Despite warnings that the Covid-19 lockdown in response would be swift, it was impossible for some retailers and the hospitality sector not to be caught with highly disposable products and thus unavoidable costs through subsequent waste.
As always, the health response in the circumstance is not debatable, but what is debatable is whether businesses can continue to absorb such costs. We acknowledge the Government stepped rapidly up to the mark with two support packages but on this occasion they are likely to be inadequate.
Costs are escalating so fast, whether it be rates, rents, supply chain disruption, or wages, that it is proving difficult to understand just what shape business will be in at the end of this lockdown. Last year one of the most successful strategies deployed was support for businesses to engage mentoring, particularly in the technology space.
There is an assumption that most businesses now have a robust electronic platform. Recent work by the GLA would suggest that in retail well over 50% of businesses still don’t have a web page or use email, or have anyway of reaching their customers other than face to face. Interestingly many businesses are unaware of the regular up dates provided by the likes of MBIE or Inland Revenue and are reliant on their accountants to make touch with them. So perhaps there’s also room for the Government to reinstate the 100% small business grants to facilitate engagement of professional advice. This is just a thought.
A month-long lockdown with a gradual step down of levels presents some very steep challenges. It’s been great to see more businesses operating but there’s still extensive debate around “contactless deliveries”. As we know many hospitality businesses are more than capable of preparing and delivering quality meals but are unable to do so. Equally there’s been some very innovative solutions, such as the dairy selling the products of the bakery next door. The very real question we have is: can we open up more businesses to contactless transactions or for businesses to continue to provide services but with a fully vaccinated work force?
We must look for solutions because as we are now told Covid-19 is going to be with us for a very long time just as flu has been for centuries. Equally it is going to be really critical when we come out of lockdown that we get in behind and support our local businesses.
At GLA we are trying to do this in a number of ways; for example, when we are undertaking projects such as ELEMENTAL, we use local providers.
A lot of work is going in with Auckland Transport at multiple levels. Currently there are three projects underway – two of these quite minor, (Grey Lynn Safer Schools and West Lynn remedial work) and one a large project – the re-envisaging of Great North Road.
We’re also looking at how we become a Business Improvement District (BID) with Waitemata Board advising that they accept our recommendation to examine becoming a BID. It was also pleasing to receive confirmation that the Waitemata Board would continue to provide an operational grant to the association for the next 12 months.
We’re busily rescheduling our business accelerator event which was to feature Professor Bill McKay speaking out re-envisaging urban design in our busy local villages. We ourselves would like to see very green leafy villages where “cottage” bee friendly planting accompanies much safer streets for us all.
Even these small changes present challenges, as it's Auckland Council and not Auckland Transport that we have to convince. Both entities undoubtedly are being impacted by the resurgence of Covid-19.
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Published 3 September 2021