Avoiding another lockdown top priority for businesses

Addressing social needs will also help bolster economic recovery: Spezza

Whoever wins next week’s federal election needs to have a plan in place immediately to help Niagara’s businesses recover, after more than 18 months of lockdowns and restrictions.

“Whoever is in power next Tuesday, they have to come out strong,” said South Niagara Chambers of Commerce executive director Dolores Fabiano. “This is our future, and they have to show leadership right away. They have to have a plan ready to go.”

As the fourth wave of the pandemic continues to spread and as healthcare workers race to increase the number of vaccinations being administered, the threat of another lockdown has not been ruled out if vaccine certificate programs fail to control the spread of COVID-19.

And for many Niagara businesses, especially those in the service industry, Fabiano said another lockdown will be devastating.

Niagara Region’s economic development director, George Spezza, shares that concern, despite a significant vaccination rate in the region. As of Tuesday, 73.8 per cent of the population had its first dose and 67.7 per cent is fully vaccinated.

Nevertheless, Spezza fears “as the weather starts to cool down, forcing

people more indoors, what could potentially be the impact?”

“That’s always a concern. We hope it will be business as usual but there’s no predicting that,” he said.

Greater Niagara Chamber of Commerce executive director Mishka Balsom said she, too, is hopeful the end of the pandemic might not be far off.

“We’re close to it,” she said. “We have seen that we’re close to, hopefully, not having to go into another lockdown.”

But some industries such as tourism and hospitality were among the hardest hit by pandemic restrictions during the past 18 months, and she said many continue to struggle under ongoing restrictions.

Balsom said helping those businesses “get over the finish line and really flourish again” needs to be the first priority. Spezza agreed.

“It’s still a struggling sector that will continue to need support at the federal level, at least for the next couple of years to help these people who have been affected by the pandemic weather the storm and keep their heads above water and continue on,” he said. Fabiano called for sector-specific funding and the continuation of previously implemented grants to keep those businesses going, depending on the status of the pandemic in the months to come.

“We’re hearing different things from different folks and certain sectors will be impacted harder than others,” Fabiano said.

Fabiano also called for programs to assist businesses as they transition and find different ways of meeting the needs of their customers, “and change the way we have traditionally done business within those sectors.”

With a full economic recovery still likely years away, long-term plans also need to be developed focusing on growing the economy once the pandemic eventually ends, she said.

“The impacts of COVID and the pandemic are obviously still being felt. It’s not going to be a quick bounce-back,” Spezza said.

“It’s not going to be a sixmonth process,” he said.And it will take more than government business subsidies to help many impacted businesses get back on their feet.

Spezza said social issues such as affordable housing and affordable child care also need to be addressed, increasing the disposable income for many families.

“Subsidies … only go so far. There are other areas in the federal government’s interest that can help support the economic recovery,” he said.

“You often hear in the region the issue of affordability and housing. It’s become a major issue in Niagara. Our housing prices have increased almost 40 per cent over the past year or so. Incomes aren’t keeping pace with that.”

Spezza said federal programs to encourage affordability and better housing will also bolster business recovery.

“If you make affordability and housing easier then people have more disposable income. The majority of their income is not being spent on just living and keeping a roof over their heads,” he said.

But if people have money left over when they’re done paying their bills, Spezza said, more people will spend it supporting the local economy.

Affordable and high-quality child care is another priority that will help people make ends meet while also bolstering the economy, he said.

“The pandemic has disproportionately impacted women in the workforce. A national child care strategy that the federal government has announced — something around reliable and affordable child care. That would be important. I think it would help many people get back into the workforce and we need many of the women that have been impacted through the pandemic, we need them to get back into the workforce.”

Spezza said it would also help address labour shortages that many businesses have been experiencing.

Fabiano said labour shortages will add to the challenges many businesses face in the months and years to come.

“There was a shortage, especially in the tourism and hospitality sector, before the pandemic. It was always difficult to get staff for housekeeping or front desk. Now it’s just that much worse,” she said.

Contributing to the shortage are international students who worked part-time jobs but have not been able to return due to the travel restrictions, she said.

Balsom said access to labour is one of the top concerns among businesses.

“How do we support employers to re-skill their staff to be ready to meet their needs that have changed?” Fabiano asked.