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Chamber of Commerce NT warns of mass exodus if economy not reopened, proposes exit strategy

The NT could face a damaging mass exodus of people unless the safe reopening of the local economy begins soon, the Chamber of Commerce has warned.

National cabinet considers easing restrictions

THE NT could be hit by a mass exodus of people unless the safe reopening of the local economy begins soon, the Chamber of Commerce has warned.

This has prompted the Top End’s peak business representative group to propose a coronavirus restriction exit strategy that involves opening the NT’s two major hubs before while leaving vulnerable regional centres shut.

Chamber of Commerce NT chief executive Greg Ireland, in a blunt open letter seen by the NT News, said the Territory cannot “sugar coat the hurt”, warning many business will not reopen and many jobs will not restart.

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Darwin International Airport almost deserted when COVID-19 border restrictions were put it in the NT. Picture GLENN CAMPBELL
Darwin International Airport almost deserted when COVID-19 border restrictions were put it in the NT. Picture GLENN CAMPBELL

“It is not as if we can simply turn the tap back on when conditions improve,” he said.

New ABS data released this week revealed 9500 jobs have been lost in the Top End since Australia marked its 100th coronavirus case on March 14, and total wages has plummeted 17.6 per cent in the same time, equating to $33 million less in people’s hands.

According to the Chamber, in the NT the accommodation and food service sector was hit the hardest, shedding 2240 jobs in three weeks, followed by professional, technically and administrate services, where 1660 jobs were lost in the same time frame.

Chamber of Commerce NT chief executive Greg Ireland.
Chamber of Commerce NT chief executive Greg Ireland.

Mr Ireland said history had shown the longer people were out of work the more likely it was for them to leave the NT for interstate or overseas, depleting both skills and population.

There are fears the NT’s population loss could be far worse than the 4000 person shortfall experienced in 2019 when 23,000 departed the Top End and only 19,000 arrived.

“The sooner we can safely begin to reopen the Territory economy, the less the fast-accumulating damage will be, and the sooner the recovery process can begin,” he said.

Chief Minister Michael Gunner, who has been hesitant to specify a NT reopening timeline, on ABC News on Thursday revealed he believed pubs, clubs, restaurants and cafes would come online “through the dry season”, indicating the sector could get back to business progressively before October.

He said the “last thing” to be undone would be the strict lockdown of the Territory’s borders.

Chief Minister Michael Gunner addresses the media after National Cabinet on April 21, 2020. Picture: Che Chorley
Chief Minister Michael Gunner addresses the media after National Cabinet on April 21, 2020. Picture: Che Chorley

The Chamber of Commerce has proposed Greater Darwin and Alice Springs, which combined account for 71 per cent of the NT’s total population, should be prioritised for reopening.

Meanwhile, “tailored reopening strategies” should be crafted for the regional centres of Katherine, Tennant Creek and Nhulunbuy to ensure biosecurity concerns- particularly around the vulnerability of indigenous people to the virus- remains the priority focus.

Under the chamber’s proposal, pubs, clubs, hotels and other service businesses should be the first to come out of lockdown, followed by parts of the retail and wholesale sectors.

The mining sector should also be given priority, with fears new investment could be delayed if companies cannot return to business as usual, especially as market conditions remain uncertain.

“The Chamber proposes that businesses that seek to reopen, or ramp-up trade, be supported by government to conduct thorough risk assessments and implement risk management plans,” Mr Ireland said.

“These will help businesses, particularly in accommodation and food, and in services and retail to progressively reopen while protecting staff and customers – and by extension, the greater Territory community.”

There have been no new cases of coronavirus in the NT for 16 days, and of the 28 people infected 17 have recovered and no patients currently require intensive care.

Original URL: https://www.ntnews.com.au/business/chamber-of-commerce-nt-warns-of-mass-exodus-if-economy-not-reopened-proposes-exit-strategy/news-story/6bd883a0025fe9112c8b8b05d6dd940e