House debates

Wednesday, 26 August 2020

Bills

Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020; Second Reading

6:37 pm

Photo of Anne WebsterAnne Webster (Mallee, National Party) Share this | Hansard source

COVID-19 has caused unprecedented damage to our nation's economy, with thousands of large, medium and small businesses struggling to survive due to lockdowns and border restrictions. The Commonwealth government acted quickly and decisively to mitigate the pain experienced by individuals, families and businesses across the country with a range of economic support measures. Undoubtedly, the centrepiece of the government's economic response has been the JobKeeper program, which is the single largest economic support measure in Australia's history. Now worth over $100 billion, the JobKeeper program has acted as a lifeline for over 3.5 million people and nearly a million Australian businesses.

Despite our continuous exemplary low number of active cases in my electorate of Mallee, restrictions have meant jobs have been lost, businesses have closed and times are tough for many. In the month of May, there were 4,200 businesses in Mallee who applied for JobKeeper. Being Victorians, many of these businesses will continue to benefit from the six month extension of JobKeeper, especially those in the tourism and hospitality industries. This is particularly welcome in our regional areas where stage 3 restrictions continue to be enforced by Premier Andrews.

In recent weeks I've heard from a range of businesses across Mallee who have benefited enormously from the JobKeeper payment. The recurring message in many of these stories is that JobKeeper has kept their business alive. It's kept employees in jobs. It has facilitated regeneration in an incredibly challenging environment.

Today I'm taking the opportunity to inform the House of some of the ways businesses in Mallee have benefited from the JobKeeper program. Tara Ridley is the owner of The Office, a wine bar in Mildura. Tara says that JobKeeper has saved her business. The Office went from being a thriving meeting place for after-work dinners and drinks in the heart of Mildura to closing its doors and receiving no income for months. When Stage 3 restrictions were relaxed in Victoria, The Office reopened with a reduced capacity of 20 people, which is a fraction of its usual patronage. It was difficult for Tara and her employees to turn people away, but they diligently followed the health guidelines from the Victorian government. With JobKeeper subsidising the wages of her employees, Tara was able to meet her other outgoing costs. It also meant that her full-time employees didn't need to look elsewhere for work. As there was no money coming through the doors for months, it would not have been possible to keep these employees on the books if it weren't for JobKeeper.

James Kedmenec from Irymple also spoke about his experience with JobKeeper. The Kedmenec family purchased the Irymple Hotel almost eight years ago and have worked hard to transform the business, making it one of the most popular venues in Sunraysia. As with most hospitality businesses in the region, the COVID-19 pandemic has been devastating for the pub. Over the years, the business has invested heavily into several key staff members, who have become integral to its operations. When the business was first forced to close due to stage 3 restrictions, James was concerned about losing these key employees. JobKeeper made it easy for the pub to keep staff members on the books, allowing them to rapidly restore their operations when they were allowed to open. Being an older pub, the building has undergone significant renovations over the years to remain competitive and provide a high level of service to its customers. JobKeeper also gave the Kedmenecs the confidence to make the best of a bad situation and invest in their business by installing a brand new bar.

The tourism industry has also suffered greatly during COVID-19 restrictions. Many of the small hotels and motels in Mallee have been hit hard due to a lack of visitors and professional clients. The Junction Motel in Maryborough, operated by Janet McDonald, is almost fully reliant on guests coming out of Australian capital cities. Janet said that, if it wasn't for JobKeeper, she would be fearful for her business' ability to survive. JobKeeper has been absolutely critical in helping Janet meet overhead costs. Janet was desperate for an extension of the JobKeeper payment when I spoke to her in July. I was glad to inform her of the extension to the program, in which she will undoubtedly take part. Janet knows that, due to the ongoing need for restrictions, the tourism industry will be one of the very last to recover from this pandemic, and she's incredibly grateful for the federal government's ongoing support.

I've also heard from an innovative printing and graphics business, Academy Graphics, operated by Mick Clohesy in Swan Hill. Thanks to JobKeeper, Mick has not needed to reduce hours for his employees during the pandemic. The payment has also given Mick the flexibility to modify his business model to meet demand for new products, including protective screens for businesses and COVID-19 related signage. This diversification has kept his business operating smoothly, despite the downturn.

JobKeeper is also being employed by a number of larger businesses in my electorate. Peter McAllister is the general manager of True Foods, a large food-manufacturing business in Maryborough. When I spoke to Peter today, he once again expressed his gratitude for the government's rapid response to the pandemic. Without JobKeeper, Peter would have been required to lay off many of his 185 staff. Instead, JobKeeper gave the business the flexibility to train staff, to increase the depth of their operation knowledge. Peter said that COVID-19 had created serious mental health challenges in his community, due to the uncertainty of employment. JobKeeper had been a vehicle for stability and hope in the lives of his employees.

Another outstanding story is that of the Elliott Newspaper Group, a media organisation with publications across regional Victoria. Its main publication, the Sunraysia Daily, has been printed in Mildura for 100 years. Managing Director Ross Lanyon told me today that he could never have predicted that his beloved local paper would cease printing on its 100th anniversary. Ross made the difficult decision to shut up shop early in the pandemic, due to the significant decreases in advertising revenue. Many of the paper's staff were stood down and the printing presses stopped churning. The JobKeeper payment meant Ross was able to keep his staff on the books and the 'Sunny Daily' quickly came back to life. Ross said that the payment has given his organisation much-needed breathing space and the ability to plan a way forward through this pandemic. It has allowed the business to be flexible and to adapt their business model by developing their digital platform. Ross told me that without JobKeeper the newspaper would not be here. Sunraysia locals would have lost a trusted source of local news at this critical time.

The real beauty for businesses like Academy Graphics, True Foods and the Elliott Newspaper Group is that they have said that they may not need to make use of the next tranche of the payment. Thanks to JobKeeper, these businesses have returned to a level where they can stand on their own two feet and look forward to the future. In the meantime, those businesses still facing harsh restrictions in the hospitality and tourism industries—such as The Office Wine Bar and Lounge, the Irymple Hotel and the Junction Motel—will continue to be supported through the next phase of JobKeeper.

This flexible and comprehensive Morrison-McCormack government response has been welcomed by businesses in my electorate, and I congratulate the Treasurer on this innovative measure. We know that the situation with COVID-19 continues to develop, and the government's comprehensive health and economic response will continue to keep pace with the virus, provide for business and support individuals and families across the country.

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