Northern beaches push for ‘natural disaster zone’ to boost funds for businesses hit by COVID lockdown
A push to declare the northern beaches a natural disaster zone is gaining strength. It comes as businesses say they need to know now whether help is coming after the COVID lockdown.
Manly
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The northern beaches could be declared a natural disaster zone which would release emergency funds for businesses crippled by the recent lockdown.
The move was instigated by Mackellar federal Liberal MP Jason Falinski who called the Prime Minister’s office to see whether it was something it could agree to in principle.
Mr Falinski said he was told it was something that could be considered and now the matter is with the NSW Government, which has to declare the area a natural disaster zone, as part of the process.
Mr Falinski told the Manly Daily a natural disaster zone has never been declared for such a small geographical area before but the situation was similar to Bega last year when bushfires cut off electricity, resulting in a loss of stock for many businesses.
Declaring the area a natural disaster zone enabled the Federal Government to step in with extra help such as short-term loans.
“It’s not going to be a complete recompense,” Mr Falinski said.
“But it can allow for short term lending facilities for stock losses which they can pay back.
“I’ve been speaking to a lot of people and I’m hearing that in order to get on with their lives they need to know whether they can get help.”
Mr Falinski said businesses that were in desperate straits were restaurants and hospitality.
He said the last lockdown came out of nowhere businesses were not prepared and had brought in a lot of stock for what they had presumed was going to be a busy trading period.
The rolling lockdown announcements, every three days, also meant that businesses were unsure of how long the restrictions would last and so many kept on staff, covering wages despite no revenue being generated.
Mr Falinski said it is not so much the downturn that damages businesses but the length of recovery which is why quick access to funds is essential.
However, Mayor Michael Regan questioned why it has taken Mr Falinski so long to press for this move and why it has taken him so long to inform state and local government it was an option.
“I’ve written to the Prime Minister and Premier today to ask that our LGA be declared as per MP Jason Falinski’s request,” he said.
“Local Government and State Government have been calling for Federal Government financial support for local businesses from day one of the lockdown to complement their contributions to date.
“I’m concerned if federal assistance was available why it has taken so long to advise us at state and local level of that possibility.”
He said he understood that at the moment a pandemic does not qualify an area to be declared a natural disaster zone and therefore changes to the disaster relief document will have to be changed to make it happen.
Mr Falinski said he was advised that Victoria had set a precedent when Melbourne was declared a natural disaster zone during its four-month lockdown.
He also said in response to Mr Regan’s comments that he “did not want to play politics” and that “all three levels of government should work together” to help businesses.
He said it was the responsibility of State Government to declare an area a Natural Disaster Zone, not Federal Government.
It comes as independent Warringah MP Zali Steggall recently received short shrift from Treasurer John Frydenberg when she wrote to him asking for extra federal support.
Ms Steggall told the Manly Daily yesterday she was disappointed at his response.
“I have written to the Federal Treasurer twice asking for immediate financial assistance and was disappointed that there would be no new financial support for northern beaches businesses,” she said.
“I’m now liaising with the Chambers of Commerce and Business about their situation and will be responding to the Treasurer.”
Meanwhile, a motion to declare the northern beaches a disaster zone was also introduced by Cr Rory Amon at a council meeting yesterday.
However, following two and a half hours of politicking and a number of councillors walking out, the meeting was abandoned and no debate or vote was held.
Mr Regan today said the council has no power to declare the local government area a natural disaster zone, it has to come at state level. However, the council can call on the state government to do so, which he has now done.
Minister for Small Business and Acting Treasurer, Damien Tudehope said the NSW Small Business Commissioner is meeting this week with business leaders on the northern beaches to assess the impact of the COVID lockdown on the local economy.
“I’ve asked him to work with the business community to determine the impact on different segments of the local economy,” he said,
“Dine & Discover will be rolled out in the northern beaches as part of a trial program to assist businesses hit hard by the recent lockdown.”
Mr Tudehope did not respond directly on whether the State Government was considering declaring the northern beaches a disaster zone.
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