The state government of Victoria’s new lockdown measures in the wake of concerns regarding the transmission of the new coronavirus variant came as businesses were preparing for the busy twin holidays of Lunar New Year and Valentine’s Day, depriving them of a big boost in activity that would have gone a long way to helping them in their post-COVID recovery.
In light of yet another body blow for the SME community, Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called on the Victorian Government to urgently compensate small businesses that have been forced to close down because of the latest lockdown measures.
“Small businesses such as florists and restaurants currently have their storage rooms packed with supplies, ahead of what they thought would be one of their busiest trading days of the year,” Carnell said. “Unfortunately, this snap lockdown means thousands of Victorian small businesses need to shut up shop for five days without any notice.
“It is for this reason the Victorian Government needs to immediately announce a compensation package for affected small businesses who have lost stock such as flowers and food,” Carnell added. “The compensation should also cover all other costs associated with running a business including staff wages and rent.”
The Ombudsman stressed that it is impossible for small businesses to plan for sudden lockdowns, and that the timing of these measures, coinciding as they do with Valentine’s Day and Lunar New Year celebrations, could not be worse.
“Victorian restaurant owners are understandably frustrated, given this lockdown announcement came just hours after their additional supplies were delivered,” Carnell said. “Many were fully-booked all weekend. These small businesses are set to lose thousands of dollars worth of stock through no fault of their own.
“Given the nightmarish 12 months these cash-strapped small businesses have already been through, there’s a real risk this lockdown could break them,” Carnell bemoaned. “It’s absolutely critical these small businesses have the support and certainty they need from the Victorian Government to get through this.”
