Lincoln Causeway businesses were "economically crippled" by the border checkpoint causing a 90 per cent reduction in turnover, member for Northern Victoria Wendy Lovell told Parliament on Tuesday.
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Ms Lovell used the first sitting day of Parliament to ask the Minister for Small Business Jaala Pulford whether Wodonga businesses would be compensated given the financial impact of the checkpoint.
Ms Lovell said Gateway Village businesses were entirely cut off from customers by the checkpoint initially, and then Victorian customers had to cross into NSW and back, leading to a sharp drop-off in bookings and revenue.
"The owners of the Victor Supper Club and the La Maison restaurant estimate a 90 per cent reduction in turnover from the same period last year, the owner of Musikids is reporting her term one enrolments are down 50 per cent, and last year the GIGS art gallery was forced to close," she said.
"Given the devastating financial impact the location of this checkpoint had on these businesses, including the loss of livelihoods and local jobs, will the state government provide adequate compensation to these businesses to cover the trade lost through no fault of their own?"
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Member for Northern Victoria Tim Quilty also used the first sitting day of Parliament to condemn "the grossly incompetent" closure of the border.
"This government and its unnecessary fire on our borders, whether it was panic based of past failures or COVID theatre for Melbourne voters, your overreaction burnt many Victorians and border residents," he said.
Ms Pulford said she was aware of Lincoln Causeway issues but took Ms Lovell's question on notice so she could consult with the Minister of Regional Development Mary-Anne Thomas.
"We thank communities who are impacted by border closures for their forbearance," she said.
"And they do bear an extra inconvenience and hardships because of the nature of where they are and because border closures have proven to be an important and effective part of our toolkit for dealing with this pandemic."
In January, Ms Pulford and Ms Thomas met with Wodonga business leaders and the owners of La Maison to discuss the impact the closure.
Ms Lovell said in the four days after that meeting La Maison lost 130 bookings, "which equated to literally hundreds of individual customers because of the location of the checkpoint."
Ms Pulford said the affected causeway businesses were working with the department "on what remedies can be provided to assist them."
Last week, Victor Supper Club owner Carlos Saliba said "it will take us another year to build up from what we have lost in trade. There is no compensation for it."