What we learned today, Wednesday 2 September
That is where we will leave the live blog for this evening. If you want to follow the latest global coronavirus news, you can follow our other live blog here.
Here’s what we learned today:
- Australia is officially in recession for the first time in 29 years, with GDP data showing the economy contracted 7% in the June quarter.
- Victoria recorded 90 new Covid-19 cases and six deaths from the virus.
- New South Wales reported 17 new coronavirus cases, one of which is in hotel quarantine. The Sydney CBD cluster has grown to 49.
- Queensland recorded two new cases of Covid-19.
- The government has announced it will offer hardship loans to Australians stranded overseas to help them pay for temporary accommodation and daily living costs, as the number of Australians who have registered their intention to return to Australia (but who are unable to do so because of strict arrival caps) soars to 23,000.
- The deputy chief medical officer, Nick Coatsworth, warned summer could pose a Covid-19 risk if Australians making the most of warm weather leads to increased crowding and movement across cities.
Updated
Queensland Health has added several new venues to its list of places where Covid-19 cases have visited.
Anyone who has visited the below locations at the times specified should monitor their health and if they develop any Covid-19 symptoms, even mild, get tested and isolate until they receive their test result.
- Spa Choice, Pacific Hwy, Springwood, between 10.30am and 11am on 29 August
- Spa World, Compton Rd, Underwood, between 11am and 11.30am on 29 August
- Dosa Hut, Springfield, between 11.55am and 12pm on 29 August
- Indian Spice Shop, Springfield, between 12pm-12.05pm on 29 August
- Woolworths, Yamanto, between 12pm and 12.20pm on 30 August
- Domino’s, Yamanto, between 11.45am and 12.30pm on 30 August
- Woolworths, Yamanto, between 11am and 11.15am on 31 August
- Country Market, Yamanto, between 11.20am and 11.40am on 31 August
- Priceline, Yamanto, between 11.40am and 11.45am on 31 August
The full, updated list is available at: https://www.qld.gov.au/health/conditions/health-alerts/coronavirus-covid-19/current-status/contact-tracing.
Updated
The #covidcommittee is reopening submissions - we would like to hear from people who may be trying to return to Oz aswell as from people who are trying to leave Oz for compassionate reasons. https://t.co/c892MBbXdg
— Katy Gallagher (@SenKatyG) September 2, 2020
The sports grants hearing has revealed Bridget McKenzie’s office prepared “talking points” for a meeting with the prime minister that set out how many marginal and target seats could be funded if the community sports infrastructure grant program was expanded from $30m to $100m.
The Australian National Audit Office’s scathing report on the program concluded that McKenzie’s office ran a parallel assessment process, finding her office recorded on 20 November 2018 that it had identified 705 projects in marginal and targeted seats. Some 109 more projects in marginal and target seats could be funded if the program were expanded.
It said McKenzie’s office had “‘spoken directly to other members and duty-senators and some cross-bench on key priorities – with a priority on marginal and target seats”.
The Greens senator Janet Rice asked: What document was the source of that quote?
The ANAO executive director of the performance audit services group, Brian Boyd, told the inquiry that in October 2018 McKenzie wrote to the prime minister proposing to expand the program, then worth $30m.
On 16 November, McKenzie’s office sent the prime minister’s office a spreadsheet of what a “$100m project might look like”, he said, followed by one setting out what a $30m program would look like on 19 November.
On the afternoon of 19 November, McKenzie, her chief of staff and senior adviser met to prepare for a meeting with the prime minister.
McKenzie’s senior adviser then prepared a document titled “TPs for meeting with PM” (the ANAO understood it was talking points for a meeting with the prime minister) – a four-page document setting out what could be achieved if the program was expanded from $30m to $100m.
That meeting, scheduled for 20 November, went ahead on 28 November, and the program was later expanded to $100m.
ANAO officials say they established the talking points were printed - but they can’t speculate whether they were used.
