Government support to tourism businesses backfiring as transient staff run with flood recovery cash

Loopholes in government support packages for Far North tourism businesses have been reportedly exploited as the region’s peak body for business urges a more comprehensive approach.

Post-flood funding support for Far North tourism businesses has begun to backfire as transient staff have seized government cash and run south, according to local operators.

The federal and state governments have funnelled close to $100m into the region after calamitous December weather obliterated infrastructure and shot the economy in the knee caps.

But wage-support money – funded by the federal government’s Disaster Recovery Allowance and delivered directly to tourism employees – has reportedly not resulted in staff retention across the board.

Instead, some transient workers have been given a handy summer stimulus of up to $750, and then taken their skills elsewhere in Australia.

Eligibility relied on recipients living in a disaster impacted area, loss of income and a wage below the average Australian weekly income.

Roderic Rees, owner of Cairns Adventure Group, said the issue had affected his business.

“That wage support should have been delivered in a JobKeeper-style arrangement,” Mr Rees said.

Cairns Adventure Group director Roderic Rees said post-flood wage-support payments had not been designed to ensure employees remained with Far North businesses. Picture: Brendan Radke

“It would tie employees to the business, so when we have tourists return we have a work force to transact those customers. That’s a big failure with this support package.

“Our business needs more employees when we go through this shut down-start up period … our wage bill goes up.”

Mr Rees said larger employers in town could not access state government’s Extraordinary Disaster Assistance Recovery Grant payments because eligibility was confined to businesses with 20 or less FTE employees.

“The bigger operators have been cut out. We’re the key employers, the businesses spending the most marketing dollars and driving the majority of international visitation,” he said.

“We’ve lost confidence that future support packages are going to be delivered proportionally across the board.

Exploitable loopholes in government support for Far North tourism businesses have been exposed by transient employees, according to local experts. Picture: NCA NewsWire / Brian Cassey

“There have been lots of politicians coming to town making great announcements, but then we discover the devil in the detail later.

“The support is well intended and appreciated by the industry, but you need to put someone on the ground who can understand exactly what the industry needs.”

Cairns Chamber president Enver Selita said the Chamber had lobbied federal government to construct a support package that encapsulated the needs of businesses in all industries as tourism was not the only employer in town, and not the only industry affected.

He said he was also aware that transient employees had exploited loopholes in funding support, leaving some Cairns employers high and dry.

Cairns Chamber president Enver Selita said the Chamber had lobbied the federal government for more support to a wider range of businesses. Picture: File photo

“We’ve asked the government not to pigeonhole FNQ as a tourism business. All businesses are affected. It’s tough for everyone right now,” Mr Selita said.

“Cleaners may not be tourism businesses but if they’re cleaning AirBnBs then they’re supporting the tourism industry.

“A lot of agriculture businesses are struggling with road closures. If they don’t get their produce out, they lose sales. One coffee producer I spoke to lost a 14-tonne coffee sale.

“Without more government support, businesses will close.

“The money they give to tourism is needed … I understand the reasons why that funding was triggered so quickly. But in the same breath they need to think about businesses connected either directly or indirectly who will be impacted, even if that impact shows up days or weeks later.”

Federal tourism minister Don Farrell said $5m had already been spent in support of the region’s tourism industry.

“That resulted in a 200 per cent increase in people coming to Far North Queensland,” Mr Farrell said.

“We’re going to continue to ensure … the businesses we want to continue to operate … that they get the support they need.”

Originally published as Government support to tourism businesses backfiring as transient staff run with flood recovery cash