy, but it’s for the greater good and health of our state, despite the duress that many parts of our economy and community will be under.”

Australian Medical Association state president Dr Chris Moy declared his complete support.

“This is not finicking around. This is decisive … The thing is people will say this looks like a sledgehammer, for now,” he said.

“But the thing is that what Victoria had to do was a sledgehammer for four months. By doing this we hopefully will be able to avoid that and that is the really critical thing.”

Senior SA federal Liberal and Government Senate Leader Simon Birmingham said the state’s decision was based on advice and to avoid the need for any long, protracted lockdown and restrictions like those seen interstate or overseas.

”So I encourage my fellow South Australians to do as I’ll be doing and that is to pack yourself up at home and to work from home, to live from home, to stay at home.”

Master Builders SA boss Ian Markos warned against any prolonged shutdown of the building and construction industry, saying it would damage the economy, business and workers.

“Once again we have seen hotel quarantine let us all down,” he said.

“Our industry has clearly demonstrated it can and has worked safely during the pandemic.

“Any response must be proportionate to the risk like the NSW government’s approach.

“The reality is local clusters are not a surprise and we can’t keep locking everything down every time there is a new one.”

Opposition Leader Peter Malinauskas urged the community to “fight for each other, not against each other”.

“That starts with having complete faith in our public health officials. We’re going to back in their judgment, and never doubt their motives. We’re going to comply with their requests, not because it’s easy, but because it’s right.”

Meanwhile the local wine industry wanted to be considered an “essential service” and sought more clarity.

“Our wineries and vineyards have proven they can operate in a COVID-safe manner, just as they did earlier this year, and as they have been doing in Victoria as it worked to successfully reduce cases of coronavirus,” said Tony Battaglene, chief executive of Australian Grape & Wine.

“Fires, smoke damage, falling tourism numbers and increasing trade tensions have plagued Australian grape growers and winemakers in 2020, with the likelihood of a low vintage in 2021.

“What we need now is clear advice from the South Australian Government that grape growing and winemaking is included in its list of essential services that can continue to operate under the new restrictions.”

Prime Minister Scott Morrison backed the measures.

“These are precautionary and temporary measures with a clear end date.

“We will continue to support South Australia and the SA Government in every way we can as they deal with this most recent outbreak.”

Mr Morrison issued a reminder that South Australians can apply for $1500 of paid pandemic leave if they need to isolate.