The operator of Norfolk Island's biggest supermarket says businesses are fearful of expected wage hikes set to be imposed on the island next July.
As part of Australia's takeover of the governance of the island, mainland wage rules are to apply with increases coming into force in July 2018.
An economist on Norfolk, Chris Nobbs, has said the island's economy is heading for disaster because of Canberra's changes.
The supermarket operator Ian Kiernan said staff would be laid off because of the wage hike.
"The island for a long time, because it is heavily reliant on tourism and operates as tourism destination, has been able to trade pretty much seven days a week with out having the imposition of having to pay double or triple time, say for instance on Sundays when we have aircraft arriving and tourists looking to shop and that kind of thing."
Ian Kiernan said his business is also being adversely affected by a requirement to produce a vast amount of new paperwork
