Business

Queensland businesses face collapse after government stimulus ends

Queensland businesses face collapse after government stimulus ends

That’s the data from the latest Pulse Survey of Business Conditions report, released on Monday.

The survey found 99 per cent of business operators believed they could only survive up to 12 months after stimulus measures were withdrawn.

Some hospitality venues, such as Arc at Howard Smith Wharves, were forced to close after business was decimated by a lack of trade as a result of COVID-19 restrictions and border closures.

Just 1 per cent were of the view they were operating viably, compared to 42 per cent in the June quarter.

The report, commissioned by Suncorp and the Chamber of Commerce and Industry Queensland, found while confidence in the sunshine state’s economy had started to rebound, almost two-thirds of businesses still expected a weaker than usual 12 months.

This was due to ongoing COVID-19 social distancing measures and both state and international border closures.

CCIQ advocacy and policy general manager Amanda Rohan said the results showed how critical it was for restrictions to be further eased.

“There are thousands of businesses still struggling and they are worth billions to our economy,” she said.

Queensland has the highest unemployment in the country.

“We’ve been calling for months to have restrictions eased further because enabling business to open up, while still operating in a COVID-safe way will allow them to trade profitably.”

With profitability remaining poor, Ms Rohan said whatever party won government at this weekend’s state election needed to deliver on its commitments to improve the resilience of Queensland businesses and communities, particularly in the lead-up to Christmas.

“The fact is businesses need to be profitable,” she said.

“Because if they aren’t, they can’t keep their staff in jobs and they can’t keep their businesses operating.

“And when businesses close, people lose their jobs and our communities takes a hit.”