Updated
Uluru residents want Queensland flights grounded
Residents of Uluru-Kata Tjuta national park want tourists from south-east Queensland blocked from entering the park after a Northern Territory Covid-19 alert.
This report from AAP:
Northern Territory chief health officer Hugh Heggie placed greater Brisbane and the Gold Coast on the Top End’s “area of elevated” coronavirus hotspot list, with a warning there were disease clusters in the areas.
“An area of elevated Covid alert may or may not go on to be declared a hotspot depending on the evolution of the outbreak,” an update to the NT government’s Covid-19 website said on Friday.
Mutitjulu Community Aboriginal Corporation general manager Glenn Irvine says flights from south-east Queensland should be stopped for at least seven days until the cluster is controlled.
“It’s currently a very unclear situation and we’d prefer to err on the side of caution to protect our community,” he said on Wednesday.
“We need to slow it all down until things are right.”
Visitors from areas on the NT’s elevated Covid-19 alert list are asked to refrain from visiting high-risk settings, including remote communities and residential aged care facilities.
Irvine said the Mutitjulu community was doubly vulnerable being both remote and populated by many elderly residents.
“They need to either declare the areas as hotspots or wait until they are Covid-free before letting anyone on the planes,” he said.
Visitors to the NT from hotspots such as Victoria must undergo 14 days of mandatory supervised quarantine.
Updated
That is where I will leave you this Wednesday, as I come to terms with the fact that tomorrow is still not Friday and continue my slow descent into madness.
If you need a visual, I currently look like Michelle Pfeiffer in that Batman movie after she is almost murdered and revived by cats and destroys her apartment.
And yet we still have two more days!
Thank you for joining me on yet another day of insanity. The MPs will be back for one last day before 5 October, which is the week the budget will be handed down.
The lovely and sanity saving Elias Visontay will take you through the evening. Thanks again – if you need me before tomorrow morning, or have a burning question, you can, as always, catch me here and here.
I’ll be back early tomorrow. In the meantime, please take care of you.
Updated
Labor has responded to the hardship loans announcement from Marise Payne after it was revealed the number of Australians stranded overseas has actually increased to 23,000:
It’s almost eight weeks since Scott Morrison rushed to make an announcement on caps for incoming passengers with no plan for what would happen next.
It’s almost two weeks since Scott Morrison announced to the media he had asked senior ministers for “ideas” to support those stuck overseas as a result of this cap – but tens of thousands of Australians are still stranded.
Today’s announcement of a hardship program loaning emergency funds to “only the most vulnerable” is an attempt to get a headline without actually helping people.
The 23,000 Australians stranded overseas need more than empty announcements – they need a plan to get home.
Labor will move a motion in the Senate calling on the Morrison Government to take urgent action, including:
- Draw on Commonwealth resources to increase quarantine capacity, allowing the number of permitted arrivals under international flight caps to go up.
- Stopping price gouging by airlines flying into Australia.
- Put all options on the table to repatriate stranded Australians, including charter flights if there are no other alternatives.
The Morrison Government has already proven it has the ability to repatriate stranded Australians with Federal quarantine arrangements – as they did at the start of the pandemic – and should act now to help stranded Australians get home.
And later today:
Australia’s first Parliamentary report into #FinTech will be tabled in the @AuSenate around 5.10pm Canberra time. pic.twitter.com/giAgKjVf8g
— Senator Andrew Bragg (@ajamesbragg) September 2, 2020
Also tomorrow, but this should be very interesting:
Australian, Tongan and Fijian opponents to a new Pacific trade agreement will give evidence at a parliamentary hearing tomorrow.
Witnesses from the Pacific Network on Globalisation (PANG) and Public Services International will provide evidence at the hearing, part of an inquiry into the Pacific Agreement on Closer Economic Relations Plus (Pacer Plus).
The chair of the foreign affairs, defence and trade committee’s sub-committee on trade, Dr John McVeigh, says the hearing is an important opportunity for the sub-committee to hear all views on Pacific trade.
