Crisis meeting: Treasurer Dominic Perrottet will chair the summit to save our city

All regulation and government policy will be on the table for review in a bid to avoid a “summer shocker” where spending is slowed in the critical Christmas period across NSW.

As NSW faces its most savage economic blow since World War II, NSW Treasurer Dominic Perrottet will summon the state’s business leaders for a crisis conference to save Sydney from retail oblivion.

All regulation and government policy will be on the table for review in a bid to avoid a “summer shocker” where spending is slowed in the critical Christmas period.

The summit will be held within weeks, with a focus on CBD retailers and crucial summer trade, with the Treasurer adamant that spending must be revived in the CBD if NSW is to rebound.

Treasurer Dominic Perrottet will chair a crisis summit in the next few weeks to get the economy of Sydney moving. Picture: Steven Saphore

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“We have got to get people back into town. When Sydney does well our state does well. If we don’t invest in Sydney, support business and continue to drive the economy, there will be significant consequences,” he said.

As Australia’s first reces­sion in 29 years was confirmed yesterday, NSW was revealed as the hardest hit state in the nation with an 8.6 per cent hit to its economy, above the 7 per cent drop in national GDP.

Household spending on transport almost halved in NSW with families forking out just $4.84bn in the June quarter compared to $8.53bn in the first three months of the year. Spending on cafes, hotels and restaurants plum­meted from $6.1bn in the March quarter to just $2.5bn in June, wreaking havoc in the sector most damaged during the first coronavirus wave.

NSW residents spent $1.6bn less on recreation and cultural activities, while gambling spending also almost halved during the height of the lockdown.

Federal Treasurer Josh Frydenberg has warned of a tough road ahead. Picture: Gary Ramage

Treasurer Josh Frydenberg said the road ahead for Australians would be “hard and bumpy” given the national figures did not factor in the stage four lockdown in Melbourne. “This is something that will weigh heavily on the September quarter numbers,” he said. “COVID-19 has wreaked havoc on our economy and our lives like nothing we have ever experienced before. But there is hope. And there is a road out.”

Mr Perrottet said the hit to NSW reflected the combined impact of a horror summer which led into the pandemic.

Retail and other aspects of the economy have been hit hard by COVID-19. Picture: Gaye Gerard

“The figures released yesterday show just how hard the NSW economy has been hit by the twin evils of last summer’s bushfires and COVID-19,” he said.

“We need to do everything we can to ensure this Christmas and summer enables us to begin the economic recovery from what is a once in a generation event — we can’t have another summer shocker. It’s vital we have plans in place to allow people to enjoy Christmas and the holiday period without putting our economy in danger by ­allowing the virus to get out of hand.”

Planning Minister Rob Stokes, who will also oversee the summit, said the state needed to find a balance to keep people safe and hospitality and retail sectors buoyant.