Supermarkets across can receive deliveries 24 hours a day to restock their shelves under new rules introduced on Friday by the NSW Government.
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Premier Gladys Berejiklian said the Government had moved to override local council rules that restrict some stores from restocking their shelves and operating their loading docks outside regular business hours.
"We need to make sure these products can move from factories to shelves as quickly as possible," Ms Berejiklian said.
"We are moving quickly so truck drivers can make deliveries to supermarkets around the clock.
"It is important that people now stop unnecessary panic buying."
Planning and Public Spaces Minister Rob Stokes said the State Environmental Planning Policy Amendment (COVID-19 Response) 2020 makes clear that truck deliveries are able to supply shops and retailers with essential goods at all times to support communities.
"Councils and retailers have been working well together to allow greater flexibility in delivery hours, and this change gives everyone the certainty we need to ensure these deliveries can continue," Mr Stokes said.
"The SEPP makes clear that truck deliveries are able to supply shops and retailers with essential goods at all times."
The new rules apply immediately and will be kept in place until the crisis is over.
On Thursday, before the state change, Wollongong City Council said it would not issue fines for supermarkets who need to receive deliveries outside of their normal curfews to restock shelves amid the continued COVID-19 panic buying, Lord Mayor Gordon Bradbery said.
He said supermarkets would need to contact the council to make special arrangements to suspend their curfew enforcement and added that, so far, only one across the local government area had made this request.
Earlier this week, the Australian Retailers Association (ARA) asked for local government curfews to be lifted to allow supermarkets to cope with the increased demand for items like toilet paper, pasta, rice, eggs and meat.
I would really appreciate if the logistics and delivery people being very sensitive to the residents around supermarkets at this time, if they plan to deliver outside curfews.
Executive director Russell Zimmerman said giving the supermarkets more time to receive goods and restock would reduce the panic buying, as people would be able to see that there was no supply problem.
Cr Bradbery said it was not within the council's power to "unilaterally" lift curfews, as they were built into each supermarkets development consent to protect neighbouring residents from excess noise pollution during sleeping hours.
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"The hours that a supermarket is able to receive deliveries is generally contained in the relevant development consent and are designed to make sure that the operation of the business respects the amenity of surrounding residents and landowners," he said.
"However, as local supermarkets have established at different times and have their own distinctive local characteristics, there would be a variety of allowable hours for supermarket deliveries in place across the local government area, and in some cases older supermarkets may not have any specific restrictions in place.
"There is no mechanism under the Environmental Planning and Assessment Act for Council to unilaterally amend multiple development consents at once and in a very short time frame.
"However, during this unprecedented period, Council is able to take a flexible approach and suspend taking enforcement action against a supermarket who chooses to receive deliveries outside of its authorised hours.
"The key to getting through this crisis is being as flexible as possible."
He said the council would be "very open to a discussion with any affected supermarket about their delivery plans and how they may be able to limit disruption to local communities if they take deliveries outside of hours".
"I would really appreciate if the logistics and delivery people being very sensitive to the residents around supermarkets at this time, if they plan to deliver outside curfews," Cr Bradbery said.
He said so far, only one supermarket had contacted the council to request special arrangements for deliveries.
Shellharbour council has also committed to working with retailers over the stock issue.
"In response to the unprecedented demand on the local retailers and their ability to restock important commodities and provisions within the shops, council will work with businesses to find solutions to extend trading and delivery hours to meet this demand," the council said on its website.
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