Pacer Plus is an agreement yet to be ratified with 13 other members of the Pacific Islands Forum that it is hoped will encourage a stronger regional trading system between Pacific island countries.
Further details about the inquiry, including terms of reference, details on how to contribute a submission and, when available, details of public hearings and roundtable discussions, can be obtained from the committee’s website.
Updated
And in the Senate, Anthony Chisholm wants the Senate to note that the LNP in Queensland has decided to preference the Greens ahead of Labor in South Brisbane (in a move designed to try to unseat the former deputy premier Jackie Trad).
In his motion, which will go for a vote tomorrow, Chisholm wants the Senate to note that the decision “increases the chances of a minority government in Queensland” and “the Greens policies would do great economic damage to Queensland at a time when every job is vital as we look to recover from covid-19”.
The Queensland election will be held on Halloween.
Updated
Over in the House and Labor is attempting to suspend standing orders, again, to discuss and condemn Tony Abbott’s comments from his UK speech.
They do not have the numbers.
Today’s National Accounts confirm the devastating blow to our economy from #COVID19.
— Josh Frydenberg (@JoshFrydenberg) September 2, 2020
Our Government’s plan for the recovery is seeing hundreds of thousands of Australians getting back to work & thousands of businesses reopening their doors.
There is hope & there is a road out. pic.twitter.com/IOnjXA4nde
So there was some shenanigans a little earlier today over the disallowance motion the Senate passed on the Australia Post changes.
It is complicated and relies on people checking what the actual protocol is, so stay with me.
The government has used regulations to change some things at Australia Post, including how often it delivers letters (every second day).
It says that is because of the number of packages the postal carrier is being asked to deliver through the pandemic.
Labor accused the government of cost cutting and the Senate passed a disallowance motion to stop the reg changes.
Now, that was meant to be debated in the House where, obviously, the government has the numbers. But disallowance motions have a set time where the House has to debate them, before they just come into effect automatically.
Now, I only had one eye on this, this morning, as it was around the time of the national accounts.
But the disallowance motion finally came to the House, through a Labor motion, and then Paul Fletcher moved to gag the debate – ie shut it down.
So Labor asked what would happen if it didn’t second its own motion.
And it seems if it doesn’t second it then the motion can’t be debated, and there is a chance the disallowance motion is passed because it runs out of time for the House to debate it.
There are three more sitting days left on that clock. Now that the government has gagged debate on Labor’s motion, Labor needs to second it, for it to go ahead. Now everyone is scrambling to get advice on what happens if Labor doesn’t second it – whether that means the Senate gets its way, to disallow the government’s changes, because debate was gagged in the House.
Updated
Auspic are making the most of their access to new angles of the Chamber. We've just received the following shots from today's #QT pic.twitter.com/xl4lxum846
— Australian House of Representatives (@AboutTheHouse) September 2, 2020
The agriculture minister, David Littleproud, says the government will work with Chinese authorities after an Australian grains exporter was suspended from sending barley to China over alleged breaches of import regulations.
The CBH Group, which is based in Western Australia and says it is the biggest cooperative in Australia, was notified of the suspension, effective yesterday. It comes amid ongoing trade tensions.
In a statement issued a short time ago, Littleproud said:
“The government is working with the exporter and Chinese authorities to resolve this matter. Australia produces the best quality grain in the world, and we take very seriously the quality and safety of our grain exports and have world-leading regulatory controls that underpin the integrity and safety of our products. Our grain continues to enjoy strong international demand owing to its world renowned reputation and quality.”
Updated
Dr Nick Coatsworth warns warmer weather could be a Covid risk
Dr Nick Coatsworth has the national Covid update today, and it includes a warning about summer:
There’s been particular discussion about whether the virus might be less transmitted during the summer months as influenza would be.
We have to be clear that we do not yet know the impact of the seasons on Covid-19.
We absolutely cannot assume that because we’re moving into the summer months, when other respiratory viruses traditionally decrease, that Covid-19 would also decrease.
