Editorial: Federal Government’s stimulus packages are a lifeline for the workers

EDITORIAL: When this coronavirus storm passes, the Government has to ensure we have a quality of life to return to. This unprecedented stimulus package announced yesterday aims to do exactly that.

YESTERDAY the Prime Minister delivered what will likely be the defining speech of his time in the top job.

The Federal Government, which had already announced two stimulus packages worth almost $70 billion, announced what Scott Morrison would describe as an “economic lifeline” designed to save the livelihoods of up to six million Australians who could find themselves out of work as the economy stumbles towards a near shutdown. In different times, it would be impossible to imagine hearing a Liberal government release a $130 billion package of this sort.

But these are indeed unprecedented times. “Every Australian worker is seen the same way no matter what you earn,” Mr Morrison said. “We are all in this together. That’s what’s fair. That’s what’s Australian.”

The Government will now pay employers to pay employees – to the tune of $1500 a worker.

The “job-keeper allowance” will last for six months and will undoubtedly be a game-changer for many an organisation that’s bottom line has tanked.

Mr Morrison implored companies to hear and consider the new measures before they move to stand down staff. His comments follow shocking news of hundreds of thousands of employees all over the country being stood down.

From pubs, hotels, casinos to the big retail giants like Myer and David Jones, even private hospitals, no one is immune to the squeeze and nearly all companies are facing the very real prospect of having to downsize. But, as Mr Morrison says, this massive stimulus is about saving jobs, saving businesses and ensuring the engine of our economy continues to run, even if it’s running on idle while the country goes into hibernation.

The Prime Minister has given us fair warning.

He’s been criticised by some for being too slow to implement lockdowns or more robust social distancing measures and each time he’s been grilled on this topic he’s warned the Australian public of just how significant the damage of such strategies would be on the economy.

Many voices have criticised the Morrison Government for over-prioritising the economy ahead of public health and safety in recent weeks.

But what his Government has to do is balance fighting a health crisis while ensuring the cure doesn’t have a worse outcome for all Australians.

To place the extent of the economic issues we are facing in context: in October 2008 the Rudd Government announced its first stimulus package which involved payments to pensioners, support payments to families, first homebuyer cash and money for new training positions. The value? $10.4 billion, less than one twelfth of what was announced yesterday. And as the crisis deepened so did the extent to which the Rudd Government was willing to extend taxpayers’ pockets, with the stimulus eventually costing about $42 billion.

Lives have already been lost and many more will likely be lost. But when this storm passes, the Government has to ensure we have a quality of life to return to. This unprecedented package is aimed at doing exactly that.