Senate debates

Tuesday, 11 February 2020

Matters of Public Importance

Australian Bushfires: Small Business

5:09 pm

Photo of Raff CicconeRaff Ciccone (Victoria, Australian Labor Party) Share this | Hansard source

I am delighted to stand up here today and speak in support, I guess, of the large number of Victorian small businesses, especially those in regional Victoria, that have been affected by the devastating bushfires over the last couple of months. Small businesses are often the lifeblood of our rural and regional communities, and many small businesses in my home state are doing it tough right now. North-eastern Victoria has suffered enormously, especially in the months of December and January, and some 1.2 million hectares of my home state have been burnt. Hundreds of homes have been reduced to ashes, and many small businesses have experienced a loss of property, assets and plants. This loss has been very difficult—very difficult indeed—and many small businesses that have been lucky enough to escape the full force of the flames now face the difficulty of reduced customer numbers.

One great example is the Milawa Cheese Company. Even though the Milawa Cheese Company was not directly impacted by the bushfires, that doesn't mean that this business hasn't been impacted by the bushfires as a result of reduced customer numbers through the front doors. For my colleagues who are not familiar with Milawa cheese, it is some of the finest cheese you will ever find in Australia. January and February are usually Milawa's busiest trading time of the year. But as you can imagine, visitors have stayed away. Time and time again we will find many examples, as we have heard from previous senators and no doubt we will hear from senators to come, of businesses that are really struggling. The Milawa Cheese Company has not enjoyed the sales it might have. In fact, locals in that community have reported around a 90 per cent drop in tourism. A 90 per cent drop is something that local businesses cannot recover from. A 90 per cent drop in tourism is absolutely extraordinary and will put some small businesses up against a wall. Not only will they lose direct sales as they experience difficulty over the coming months but it will also have an impact on the supply chain all the way, in the case of Milawa Cheese, to the dairy farm gate. There was one small business representative quoted online as saying:

… we are definitely feeling the indirect costs of the absolute loss of tourism at this, our normally busiest time of year. Whilst so many have lost so much more, this is going to have so many long term implications for the local tourism, accommodation and agriculture businesses, even the milk we are getting is telling the tale.

I'm happy to say that companies like Milawa cheese have made the best of the situation. In fact, Milawa is sending its cheese stocks to markets and offering its cheese free in many hampers.

In another example in south-east Victoria, Bruthen is a town that felt the full force of the bushfires. You will find many fantastic local businesses in Bruthen—in particular, Bullant Brewery. Business at Bullant is down 80 per cent compared with last year. However, the beers are still cold and the food is still hot; everything is ready to go. What's the only thing sadder than a pub with no beer? It is a pub with no customers.

These are just two examples of small businesses trying to make the best of a very bad situation. There are hundreds more stories like these from the bushfire-hit regions of Victoria of small business owners trying to pick up the pieces, get back on track, keep paying their employees and keep putting food on the family's table. While we have seen the very worst during this crisis, we have also seen some of the very best. Australians are rallying to support those businesses affected by the fires with movements like 'Empty Esky' and 'Spend With Them'.

Many small businesses have lost their livelihoods through the indirect consequences of fires, such as the blow to tourism during what is usually the busiest time of the year. They continue to face economic uncertainty while they rebuild. The lack of visitors during what is normally a very busy time of the year has had a worse impact on many small businesses than the global financial crisis. While the community rallies behind those affected, government must also step up to ensure these businesses are being supported without delay. The process for businesses to access relief grants and loans promised by this government must be simple and expedient.

Unfortunately, we have heard many businesses crying out for support, as they face obstacles accessing these relief loans promised by the government as part of their small-business bushfire package. The government announced that eligible small businesses can access loans of up to $500,000 if they have suffered significant asset loss or a significant loss of revenue. Labor is concerned that the government's promised package may not be getting to businesses that need it most. Clarity around who is eligible and around the processes for applying for financial assistance is needed urgently. Many businesses across fire affected areas are facing closure if they don't get help right now. Many rely on the summer season to get through for the rest of the year, but that season is almost complete. While we welcome the assistance and the package that was announced by government, we must reiterate how imperative it is that small businesses receive funds to stem a cash-flow crisis.

While some grants and loans assistance processes have started in the last couple of weeks, it is important to note that these bushfires started back in September last year. Businesses need assistance as soon as possible. On the government's very own website, full details for small-business recovery grants and loans in Victoria are not yet available, and this is really unacceptable. 'Coming soon' does not help these businesses. The website also states that there are only 10 financial counselling staff to assist small-business owners, but almost 200,000 businesses have been affected. These businesses need assistance, they should get it from the federal government and they should get it as soon as possible. They can't afford to wait for next month, nor can they wait until the next budget. It has to happen right now. While Australians spend with them, businesses in these communities need to know that this government stands with them.

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