Coronavirus: Gerry Harvey’s plea for Australian suppliers

Retail giant Gerry Harvey has called on the Morrison government to provide interest-free loans to manufacturing firms to stimul­ate local employment and industry.

Retailer Gerry Harvey. Picture: Luke Marsden

Retail giant Gerry Harvey has called on the Morrison government to provide interest-free loans to manufacturing firms to stimul­ate local employment and industry as the coronavirus hits the economy.

Mr Harvey, the founder of Harvey­ Norman, said he would make a personal request to Josh Frydenberg that the government provide financial support to help local industry grow.

He said the coronavirus was a “wonderful opportunity” for local manufacturing companies as imports had become more expensive.

“We have got a lot of our furniture suppliers that could ramp up their business. They survived through importing and (through) the global financial crisis and now they are still surviving but they are out there,” Mr Harvey told The Australian.

“We would like to make their businesses stronger so this is a wonderful opportunity for them at the moment because imports are becoming more difficult, prices are going up, and so now they can compete more effectively.

“So I am going to suggest to (the Treasurer) that he should have a look at them and lend them money, 12 months interest-free, and it won’t require a great deal of money.”

Mr Harvey said the loans should be available to manufacturing firms that had been able to ­survive despite a rise in global imports­.

“This will only make them a better business and employ more people,” Mr Harvey said.

“As long as it increases the capability of these manufacturers to employ more staff and compete more effectively with imports. That would be very good for the Australian economy.

“It would also be very important if (the government) came out with a situation where they said, ‘we guarantee loans will be approve­d within 10 days of applic­ation’.”

The Council of Small Business Australia held a meeting of members­ and stakeholders in Canberra on Wednesday to decide the needs of small business during the epidemic.

A COSBOA communique said the government should consider allowing payroll tax exemptions while the coronavirus remained a threat.

The lobby group said the govern­ment should consider giving financial assistance to workers who were forced to stay home because of the virus, while businesses should also be compensated.

“The government should develo­p and implement one-off payments to households in regions­ that are impacted by major outbreaks of COVID-19, possibly by the provision of business vouchers,” the communique said.

COSBOA chief executive Peter Strong said businesses might close without a stimulus response to COVID-19.

Australian Chamber of Commerce and Industry chief executive James Pearson said coronavirus had already affected the tourism, education and constructi­on sectors.

“We have already put to the government that we think they should expand the instant asset write-off,” Mr Pearson said.

Business Council of Australia chief executive Jennifer Westacott is calling on the government to bring forward a tax break for business­ investment.

“To give all Australians a chance to get ahead we must boost business investment,” she said.