Many East Gippsland small businesses still haven’t received desperately-needed COVID support grants because only a fraction of the funds committed over six months ago have been distributed by the Andrews Labor Government.
Gippsland East Nationals MP, Tim Bull, said it is infuriating the promised funds were not going to those in need.
“There was a lot of grandstanding with the announcement of these programs, including that $100 million had been allocated to support sole traders.
“However, Victoria’s Parliamentary Accounts and Estimates Committee has uncovered that only $12m (12%) of the sole trader support fund has been handed out.”
“You can’t announce a figure then set the criteria so tight only a very small percentage are eligible, and a fraction is distributed. It is very misleading to business owners.
“The government is now saying it will review eligibility criteria, but they should have done this months ago if they were serious about helping small business and intended to distribute it all,” said Mr Bull.
The analysis presented to Victoria’s Parliamentary Accounts and Estimates Committee shows:
• Of the 20 Business Support Programs presented by the Government, 14 (70 per cent) of them were unable to provide any details of their efficacy or how much money was actually given out to support businesses.
• Of the six packages that were reported on by the government, less than half the promoted value of the package was actually distributed by 4 December 2020 (six months after the introduction of restrictions).
• Half of the six packages had distributed 12 per cent or less of the value of the packages.
• Only 4000 of the approximately 400,000 Victorian sole traders were eligible for support, and only $12 million of the Government’s $100 million allocated to sole traders was allocated by 4 December 2020.
• The hospitality industry suffered the longest and most severe lockdown restrictions imposed. Less than 50 per cent of the specialised support available was distributed by 4 December 2020.
“Having had many interactions with businesses in serious trouble, to read this data is very disappointing and Daniel Andrews needs to ensure these funds get to where they were promised rather than be sitting on it,” said Mr Bull.
“He has dismally let down mum and dad businesses, failing to support them in a timely and fair way.”
“Of the more than 600,000 small businesses in Victoria, the Government itself trumpets to have supported only 129,000 businesses of all sizes in Victoria - less than 22 per cent.
“It’s time that the hurdles placed in front of small businesses were removed.”
Caption: Member for Gippsland East Tim Bull with Deb Hahnemann from Forge Creek Free Range discussing the challenges her business encountered as a supplier to several hospitality and retail businesses, following last year’s statewide lockdowns.
Thursday, February 4, 2021
