Exodus from Sydney CBD as virus strikes again

Sydney’s central business district is expected to be deserted from Friday midnight, in a $300m hit to the economy.

Brett Scallan takes his computer home so he can work from home as Sydney CBD prepares to go into lockdown for a week after a spike in Covid cases. PPicture: John Feder.

Sydney’s central business district is expected to be deserted from Friday midnight, returning to the depths of last year’s lockdown when the coronavirus pandemic hit local shores in the first such dramatic crackdown in the heart of the NSW capital since the pandemic broke out.

The business community is bracing for hundreds of millions of dollars worth of lost trade and lower productivity as workers switch back to home offices and retail and hospitality businesses endure costly shutdowns.

NSW authorities have moved to lock down four local government areas to ensure they have not missed any chains of community transmission.

But it comes at a heavy cost, with early estimates indicating the cost of the restrictions could be as much as $300m per week to the NSW economy.

Premier Gladys Berejiklian said the move was needed to capture chains of community transmission as the government did not want workers spreading the virus at workplaces.

The main heat is expected to fall on smaller retailers which do not provide essential services, while large malls and many office buildings remain open for a skeleton staff of essential workers.

The city exodus continued across Sydney on Friday afternoon, as professionals tucked computers under their arms and carried cardboard boxes from their offices — ready for yet another stint of remote working.

“It’s not ideal but I’m used to it from last year,” said funds manager Brett Scallan, while moving his work computer back to his eastern suburbs home. “I have a good set up at home, and no one will be in the office and I’m not keen on wearing the mask all day.”

“We’ll work from home for the foreseeable future, I think, until we get an idea of how long this will be for,” Mr Scallan said.

The shutdown is a blow to the recovery from the depths of the coronavirus crisis and knocked confidence which has been exacerbated by the poor availability of vaccinations in Sydney.

The outbreak has also prompted calls for state and federal government assistance for affected businesses and workers, with packages being formulated over the weekend.

The measures have been cautiously welcomed by business which is keen for a short, sharp controlled lockdown to head off a longer restrictions across more areas which could hit crucial supply chains.

City and inner city shops are expected to become ghost towns after an initial burst of pre-lockdown shopping.

Business groups called for federal support due to the slow vaccine roll out.

“Today is a reminder just how vulnerable we all are until many more people are vaccinated – the key to that is boosting our national stockpile as a matter of urgency,” Committee for Sydney deputy chief executive Ehssan Veiszadeh said.

“The NSW government is clearly doing whatever it can to avoid a full Sydney lockdown but today‘s announcement is a significant escalation and shows how concerned our officials are,” he said.

NSW acting executive director at the Property Council of Australia, Lauren Conceicao, said the group was supportive of the government and it was “clearly in the best position to make these calls”.

“We have every confidence in the calls they are making,” she said. “We understand there is an economic impact from this decision but at times like this we need to put our health first.”

The government has signalled its willingness to provide for affected businesses with NSW Treasurer Dominic Perrottet saying he was working on a response.

Sydney MP Alex Greenwich and Sydney lord mayor Clover Moore wrote to the treasurer seeking hardship grants for business impacted by the lockdown.

“Impacted businesses will need to urgently know whether financial support will be forthcoming to help them with staffing, cash flow and planning,” Mr Greenwich said.

A spokesman for the NSW Treasurer said the government “will assess the impact of the latest restrictions on businesses as the situation progresses”.

“We know the best thing we can do for the NSW economy is limiting the spread of the virus quickly and thereby reducing the time that the current restrictions need to apply,” he said.

Mr Perrottet has been in contact with federal Treasurer Josh Frydenberg and will hold further talks about business and employee support.