Bridget Archer (Bass, Liberal Party) Share this | Hansard source

For employers and employee, the reality of coronavirus hit like a tonne of bricks in March. The decisions made by the Morrison government were made quickly and decisively to protect the health of all Australians while trying to balance the devastating economic impact this unprecedented crisis has brought. The decision around JobKeeper was made in the context of the new social-distancing arrangements, which were announced following the national cabinet on 24 March. This would see the prohibition of a number of activities and precipitate the temporary closure of a number of businesses, including pubs, restaurants and cafes. Months on, we are far from out of the woods. We have a government debt that none of us dreamed possible at the beginning of this year. But I am proud of the work done by our government to protect the lives and livelihoods of Australians, and none more so than JobKeeper, which continues to keep many Tasmanian businesses going and their valued employees connected.

In my electorate of Bass there are currently some 2,800 organisations who are is recipients of JobKeeper, and I'd like to share some of their stories today. I begin in Launceston, Tasmania's second-biggest city and one with a fierce entrepreneurial spirit. Launceston has the highest number of JobKeeper recipients in the state, which is unsurprising given the make-up of our workforce. A report released in 2017 showed that 83 per cent of the Launceston workforce was employed in the private sector, compared with just 76 per cent in Hobart. As the Launceston Chamber of Commerce has stated, the city is primarily a private sector economy that relies heavily on small and medium businesses.

In early April the chamber sent out a survey to their members seeking feedback on the Morrison government's JobKeeper scheme. Of those who responded about half were eligible, and 75 per cent of those were planning to access the program. The survey also found that the payment would save at least 1,500 jobs. The chamber lauded the government's decision to implement JobKeeper, stating, 'From a practical point of view, there will be many local businesses who will reap great benefit from this, and it will be the difference between a business closing for good and one which can hibernate until the inevitable recovery occurs. The government has taken the view—the correct view—that it is better to keep people within the employment relationship, rather than having them in the social security system. It makes good business sense and good sense from a community point of view.'

The extension of JobKeeper, which brings us here today, is also welcomed by the chamber, who state, 'The extension will provide much-needed reassurance that many will be able to keep their business afloat and their staff employed. This is particularly encouraging for those businesses in our community who have been significantly impacted by the disruption caused by the pandemic.'

We know that tourism and hospitality were hit hard by the pandemic and the subsequent restrictions. In my island state, tourism contributes more than $3 billion to Tasmania's economy each year, or about 10 per cent of gross state product. Prior to the pandemic, tourism employed about 17 per cent of Tasmania's workforce, the highest rate in the country, with just under 1,700 tourism businesses across the state employing over 43,000 people. A large number of these businesses are accessing JobKeeper.

Adam from Luxury Golf & Scenic Tours Tasmania stated early on that the package would allow his business to survive the downturn, allowing them in uncertain times to have a regular stream of income, and applauded the government for doing a really good job in working to keep businesses afloat, making sure that they can come out the other side.

Another entrepreneurial business in our community has told me of the importance of JobKeeper in ensuring their business can stay afloat: 'As a software development company, JobKeeper ensured we could keep our team in place while our customers adjusted to the new normal. The default position from our customers was to pause or cancel their projects while they ascertained how their business or department would respond to change. JobKeeper gave our business the ability to not knee-jerk and let staff go, and instead be able to pivot towards new opportunities and markets. In essence, it gave us the opportunity to hang in there and try a different path, which has worked.'

The impact of JobKeeper has also been far more wide-reaching for some. A few weeks ago I had the pleasure of meeting with the manager of the Tailrace Centre, in Riverside. As owners of a function and events centre, Tim and his wife, Sharon, were anticipating their biggest year yet when COVID brought everything to a crashing halt. They lost close to $750,000 due to the immediate closure of their children's play centre, function facilities and popular cafe. Before JobKeeper was introduced, most of the workforce was stood down and the 10 staff who remained faced pay cuts of up to 50 per cent. Instead, JobKeeper has kept them connected to around 20 staff. The Tailrace cafe, Jude's, provides a pathway to employment and career support for local youth and others who have battled difficulties in their past. For one employee at Jude's, who has worked so hard to turn her life around and gain meaningful employment, JobKeeper has allowed her to stay on a positive path, keeping engaged with her employer and continuing to flourish.

Peter Barron, owner of Flinders Island Aviation, is providing essential passenger, freight and mail deliveries to the Furneaux islands. Peter's business is receiving JobKeeper for his four employees, from pilots to admin staff, to keep his operation afloat. It was incredibly important for these remote island communities that the business was able to carry on operations and not suspend those essential services.

For Mathew Cooper and the team at the award-winning Fannys Bay whisky distillery, tucked away in Lulworth, their popular and much-loved cellar door had to temporarily close. Access to JobKeeper has assisted in keeping them afloat. With their cellar door now reopened, I was thrilled to pay a visit to the distillery a few weeks ago.

