Businesses unlikely to get financial support unless lockdown extended

Queensland businesses are facing a massive combined loss worth hundreds of millions of dollars, but they’re unlikely to get any extra financial support from the state government unless things get even worse.

Queensland businesses are unlikely to get any extra financial support from the state government unless the three day Covid lockdown is extended further.

The National Retail Association was yesterday warning that the snap lockdown would cost retailers in the impacted areas a massive $300m, as the Chamber of Commerce and Industry Queensland made renewed pleas for financial support.

Asked what support would be given to businesses following the lockdown announcement, a spokesman for Treasurer Cameron Dick said evidence had shown businesses and the broader economy recovered swiftly from previous three-day lockdowns.

“But we are continuing to closely monitor the situation,” he said.

Treasurer Cameron Dick. Picture: NCA NewsWire / Dan Peled

It is understood that should the lockdown be extended to seven days, the state government would consider rolling out relief measures for businesses.

Such a move would be similar to the Commonwealth’s previously declared benchmark to provide support to areas defined as a hot spot, where a lockdown has lasted longer than seven days.

The CCIQ yesterday renewed their calls for impacted businesses to be given payments of up to $25,000 to cover the loss of stock and trade caused by lockdowns.

In a survey of businesses conducted by CCIQ during the March lockdown, they found expected average losses of medium sized businesses could amount to $65,000 during a three day lockdown.

CCIQ’s policy and advocacy general manager Amanda Rohan said businesses needed targeted support to cover the losses they were facing.

“This is the third lockdown for Queensland businesses and the second without a support package in place after JobKeeper ended,” Ms Rohan said.

Georgia Harth and Jules Tognini from Togninis hair dresser, Fortitude Valley. Togninis will shut for three days due to the Covid-19 lockdown. (Image/Josh Woning)

“We know the immediacy of a snap lockdown creates significant operational issues for businesses forced to close, and can take a significant amount of time for businesses to recoup or in some cases even maintain an ability to stay in business.”

Small Business Minister Di Farmer would not say if the government had given the CCIQ’s proposal any consideration, instead saying: “We will keep a close watch on the latest outbreak and continue talking with industry about its impacts.”

Small Business Minister Di Farmer. Picture: NCA NewsWire / Dan Peled

National Retail Association chief executive Dominique Lamb said retailers would lose a combined $300m in sales as a result of the latest lockdown.

“Retailers understand the importance of public safety, but make no mistake this lockdown is going to have a damaging economic effect,” Ms Lamb said.

“Retailers impacted by this lockdown will be doing so without the JobKeeper safety net.

“If we’re to cushion the economic blow of this round of restrictions then both the state and federal governments need to provide urgent assistance measures.”

Ahead of the lockdown announcement yesterday, Opposition Leader David Crisafulli said measures were needed immediately for small businesses if a lockdown was called.

“People are crying out for certainty and the absence of it means decisions that have to be made in real time,” he said.

The NSW government has unveiled its own support package to support impacted businesses, with grants of $5000, $7000 and $10,000 on offer – depending on the decline in turnover.

Kristian Tognini, owner of Togini’s Hair at Fortitude Valley and Hey Hair at Windsor, said they had moved close to $40,000 worth of clients between the two salons across the next three days.

“We only had six-and-a-half hours to move all of these clients, it wasn’t much notice at all,” he said.

“Because we’re service based, we’re lucky that we don’t have perishable goods like in a restaurant – I would hope our clients reschedule their appointments.

“But the staff are the main ones that miss out.”