Victoria set for mammoth post-lockdown boom set to bank state tens of extra millions
Victoria’s economy is preparing for a cash injection worth tens of millions of dollars over the coming weeks as people make the most of new found freedoms and spend like never before.
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
Victoria’s economy is set to reap in tens of millions of dollars over the coming weeks as people make the most of their new found freedom by spending cash in pubs, shops and trips away.
The impact of Victoria opening up is tipped to reboot the state’s economy to 95 per cent of regular functioning, according to leading experts.
After eight ‘doughnut days’ with no new cases recorded across the state, the Andrews government is being urged to increase caps on hospitality venues and to bring country and city restrictions into step.
Paul Guerra, Chief Executive Officer of the Victorian Chamber of Commerce and Industry, told the Sunday Herald Sun: “The hospitality, visitor economy, beauty and fitness industries can’t wait to welcome more clients again.
“Further flexibility to the indoor and outdoor dining caps would be welcome; we know our restaurants, cafes and pubs are hoping to see the limits increase to match the demand they are experiencing. We need to be getting closer to the current levels that NSW is operating at before the borders open again.
“This trading period, as we head in to Christmas, is crucial and I’d encourage all Victorians to support local, travel local and buy local if you can.”
Leading independent economist Terry Rawnsley said Victoria did not need to eliminate the virus like WA and New Zealand to get the economy back up and running.
“When you get to zero cases like WA’s had for a long time or you’re NSW sort of just bumping along with some days zero and some days five (cases), if you look at the economic indicators for those two states, they look broadly the same,” Mr Rawnsley said.
“The economy doesn’t seem to stress, whether it’s elimination or suppression as long as people have confidence that things are under control.
“When government officials and the general public see the virus under control and restrictions start to be eased even more, that’s when you see the economy bouncing back to that sort of 95 per cent to where it is pre-COVID. Some sectors will bounce back pretty quickly. There’s this pent up demand for cafes, retail, everyone needs the Kmart fix.”
Deakin head of epidemiology Catherine Bennett said she expected to see the Andrews government announce major changes on Sunday, including bringing rules for regional and metropolitan areas into step with each other and increasing hospitality capacity.
“There is an argument for hospitality to be able to increase numbers if the next few days see a similar pattern,” Prof Bennett said.
“There’s more sense in making a density-based rather than having a fixed number of people.”
“If we continue on this path, before this month is over we’ll be ready for COVID normal and really opening up to that longer-term plan of sustained safe and much more open practice.”
Prof Bennett said there was no reason for WA to remain closed off to the rest of the country if cases remained low in Victoria and New South Wales.
Last month national cabinet committed to a new COVID-normal road map by Christmas, outlining the reopening of domestic borders and massive relaxations for gathering caps, subject to distancing rules.
Pubs and venues will be allowed to reopen with 500 patrons and universities and Tafes would increase their face-to-face teaching wherever possible.
All territory and state leaders – other than WA – agreed in principle to a reopening road map, with a final framework is set to be rubber-stamped at the next national cabinet meeting on November 13.
MORE NEWS
MELBOURNE’S MASK RULES COULD SOON BE RELAXED