The shift towards flexible working arrangements for public servants has become a permanent fixture in Canberra, despite the adverse effects on small businesses in the city centre. The Canberra Business Chamber’s latest survey reveals that while business conditions have stabilized, the outlook remains bleak for many. With more public servants working from home, city buildings have lower occupancy rates, leading to a significant drop in trade for small businesses. This article explores the implications of this new normal on the local economy and small business owners.
The COVID-19 pandemic accelerated the adoption of flexible working arrangements, and the Australian Public Service (APS) has embraced this shift wholeheartedly. The APS-wide bargaining negotiations last year secured significant improvements in access to flexible working arrangements, including working from home. This change has been positively received by public servants, who appreciate the work-life balance it offers. However, the impact on small businesses in the city centre has been profound.
Small businesses, particularly those in the hospitality and retail sectors, have experienced a sharp decline in foot traffic. With fewer public servants commuting to the city, cafes, restaurants, and shops that once thrived on their patronage are now struggling to stay afloat. The reduced demand has forced some businesses to cut back on staff or even close their doors permanently. The ripple effect of this change is felt across the local economy, as small businesses play a crucial role in job creation and economic growth.
The Canberra Business Chamber’s survey highlights the challenges faced by small businesses. Half of the businesses reported not meeting their performance targets in the last quarter, and 36% have a negative or very negative view of the business environment. The low occupancy rates in city buildings and the shift towards remote work are significant contributors to this pessimistic outlook. Small business owners are calling for government intervention to entice more people back to their offices and into the city centre.
Balancing Flexibility and Economic Impact
Public Service Minister Katy Gallagher acknowledges the need for flexibility in the APS to attract and retain good staff. However, she also emphasizes the importance of striking the right balance. The APS, like every other employer, must manage flexible work arrangements while ensuring that the work continues to be delivered effectively. The government is closely monitoring the impact of working-from-home arrangements on the public sector’s productivity and the broader economy.
The Community and Public Sector Union (CPSU) has hailed the improvements in flexible working arrangements as a win for APS workers. The union argues that these changes are necessary to modernize the workforce and provide employees with the flexibility they need. However, small business owners and the property sector are urging the government to consider the economic implications of these arrangements. They argue that a balanced approach is needed to support both the workforce and the local economy.
The challenge lies in finding a solution that addresses the needs of both public servants and small business owners. Some suggestions include implementing hybrid work models that combine remote work with office attendance, offering incentives for public servants to return to the city centre, and supporting small businesses through targeted financial assistance. The goal is to create a sustainable model that benefits all stakeholders and ensures the long-term viability of the city centre.
The Future of the City Centre
The future of Canberra’s city centre hinges on the ability to adapt to the new normal. While flexible working arrangements are here to stay, there is a need to reimagine the role of the city centre in this new landscape. Small businesses must innovate and diversify their offerings to attract a broader customer base. This could include expanding online services, offering unique in-store experiences, and collaborating with other businesses to create a vibrant and dynamic city centre.
The government also has a role to play in revitalizing the city centre. Initiatives such as improving public transport, enhancing public spaces, and promoting events and activities can help draw people back to the city. Additionally, supporting small businesses through grants, loans, and other financial assistance can provide the necessary resources to adapt and thrive in this new environment.
In conclusion, the shift towards flexible working arrangements for public servants has created significant challenges for small businesses in Canberra’s city centre. While the benefits of remote work are clear for employees, the economic impact on local businesses cannot be ignored. A balanced approach that supports both the workforce and the local economy is essential for the long-term sustainability of the city centre. By working together, the government, businesses, and the community can create a vibrant and resilient city centre that benefits everyone.
