Business lobby demands return to offices

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Victorian Chamber of Commerce & Industry CEO Paul Guerra says it is high time a plan to get people back to working in offices was put in place. Guerra says businesses that rely on foot traffic from office workers are suffering, while Ai Group Victorian head Tim Piper says the state needs to be “returning to a COVID-normal position”:

“The Victorian chamber would like to see a road map including plans to start with, say, 20 per cent of the workforce ­coming to the office each day, meaning you could start working one day per week on site,” Mr Guerra said.

“You just have to walk around Melbourne’s CBD to see the crippling impact that COVID-19 ­restrictions have had on bus­inesses that rely so heavily on foot traffic from CBD workers.

“So many shops have been ­vacated, cafes have gone out of business, and beauty services have closed their doors. We need a plan now to protect the businesses that have managed to stay afloat, and to help them to kick-start now that the Christmas trading season has arrived.

“Victoria must reclaim its mantle as the economic engine room of the nation and the best state in Australia to do business.”

Ai Group Victorian head Tim Piper agreed it was “time to get people back into offices”.

“My understanding is at the moment there’s less than 15 per cent of workers in (Melbourne’s) CBD. Sydney’s at about 42 per cent,” he said.

Allowing workers to return to offices a few days a week is sensible. Victoria has effectively eliminated the virus, so the risk to the community is minimal.

That said, returning to the office should be optional for workers, subject to them performing their role adequately from home.

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Survey after survey after survey has shown that Australian employees want to keep working from home (WFH) in some capacity. This relates to the time and cost savings from not having to commute into work, as well as the flexibility WFH provides.

The argument that workers need to return to CBD offices in order to support CBD businesses is also myopic.

While these CBD businesses are undoubtedly suffering from WFH protocols, suburban businesses nearby people’s homes are benefiting as economic activity is redirected there.

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Thus, WFH presents a transfer of economic activity, not lost activity.

The welfare of both workers and suburban businesses also must be taken into account.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.