Tasmanian Premier Peter Gutwein says his request for funding from the Morrison Government for a business support package has gone completely unanswered, leaving the state to foot the full bill.
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The NSW Government openly criticised their federal counterparts after its request for funding support for a $1 billion business package was rejected.
Mr Gutwein said he, too, had made a request to go 50-50.
"I wrote to the federal government and haven't received a response as yet," he said.
"But noting their response to NSW, I think I can understand what that might be.
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"At the end of the day, we are getting on with it and we are supporting our businesses which I think, at the moment, there have been several hundred that have been provided with support and we'll continue to keep that program open."
Mr Gutwein said it was unusual to not receive any response at all.
"Normally I receive a response. I'm sure it's somewhere in the post," he said.
Last month, the Tasmanian Government announced a small business support program due to downturns in trade caused by the rapid spread of the Omicron variant and staffing issues due to isolation requirements.
This included funding of between $1000 and $5000 for eligible businesses, with a requirement they have a COVID-19 safety plan, outbreak management plan and have been using the Check-in TAS app.
A survey from the Tasmanian Hospitality Association in the weeks after the border reopening on December 15 found that two-thirds of the industry had seen a downturn of between 25 and 50 per cent, while 65 per cent of hospitality workers had missed work.
Tasmanian Labor has been critical of the amount of support for businesses.
Labor small business spokesperson Janie Finlay said the amount of funding available for individual businesses was insufficient.
"The summer period should have been a time for Tasmanian businesses to thrive. Instead, the government announced a support package of up to $5,000 that provides little to no support," she said.
When questioned earlier this week about the NSW Government's complaints over a lack of federal funding support, deputy prime minister Barnaby Joyce said the government had handed out billions during the pandemic, and if it provided funding for business packages it could mean less for other essential services.