Fears Victorian businesses will move interstate because of coronavirus restrictions
Uncertainty about Victoria’s road map to recovery and fears of future lockdowns could force businesses to move interstate, with industry experts warning the state could lose tens of millions of dollars.
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Victorian businesses are planning moves interstate to dodge the damage caused by the disastrous second wave.
Amid uncertainty about Victoria’s road map to recovery, industry groups have reported grave fears about big businesses — particularly in manufacturing — remaining viable.
But Treasurer Tim Pallas has rebuked other states that are plotting to poach vulnerable Victorian businesses.
The Queensland Government has unashamedly boasted it is “on a mission” to lure companies north in a bid to become Australia’s new economic powerhouse.
But Mr Pallas hit back, telling the Herald Sun that he would “leave stunts like this to others”.
“We’re doing everything we can to support businesses, so they rebuild right here in Victoria where they belong,” he said.
Ai Group state director Tim Piper said he was “concerned” that big manufacturers were considering moves interstate.
“It’s not just one,” he said.
“It’s some very big manufacturers that won’t necessarily pull out altogether, but they are certainly downsizing here and making sure they have opportunities in other states to ensure they’re never exposed again.
“Other companies that were talking about spending tens of millions of dollars here before COVID, are now considering spending it in other states.
“I think it is a very real issue that the government needs to consider.”
The Andrews Government will announce on Sunday two road map for Victorian businesses — one for Melbourne and the other the regions — to begin to reopen after a week of consultation with industry, unions and community organisations.
It will include a traffic light system for industries to denote varying levels of restrictions - open, restricted, heavily restricted or closed.
Mr Piper said the government was yet to reveal a great level of detail about its recovery plans.
But he said businesses expected a definite and clear easing of restrictions.
“Industry expects that if it cooperates, works well, and understands its responsiblitities, then restrictions will follow,” Mr Piper said.
“Our biggest concern is that the government might not be able to recognise the adjustments that some companies have already made within the same sector.
“For example in the warehousing sector, some companies are very automated, some are still very hands on.
“Any response needs to be nuanced, it may mean one size doesn’t fit all,” he said.
Victorian Chamber of Commerce and Industry boss Paul Guerra said industry engagement was positive but he feared Sunday’s announcements would be unlikely to please all sectors.
“Ultimately the Chief Health Officer will work out how we move from one phase to the next. That’s what everyone is curious about,” he said.
Mr Guerra said he was aware of businesses considering moves interstate amid fears of ongoing or future lockdowns.
“Our conversation with VECCI members would suggest that if we went through another lockdown after restarting, it would be incredibly damaging if not terminal for a significant amount of businesses,” he said.
“We were in a good position, we’re now looking at other states as a bit of inspiration.”
Mr Guerra said there were significant concerns around the manufacturing and events industries.
Jobs Minister Martin Pakula consulted with more than 150 organisations, individuals, companies, unions and peak bodies at a meeting on Monday night.
On Tuesday discussions took place with the construction sector, creative sport and tourism, manufacturing, community organisations, agriculture, retail, professional services, transport and freight, and food and grocery sectors.
“I think it’s fair to say that the overwhelming view of those groups so far is the need for certainty and the need to ensure that as we ease restrictions we head in one direction rather than out and back again,” Mr Pakula said.
“There is a high degree of understanding that there will be phases that will be dependent on viral numbers, and there will be some industries which will open more quickly than others.”
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