Premier Steven Marshall to deliver a second shot of stimulus into SA economy reeling from coronavirus, aiming to save existing jobs
Two weeks after the first state stimulus package was announced – and following a dramatic escalation in anti-virus measures – the Premier is preparing a second injection to save SA jobs.
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Premier Steven Marshall will deliver a second shot of State Government stimulus into an SA economy reeling from the impacts of coronavirus, aiming to save existing jobs.
The Advertiser can reveal the stimulus is due to be unveiled within a week and understands options including payroll and land tax relief as well as abolishing fees and charges are being considered, as Mr Marshall responds to “heartbreaking” stories of businesses under pressure.
SA was the first state to announce a stimulus, with Mr Marshall committing $350 million a fortnight ago.
Since then, the Federal Government has delivered two massive packages.
It has also forced a range of businesses in hospitality and services to shutter, in a desperate bid to slow the spread of deadly coronavirus that will have a massive flow on hit for jobs.
Mr Marshall told Advertiser.com.au on Monday: “We are working through the details of a second stimulus”. “People are hurting, and they are needing support now,” he said.
Mr Marshall said while the first stimulus was heavy on infrastructure and construction, to create extra employment, phase two will have a sharper focus on keeping current jobs going.
“Everything is on the table at the moment,” he said.
“We were the first state to go ahead with a stimulus package. This will be a combination of stimulus and support.
“There is no time to waste. There is no point putting a support package in six weeks’ time.”
Business groups are particularly worried about hospitality and tourism, but fear wider hits amid increasingly uncertain conditions and predictions of a deep economic downturn.
Mr Marshall would not speculate on the cost of the second stimulus under development.
“I’m trying to offer some relief to businesses to help them through this extraordinary difficult time, to preserve as many jobs as possible. That’s going to be a huge part of what we are doing, and making sure that we have a solid recovery in SA when this is all over,” he said.
“Stimulus is creating jobs that people will be employed in. Support is for businesses that are actually really in trouble and, if we don’t step in and assist, they will be in even more trouble.
“This will end, and then we need to have an economic recovery and get as many people back into work as possible. Our primary focus at the moment is keeping as many people employed as possible and keeping as many businesses across this six month bridge as we can.
“The crucial point is it has to be done as quickly as possible. We want to learn the lessons from previous stimulus packages, which often … came a year late and were competing with the private sector for finite resources and increasing everybody’s costs.
“We’re very careful that these things happen right now.”
Mr Marshall urged South Australians to do what they can to help. For those with secure employment, he suggested they consider building a house. Others should buy local, he said.
“We are just asking people to really think about supporting SA businesses,” he said.
“We are also saying to people that have a secure job, that now is maybe the time to look at building a home. Interest rates are the lowest they are going to be.
“We know that we have trades that are available. We think that pricing will be really keen at the moment. So, even though we are in uncertain times, if you have got secure employment now might be a really good opportunity.”
On Sunday, Opposition Leader Peter Malinauskas urged a bailout for tourism and hospitality.
Mr Malinauskas called for a $200 million support fund and the waiving for thousands of dollars worth of fees, charges and taxes to keep hospitality and tourism businesses alive.
He said NSW, Victoria, Queensland, WA, Tasmania, ACT and NT had already released packages for their industries, waiving thousands of dollars’ worth of fees and charges.
He also urged full payroll tax refunds for this year and waving them next year for impacted businesses. Liquor licensing and land tax fees should also be waived in hospitality, he said.
“Bookings have been cancelled, foot traffic is down, and all signs point to it getting worse before it gets better,” he said.
“This is now an emergency for the hospitality and tourism sectors. If Government doesn’t act quickly to mitigate the impact and provide support, these businesses are in danger of collapsing.”