The current Australian focus is on spending money to relieve the economic impacts of Victoria’s COVID-19 administrative debacle.
But we also need to start to focus on what could be done to boost and adapt the Australian economy without spending vast sums of money.
While clearly the Victorian situation is very serious, I am optimistic. For the first time the weak public service administration in the state is starting to understand the seriousness of the virus. And the Victorian community itself is far more focused on COVID-19 than it was in March and April when its infection rates were lower than the rest of Australia.
Accordingly there is a good chance that in six to eight weeks Victoria can rejoin the rest of the nation.
The biggest change in our region is the more aggressive role of China and the end of traditional independence in Hong Kong. A large number of Hong Kong residents will want to leave in the next year or two. Britain has already agreed to take a large number and Australia needs to be part of that action. Thankfully the Morrison government understands the opportunity.
We also need to recognise that we will need to invest in long-term facilities to securely handle overseas visitors in times of infection while making the experience as pleasant as possible.
So in that context, here is my list of actions that will not cost large amounts of money.
* The building sector is a great generator of jobs. Through a series of measures including HomeBuilder we have boosted suburban residential development but the inner city apartment sector has been allowed to fall away, particularly in Sydney.
In the boom all state governments imposed stamp duty on purchases of apartments “off the plan”. And most put extra duties on foreigners buying apartments. That is killing the industry and is now raising very little money. So buying “off the plan” should be made duty-free. Only token sums will be lost and will actually generate revenue in other areas. Western Australia has woken up but other states are asleep. That simple measure gives apartment developers the selling opportunity to assemble forward orders to enable the financing of new developments and smooth the integration of Hong Kong residents.
* Victoria can be the biggest winner in this area because NSW has to take another action ----- a complete revamp of its approval process. There is no more chaotic industry in NSW then its inner city development approval. Councils make decisions that are then reviewed by one planning body and then those reviews are reviewed again by another body. There is no way of predicting what will happen and the planning chaos has destroyed a large number of developers, leaving Sydney with Meriton as its only major developer. The state government talks big but has no appetite for action. Indeed the best way of getting approvals in New South Wales is to contact Scott Morrison’s office because he has a way of bashing down NSW bureaucratic doors. NSW planning has 60 per cent of new dwellings as apartments and already its way behind. The PM can’t be everywhere.
* We can learn from the Chinese. Unlike the first wave of COVID-19 we are now seeing vast amounts of community transmissions in Victoria and we must devise a way of living with that situation rather than constantly wrecking our economy. And the most simple device available to do this is masks. Masks greatly reduce the risk of infection spread and they need to be compulsory outdoors -- initially in Victoria but all states need to be ready to move in that direction.
* We desperately need our aviation industry to regain momentum. Of course that can’t happen while Victoria is in lockdown, but the first and most important step is to make the wearing of masks – and good ones – absolutely compulsory for those flying on aircraft.
* The government should honour its election promise and announce that it is moving towards banning government contracts for all companies that do not pay a small enterprises quickly.
Legislation is coming forward that will enable us to see which large enterprises are laggards in their payment of small suppliers. That will help but only by banning companies from government contracts will the message get through to our large corporate boards.
* We need to devise systems – it does not require money – that will enable our universities (including Victorian universities) to reopen for overseas students, especially given that overseas students are not being encouraged in the US.
* Correctly the federal government is planning major expenditures in Victoria to help the state overcome its mismanagement of the virus. I would add a condition of that money should be conditional on Victoria opening up its Gippsland and other gas reserves to lower the cost of energy. NSW also needs to be told that Narrabri must open.
* The nation needs an inspirational project. We have vast potential in the arid regions of Australia to generate solar power to help the countries to our north. Evaluating these projects needs to be given a priority. This first stage does not require a lot of money.
None of the above is hard to do.
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