‘Road map to nowhere’: Victorian businesses slam Daniel Andrews’ lengthy plan to ease restrictions
Victorian businesses set to be further crippled by the state’s lengthy road out of hard lockdown have slammed the plan as “bitterly disappointing” which will cause countless companies to go broke.
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Melbourne’s hospitality leaders are reeling at the prospect of no indoor dining for another 11 weeks, with the possibility their summertime boom could be a fizzer this year.
AFL star-turned-restaurant owner Paul Dimattina who is leading a campaign to save the hospitality sector from ruin said he was “disappointed, angry and sad’’ after the Premier’s announcement.
Bars, restaurants and cafes are limited to takeaway only until October 26, if case numbers are low enough. Then limited outside dining will be permitted until November 23 with capacity limits inside.
Mr Dimattina, who runs Lamaro’s Hotel in South Melbourne, said the rules would cause even more job cuts.
“We’ve all sacrificed our lives and our businesses for six months. We’ve all abided by the rules and we keep getting smashed,” he said. “This not a plan to unite. This is a plan to destroy and divide.’’
Mr Dimattina accused Dan Andrews of grandstanding and ruining families’ Father’s Day.
Restaurant and Catering Association chief executive Wes Lambert said it was “bitterly disappointing” there would be no seated dining in Melbourne until October 26.
“We had expected that by September 13 there would be some semblance of easing of restrictions,” Mr Lambert said.
He questioned an outdoor dining limit of 10 people only being in place for four weeks.
“That’s a lot of expense for cash-strapped businesses in terms of buying outdoor chairs, tables and umbrellas for such a short period of time,” he said.
Mr Lambert said the industry would seek cash support from the State Government and also explore possible exemptions to the restrictions.
“To expect our industry to remain relatively closed until Christmas is a bitter pill to swallow,” he said.
Will Newtown, owner-operator of Lover restaurant on Chapel St, said the news was hard to take.
“It’s disappointing and none of us really wanted to see it but, agree or disagree with Daniel Andrews, it’s realistic and we have to do what the health experts and the science says,” Mr Newtown said.
He said his venue could easily be converted into an outdoor dining zone.
“We will be petitioning the council on Monday to see what can be done,” he said.
Institute of Public Affairs policy director Gideon Rozner tweeted: “Melbourne’s hitherto world class hospitality sector is dead, buried and cremated.’’
‘ROAD MAP TO NOWHERE’
Victorian business leaders have slammed the government’s road map out of the state’s strict lockdown measures, saying the lengthy plan will cause countless companies to go broke.
At a time when many traders are gearing up for the Christmas rush, doors are to remain closed until at least October 26.
But about 101,000 workers in the construction, manufacturing, postal distribution, gardening, childcare and warehousing industries will be allowed to return to work from September 28 — if coronavirus case targets are met.
Victorian Chamber of Commerce and Industry chief executive Paul Guerra said the business sector had been misled by the government and days of “consultations” were effectively a waste.
Mr Guerra said more than 150 business leaders had been in consultation with the government in the past week and “they have every right to feel aggrieved’’.
He said the draft plans, revealed by the Herald Sun on Thursday, were close to the final draft and were not like the information his members had been working on.
“What we wanted was a road map to recovery, what we’ve got is a road map to nowhere,” he said. “Today marks a death warrant for many businesses and many jobs.’’
Small Business Australia executive director Bill Lang said the road map was a disaster and called on the federal government to intervene.
“The only thing ‘normal’ about the plan outlined by Daniel Andrews, is that it will be normal in Victoria to be unemployed,’’ Mr Lang said.
“Already hundreds of businesses have or are planning to flee the state.’’
Mary Aldred, chief executive of the Franchise Council of Australia, which represents many small business operators, said they had been left with a “chaotic and confusing mess’’.
“This is the worst Father’s Day lunch Victoria’s ever served up and now we’re looking at Christmas dinner being ruined too,” Ms Aldred said.
“The Victorian government has created a two-tiered economy between government workers and small business owners and sole traders, who have been left so far behind it’s going to be impossible for many of them to recover.
“Business owners have the weight of the world on their shoulders, with staff, family and the community looking to them to find a way through and make things work.
“Right now they have no way of making ends meet on paying staff, rent and loans back. Small business owners are telling me they have staff begging to come to work to get away from isolation at home and regain purpose in their life.”
Executive Director of Small Business Australia Bill Lang described the road map as a disaster for business in the state and called on the immediate intervention of the federal government.
“The only thing ‘normal’ about the plan outlined by Daniel Andrews, is that it will be normal in Victoria to be unemployed,’’ Mr Lang said.
“Already hundreds of businesses have or are planning to flee the state and based on what has been announced today, thousands will follow, many unlikely to ever return.
“The plan is essentially an endless lockdown of the state, with the exception of unionised industries, that will see hundreds of thousands of small businesses forced into bankruptcy.”
Australian Retailers Association chief executive Paul Zahra said the further seven-week delay in shops reopening would be a death sentence for many Melbourne retailers.
“Without further financial support, this will permanently wipe out a large number of small businesses and see the closure of many Victorian stores by national retailers.’’
Mr Zahra said supermarkets and essential services areas had provided a good working model for safety protocols that could be followed.
NAB chief executive Ross McEwan has asked the Victorian Government to reopen the economy as quickly as possible.
“The impact of this pandemic has been devastating and the measures put in place to curb its spread are difficult – but with the plan released today we can see a path out if we all do the right thing,” Mr McEwan said.
“We need to get Victoria and in particular Melbourne open for business as quickly as possible but we need to do it safely and cautiously.
“There is no playbook for responding to this crisis. Governments need to be flexible and act on the latest health advice and their continued support of businesses and households is vital.”
Similarly, Wes Lambert, Restaurant and Catering Association chief executive, said it was “bitterly disappointing” that there would be no seated dining in Melbourne until October 26.
“We had expected that by September 13 there would be some semblance of easing of restrictions.’’
Mr Lambert also questioned why outdoor dining limits of 10 people would only be in place for four weeks.
“That’s a lot of expense for cash-strapped businesses in terms of buying outdoor chairs, tables and umbrellas for such a short period of time.’’
Mr Lambert said the industry would seek cash support from the state government and explore possible exemptions to the restrictions.
“To expect our industry to remain relatively closed until Christmas is a bitter pill to swallow.’’
The state government’s plan outlines the restrictions that will be lessened between September 13 and November 23, after which the state will need to have 14 days COVID-free before reaching “COVID-normal”.
According to the latest announcement, restaurants and cafes can host outdoor seated service with a group limit of 10 from October 26 if the statewide daily average is less than five new cases.
From November 23, subject to public health advice and if no new cases are diagnosed in previous 14 days, all retail can open and the hospitality indoor group limit will be 20 people for seated service with a cap of 50 patrons.
The Premier said new modelling left no choice but to extend restrictions.
“This job, the great honour that I have to lead our state, every day is filled with decisions that are really, really difficult … you are not quite certain which option you choose,” he said.
“Others are difficult because you know what the consequences of those decisions will be. Some of them are indeed heartbreaking. This is not a 50-50 choice.”
Chapel St traders feared for their livelihoods as the latest restriction timetable would bite into busiest time of the year.
Precinct general manager Chrissie Maus said the cure was now worse than the cold.
“Some of our businesses haven’t made any revenue since the first lockdown,’’ Ms Maus said.
“They have been on borrowed time. It’s black and white now, the cure is much worse than the cold! Beyond the harrowing economic strain, I’m now most concerned about the long-term damage to our business owners mental health and our communities’ well-being.’’
“We definitely should be putting an iron-clad protective shield around our elderly and nursing homes, and doing everything we can to protect our health care workers, but we need to sandbag high-risk areas and get everything else open. Ring fencing should have been considered.’’
Key fitness industry figures have also expressed dismay at the government’s new road map which they say might not see them re-open until next year.
Gyms Coalition leader Tim Schleiger has more than 50 Victorian gym owners joining a petition for the government to allow them to safely reopen.
More than 20,000 signatures have been collected with Schleiger to announce further plans on Monday.
“It’s very disappointing after making a fair bit of noise — it’s obvious that gambling, gaming and alcohol are more important to the government than the mental and physical health of Victorians,’’ he said.
“It’s not doing us a favour opening a couple of boot camps for two people. They don’t care about us.”
Gym owner Michael Ramsey, who is joining Schleiger in calling for action, said people are hurting.
“A million people every day in Melbourne train at a gym so this change to outdoor training makes a very small difference,’’ said Ramsey who is a trainer and owner of Strong pilates studios.
“We weren’t even acknowledged in the press conference. It’s killing us and I think there’ll be a few gyms that don’t make it through.
“We really won’t get a clear run at it until next year now and that is not good for people’s mental health and wellbeing. It’s absolutely deflating.”
Mr Andrews foreshadowed about 101,000 workers in construction, warehousing, distribution, childcare, manufacturing and areas such as outside garden maintenance, would be among those allowed back to work first under the easing of restrictions.
VICTORIAN BUSINESSES WERE HEADED FOR ‘OBLIVION’
The road map to easing restrictions has been described as “hard and crushing news” by Scott Morrison.
The Prime Minister on Sunday expressed concern that the further lockdown would have serious impacts on the economy and the mental health of all Victorians.
“Today’s announcement from the Victorian Government to extend lockdown arrangements will be hard and crushing news for the people of Victoria, and a further reminder of the impact and costs that result from not being able to contain outbreaks of COVID-19, resulting in high rates of community transmission,” Mr Morrison said.
“It is vital to the national interest to restore Victoria to a COVIDSafe environment, where we can reopen our economy and reasonably restore the liberties of all Australians, whether in Victoria or anywhere else.
“The proposed road map will come at a further economic cost.
“While this needs to be weighed up against mitigating the risk of further community outbreak, it is also true that the continued restrictions will have further impact on the Victorian and national economy, in further job losses and loss of livelihoods, as well as impacting on mental health.”
Josh Frydenberg said he would work with businesses to support them and work out a way forward.
“Now that we have been advised of the plan and it has been released we will also seek feedback from Victorian business and industry stakeholders to understand their concerns and seek to ensure they are addressed,” the Treasurer said.
“We will continue to support Victorians and the businesses that employ them as they deal with the impacts of the state’s second wave, by safeguarding the health and mental health of Victorians and protect and save their jobs and livelihoods wherever possible.”
Health Minister Greg Hunt said the Victorian experience highlighted the importance of a strong contract tracing team to bring the virus under control, comparing it to NSW’s system.
“The most effective means of reducing community transmission must be an effective testing, tracing and quarantine system, bolstered by enhanced local health capacity and physical distancing,” Mr Hunt said.
“These are essential prerequisites to reduce the spread, save lives and manage the economic and job impacts.”
Modelling released by Victoria will be carefully examined by the Commonwealth and Acting Chief Medical Officer Paul Kelly in the coming days before commenting further.
Victorian Senator David Van said Victorian businesses were headed for “oblivion” under the plan handed down on Sunday.
“Premier Andrews has laid out a road map to oblivion for many Victorian businesses,” Mr Van said.
“There is no chance that he can deliver the thresholds needed to step down on his road map.
“Victorians need to ask one question- if NSW can stay open and still suppress COVID-19 spread, why can’t Victoria?”
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