Covid-19 preventive measures affecting businesses in Lae

By DALE LUMA
BUSINESSES in Lae are in a difficult period with their profitability and sustainability being affected with reduced operating hours as Covid-19 preventive measures come into effect.
Some businesses have had to cut back on more than 30 per cent of their staff.
Lae Chamber of Commerce and Industry (LCCI) president John Byrne when responding to questions from The National said: “As it is all across PNG and the globe, businesses in Lae are challenged.
“Manufacturers and security companies have been less affected than other businesses but across the city there is a reduction of approximately 30-35 per cent of staff.
“In some cases, they have been made redundant, in others stood down until a level of new normality resumes and yet others have been split-shifting their staff.
“Reduced trading hours and less customers with disposable income is affecting the profitability and sustainability of businesses.
“The necessary wind down of markets selling fresh produce and betel nut, coupled with restricted movement of produce and goods up and down the Highlands Highway has impacted on our people’s ability in the informal market to earn income and therefore spend it.
“This is the cycle of cash and barter movement in PNG which currently underpins our economy and is badly hit.
“When the informal area has less cash, the business houses
suffer and we have less employment.
“ICCI has put business houses on notice regarding unnecessary price increases and/or gouging and rightly so, but the informal market, with no such restriction has implemented a regime of price increases which impacts the buyers.
“They are doing this because they have less customers.