What we do know about summer, though, is that Australians will get outside, and they should in the states where they’re able to do so. And as restrictions are lifted in Victoria, so too will Victorians be able to get out and enjoy the warmer weather.
But when people are getting outside that means two important things that affect Covid-19 transmission. One is movement of people across cities, across states, and the second one is crowds, which we see frequently.
If we can’t assume Covid-19 will be any less transmitted, we have to assume the increase in crowds will potentially bring risk.
We have seen in the northern hemisphere Covid running rampant across many nations during the summer months as holiday-makers go to and from countries in Europe, bringing the disease back in to their own country and sparking new outbreaks of Covid-19.
So the message is, as we move into the summer months, treat the summer with as much caution as you’ve treated winter.
And that means keep physical distance. That means get tested if you’re at all unwell.
Don’t go to a family gathering down at the beach if you’re unwell or the kids are unwell. Stay at home and get yourself tested.
Wear a mask if you’re on public transport going to and from those areas. It’s very hard to find a park in most of the beaches in Sydney. A lot of people use the train and public transport. It’s critically important to wear a mask when you’re doing that.
Excellent hand hygiene, of course, and there has never been a better time to download the Covidsafe app and have it active on your phone when you’re highly likely to be around people who you don’t know at close distance for 15 minutes or more.
Updated
Meanwhile the back and forth between Queensland and New South Wales continues.
AAP has the latest from NSW:
The NSW health minister says people’s lives are being put at risk by the Queensland premier Annastacia Palaszczuk’s decision to keep the border closed between the two states.
Brad Hazzard made the comments on Wednesday after the NSW premier, Gladys Berejiklian, laid bare the poor relationship she’s had with her Queensland counterpart over border closures.
Hazzard urged Palaszczuk to be more pragmatic and compassionate, saying she’s wrong for thinking Queensland hospitals are only for Queenslanders and NSW hospitals are only for NSW residents.
He noted that normally a quarter of all patients who use Tweed Hospital in northern NSW are Queenslanders.
“The Queensland premier and the Queensland government need to realise people’s lives are being put at risk by the decisions the premier is making in Queensland,” he told reporters.
“We have towns on the borders that are now devoid of doctors resulting from a lack of preparedness by Annastacia Palaszczuk to be more flexible.”
Berejiklian says there has been no communication on the issue between the premiers.
“This is a time where we have to think about humanity and compassion first,” Berejiklian told reporters.
“Given the lack of risk to Queensland, I would hope there would be a way through to at least deal with these basic issues of common sense.”
Updated
Victoria Health has issued its daily data release:
Victoria has recorded 90 new cases of coronavirus since yesterday, with the total number of cases now at 19,224.
The overall total has increased by 86 due to four cases being reclassified.
Within Victoria, 22 of the new cases are linked to outbreaks or complex cases and 68 are under investigation.
There have been six new deaths from Covid-19 reported since yesterday. Five men aged in their 80s and one man aged in his 90s. Three of the six deaths occurred prior to yesterday.
In Victoria at the current time:
- 4,351 cases may indicate community transmission – an increase of 24 since yesterday.
- 2,415 cases are currently active in Victoria.
- 406 cases of coronavirus are in hospital, including 18 in intensive care.
- 16,152 people have recovered from the virus.
- A total of 2,248,952 test results have been received which is an increase of 13,912 since yesterday.
Of the 2,415 current active cases in Victoria:
- 2,234 are in metropolitan Melbourne under stage 4 restrictions.
- 125 are in regional local government areas under stage 3 restrictions.
- 50 are either unknown or subject to further investigation.
- 6 are interstate residents.
- Greater Geelong has 40 active cases, Greater Bendigo has eight active cases and Ballarat has five active cases.
Of the total cases:
- 17,823 cases are from metropolitan Melbourne, while 1,154 are from regional Victoria.
- Total cases include 9,198 men and 10,011 women.
- Total number of healthcare workers: 3,206, active cases: 332.
