Page 92 - Week 01 - Tuesday, 8 February 2022
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A RiotAct headline on 28 January read:
ACT businesses require more support or face closures.
The article spoke about the government extending a range of business supports but said that the Canberra business community says it is not enough to save many from closing permanently. That is my chief concern. What about the businesses facing closure? What is the government doing for them and their families?
I welcome the government extending the small business hardship scheme until the end of February and extending the food business registration fee waiver and the annual licence fee waiver for liquor licences for nightclubs, restaurants, cafes and bars. But the problem is that, for businesses, these fee waivers must be paid upfront before they can be reimbursed and it is at a time when these businesses are dealing with cashflow problems due to fixed expenses and reduced income. It is no surprise that many small businesses are saying the limited government support will not be enough to help them survive.
As I said, my question to the Labor-Greens government is: what are you doing to stave off the small business closures and how many businesses have already closed? That is why I am calling on the government to release an updated economy recovery plan to support business, to give them clear information and to give clarity to the business owners so that they can do their planning and understand what lies ahead.
It may seem obvious but the small businesses really struggling are those that rely on customers coming through the door: the cafes, the dry cleaners, florists, as I have mentioned, the personal trainers, yoga studios, boutique clothing stores. As Graham Catt from the Business Chamber has said:
Businesses are really hurting, particularly customer-facing businesses. People are dialling down their risk and not going out. They are not showing up and not spending.
The Hog’s Breath Cafe at Woden shut its doors for the final time last week after 18 years of operating, with Stu Wiggins revealing that he has been looking hard at the books for the last six months. Mr Wiggins spoke about the toll the last two years had taken, the stress and uncertainty that all small business owners feel, and he said he got out before financial pressures got so bad that he could no longer meet his staff obligations. That is honourable.
Anthony Brierley from the Australian Hotels Association has revealed some hospitality venues suffered a massive 90 per cent downturn over December and January. It is worse than it has ever been, Mr Brierley has said. Mr Brierley’s comments were echoed by small business managers, Richard and David Ho, at Majura Park. They said that business has never been more difficult. “It’s just so quiet,” they lamented. It is probably the most challenging time compared to the whole pandemic because … it’s hard to prepare.”
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