Regional businesses in ‘spiral’ as housing, cost pressures, payroll tax and tourism undermine confidence

Business operators across the Capes region are reaching the end of their tether. With the housing and cost-of-living crunches, some private operators are feeling the stress of potentially closing down, while competition from the mining sector is putting the future of some services in doubt. A new report from WA’s Chamber of Commerce and Industry focused on regional WA found business confidence in the South West had slipped further in both the short and long term. Business operators in the regions showed lower confidence in the future than those in Perth and a worsening of their financial bottom lines. Margaret River Business Network chief executive Annie McFie said feedback to the Regional Pulse report showed rising costs and housing were the two greatest challenges. “Businesses in Margaret River are grappling with escalating costs, which have become crippling for many,” she said. “Rising wages, combined with payroll taxes, have been identified as the biggest concerns.” Difficulties attracting skilled workers, mostly due to inadequate housing and wage competition from the mining sector, were also cited as key problems. “Some of our members have resorted to providing accommodations in dongas, rentals and even purchasing housing to secure their workforce,” Ms McFie said. As a result, profitability for some businesses was in jeopardy. The report found 54 per cent of South West businesses were taking a direct financial hit as a result of the combined pressures. About 31 per cent reported an increase in company debts, while 70 per cent reported difficulties attracting skilled workers. Landscaping company Backyard Creations’ boss Steve Bolesta runs a team of 15 and has increasingly turned to training up willing residents because recruitment and housing was too difficult. “If we employ for attitude, we can train, but of course it takes a little more time,” he said. “Trying to find the right skills is almost impossible because they are up in the mines. “When it comes to finding someone to move to the region, it’s about finding somewhere to live.” Mr Bolesta said he feared struggling business owners could bail out in favour of fly-in, fly-out jobs if the situation didn’t improve. He told the Times that meant shire residents could find it more difficult to have lawns mowed, taps fixed and lighting fixtures repaired as trade contractors opted out.