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The Canberra Times
The Canberra Times
National
Cassandra Morgan

Business owners sceptical of sustainability of government stimulus package

Coco and Rye owner Carol Small with her staff Ella Hickey, Meave Greenspeed, Lauryn Angel and Tess Brackenreg about midday on Sunday. The ACT government announced a shutdown of all non-essential services on Sunday evening. Picture: Dion Georgopoulos

As Canberra's non-essential services get forced into shutdown, some small business owners are sceptical the federal government will eventually help them get back on their feet.

Prime Minister Scott Morrison on Sunday announced a $66 billion second coronavirus stimulus package, which includes a massive boost to business grants that now total up to $100,000 for each.

The federal government's stimulus and safety net measures now amount to $189 billion.

But while ACT business owners share the sentiment that "any stimulus is good stimulus", some are concerned the cash injection can only be so far-reaching.

Wiffens' owners Jack and Barbara Irvine, who are concerned about the sustainability of the government's second coronavirus stimulus package. Picture: Dion Georgopoulos

Coco and Rye artisan bakery owner, Carol Small, said government grants never seemed to reach "grass roots" level.

"That's my biggest fear, that it won't trickle down to the smaller businesses," Ms Small said.

"I've sort of been here before - not to this extent - but [I] went through ... the global financial crisis [in business] and nothing actually reached me."

On Sunday afternoon, Wiffens' Fyshwick co-owners, Jack and Barbara Irvine, said they were concerned about the sustainability of the stimulus package.

Mr Irvine said the government should have considered holding the bulk of the business stimulus back until businesses were in a position to return to relative normality.

"Pouring money into trying to make struggling businesses survive until they go broke is dead money," Mr Irvine said.

"We've spent billions and billions and billions of dollars on making ailing businesses struggle on for another couple of months.

"[The government is] never going to give enough money to save them - it's not that easy."

Unique Meats owner, Matthew Hicks, was worried about how the business sector might look late this year. ACT Chief Minister Andrew Barr on Sunday warned life was going to change for Canberrans - and Australians - "for months and months and months" amid the coronavirus pandemic.

"We don't know how long this is going to go on for," Mr Hicks said.

"With Qantas [and other airlines] announcing they're putting off [thousands of] people, that's only just one big business.

"What about all the other businesses? There's just not going to be any money around."

Coco and Rye, Wiffens and Unique Meats are at Fyshwick Fresh Food Markets.

Canberra Business Chamber chief executive officer, Graham Catt, said the service hoped there was "more to come" from the government to support businesses during the coronavirus pandemic.

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He said while no local business wanted to see a shutdown, it was important to put trust in health authorities and governments.

"I think we would certainly concur with the chief minister that this is the probably the first of several changes and there's certainly more to come," Mr Catt said.

"There are businesses that are telling us that, despite what was in the package, they're in dire straits right now."

The $66 billion second stimulus package will also temporarily double the Jobseeker payment and give a second round of cash payments to pensioners.

We have removed our paywall from our stories about the coronavirus. This is a rapidly changing situation and we want to make sure our readers are as informed as possible. If you're looking to stay up to date on COVID-19, you can also sign up for our twice-daily digest here. If you would like to support our journalists you can subscribe here.

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