- There are 1,177 active cases relating to aged care facilities.
Active aged care outbreaks with the highest cumulative case numbers are as follows:
- 214 cases have been linked to Epping Gardens aged care in Epping.
- 203 cases have been linked to St Basil’s Homes for the Aged in Fawkner.
- 197 cases have been linked to Baptcare Wyndham Lodge Community in Werribee.
- 161 cases have been linked to Estia aged care facility in Ardeer.
- 139 cases have been linked to Kirkbrae Presbyterian Homes in Kilsyth.
- 127 cases have been linked to Twin Parks aged care in Reservoir.
- 123 cases have been linked to Cumberland Manor aged care facility in Sunshine North.
- 116 cases have been linked to Japara Goonawarra aged care facility in Sunbury.
- 115 cases have been linked to Outlook Gardens aged care facility in Dandenong North.
- 114 cases have been linked to Estia aged care facility in Heidelberg.
In Victoria there are currently 35 active cases in residential disability accommodation:
- Total resident cases: 12; Total staff cases: 23.
- Active cases in NDIS homes: 32 (12 residents).
- Active cases in ‘transfer’ homes (state regulated/funded): 3 (0 residents).
- Active cases in state government delivered and funded homes: 0.
Key outbreaks with new cases include:
- 72 cases linked to Peninsula Health Frankston.
- 45 cases have been linked to Vawdrey Australia truck manufacturer.
The department is also investigating cases linked to Dandenong police station, Kingston Centre in Heatherton and Doutta Galla Aged Services Woornack in Sunshine. More information will be available in coming days as these investigations continue.
Updated
Marise Payne acknowledges flight caps making it harder for people to return home
Over in Senate question time, Marise Payne has acknowledged that the caps on international arrivals to Australia have made it harder for people to return home.
The foreign affairs minister also emphasised that the caps were being “regularly reviewed” without putting too much pressure on the hotel quarantine system.
The government has been facing increased pressure from its backbench – and from politicians from across the spectrum – to rethink the passenger caps, as many MPs have been receiving reports from constituents who are having trouble booking flights to return home.
A parliamentary inquiry was told this morning that the number of Australians overseas who wish to return home has risen to 23,000. Payne said 4,000 Australians continued to return home each week, but the government did understand “that many Australians have found themselves in difficult circumstances, resulting from the Covid-19 pandemic and travel restrictions globally”.
The states and the territories’ incoming passenger caps remain in place through the national cabinet process to protect the Australian community, though, as the prime minister has advised, they are being regularly reviewed. The situation in Victoria has illustrated how dangerous a compromised quarantine system can be.
Today’s national accounts data also underscore the fact that as well as the tragic loss of life, the economic damage is unparalleled in our recent history.
We acknowledge that domestic caps are making it harder for people to return but we do ask that Australians understand that there is a balance which has to be struck in these circumstances.
Payne said the additional loan support announced earlier today would “alleviate some of this hardship”, although it would be targeted to the most vulnerable Australians. She said the Covid-19 pandemic was “far from over” and there was no guarantee around when international travel would return to a form of normalcy.
Updated
What did the papers look like the last time Australia was in this situation?
.@australian's front page 29 years ago, during the last recession
— Alice Workman (@workmanalice) September 2, 2020
"It seems that Paul has been on the road to Damascus again.." pic.twitter.com/VCGLbpF775
A talking point on @theage front page on 30 November 1990, the last time we had a recession. pic.twitter.com/LkgeFjnN9Z
— David Crowe (@CroweDM) September 2, 2020
And on that, question time ends.
Just on those last points, this, again, is what the prime minister said on 18 June:
“While Australia is doing better than almost any other developed economy in the world, if you have lost your job, that is no comfort. So we cannot set our expectations and what is happening elsewhere in the world.”
Updated
Scott Morrison attempts to sledge Jim Chalmers following a question on how much of the committed stimulus the government has actually spent, by mentioning Wayne Swan. Which is probably muscle memory.
