Dark days

15 October 2021

The auto industry deserves more help

I’m sure you are all aware of how hard the entertainment industry has been affected by the never-ending global pandemic, but a recent survey I looked at also unveiled to me just how hard Victoria’s auto industry has been hit by COVID-19. It gives a snapshot of the true level of assistance – or lack of it – from government support packages.

VACC surveyed its members to compile an evidence-based response for Federal and State governments, the focus being business assistance package eligibility.

The survey results are a bit downbeat if you ask me. 

Many business owners are reporting financial stress, but sometimes they don’t fit the cookie-cutter government templates for COVID business support. This means they miss out on support that could see them surviving and employing local people.

I’ve done a bit of a cut and paste of some figures that I thought were well worth a look.

Key industry survey takeaways:

Based on the modelling of the survey results 7,523 full-time equivalent staff are estimated to be lost from 1 July 2019 to 30 October 2021

• 67.1 percent of survey respondents had a greater than 40 percent revenue decrease since September 2020
• 64.64 percent of respondents did not qualify or did not apply for the Victorian Government Business Costs Assistant Program
• 81.39 percent of respondents did not qualify or did not apply for the Victorian State Government Small Business Hardship Fund
• 76.1 percent of respondents were not able to negotiate successfully for commercial tenancy relief with their landlord
• 27 percent of full-time employed staff are currently receiving COVID-19 disaster payments from the Federal Government, because they worked between eight to 20 hours less per week
• 23.2 percent of full-time employed staff are currently receiving COVID-19 disaster payments from the Federal Government, because they worked more than 20 hours less per week
• 80.43 percent of respondents are not utilising the Federal Government’s Boosting Apprenticeships Commencements scheme
• 92 percent of industry want to see a JobSaver, or similar type payment introduced in Victoria.

VACC member responses didn’t make my heart sing either:

“This is killing us. I am only weeks off going out of business as a direct result of these lockdowns. As we have ‘only’ lost 60 percent of our turnover, not the magic 70 percent, I am getting no support.”

“My workshop has gone from 35 bookings a day to six bookings a day, which has caused most staff to be stood down over 20 hours a week.”

VACC is talking to State and Federal governments looking for further industry support – whether through the easing of restrictions or consideration of fairer assistance measures.

My fingers are crossed for all the great automotive business owners out there. Their work keeps Australia moving, so we all need to look out for them, including governments. So, come on, let’s get this done.

And don’t forget to catch up with me on the next episode of THE GRILLE podcast. I talk shop with Greg Rust and VACC CEO, Geoff Gwilym every month and we cover industry news and issues – just like this one.

Stay well and see ya on the road folks.

Words: VACC ambassador Shane Jacobson.