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ACAPMA PETROLEUM INDUSTRY REPORT FROM PAGE 59 If we can encourage Australian state and territory governments to implement standard practices for border closures, then we can at least seek to minimise the adverse impact of stop/start border restrictions on business and industry in the future. 3. Further national lockdowns are unlikely but more localised lockdowns will occur Barring a large-scale outbreak, such as now occurring in the USA and Great Britain, Australia is not likely to experience another nation-wide lockdown in 2021. Rather, Australian governments are expected to seek to manage Covid outbreaks by imposing ‘short and sharp’ community lockdowns in discrete geographic areas to provide government contact tracers to locate and isolate the primary source of the contagion. We have already seen examples of this type of response with localised lockdowns imposed in Adelaide for six days (November 2020), Sydney’s Northern Beaches for 3 weeks (December 2020 to January 2021) and three days in Greater Brisbane (January 2021). Different to lengthy and large-scale lockdowns, these types of lockdowns impose severe restrictions on businesses over a short period of time. A major disadvantage of this approach, however, is the fact that they will occur without warning to business and can result in businesses suffering disproportionate financial impacts due to perishable stock being spoiled. The challenge, therefore, is for businesses to prepare for the possibility of these types of lockdowns. Typically, this means rethinking past traditional approaches to practices for the management of perishable stock and stock delivery, as well as strengthening cash flow reserves as far as practicable – with a view to ensuring that the business can survive the cash-flow consequences of a 14 lockdown being introduced at short notice. For its part, ACAPMA is currently lobbying state and territory governments for the introduction of emergency cashflow assistance measures for businesses that are directly impacted by localised lockdowns in the future – and this will continue to be a strong focus of our advocacy efforts in coming months. 4. Government assistance will reduce but national savings are stronger than ever Despite industry calls to the contrary, Australian governments are unlikely (and indeed unable) to sustain the levels of financial assistance for businesses that were provided during 2020. It is highly unlikely, for example, that the current national JobKeeper program will be extended beyond 31 March 2021. In addition, many of the business assistance programmes introduced during 2020 terminated on 1 January 2021. These included the federal government’s bankruptcy and insolvency provisions and the various commercial tenancy protections introduced by state and territory governments, to provide rent relief to small businesses. Despite the withdrawal of these programs, the 2021 trading outlook is better than 2020. Australian businesses and households, for example, have entered 2021 with record savings and cash reserves – due largely to the Covid-19 support measures introduced by the Morrison Government during 2020. The Federal Treasurer, the Hon. Josh Frydenberg, has recently reported that Australia has amassed $200 billion in its’ ‘Covid-19 war chest’ with household saving deposits jumping by a massive 11 per cent in 2020 and business deposits growing by a whopping 17 per cent. The combination of reduced government assistance and increased private sector savings (ie, households and business) means that their business and industry will be increasingly expected to fund its own survival against the destructive financial impacts of lockdowns and border restrictions in 2021. At its most basic level, this means that business owners should be talking to their financial services provider now about what options could be put in place to provide access to emergency cashflow if required at short notice in the future. Business owners should also speak to their insurers – including ACAPMA Insurance – about their current business insurance policies provides case assistance in the event of community lockdowns – or whether it is possible to source such cover now. 5. If in doubt, call out for help One of the most pleasing aspects of 2020 was the level of co-operation that was developed between all Australian governments and industry bodies such as ACAPMA, to protect the health of the Australian community will also seeking to minimise the adverse financial impact on Australian business and industry. These efforts also saw collaboration between different industry bodies, often under the umbrella of peak business groups such as the Council of Small Business Organisations of Australia (COSBOA), to resolve issues of concern with government. This unprecedented level of access and input to government decision makers meant that ACAPMA was able to secure timely information from Australian governments soon after new lockdowns and restrictions were announced – and then immediately relay this information to members and the wider industry via the Association’s Covid-19 updates. That said, there were often occasions where ACAPMA made urgent representations to remedy industry issues that had been inadvertently overlooked by government or address problems being experienced by individual members in securing urgent assistance from the banking industry. One of the most significant examples of this co-operation involved the submission of a letter jointly signed by ACAPMA’s CEO and the Secretary of the Transport Workers Union (TWU) to all State and Territory Leaders seeking immediate resolution of issues relating to the operation of roadhouse dining facilities for the nation’s heavy vehicle drivers. The joint signing of this letter – by two traditional foes in the Industrial relations space – provides a strong signal about the level of the unprecedented level of stakeholder collaboration that now exists to ensure that the valid concerns of business and industry are resolved quickly and effectively. On a final note, and as we all enter a year of unprecedented business uncertainty, all businesses can be assured that your industry association is strong position – perhaps better than at any other time in our 42-year history – to help you survive and thrive in 2021. All you need do is call out for help if/when you need it. 60 CONVENIENCE WORLD JAN/FEB, 2021