Because while the pandemic has dwarfed the GFC, the GFC was still pretty bloody bad – and Swan did keep Australia out of recession, so probably isn’t the greatest example to be reminding people of today.
Q: Yesterday, the treasurer admitted that only $85bn of the $314bn of economic support has been delivered by the government. Are today’s figures better or worse because the prime minister failed to deliver most of the support he announced for families and businesses doing it tough in the worst recession for almost 100 years?
Morrison:
The commitment that the government has made through the jobkeeper program, through the jobseeker program, through the cashflow support, through the many measures, whether they be homebuilder, jobtrainer, all of these programs, Mr Speaker, that are designed, including the balance sheet support that has been provided by the Reserve Bank of which, Mr Speaker, there has already been some $50bn of support to keep rates low and support investments that have been made by businesses, these investments that are being made by the Australian government are not just for today.
They’re for tomorrow, they’re extended out to the end of March, and indeed in many of these programs well beyond that.
Now, the shadow treasurer may be well aware that when you make funding commitments you do it over not just now but over the next few years.
I know the shadow treasurer has never put a budget together, Mr Speaker, and I know these are matters he may not be well versed in when his mentor on this, Mr Speaker, was former treasurer Swan, but I can let the shadow treasurer know that the support we have announced is not just for today, it’s for tomorrow and it’s for the many months and quarters ahead and in some cases for many years ahead, Mr Speaker.
Because what is important as we move through this crisis is we give that support both for today and for tomorrow and importantly we provide the road back for Australian businesses as they seek to make their way out. Mr Speaker, today’s news is terrible news.
It’s devastating news, Mr Speaker. And while it is true that we have been able to, through the measures we’ve put in place, to cushion the blow, with the expenditure already undertaken and the expenditure still to come, which Australians can count on because it has been committed in the way we’ve set out, we have been able to, as a country, despite the very significant outbreak we’ve had more recently in Victoria, we have been able to, so much more than so many other countries around the world today, been able to suppress this virus.
And the same has been true to mitigate the impact and far more devastating economic impacts that have been experienced in so many other places.
A 13% fall through the year in Canada, a 19% fall in France, an 11.3% fall in Germany, a 10% fall in Japan, a 9% fall in the United States. A 21.7% fall in the United Kingdom and Australia is a 6.3% fall. As devastating as that is, Mr Speaker, I can say the death rate in Canada is nine times higher than Australia, 18 times higher in France, 14 times in Germany, 21 times higher in the United States and 23.8 times higher in the United Kingdom. Australia, Mr Speaker, is getting the balance right.
Updated
That’s the third time this sitting the Speaker has been challenged.
Scott Morrison did it – when he tried to announce the coming changes to the pension increase (in place of the indexation loss, which is not happening because the economy is in recession).
Josh Frydenberg – in calling Jim Chalmers ‘jumble Jim’ and then only withdrawing the Jim.
And now Greg Hunt has attempted it.
Updated
Asked about transparency in aged care deaths, Greg Hunt eventually gives these details:
With regards to the figures, on a state-by-state basis in terms of lives lost within aged care facilities, zero within the ACT, 29 in New South Wales, zero in the Northern Territory, one in Queensland, none in South Australia, three in Tasmania, 433 in Victoria, one in Western Australia, 467 across Australia.
He tries to have a chip at Labor, but Tony Smith shuts it down:
Hunt: I would note that the opposition has made much of the accuracy of particular figures. There are two occasions, and I would not have brought this to the attention of the House until the fact the opposition seems to have raised this is ...
Smith: Yes, I just need to say to the minister, he needs to stop there. Members on my left. It’s not an opportunity to answer a different question. The question was specific. He’s stuck to the facts but it did not talk about the opposition in any way, shape or form.
Hunt: There were two occasions when the leader of the opposition ...
Smith: No, the minister will resume his seat. The member for Grey.
Updated
Julie Collins asks Scott Morrison about Tony Abbott’s comments.
