Those Tasmanians who have lost employment, closed their own business and now face financial stress and hardship will be bewildered by the extent to which the threat posed by an invisible virus can wreak such havoc in such a short space of time.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
As the Premier emphasised, this is no training drill.
Coronavirus: All the latest updates on COVID-19 for Tasmania
It's not a practice match or a football season that is put on hold after Round 1.
This is happening now and will continue to impact our lives and our communities, neighbours and friends for months and the recovery will be years away.
As Northern Tasmania Development Corporation chief executive Mark Baker said, just as we are trying to flatten the curve of increased infection, we should also try and flatten the curve of any economic decline, and the packages presented by the state and federal governments will help in that regard.
We will all know someone whose life has been suddenly been turned upside down through no fault of their own.
It is a sad and anxious time.
We reach out to them as best we can.
Just as we all need to obey the orders - social distancing, stay at home, self-isolate if symptoms emerge - to support the efforts of our government agencies, health workers, aged care workers and teachers at the front line of our response - those of us who are able to support those businesses that remain open and are determined to support their staff and our community need to, borrowing from football parlance, lower our eyes and kick our money to the business making the lead right in front of us, rather than blast away and kick it out of bounds, interstate or overseas.
The Examiner has in the past when a crisis was easier to understand and identify - the GFC - launched and supported a Buy Local Campaign. That support continues and now NTDC, Launceston City Council, Launceston Chamber of Commerce, CityProm and Tourism Northern Tasmania should be congratulated for the pro-active steps they have all taken to encourage people to buy locally.
Our retailers are showing how flexible, agile and innovative they can be through the provision of takeaway menus, online purchase and delivery. They have demonstrated that Buy Local is possible and the opportunities grow every day. Hope increases for someone with each purchase.
But, as we hear often enough, there is more we can do... and we must.
Just as there is a science behind government advice on the response to COVID-19 a Buy Local campaign is well supported by evidence that it works and most importantly it passes the pub test for common sense.
Like toilet paper, common sense might look like it's in short supply at the moment but we all know this is a logistical problem and common sense will turn up as it always does when we need help to make decisions that are for the common good.
Communities are built and sustained when common sense prevails.
Common sense lets us understand that our local regional economy is like a bucket.
Stopping the leaks is just as important as pouring money in.
Small regional economies leak a lot because they don't have the scale to respond to the diversity of demand and consumers kick their money out of bounds.
If leaks aren't plugged for every $100 spent only 20 per cent will stay in the local economy.
In an economic crisis, it becomes important to stop the leaks so the spend stays in the local economy so it can multiply through a series of spends before it stops or exits the region. If leaks aren't plugged for every $100 spent only 20 per cent will stay in the local economy. That $20 could see three re-spends so it becomes $125 but if 80 per cent is plugged then the respends grow to five-six and the dollar value is around $500. The multiplier is the total spend divided by the original spend.
Multipliers in regional economies are more likely to 125/100=1.25 rather than 500/100 = five. But, multipliers over one indicate that the leak has been stopped.
Increasing local spending by 10-20 per cent makes a huge difference.
Local procurement by universities and regional councils is a significant economic lever. These are big businesses in regions, where they spend matters. The decisions made by those organisations together with state government departments about where to spend is critical at this time.
Support packages from governments at all levels are welcome and needed but leading by example, by directing agencies to implement local procurement spends will be a vote of confidence for local businesses and much-needed lift to local economies and the communities that support them.
Right now, the spending choice we make as individuals or governments is one test that is available to all of us.
We should take it.
- Dr Tony McCall, Launceston-based academic researcher
Have your say with a letter to the editor:
