Mercury (Hobart)

Stimulus call to boost spending

- CAMERON WHITELEY

THE Gutwein Government should lift the remaining local restrictio­ns in the wake of an extended closure of Tasmania’s borders, state business leaders have urged.

A decision to delay the reopening of the borders has been described as a “devastatin­g blow” and “dishearten­ing” to Tasmanian businesses, with calls for an immediate cash stimulus to be injected into the state’s economy.

Premier Peter Gutwein said on Friday borders would no longer open on July 24 to any states, with the move put off by at least a week amid a wave of new infections in Victoria.

The Tasmanian Chamber of Commerce and Industry called for the government to rethink its strategy for restrictio­ns in Tasmania.

“It’s quite clear that even a limited reopening of borders is now likely to be months away,” TCCI chief executive Michael Bailey said. “While we understand the reasons for the decision, this will result in more job losses and more business closures, especially with tourism, hospitalit­y and retail exposed businesses.”

Mr Bailey said the remaining state restrictio­ns should be lifted, and a cash stimulus implemente­d to encourage Tasmanian households to spend and support local businesses.

Similar urgings have been made by the Tasmanian Small Business Council, which has called for the one person per two square metre density rule to be scrapped.

TSBC chief executive Robert Mallett also believes a travel bubble with COVID-free New Zealand could be implemente­d before opening up to other Australian states.

“Keeping the borders closed is a devastatin­g blow for Tasmanian business, at a time when many were preparing to get back up and running with the expected opening of borders,’’ he said.

“While I respect the public safety reasoning behind the decision, it’s extremely dishearten­ing for those businesses who rely on the tourist dollar as part of their establishe­d business model.”

Tourism Industry Council of Tasmania chief executive Luke Martin said the decision to delay opening the state’s borders was understand­able, but said the state’s economic future hinged on interstate visitation resuming as soon as it was deemed safe.

Mr Martin said another round of government stimulus grants was critically needed to help keep struggling tourism businesses afloat.

State independen­t member for Clark, Madeleine Ogilvie, said the creation of a travel bubble with New Zealand was now essential to give the tourism sector a secure lifeline.

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