Melbourne business ‘won’t survive’ extended lockdown amid calls for government assistance
As Victoria braces for news of an extended lockdown, one business says it won’t survive if restrictions continue for weeks longer.
As Victorians face a likely extension to the state’s current lockdown, one business owner says he doesn’t think his business will survive if the restrictions continue for weeks.
Hamed Allahyari, 32, opened his Melbourne restaurant Cafe Sunshine & Salama Tea Housetwo years ago and said it had been a “very hard” time last year.
“It was a new business, people were starting to know me,” Mr Allahyari told news.com.au.
He said he lost $4000 last week due to the announcement of Victoria’s seven-day snap lockdown as his 32-seat restaurant was fully booked on Friday, Saturday and Sunday.
“To be honest, if lockdown continues and without government support, I will only survive three weeks,” he said.
Last year he said JobKeeper helped to pay rent and wages at the restaurant but he basically worked for free.
“This year, because we don’t have Covid-19 support, it’s very hard for me to just keep the cafe open,” he said.
“I don’t make enough money to pay myself.”
While takeaway and delivery orders gradually picked up during last year’s lockdown, his sales still dropped by 90 per cent.
“We are getting some takeaway orders but it’s not like when it’s outside of lockdown,” he said.
“There are some offices around here and people come here for lunch. But with restrictions those people are working from home.”
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Mr Allahyari started his not-for-profit restaurant using a government grant as it supports asylum seekers and refugees.
“Before lockdown (business) was very good,” he said.
“We were a cafe by day and a restaurant by night but as soon as Covid-19 started last year, our sales dropped 90 per cent.”
He said he was trying to support seven workers but can’t give them shifts every day.
The Australian Council of Social Service chief executive officer Dr Cassandra Goldie has called on the Federal Government to deliver pandemic disaster recovery payments.
“Just as the Federal Government provides disaster recovery payments to people who have been the victims of bushfire or flood, it should provide pandemic recovery income support, including a pandemic disaster-recovery payment, for people who have lost paid work,” Dr Goldie said.
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“There’s no question that lockdowns, while necessary to protect health, have been disasters for people who’ve lost paid work. This plan would ensure payments are fast-tracked to people who need them.”
Dr Goldie said the issue should be discussed at Friday’s National Cabinet meeting.
“The Federal Government and states should put together a jobs and income support plan to deal with sudden lockdowns,” she said.
“The plan should bring together a one-off Pandemic Disaster Recovery Payment, a lifting of JobSeeker to above the poverty line (at least $65 per day) and a reinstated JobKeeper Payment during extended lockdowns to ensure decent, timely income support for all who need it.”
Labor’s treasury spokesman Andrew Leigh said the Morrison Government “can’t simply wash its hands of this”.
“I think it ought to be going out there and asking some of those businesses that got JobKeeper last year and didn’t need it to pay up and then using that money to support Victorians,” he told 2SM on Tuesday.
There has been pressure on companies like Harvey Norman to return JobKeeper payments they received after their profits improved during the pandemic.
It’s been estimated $280 million in government support was given to companies that reported an increase in their earnings.
charis.chang@news.com.au | @charischang2