Lockdown a ‘circuit-breaker’

The National Business

By DALE LUMA
TO address the increase in Coronavirus (Covid-19) transmissions and deaths around the country, “a circuit-breaker is required to minimise the movement and large-scale gathering of people”, an official says.
PNG Chamber of Commerce and Industry president Ian Tarutia, who is also the chief executive officer of the National Superannuation Fund (Nasfund), said the solution lay in reducing the movement of people.
“A measured lockdown or curfew for three weeks, only allowing essential services to continue is an option to consider, especially in identified hot spot areas around the country,” he said.
Tarutia said businesses were feeling the impact of the Covid-19 but must continue operating.
“It is important for businesses to remain open, important for the economy to keep moving, while balancing the health and wellbeing of our people,” he said.
“Employers whether public or private have the right to protect their staff and operations.
“Freedom of choice and rights of the individual are respected. However the employer also has a right to protect its business, staff and the public.”
He said businesses could have spent more than K400 million on the direct impacts of the Coronavirus (Covid-19) pandemic on their operations since March last year.
He told The National that estimates from the fund’s top 100 employers shows an expenditure of K600,000 per annum since last year, which amounts to K60 million.
He said the extractive sector had “definitely” spent more.
The direct impacts to business are:

  • INCREASED costs of prevention, containment and treatment measures in terms of keeping staff healthy and work place safety;
  • COST of quarantine for FIFO (fly-in-fly-out) workers;
  • BUSINESS disruption due to supply chain delay and logistics to retail outlets;
  • BUYING personal protective items for staff, and engagement of medical personnel to provide awareness and educational presentations;
  • INCREASED cost of business continuity, split teams and work-from-home set-ups;
  • LOSS of productivity due to staff members being down with the Covid-19; and,
  • PAYING severance entitlements for laid-off staff.

“It is hard to ascertain an accurate figure but estimates of our top 100 employers spending a conservative K600,000 per annum since March, 2020 on direct Covid-19 impacts place costs at around K60 million,” Tarutia said.
“Bigger establishments in the extractive sector (oil, gas and mining) have definitely spent more. All up, conservative costs could well exceed K400 million.”
“Businesses in general in a number of sectors have demonstrated strong resilience to keep operations going, maintaining jobs for staff, paying tax, superannuation and contributing to preventing Covid-19 pandemic impacts becoming worse.”