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Australia coronavirus live update: Qld premier hits back at NSW over pressure to open borders, as Labor MP accuses Coalition of demonising China – latest news Australia coronavirus live update: Qld premier hits back at NSW over pressure to open borders, as Labor MP accuses Coalition of demonising China – latest news
(32 minutes later)
Annastacia Palaszczuk says she won’t be lectured to ‘by a state that has the highest number of cases in Australia’ as Joel Fitzgibbon opens new front in China row. Follow liveAnnastacia Palaszczuk says she won’t be lectured to ‘by a state that has the highest number of cases in Australia’ as Joel Fitzgibbon opens new front in China row. Follow live
If you have enjoyed your iso-bubble, you may enjoy this
Earlier, Steven Kennedy said the review of jobkeeper does not have terms of reference or a call for submissions, but treasury is talking to external stakeholders including business and academics.
Kennedy gave some hints about the review - confirming it would consider whether some industries need the payment for longer, and the “taper rates” and incentives, in terms of how the wage subsidy interacts with the jobseeker unemployment benefit.
Kennedy said both jobkeeper and the corona supplement on jobseeker were “designed to be temporary schemes, and I think rightly so”.
Kennedy said treasury had been aware it would conduct a review at the 3 month mark “since the inception of the policy” on 30 March.
Labor’s Kristina Keneally noted the review was not mentioned when the policy was announced and the first Scott Morrison or Josh Frydenberg had mentioned it was at a press conference on 14 May.
As Liberal senator Andrew Bragg said, it is their money.
But later, when they go to retire, and their overall super has taken a hit, well, that’s another story.
Not Covid-related, but a very big issue facing Australia as we move into the next stage – Mark Butler has responded to the government’s energy “roadmap”.
Not having terms of reference makes it easier not to hint ahead of time what the government is considering doing.
Treasury officials have updated numbers on government supports:Treasury officials have updated numbers on government supports:
900,000 businesses enrolled for jobkeeper, covering “a bit over 6m” workers.900,000 businesses enrolled for jobkeeper, covering “a bit over 6m” workers.
1.65m people have applied for early access of superannuation, totalling $13.2m - so an average of $8,000 each 1.65m people have applied for early access of superannuation, totalling $13.2bn
Treasury says they are not aware of APRA or any super funds writing to them to say they are experiencing liquidity issues, but takes the question on notice.Liberal senator James Paterson asks a series of questions about border closures and the effect on the domestic tourism market - obviously lobbying for states like Queensland to open up - but treasury doesn’t have much information on it, and takes them on notice. Treasury says they are not aware of Apra or any super funds writing to them to say they are experiencing liquidity issues, but takes the question on notice.
Liberal senator James Paterson asks a series of questions about border closures and the effect on the domestic tourism market – obviously lobbying for states such as Queensland to open up – but Treasury doesn’t have much information on it, and takes them on notice.
Just in case anyone thought we were a nation of Ned Kellys, AAP has this report:Just in case anyone thought we were a nation of Ned Kellys, AAP has this report:
Since the government relaxed the early access conditions for superannuation, more than 1.6m people have applied to withdraw more than $13bn from funds.Since the government relaxed the early access conditions for superannuation, more than 1.6m people have applied to withdraw more than $13bn from funds.
Steven Kennedy tells the Covid committee he is “not particularly concerned about the level of debt Australia is left with” at the end of the pandemic. He says debt would be “significantly higher” but given the economic shock it was “entirely appropriate” to respond in the way the government has (with $194bn of fiscal stimulus).Steven Kennedy tells the Covid committee he is “not particularly concerned about the level of debt Australia is left with” at the end of the pandemic. He says debt would be “significantly higher” but given the economic shock it was “entirely appropriate” to respond in the way the government has (with $194bn of fiscal stimulus).
He says:He says:
“We as a country – amid all the global gloom – are looking pretty good. We’re handling the health crisis well, we’re in a sound fiscal position and I believe – I realise this is contested – there was a very quick response from the fiscal side ... So far so good.”“We as a country – amid all the global gloom – are looking pretty good. We’re handling the health crisis well, we’re in a sound fiscal position and I believe – I realise this is contested – there was a very quick response from the fiscal side ... So far so good.”
Kennedy notes that government revenues will decline but if the structural budget is sound, then a focus on full employment will mean that debt issues will “solve themselves”. Growth of 4.5% or stronger would help bring debt down quickly – the key is restoring “demand confidence”, so measures such as GDP growth, full employment and wages growth are more important than debt.Kennedy notes that government revenues will decline but if the structural budget is sound, then a focus on full employment will mean that debt issues will “solve themselves”. Growth of 4.5% or stronger would help bring debt down quickly – the key is restoring “demand confidence”, so measures such as GDP growth, full employment and wages growth are more important than debt.
As Kennedy concludes his evidence, Katy Gallagher says the committee is “frustrated” with the flow of information from Treasury and recognises this is not solely its responsibility/fault (ie PMC has classed modelling as cabinet in confidence). But she clarifies it is not the committee’s view that Treasury is obstructing the inquiry (Rex Patrick earlier said it was his view).As Kennedy concludes his evidence, Katy Gallagher says the committee is “frustrated” with the flow of information from Treasury and recognises this is not solely its responsibility/fault (ie PMC has classed modelling as cabinet in confidence). But she clarifies it is not the committee’s view that Treasury is obstructing the inquiry (Rex Patrick earlier said it was his view).
