Double whammy of Victorian lockdown and the state’s border remaining closed leaves industries reeling

The state’s primary producers are facing widespread job losses in the wake of two major setbacks in the past week, an industry group warns. Business owners reveal what it will take to survive.

• Tasmania’s borders will not open on July 24, says Premier
• ‘Devastating blow’ as border stays shut

INDUSTRY groups warn mass job losses from Tasmania’s primary production sectors are inevitable if JobKeeper payments are not extended, as businesses reel from a two-fold hit to revenue.

The state’s seafood and agriculture industries were just starting to see positive signs before two major setbacks in the past week, Tasmanian Chamber of Commerce and Industry chief Michael Bailey said.

He said the double whammy of a second lockdown in Melbourne, the state’s biggest mainland trade destination, coupled with uncertainty around Tasmania’s border reopening, meant businesses needed more support to survive.

Gilli and Paul Lipscombe, of Sailor Seeks Horse vineyard in the Huon Valley, have been looking to boost their online sales. Picture: MAX MARRIOTT

“We’re going to need to do everything we can as a community to keep those businesses going, so that when the restrictions lift we can get people back to work again,” Mr Bailey said.

Julian Harrington from the Seafood Industry Council said the state’s oyster, scale fish, live fish and salmon industries were all highly reliant on tourism and the Melbourne restaurant market.

He said jobs would undoubtedly be lost if the $1500-a-fortnight JobKeeper wage subsidy was not extended beyond September.

“Fishers are back on the water in a limited capacity and the hopes were just starting to get up that volumes were able to increase, so this second wave (of coronavirus interstate) is quite devastating,” Mr Harrington said, adding that a second wave through Tasmania and the rest of Australia “would be far more devastating”.

Premier Peter Gutwein said on Friday he would defer opening the state’s borders until at least the end of July and Mr Harrington said oyster growers in particular would struggle with that uncertainty around when tourists would be allowed back in.

“They’ll have to make decisions about what they do with their stock because they can’t keep it on their farms forever,” he said.

Sheralee Davies from Wine Tasmania said roughly a quarter of Tasmanian wine was sold into Melbourne, while interstate visitors accounted for a huge percentage of sales in Tasmania.

“We were just starting to hear positive reports of sales picking up when the second lockdown happened in Melbourne,” Ms Davies said.

“We know those (Melbourne) restaurants are doing it tough and if they are unable to open or operate sustainably, unfortunately our wine businesses are going to be feeling that.”

In the Tamar Valley, Moores Hill winery co-owner Fiona Weller agreed.

“Melbourne is our closest natural market and it has such a vibrant scene and they’re so open to Tasmanian wines, so this is going to be difficult for Tasmania to shoulder,” she said.

Moores Hill winery co-owner Fiona Weller.

Sailor Seeks Horse winemakers Gilli and Paul Lipscombe in the Huon Valley are among those hoping to increase online sales and secure new overseas markets to make up for the downturn in cellar door and wholesale revenue.

“Melbourne is a worry because of the cumulative effect on confidence and consumer sentiment,” Mr Lipscombe said.

“We’ll just sit tight, hold on and hope for a vaccine soon.”

Pittwater oyster farmer Frank Kennedy, who traditionally sells 80 per cent of his produce to Melbourne, said he was taking a “fatalistic view” of the situation.

“Even when things open again, with social distancing we don’t expect it to be a good year, so I haven’t stocked up, I’ve cut it back to about a third of stock,” Mr Kennedy said.

“If we can sell all that stock, we will be able to keep going until better times.”

Pittwater oyster farmer Frank Kennedy. Picture: PETER MATHEW

Barilla Bay Oyster Farm and Restaurant general manager Justin Goc was similarly pragmatic.

“Unless they get it (the virus) under control and some positivity comes in terms of going out, we just have to adjust to not selling as many oysters and going into markets that we wouldn’t traditionally go into,” Mr Goc said. “Locals have been really supportive and I just hope that keeps building and people keep travelling around Tasmania.”

Small Business Minister Sarah Courtney acknowledged that keeping the border closed was tough on businesses, but noted that TT-Line had continued to operate freight services throughout the crisis, while the Government was helping to fund weekly freight flights into Asia.