State to announce virus stimulus package next week

The State Government will unveil its own stimulus package next week to deal with the impact of the coronavirus on the state economy.

Premier Peter Gutwein speaks at a Government round table discussion between key Tasmanian stake holders in the wake of cornavirus. Picture: RICHARD JUPE

THE State Government will unveil its own stimulus package next week to deal with the impact of coronavirus on Tasmania business and workers.

Premier Peter Gutwein said the virus would have a strong negative effect on the state’s economy — but stopped short of saying it would drive the budget into deficit.

The current surplus predicted for the 2019/20 financial year is just $10.8 million, a buffer equivalent to 0.36 per cent of government revenue.

A round table meeting between government and business representatives yesterday canvassed the likely effect of the coronavirus on the economy and discussed possible solutions.

“Tomorrow the federal government will release its economic stimulus measures,” Mr Gutwein told reporters after the meeting.

“And then next week we will leverage off that package and provide our own Tasmanian stimulus package. We’ve been working on this now for a number of weeks.

“What we want to ensure is that it is proportionate and it is scalable and importantly ensures that we keep people in work.

“Treasury has been working very closely with the federal government in terms of both the impacts of the coronavirus, but also the stimulus package.

“We continue to have those discussions and as I’ve said as a result, we’ll be announcing our own stimulus package early next week.”

Premier Peter Gutwein speaks at a Government round table discussion between key Tasmanian stake holders in the wake of cornavirus. Picture: RICHARD JUPE

Mr Gutwein would not say whether the combined impact of the virus and the cost of the stimulus would push the state into the red.

“Obviously our budget won’t be immune from the impacts of this,” he said.

“In terms of the budget position, though, we have a very strong financial position, we have a very strong balance sheet, and importantly we go into this in a much stronger position than many of the largest states who were already in deficit and have been writing down revenues.

“Our economy remains the strongest in the country. It puts us in a very strong position to weather the storm, importantly to do what we need to do to support business and industry. But there will obviously be an impact on revenues over time.

“In terms of surplus or deficit, I’ll have more to say on those things as we get closer to the budget.”

Government round table discussion between key Tasmanian stake holders in the wake of cornavirus. Picture: RICHARD JUPE

Health Minister Sarah Courtney said there was no cause for alarm.

“As of midday today, 168 tests have been completed and there have been two positive tests,” she said.

“National health advice remains that the risk to the general Australian population is low, and that the majority of confirmed cases being from returned travellers.

“The risk to Tasmanians from casual contact with a confirmed case is low.”

MORE NEWS:

TASSIE MUST ‘STEM THE BLEEDING’ OF DARK MOFO LOSS

SX IN CUSTODY OVER SHOOTINGS

WALKWAY TO PROVIDE STELLAR VIEWS

She said she was confident planning was underway to ensure enough intensive care beds and ventilators for the potential impact of the virus.

“This is part of the planning that takes place, both in terms of the clinical settings in terms of ICU beds and also making sure that we have sufficient capacity in isolation for our patients around the state, and also ensuring that we have contingencies in place for staffing,” she said.

“We have a range of plans in place for a range of scenarios, it is important for us to be prudent in our preparation.”

“However, we are hopeful that the extent of those preparations aren’t required.”

Ms Courtney said she was likely to make an announcement today about an additional respiratory clinics, in the state’s North-West.

[e-mail]