At Seahorse World, in Beauty Point, JobKeeper provided certainty to its 11 employees. A first-rate tourist destination, Seahorse World is also dedicated to conservation and education. Rachelle and her team run a breeding program to save the critically endangered Tasmanian handfish from extension, with only 80 red handfish and just 1,000 spotted handfish left in the wild. Getting tourists through the door plays a significant role in funding the programs and supporting their staff. COVID, understandably, had a major impact on their operations, but with the assistance of JobKeeper they were able to keep their employees and reopen just in time for the July school holidays. Without interstate or international tourists for some time to come, JobKeeper continues to provide much-needed certainty.

The beauty industry also suffered a hit when restrictions were put in place. Beauty salons, often owned and run by women, employing other women, closed their doors in March. For Elysian Beauty and Wellness Salon, near my office in Launceston, JobKeeper allowed Bronte to keep on her two full-time employees. When restrictions were lifted in early June, the salon was able to reopen with its skilled employees still in place.

These are just a few examples of some of the 2,800 businesses in my electorate receiving JobKeeper. From my work with these business communities over the last few months, it's very clear to me that the Northern Tasmanian region extending JobKeeper will be necessary, particularly as border restrictions continue to impact. The economic effects of COVID are still keenly felt in the communities I represent, and I'm proud that the government is extending this payment through to 28 March 2021 while also working to better target the JobKeeper payment to support businesses and their workers as they manage and recover from the economic effects of coronavirus.

The temporary amendments to the Fair Work Act were put in place to support the practical operation of the JobKeeper scheme and to help keep Australians employed and connected to their workplaces. Many business owners in Northern Tasmania have told me that they have been critical to keeping more people in work. A survey of employers commissioned by the Attorney-General's Department shows that the flexibility measures introduced under the temporary fair work amendments have been vital for businesses to survive the impacts of the pandemic and save jobs. I have heard from business owners who expressed concern that some staff were refusing to take shifts or take on reasonable tasks to help keep them engaged with their workplace. The change in rates outlined in the bill will go some way towards addressing this issue, while also providing certainty and security over the next six months.

I'd like to finish today by sharing some words from Kate, who works at Grays hotel in my home town. Kate perfectly highlights the situation business owners in Northern Tasmania have faced, why JobKeeper has been a lifeline for so many and why it is so important to continue with this critical support. She wrote:

In late February we began experiencing the effect of the virus on our business; fears of its transmission and the introduction of stay at home campaigns meant that people weren't coming out. For the last 5½ years my husband and I have operated a pub in the small Municipality of George Town, Tasmania. Gray's Hotel is well supported by locals and we operate a gaming and sports bar and the towns busiest Bistro seven days a week. We employ our 2 teenage children in our family operated business as well as 19 other members of our community.

When the announcement was made on Sunday, 22 March that we would be closing as at 12pm the following day and restricted to takeaway meals (which has not previously been of our business plan) the world as we knew it collapsed before us. The weight of having to stand down our staff members was a difficult and emotional time for us as we understood that they were financially dependent on the income they were receiving from us and that they enjoyed being part of our team and that relationship was now on hold, as was their lives…

Quickly we developed a short term business plan which would see the delivery of close to 500 takeaway meals delivered over three evenings per week—this business plan would not have been sustainable long term as it involved myself completing close to 50 hours per week on top of my full time employment at a local manganese smelter, simply to ensure that we were running as lean an operation as possible. The introduction of the job keeper program has had a positive effect on our business for many reasons. We were able to re-engage with our workforce and instead of a team of 3 we now had a team of 15 ready and able to assist with prep work, during service, cleaning etc.

We have someone dedicated to our phones each day which has eased the problem of people not being able to get through and we have turned all of our bistro staff into delivery drivers. Job Keeper has provided some financial relief to enable us to operate additional hours. The comraderies is exceptional and morale is at an all-time high—our staff stand beside us as we navigate the uncertainty as to what each night will bring us and respect us exponentially for the lengths we have gone through financially to be able to participate in the job keeper scheme. We have proudly taken all eligible employees onto the job keeper system and have not made any terminations.

The stimulus package released by the federal government has delivered us some timely relief with credits on our BAS statement reducing the amount we will be liable for in the coming weeks; this is a huge benefit to our business as we continue to navigate our way through the commitments of paying for stock on hand that is not deemed returnable but currently not useable, a rent reduction that is still very high for the single supply of takeaway meals, while still having to pay full tariffs on electricity and gas costs as we are deemed to be a higher user and not eligible for any discounts or rebates and the costs involved in regular financial advice.

Our aim during this period is to remain viable and limit the loss so that we are in a strong position to re-open when restrictions are fully lifted and programs such as Job Keeper and the stimulus packages and initiatives at a State and Federal level will put us in a good position to maximise our staff retention and to minimise our exposure during this time.

These words that Kate has provided to me are so true of so many businesses that I've spoken to across my electorate in Bass. It is the reason why it is so important to extend this support as we make our way through this coronavirus pandemic.

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