Talking Point: Help Tasmanian businesses ease the pain of virus fallout

MICHAEL BAILEY: Tasmania has the health challenge in hand, but businesses need a clear path in this crisis

CHALLENGE: The Tasmanian Government met this week with sectors affected by the global spread of coronavirus. Picture: RICHARD JUPE

THIS week, the Tasmanian Chamber of Commerce and Industry took part in an industry roundtable held by the State Government to discuss the impacts of the coronavirus.

It was a sobering session for all involved. What became clear was that there are two distinct, yet overlapping, aspects to the coronavirus outbreak.

First, there are the public health impacts. Second, there are the economic impacts.

In relation to the health impacts, what we learned at the roundtable was that the government is well prepared and has plans in place to deal with coronavirus in Tasmania. These plans are flexible, scalable and aimed at stopping the spread of the virus in the community.

While everyone is concerned about coronavirus, there is certainly no need to panic.

Staying calm and following the advice of health professionals is the best thing we can all do to deal with this situation.

The Health Department’s website has a range of useful information — see www.health.tas.gov.au

The economic impacts are already starting to be felt by some businesses and in some ways are separate from the health impacts in Tasmania.

While obviously an increase in cases in Tasmania will have an impact, the scale of the economic impacts is not necessarily related to the number of coronavirus cases in Tasmania, because our state is part of a global economy.

Businesses may be impacted because of what is happening in China, the US or South Korea rather than what’s happening in Tasmania.

The stories about the impacts on our seafood industry, for example, are heartbreaking.

Many businesses in the sector were gearing up for one of the busiest times of the year when, literally overnight, their markets collapsed, orders were cancelled and supply chains fell apart.

Many Tasmanian seafood businesses were left with tonnes of perishable product, nowhere to sell it, no way to move it and losses totalling six or seven figures.

Likewise tourism, hospitality and retail face a difficult few months, especially with this week’s announcement that Dark Mofo has been cancelled for this year.

As always, the TCCI is here to support Tasmanian business with any questions they may have in relation to managing their workforce.

The TCCI’s view is that the state and federal governments should also focus on ways to support businesses to manage through this unprecedented period.

A number of businesses have already raised questions about how to support employees through the coronavirus and what a business’s obligations are under the law if an employee has to stay at home or is diagnosed with coronavirus.

State and federal governments need to provide assistance as quickly as possible and ensure there are appropriate channels for businesses to access the information they need.

Secondly, we want all levels of government — local, state and federal — to consider how they can help businesses with their cashflow.

Stimulus measures are great, because they boost spending and consumption, but other measures should be considered too, such as extending the terms for paying government bills, potentially out to 90 days. In addition, it’s vital that governments pay their bills to businesses on time and preferably before they become due.

Finally, the state and federal governments need to work with peak organisations to launch a communications campaign that will reassure the community that all necessary measures are in place. Governments can’t leave an information vacuum because it will be filled with misinformation that could damage public confidence.

The public health challenges are well understood and are well planned for. The right response to the economic challenges are less clear and that’s where we need leadership from our politicians.

Michael Bailey is chief executive of the Tasmanian Chamber of Commerce and Industry.