Covid-19 hits local businesses

By DALE LUMA
THE impact of Covid-19 economically in an already challenged financial and business market is of great concern to Lae businesses and citizens.
Lae Chamber of Commerce and Industry (LCCI) president John Byrne said business and consumers were affected daily, more people were being laid off, stood down or on less hours.
“Most business houses are doing all they can to retain staff,” he said.
“But the pressures of the lessening trade, less movement of cash from the pressured informal markets through retail, which has an effect on all aspects of manufacture and transport is increasing daily.
“The health and protection of our people is of paramount concern, whilst we simultaneously must keep our economy moving.
“The impact of the recent impasse between the national government and Barrick has had an immediate financial reduction, lessening movement of essential goods from Tari through to Lae.
Byrne said the hoped this was resolves with an understanding between parties which keeps our economy functioning.
“LCCI has no statement on either aspect of this debate but we support a mutually beneficial outcome for our people and the economy,” he said.
“Treasurer Ian Ling-Stuckey has indicated a further reduction in GDP and the potential of a recession while business houses in Lae are already challenged and under enormous pressure to survive with a triple threat of forex (foreign exchange), Covid-19 and a possible recession.
“We are in unparalleled times and how we react and plan now shapes the future for our children, as we come out of this Covid-19 period.
“How long that will be, how many people will be out of work, what impact the economy will have yet remains to be determined.
“In the interim it will take fortitude, new processes, adjustments and change in our businesses for survival in many cases with a reduction of staff or supply of product, which has a circular effect of pessimism in our community,” he said.