Chamber survey asks NT companies: Will your business survive coronavirus?

NORTHERN Territory businesses are being asked if they think they will survive the economic side effects of the coronavirus shutdown.

Northern Territory businesses are being asked if they think they will survive the economic side effects of the coronavirus shutdown. Picture: Supplied

NORTHERN Territory businesses are being asked if they think they will survive the economic side effects of the coronavirus shutdown.

The Territory-wide survey comes at the same time Deloitte Access Economics Investment Monitor reports that the Australian economy is expected to fall into a deep recession this year.

The Territory chamber, which represents more than 1100 Territory businesses, says the survey information will help assist it to support and lobby for business in the Territory.

“The information and data collected will be used to inform businesses, policymakers, and the community on the impact of COVID-19 in our business community,” the chamber says.

It wants to hear from as many industry sectors as possible.

The survey drills down into the level of financial loss businesses have incurred since February because of coronavirus shutdowns and how long it can sustain the significant lockdown measures or further social distancing.

Businesses are also asked their opinion about ending current restrictions.

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It asks businesses to rank their biggest concerns about the impact of coronavirus currently on their business, addressing viability, staffing intentions, supply chain linkages/exposure with affected markets and inability to travel.

Looking to post coronavirus restrictions, the Chamber of Commerce NT wants to know if restrictions were eased, where would businesses need the most support.

Today’s Deloitte Access Economic report points out the Northern Territory’s domestic economy was relatively weak leading into 2020.

It repeats last week’s jobs assessment that the Northern Territory is likely to shrink less than any other jurisdiction due in part to the fact that more than one quarter of the workforce are public servants, limiting the rise in unemployment.

Deloitte warns demand for LNG exports will fall, “but not by as much as exports in other industries”.

“Like all jurisdictions, the biggest risk remains the health crisis, where the Northern Territory faces a significantly tougher challenge given its more vulnerable population,” the report says.

“There have been widespread job losses in Australia, consumer confidence has fallen to its lowest point in three decades and the latest data saw the largest decline in business confidence on record.”

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The report’s lead author, Stephen Smith, said during tougher economic times, businesses have greater ability to wind back their spending compared to consumers.

“And that is exactly what is expected, with the total amount of private business investment set to fall by more than one third in 2020,” he said.

“The underlying fundamentals for a recovery in private business investment will remain soft for some time to come.”

The Chamber of Commerce Northern Territory has proposed a four-stage approach to return the Territory to economic health and a new three-pillar strategy to build the Territory into a national economic force.

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Chamber chief executive officer Greg Ireland said the process must start with everyone understanding and acknowledging the realities of the current situation.

“There’s been serious damage to business in an already depressed economy,” he said.

“There’s a great risk of businesses closing, and losing people and skills; investor confidence in the Territory is low; and the Territory Government’s financial situation is dire and unlikely to recover inside a decade.”