Garland & Garland cofounder Phoebes Garland shares her thoughts on the latest lockdown.
Hooray the money is finally coming.
In a joint effort by the NSW state and Federal governments, on July 13 2021, a billion-dollar economic support package was announced for those affected by the extended lockdown in NSW, finally offering some certainty to businesses in the lockdown period.
I asked CEO of Australian Retailers Association Paul Zahra to share his thoughts on the measures, and he too welcomes the relief.
"It’s clear we will be living with COVID for some time, and we are pleased to see a national approach to support measures for extended lockdowns.
"This will provide small businesses with the confidence they need and will help alleviate some of the mental health pressures staff and business owners confront with extended lockdown.
"We have a situation where many businesses are facing weeks of lost revenue, with no end in sight and some are preparing to close for good.
"Displaced workers are unsure how they’re going to pay their bills and rent.
"The economic support package has certainly come as a welcome relief.
"We’re into week three of this lockdown, and people and businesses up until now have been trying to survive without a proper safety net in place.
"Lockdowns have a heavy social and economic cost.
"The lockdown in NSW is costing around a billion dollars a week in terms of lost retail trade.
"It’s also taking a toll on people’s health and wellbeing, and we are pleased to see the additional mental health supports," he said.
One thing everyone seems united on is that the vaccination rollout needs to happen, and it needs to happen fast to avoid these devastating lockdowns.
"The vaccination program is critical," Zahra added.
"It’s the only way we’ll seen an end to these sorts of lockdowns and restrictions that are devastating businesses and livelihoods.
"The ARA is working closely with the Federal Government and other industry groups on solutions to expedite the vaccine rollout. The retail industry stands ready to support this effort in whatever way it can," Zahra told me.
So why has the lockdown been so hard on retailers this time?
Firstly, last year there was Jobkeeper.
Jobkeeper was a huge lifeline and kept people employed. And let’s not forget those very welcome tax credits for a lot of businesses and state grants.
Without another quick and easy government financial support package, it was highly likely those lengthy queues outside Centrelink would have re-emerged from 2020.
This year, many businesses didn’t know what was likely to be on offer, with two weeks of no commitment by the Federal Government and rents accumulating.
Last year in March when it all hit the fan, we were a country, "all in this together," as stated by Prime Minister, Scott Morrison.
And we were. Government support went out swiftly last year.
This time around it’s been different. It has now turned into a political game of state versus federal politics based on lockdowns.
Some businesses have felt the NSW state leadership this time around has been 'wishy washy' because a hard lockdown wasn’t called earlier.
However, in all fairness to Gladys Berejiklian she has been blindsided by the strength of the Delta variant, and she has always made it clear she has not wanted to call an extension to the lockdown longer than necessary.
Hindsight can be a wonderful thing.
All retailers concur that the main problem is the lack of definition of what is an essential retail business.
This lack of definition has caused confusion with retailers and their customers.
Small independent boutique retailers have reported members of the public calling the police on them for opening. Even the police were confused on the rules when turning up to one premises.
And it’s been ugly. In some cases, the public have also been naming and shaming retailers for opening and posting photos of their shops on social media.
One of the biggest issues is, many retailers have also been unable to negotiate rent until today’s announcement and haven’t been protected from eviction.
Lara Hall, owner of Lifestyle Boutiques, said her landlord was unable to provide rent reduction until the government stepped in.
"Rent reduction will be only on the condition of government support."
One thing is clear, it has become imperative for the government to act swiftly during these times of lockdown and get the money out fast.