The VACC, represented by Acting Executive Manager, Policy and Communications, Dr Imogen Garcia Reid recently participated in a virtual roundtable as part of the Commonwealth Government's COVID-19 Response Inquiry. This important initiative aims to evaluate Australia's handling of the pandemic and shape future preparedness strategies.
Representing the automotive industry, Dr Garcia Reid joined other members of the Australian Chamber of Commerce and Industry (ACCI) in providing valuable insights into the pandemic's impact on specific sectors. The roundtable, organised by the inquiry's independent panel, offered a platform for stakeholders to share experiences and propose improvements for national crisis management.
During the discussion, VACC emphasised several key points that significantly affected the automotive industry:
- Thresholds for Financial Assistance: VACC stressed the importance of reconsidering how financial assistance thresholds are determined. The chamber pointed out that high turnover doesn't necessarily equate to high profit, especially in the automotive sector. Many dealership members, despite employing large numbers of people and facing financial struggles, were unable to access government support due to turnover thresholds. Additionally, VACC highlighted that the 70% reduced revenue threshold in Victoria's Business Hardship Fund was too severe, causing many businesses to miss out on crucial support. At such a high threshold, many would have had to close their doors permanently.
- Lack of Interstate Consistency: A major concern raised by VACC was the lack of consistency in pandemic responses across states and territories. Whilst acknowledging constitutional limitations, the chamber emphasised the need for a more uniform approach to ensure a level playing field during future pandemics or global events. VACC noted that Victoria suffered more than any other state due to supply chain issues, with stock being diverted away from the state due to perceived difficulties and uncertainties. This affected both parts and vehicles, with some cases taking up to three years to recalibrate supply chains.
The COVID-19 Response Inquiry, led by a panel of experts, is reviewing the Commonwealth Government's pandemic response. Their final report, due on 30 September 2024, will recommend improvements for future public health emergencies.
This roundtable, following public submissions in 2023, aims to validate industry experiences, identify knowledge gaps, and gather suggestions for better pandemic preparedness.
VACC's participation ensures the automotive sector's unique challenges are considered, particularly regarding financial assistance thresholds and interstate consistency. The input will contribute to a more comprehensive understanding of the pandemic's economic impact.
The insights gathered will shape policy recommendations, aiming to create a more resilient national framework for future pandemics. VACC's involvement underscores the importance of sector-specific perspectives in crisis response strategies.