Business wary of border confusion

TASMANIA’S business lobby has welcomed the state’s improved finances but raised concerns about the economic impacts of border uncertainty.

The mid-year state budget update released on Monday showed the state’s finances were better than expected.

Tasmania’s booming real estate and residential construction sectors contributed by generating employment and raking in state taxes.

Tasmanian Chamber of Commerce and Industry CEO Michael Bailey said although the results were encouraging, snap on-off borders closures were having a significant detrimental impact on interstate trade and commerce.

“We believe a consistent national approach to borders is needed to ensure business and the community can have a clear understanding of what happens when we have outbreaks,” he said. “We note (Victorian Premier Daniel Andrews) is looking at a new approach to quarantine and … this has merit as the system as it stands is clearly creating significant issues.

“The two-metre rule as well as capacity constraints on events are continuing to have a major impact on businesses and … festivals and shows, and in the absence of COVID in our state we again urge the government to relax these, understanding they will need to be tightened if we have a COVID outbreak.”

The budget update showed education and tourism exports plummeted 38 per cent in the year to the September quarter.

Tourism Industry Council of Tasmania CEO Luke Martin said the industry was facing a grim six months with JobKeeper finishing in March and continued border uncertainty.

“We thought we were doing better than we expected this summer … but clearly the border has pulled the rug out from under us,” Mr Martin said.