The ACCC is now monitoring NBN speeds.The ACCC is now monitoring NBN speeds.
Its first report shows that yes, you did see a drop in speed when we all started working from home, but it was rectified.Its first report shows that yes, you did see a drop in speed when we all started working from home, but it was rectified.
Steven Kennedy has addressed Adam Morton’s report on the leaked Covid commission manufacturing taskforce’s massive plan to expand the gas sector.
Kennedy said he’s aware of the news report, but hasn’t read the draft briefing paper, and takes on notice whether anyone else in Treasury is aware of it.
Kennedy said the National Covid-19 Coordination Commission has not commissioned work from Treasury. “We haven’t been asked to model their proposals,” he said.
Peter Dutton also called in for his weekly love-in with Ray Hadley on Sydney radio 2GB.
The “proud Queenslander” says “the public needs to keep the pressure up here” because it is “hard to understand the logic” the premier is applying to the border closure.
There hasn’t been a huge amount of noise on this issue from the LNP in Queensland – and that seems to be because a lot of Queenslanders are actually in agreement with the border closure.
But there is a state election to be held in October, so Queensland, despite taking the same stance as WA, Tasmania, SA and the NT, seems to be taking all the heat.
Dutton says Palaszczuk is conducting “some social experiment while tourism operators are going broke and their families are being destroyed”.
Centre Alliance senator Rex Patrick has accused Treasury of “obstructing” the Covid-19 inquiry by refusing to release modelling about projected unemployment, labelling it “disrespectful”.
Patrick said he will start using freedom of information to get at the modelling.
The chair, Katy Gallagher, says the committee will be “responding to you more formally than that” – which indicates Labor and other members share their concerns and plan to write to the Treasury secretary, Steven Kennedy.
Kennedy suggests the committee include the Department of the Prime Minister and Cabinet in any correspondence, because he had been “guided” by its view on consideration of material.
Gallagher asks if PMC had instructed Treasury not to release the modelling. Kennedy says Treasury “sought advice on the treatment of documents” and PMC advised they should be treated as cabinet documents which Treasury “wouldn’t usually release”. So basically: yes.
Earlier, Kennedy said Australia is “well past” what would be called a recession, but is cautious about using the term “depression” because the Covid-19 contraction is a “disease-led shock”. Unlike a depression, there is no “massive misallocation of capital or highly dysfunctional credit markets”.
He said:
“I’m not predicting a V-shape recovery. But given the nature of the shock – if the government responds well with its fiscal levers, we needn’t have an L shaped recovery, which is what people would think when it comes to a depression.”
All the people are there after the shock ... All the productive capital at the beginning sits there at end. [The question is] Have you avoided the destructive cycle of firms going broke, running out of cash, and people losing confidence and becoming very precautionary.”
It may be time to just scrap everything and start again:
Deputy Chief Medical Officer Dr Nick Coatsworth had a morning chat with Alan Jones on Sydney radio 2GB.
I missed it originally, as I try to limit my daily rage quota and mornings on 2GB can be counterproductive to that.
Coatsworth echoed his colleague Prof. Paul Kelly, that he saw no reason to keep borders closed or for physical restrictions to be so strict.
“I think we have to open up, the prime minister said that we can’t let the fear of going backwards stop us from going forwards, and I absolutely endorse that” he said.
Jones was tres impressed. “That is the most significant thing which has been said this morning”.
Greens senator Dr Mehreen Faruqi says without access to packages like the jobkeeper wage subsidy, universities could shed up to 30,000 staff.
It’s a national day of action for higher education – Faruqi says universities could not afford to be left off the wage subsidy scheme any longer:
Stephen Jones has again attacked the government’s early super release program (which Labor has never been for) following reports from the AFR some recipients had gambled the money away online.
For the record, if you count the number of people who dropped out of the labour force market statistics, almost 500,000 in the last month, unemployment would already be at almost 10%.
Steven Kennedy, the Treasury secretary, is at the Covid-19 committee addressing April’s labour force statistics showing a loss of 600,000 jobs and unemployment rate of 6.2%.
Kennedy said that “roughly speaking” the figures were in line with Treasury’s estimates that unemployment would reach 10%, or 15% if it weren’t for the jobkeeper wage subsidy.
Kennedy noted the second week of April was one with “lots of restrictions” on the economy, and the ABS stats showed there were 489,000 people who had left the labour market ie were not looking for work.
He said:
“If we put that plus the unemployed, we’d get an unemployment rate of about 9.6%, that’s roughly equivalent to the 10% we expected to see. The thing that we missed was there was a much larger withdrawal from the labour force than we anticipated. I expect they will go back into the labour force and be counted unemployed.”Kennedy noted that mutual obligations have been suspended, but argues workers were “simply unavailable” to work because they were advised to stay home, and he “wouldn’t be surprised” if there is a significant rise in unemployment when the economy reopens and they start looking for work.
Kennedy also noted a “dramatic” fall in the number of hours worked, and said the UNDERemployment work is 19.9%.
That is quite the escalation from Joel Fitzgibbon there. He wasn’t asked to go further, and instead the interview moved on to how the agriculture sector is feeling, but if Tim Pallas’s comments kicked off furious rebuttal, then Fitzgibbon has just kickstarted a whole new argument.