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NT businesses face worrying ‘cliff’ when JobKeeper ends Chief Minister warns as first beers flow

THERE is a worrying ‘cliff’ that’s due to hit NT businesses once the Federal Government’s JobKeeper payment lifeline is due to expire, Chief Minister Michael Gunner has warned

‘A turning point’ in fight against COVID-19, despite long road ahead

THERE is a worrying “cliff” that’s due to hit NT businesses once the Federal Government’s JobKeeper payment lifeline is due to expire, Chief Minister Michael Gunner has warned.

Pouring his first beer to celebrate the reopening of pubs, cafes, and restaurants in the NT, Mr Gunner said easing coronavirus restrictions in the foreground of severe national economic hardship provided businesses the confidence to trade and retain jobs.

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Chief Minister Michael Gunner Pours a Schooner at The Revamped Cavenagh Hotel. Picture Glenn Campbell
Chief Minister Michael Gunner Pours a Schooner at The Revamped Cavenagh Hotel. Picture Glenn Campbell

But the end of the $130 billion JobKeeper package in September, credited with preventing a more catastrophic unemployment rate than the current national low of 6.2 per cent, “worries” Mr Gunner as neither businesses nor government know whether trade will be good enough at that stage to keep people in work.

“That’s the period that worries me because we are going into the low season as well,” he said.

Mr Gunner, who stopped by the Roma Bar before heading to The Cav to pull a beer, had to request an early mark from the Prime Minister in order to leave the National Cabinet meeting.

It was granted, though Prime Minister Scott Morrison said he wondered why “it was such a late opening”, implying bars open a lot earlier than noon in the NT.

“I’m sure that will be something celebrated up there in Darwin,” he said.

“While there’s not too much to celebrate more broadly as a country with the difficult circumstances we face and particularly with yesterday’s unemployment numbers, it is, I think, a welcome sign that we are on the road back.”

An estimated 3000 Territorians were expected to head back to work yesterday, with thirsty punters expected to pump $4 million into businesses.

Mr Gunner also defended the public servants dealing with the maligned $100 million Home Improvement Scheme, saying there wasn’t “enough understanding” of the work they were doing.

NT tradies have become increasingly frustrated at the slow pace of vouchers being sent out.

Mr Gunner said according to staff 1 in 5 applications were “good to tick”, while the rest needed added information which were blowing timelines out for staff to get the forms in order.

Original URL: https://www.ntnews.com.au/business/nt-businesses-face-worrying-cliff-when-jobkeeper-ends-chief-minister-warns-as-first-beers-flow/news-story/dcb19b140bc715aeeccd39f5ef91f058