Green shoots won’t grow on their own
The Palaszczuk Government have no more excuses. Cameron Dick and his treasury finally have to put pen to paper and forecast how Labor’s rather anaemic economic plan will aid Queensland’s recovery over the next four years, writes The Editor.
Opinion
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RESERVE Bank Governor Philip Lowe did the re-elected Palaszczuk Government a solid when he announced his Melbourne Cup day interest rate cut and bond buy-up on Tuesday.
Treasurer Cameron Dick is in a race to cobble together a State Budget by the first week of December and Dr Lowe’s decisions should ease the interest rate costs on Queensland’s ominous debt pile.
The Bank’s actions, which Dr Lowe described as a “significant new measure”, is aimed at helping stimulate economic recovery and drive employment.
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Pressure will come on the banks to pass through the interest rate cut, which in turn will help convince people to build new homes and take out loans to invest and grow their businesses.
Mr Dick always presented a “sunny side up” attitude towards the Queensland economy in the lead-up to last Saturday’s state election, pushing the Labor Party’s pervading message that the border closure had helped kickstart the state’s economy from the woes of the COVID-enforced shutdowns.
Yet the real work begins now and Mr Dick and his treasury will finally have to put pen to paper and forecast how Labor’s rather anaemic economic plan will aid Queensland’s recovery over the next four years.
The Palaszczuk Government, however, cannot just rely on the monetary policy of the Reserve Bank and the fiscal stimulus of the Morrison administration – through JobKeeper payments in particular – in the hope these combined will get Queensland over the hump.
The state government has a vital role when it comes to restoring confidence. And given Labor’s economic plan amounts to not much more than motherhood statements and promising to do more of the same of what it was doing before the pandemic, many business owners will be nervous.
Queensland’s unemployment rate is already nation-leading and without extra activity there will be no work for many people once JobKeeper ends and employers have no choice but to make staff redundant. As we reported yesterday, for example, hundreds of Virgin Australia staff are being kept on the company’s books until March but there is no hope of them returning to their jobs even when domestic travel resumes.
An economic analysis by the Brisbane City Council has meanwhile suggested the local jobs market won’t return to pre-COVID levels until March 2022.
Critically, it’s a myth that the ongoing COVID-19 restrictions are only impacting directly affected industries like travel, hospitality and tourism. In Brisbane’s Central Business District there are some 1300 organisations which have had to put employees on JobKeeper.
BCC economic development manager Chris Isles observed: “That’s telling us there are a lot of normal businesses that are being affected due to COVID.”
Yet as Brisbane deputy mayor Krista Adams pointed out this week, there are “green shoots” that demonstrate life is gradually returning to normal – such as foot traffic in the CBD going from 80 per cent below average in April to just 20 per cent below average last month.
The Palaszczuk Government’s responsibility now is to identify which areas of the Queensland economy are making the slowest recovery and do what it can to enliven activity in these areas.
NEVER IGNORE THE PEOPLE
DESPITE President Donald Trump’s predictable but unsubstantiated claims that the counting in yesterday’s US election was somehow rigged, we should celebrate what happened in America yesterday.
The great democracy was again on show for all the world to see, and 150 million Americans cast a ballot – perhaps the largest turnout ever.
The result might not be known for days – perhaps weeks.
But what we do know is that about half of those millions who voted did so for President Trump, a reminder that despite his – lets say – unique personal style and penchant for trampling norms, he represents something to many Americans.
It is a reminder for all of us that we should all never be too eager to make fun of or dismiss the concerns of everyday people whose opinions might not always get the airing they should, other than after they have their say in the confidential sanctity of the voting booth.
Responsibility for election comment is taken by Chris Jones, corner of Mayne Rd & Campbell St, Bowen Hills, Qld 4006. Printed and published by NEWSQUEENSLAND (ACN 009 661 778). Contact details are available at couriermail.com.au/help/contact-us