Page 2306 - Week 08 - Wednesday, 4 August 2021
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business cops the downturn. But that loss of patronage is nothing compared to the thumping that businesses have taken due to severe lockdowns across the country, particularly in Sydney and much of New South Wales. The situation is ever-changing, and harsher measures continue to be imposed. Now is the time for the government to act. The hospitality sector needs a survival plan before more businesses go broke and more jobs are lost.
On top of the severe restrictions across the border hitting our economy hard, Canberra’s own period of mandatory mask-wearing also took a toll on hospitality venues. It caused anxiety, with the effect that some Canberrans put a break on plans to venture out and enjoy a drink and a meal. The reality is that some of Canberra’s hospitality venues have closed, others are contemplating closure and most have suffered a severe hit on takings.
We know of the job losses, reduced hours and worry. And I fear that there is worse to come. That is why I am calling on the government to immediately implement a hospitality support package which includes emergency cash grants for hospitality businesses and a range of other measures to help venues stay afloat.
It is one thing to read statistics and articles about business downturns and job losses, but it is far more disturbing and compelling to learn people’s stories, which reveal such pain and struggle. Last week, I spoke to a Kingston business owner who had suffered a 30 per cent drop in business since early June. He believes the threat of restrictions in Canberra and mandatory mask-wearing scared a lot of people to be cautious about their spending. He went on:
I have let staff go and cut my casual hours significantly. When you let a full-time staff member go you have to pay out leave entitlements. So you have leave entitlements building up, tax obligations building up, it’s going to be a shock down the track.
In three to six months from now businesses are going to close. It’s something I have to consider; do I continue to run the business in an insolvent fashion because I cannot reduce my fixed costs? But running insolvent you are putting those staff entitlements at risk, and then you have super to consider.
We are in a precarious situation. A lot of businesses think it will be short term and they can trade through it but for me it’s about how much more you can comfortably take on board before you say “enough’s enough”.
I’ve been in business over 30 years and I’ve always paid my bills and staff wages and I don’t want to be put in that position.”
It is a sad story.
A bar owner in Belconnen has laid off five staff members and now runs his business solely with his family. His monthly turnover has halved from $30,000 to $15,000 while his rent is $5,000 and operating costs are $10,000. He said, “We have a monthto-month lease and if things don’t improve we are going to close.” The business owner said his electricity alone is $800 to $1,000 a month, and he called on the
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