The April super storm struck Cessnock City businesses to the tune of $39 million, a study has found.
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Cessnock City Council has released the findings of the Cessnock City Business Impact Flood Study, which showed that 76 per cent of 1000 businesses surveyed were impacted by the natural disaster earlier this year.
The effects included a loss of power and communications, structural damage to buildings, stock losses, inability to source products or deliver goods and staff shortages.
Some key findings of the report include:
- 267 respondents lost communications and power
- 637 businesses had to cease trade
- 668 businesses estimated a combined loss of 2533 trade days, and
- more than 600 businesses recorded aggregated damage and revenue losses of $5.9 million and $9 million respectively.
Council’s general manager Stephen Glen said the report offered valuable insight into the economic effects of the super storm.
“The report provides critical information to help all levels of government plan for and develop support programs for businesses,” he said.
“For example, it’s significant to note only 34 per cent of businesses surveyed believed they had adequate insurance to cover repairs and revenue loss.”
Report findings highlighted the toll a natural disaster can take, not only in terms of revenue loss but also the emotional cost on business owners and their employees.
Forty-seven per cent of respondents reported staff impacts including reduced hours, forced leave or stand-downs – indicating the flow-on social impacts the natural disaster had on the region’s workers.
Mr. Glen said he supported the recommendations in the report for additional studies to establish the full impact the natural disaster had on the local government area.
“The survey provides a snapshot of the impact on our businesses in the immediate aftermath of the disaster; however we also need to understand the long-term economic effect,” he said.
The Small Business Commissioner, NSW Premier’s Office, NSW Department of Industry and Brigadier Darren Naumann have all received the report, which can be viewed on council’s website.
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