Opinion: Plan for economic recovery must fit NT needs

Reopening the Territory economy needs to be planned carefully so we do not undo our successful flattening of the coronavirus transmission curve, writes business chief GREG IRELAND.

Reopening the Territory economy needs to be planned carefully so we do not undo our successful flattening of the coronavirus transmission curve, writes Chamber of Commerce NT interim CEO Greg Ireland.

• Chamber calls for businesses to be able to reopen within weeks

The economic shock from COVID-19 on the Northern Territory is substantial and will be long-lasting. The Territory’s international and Australian markets have been hit hard. Response measures in the Territory, the rest of Australia and other nations have shut down or severely restricted many parts of their economies.

We have all felt the pain, but some more than others and full recovery will take a long time. Many businesses and many more jobs will not survive.

To minimise the damage, we need to start along the economic restoration pathway as soon as possible. But we need to do it in a way that is safe for Territorians.

Thankfully, through decisive action by the NT Government and the unprecedented cooperative approach by the National Cabinet, the Territory is the only Australian jurisdiction not to have recorded any community transmission of the coronavirus. We all need to continue to do our part to keep it that way.

While the Territory’s comparative isolation from the rest of the nation has helped keep COVID-19 at bay, in other ways we are extraordinarily vulnerable. Up to one third of the Territory’s population (indigenous and elderly Territorians) are susceptible to the worst effects of COVID-19.

There would be a devastating penalty for uncontrolled community spread, particularly with so many Territorians living in remote communities with access to only basic health infrastructure and services.

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No doubt all Territory households and businesses are keen to return to more normal conditions, or rather, what will be a new normal. We need to reopen our businesses, get people back to work, buy things from each other, invigorate investment and return to economic activity as soon as it is safe to do so.

Reopening the economy needs to be planned very carefully however, so as not to undo our successful flattening of the virus transmission curve.

Our governments have shown resolve and leadership to protect lives and protect jobs. The massive economic assistance measures implemented by Federal and Territory governments have been vital to support business, households and individuals against a more dire economic catastrophe.

But no amount of government assistance can replace the income and business vigour that customers generate.

Territory businesses are resilient and innovative. Despite the COVID crisis, many have kept operating, having adapted their business practices to suit, as have their workers and customers. Sadly, some businesses have not been able to adjust, particularly to social distancing rules, and have been forced to close.

The tourism and hospitality industries has been very hard hit. The likely absence of visitors this coming dry season will be very difficult if not impossible for some to endure.

As much as is possible, businesses need to be able to get back to more normal operations if they are to survive – and in the longer term, to thrive.

Good news is that with some exceptions, the Territory’s goods exports to overseas and interstate markets have so far continued largely undiminished, while inward supply chains (except people movement by air) have been maintained.

Governments in Australia have commendably worked together very closely on tackling the impact of COVID-19. Together they and all Australians have flattened the curve to the point where there is potentially, a positive way forward.

Governments’ co-ordinated but differentiated responses across states and territories have acknowledged the different characteristics of each jurisdiction and different impacts of COVID-19 infections.

Similarly, recovering from the worst of COVID-19 and restoring economies will require different responses in each state and territory. In the Northern Territory, we should be able to open parts of our economy faster than in some other parts of Australia.

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The Chamber of Commerce proposes some guiding principles for the Territory Government for reopening the economy:

•As governments have said, the pandemic has triggered both a health crisis and an economic crisis. Therefore, we must continue to prioritise both health and livelihoods – meaning that the health system must remain strong to detect cases and respond, while we progressively open up the economy again.

•The Territory Government needs to ensure that economic reopening steps are tailored to the Territory’s circumstances – just as the Territory has implemented differentiated restrictions policies aligned with principles agreed by National Cabinet.

•Economic reopening must be based on sound risk management as advised by health professionals. This is likely to result in carefully staged reopening, progressive easing of restrictions and different rules in different parts of the Territory. But it could also mean that interstate and regional border controls will need to remain for quite some time.

•Reopening should prioritise business sectors, and locations where most jobs are at stake, and are lower risk, and also ensure that the health services continue to build their capacity to detect and manage any outbreaks, OR for remote industry sites there are adequate emergency response protocols in place.

•Protocols for maintaining safety and health are essential across every sector and the Territory’s communities. It’s likely that we will all need to behave differently well into the future. This new normal is going to be challenging for both business and all of us as community members.

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Future articles are planned to address how the Territory might open up particular sectors, what the new normal might look like, and what action is needed from governments, business and consumers in order for Territory business and the Territory economy to emerge stronger on the other side.

Greg Ireland is the Interim Chief Executive Officer of the Chamber of Commerce Northern Territory.