The NSW Government has issued a circular to councils urging them to be sympathetic to supermarkets and other essential retailers following disruptions to supply chains caused by Friday’s CrowdStrike global IT outage.
“It’s imperative that our state’s supply chain systems be provided with flexibility in order to recover and return to normal service after this global IT outage. This will enable customers to receive delivery of these essential goods while also avoiding food wastage,” said Minister for Planning and Public Spaces, Paul Scully.
“I’m asking councils to use their discretion in choosing whether to issue penalty infringement notices for warehouse and distribution centres as well as wholesale and retail centres operating beyond their normal hours as well as being restocked.”
He said a temporary approach for the next two weeks will allow supermarket shelves to continue to be stocked with essential food and household items in the wake of the software outage.
Supply chains depend on IT systems to manage their inventory, coordinate the movement of goods and share information. When those systems failed, it left items unable to enter or leave warehouses and distribution centres, said the Minister.
“While many warehouses and distribution centres have resumed normal operations, there is still a significant backlog of fresh produce and other essential goods requiring processing before they can reach supermarket shelves and other retailers.”
The Environmental Planning and Assessment Act 1979 and its regulation authorises councils to take compliance action in response to breaches of conditions of a development consent relating to operating hours, noise limits and vehicle movement caps.
The planning circular however reminded councils they also have discretion in choosing whether to exercise their enforcement powers. This includes considering the temporary nature of any breach, the low level of harm caused and the broader public interest in restoring supply chains.
Read the circular here.
