‘Sham’: Labor rubbishes business support package as too little, too late
Labor has rubbished the government’s new support package for Covid-struck businesses, which they describe as too little too late. LATEST ON THE PACKAGE >>
Hobart & South
Don't miss out on the headlines from Hobart & South. Followed categories will be added to My News.
Labor has rubbished the government’s new support package for Covid-struck businesses, which they describe as too little too late.
Labor MP Dean Winter said the money was cold comfort for businesses who wouldn’t be in such dire straits if it weren’t for the government’s premature border opening.
“Business is in this position because the government was not ready for reopening,” Mr Winter said.
“The government’s package is a sham. They rushed to announce something not because they had listened to business, but because Labor called them out.
“If Peter Gutwein or Elise Archer had bothered to consult with business before the announcement, they would know what they have offered will not be enough and does not address the fundamental flaws in the current package.”
Mr Winter said the application process for Round Two of the funding program was just as bureaucratic and time consuming as ever.
However, Rockwall Bar + Grill owner Garry Baker said he thought it was a great idea that would help struggling businesses hang on a bit longer while conditions improve.
Mr Baker said he’d already noticed foot traffic returning to Salamanca Place over the last two weeks, and that it would be no time at all before things returned to more-or-less normal.
“At the moment there’s a heck of a lot of interstate tourists coming in, and they’ve all been locked down in Melbourne and Sydney over the last two years,” Mr Baker said.
“Now we’ve got people waiting for a table so you can really feel the impact of interstate people coming to Hobart - and guess what, they love it as well.”
Mr Baker said his business most likely would not qualify for the funding program, since his restaurant was still doing a roaring trade.
Businesses must demonstrate a 30 per cent decrease in their turnover in order to be eligible for the support package.
However Mr Baker said this package would no-doubt be a welcome relief for some of the smaller businesses that had experienced harsher downturns.
Attorney-General Elise Archer said this package would help businesses navigate the return to a new normal of living with Covid.
“We’ve responded throughout the pandemic right from the start, we’ve provided $160 million to small businesses, and we’ll continue work with businesses,” Ms Archer said.
“We’ve listened to small business, and we’ve made it much easier to apply for these grants - a simplified process.”
Businesses will be able to apply for round two of the COVID-19 Business Impact Support Program from 2pm on February 15.
Information on how to apply will be uploaded on the Business Tasmania website next week.
Support doubles for Covid-affected businesses
The government has released the details of a business support package one week early in order to fend off criticisms from Labor.
It comes after Labor condemned the government for its “inadequate” level of support for Tasmanian businesses suffering from the Covid slowdown.
On Friday Premier Peter Gutwein announced there will be a second round of the Covid-19 Business Impact Support Program, which will open to applications on February 15.
It will be similar to round one of the program, however the maximum funding amount has been doubled to $10,000, depending on business turnover.
Businesses that received assistance through round one of the program may still be eligible to apply under round two.
Payments of between $1000 and $5000 will also be available to businesses that experienced an unavoidable loss of perishable goods because they have had to close for seven days or more. Payments will be tiered according to business turnover.
Da Angelo restaurateur Angelo Fraraccio said this was fantastic news for Hobart businesses who were doing it tough during the pandemic.
Mr Fraraccio said the package would help businesses survive a bit longer while waiting for conditions to improve and for foot traffic to return to the streets of Hobart.
“For people that need it, it’s a bit of an incentive for them to keep going, because it’s got to end sooner or later – we’ve got to get back to a bit of normality,” Mr Fraraccio said.
“It hasn’t been easy, but I can see a bit of light at the end of the tunnel. We’ve got a long way to go, but we’ve got to keep staying positive.
“We need to think about our staff, our families, and we’ve got to keep pushing through for them.”
Mr Gutwein said the government has already paid out more than $160 million in Covid-specific support programs for Tasmanian businesses since the start of the pandemic.
He said they would also consider further support for business owners, should conditions take a turn for the worst.
“The Tasmanian Liberal Government remains committed to supporting our small business sector as some businesses continue to face challenges associated with the COVID-19 pandemic,” Mr Gutwein said.
“While we know that our economy is strong and that many businesses are doing well, to assist those that are facing challenges, in consultation with the business community, the Government is making more funding available.”
A government spokesperson hit back at Labor for criticising the government’s plan without offering up a concrete alternative of their own.
“Covid returned to our State when we opened our borders back in December and what Labor have confirmed today is that they have no alternative plan for Tasmanian businesses apart from travelling around the State urging businesses to complain,” the spokesperson said.
“While we continue to guide our State through these uncertain and challenging times, Labor will continue to bumble their way through claiming to be the Government’s opposition.”
Round two of the COVID-19 Business Impact Support Program will open at 2:00pm on February 15.
Government support ‘woefully inadequate’: North Hobart traders
North Hobart traders say they feel let down by the government’s support packages, which they describe as a woefully inadequate response to the Covid-induced downturn.
One of them is 24-year-old Oliver Lancaster, who runs the Dana Eating House alongside his 29-year-old brother Dan.
Oliver said it was an ongoing struggle to keep all his staff in a job, especially now that programs such as JobKeeper were no more.
“The amount of support is insufficient. In fact, it’s laughable,” Mr Lancaster said.
“It’s almost insulting that the government is so out of touch with the needs of hospitality.”
Currently the restaurant supports about 15 full-time kitchen staff, as well as another 9 front-of-house waiters and waitresses.
Dan Lancaster said foot traffic had evaporated since the border reopening, and that the pinch was being felt by traders all throughout Hobart.
“Some Saturdays and Fridays there’s no one walking around the street, and those are our busiest days,” Dan said.
“January’s been very tough. We don’t know how long we can keep up with it.”
North Hobart Traders Association vice president John Kelly, who has eight tenants along that stretch of road, said shopkeepers up that way were all hurting.
Mr Kelly said the existing support packages were too little, too bound up in red tape, and too hard to access for small traders who were already time poor.
“North Hobart is an exemplar of what Tasmania is - it’s made up of small businesses, not only hospitality, there’s a lot of small mum and dad retailers,” Mr Kelly said.
“What we need is a simple, clear, accessible plan from the leaders. Any assistance has got to be accessible.”
Labor leader Rebecca White said she’d been speaking with businesses around Tasmania, and that the consensus was a general feeling of dissatisfaction.
“The Tasmanian Government simply hasn’t done enough to support businesses and workers … to ensure that they can continue to remain viable as we head into the leaner winter months,” Ms White said.
“These traders have been doing their very best. They’ve been working and adapting, trying to support their employees and trying to encourage their customers to come back. However, there’s only so much they can do.”
kenji.sato@news.com.au
Join the conversation
Stadium developers provide details on buses, reveal new renders
Developers provide further details on $715m Hobart Stadium, responding to letters from the planning commission wanting more information on the significant project.
Read more
Community backs proposed Battery Point walkway, poll reveals
The possibility of a walkway along the Battery Point foreshore has been given a big boost after a survey found an overwhelming majority of people support it. Here’s what’s next.
Read more