The prime minister says he has been too focused on the pandemic to read them. It’s the QT equivalent of Mariah Carey saying “I don’t know her” in regards to Jennifer Lopez, or Keke Palmer responding “sorry to this man” after failing to identify Dick Cheney from a photo:
Morrison:
I am not aware as I have not seen it.
I’ve been focused on, Mr Speaker, a day when the member opposite may want to be reading speeches, my focus today has been on the millions of Australians who have received the news today that Australia has entered into the worst recession as a result of the Covid-19 pandemic, Mr Speaker, that we have seen in this country since the great depression. Now, Mr Speaker, that has not enabled me to be reading a lot of the matter that the member has referred to, but what I do know is what we have done, Mr Speaker.*
I do know what we have done, and I do note that our government’s policies and our actions during the Covid-19 pandemic has been to value every single life, Mr Speaker.
Every single life matters, Mr Speaker, when it comes to the Covid-19 pandemic and its impact on Australians right across this country. And that is how we have acted and that is how we have responded and the Australian people know that that is the policy of our government.
*This is very similar to Daniel Andrews’ response on the foreign investment veto bill. He said that while Scott Morrison might have time to do things like that, he was focused on the pandemic. It’s another “I don’t accept the premise to your question”.
Updated
Josh Frydenberg takes this question from Jim Chalmers to Scott Morrison:
Yesterday the Reserve Bank governor said unemployment is going to be higher for longer and quote, still around 7% in two years’ time. Why is the prime minister withdrawing support from the economy and the jobs market, which will make it even harder for Australians to find jobs and put food on the table?
Frydenberg:
As the governor of the Reserve Bank said just yesterday, the fundamentals of the Australian economy remains strong.
And he pointed out that unemployment will remain elevated for some time and this is consistent with Treasury’s view and as they have said to the House and an earlier question, unemployment today is at 7.5%, and the expectation is that will reach around 10% by the end of the year. But as the honorable member for Rankin knows, the situation in Victoria has been a major drag on the national economy with Treasury saying that up to 400,000 people in Victoria will either lose their jobs or see the hours reduced to zero as that state is subject to stage four restrictions, Mr Speaker.
And as a quarter of the national economy, the impact of what we are seeing in Victoria does have a much broader consequence for the country.
Now, our jobkeeper program is continuing. It’s expanding. It is being extended. And at $101bn, it is the single largest program the Australian government has ever undertaken, and we are transitioning that program because seven out of the eight jurisdictions in this country are managing the virus.
Seven out of the eight jurisdictions in this country are managing the virus! But in my home state of Victoria, it’s a different situation.
Now, Mr Speaker, Mr Speaker, the member for Rankin would like to pretend there hasn’t been a once in a century pandemic and the member for Rankin would ignore the fact that Victoria is in stage four restrictions.
The member for Rankin would ignore the fact that we have undertaken the biggest single economic support program in Australia’s history.
The member for Rankin would ignore the fact that our contribution of $314bn is around 15.8% of GDP and the state contribution has been around $48bn at 2.4%.
So I would say to the member for Rankin, pick up the phone to the premier in Queensland, suggest that they spend more on infrastructure, more on social housing, more payroll tax relief, more land tax relief, and come with the commonwealth.
And as the member knows, there are plenty of water projects that we are looking for additional Queensland investment in infrastructure.
Many of road projects that we are looking to increase expenditure in Queensland.
So Mr Speaker, we are doing everything in our power to get more Australians back to work. And the fact that of the 1.3 million Australians who lost their job or saw the hours reduced to zero since the start of the crisis, of those, around 700,000 are now back on work shows that our jobmaker program is working.
Updated
Karen Andrews is speaking about someone being “stoked” about jobtrainer.
We get it. You’re from the Gold Coast. We know.
Updated
Asked again why the government is cutting jobkeeper (the program has been extended, but the rate will begin to taper from the end of this month), Scott Morrison says:
There have been many measures the government has introduced. Jobkeeper is the most significant.
But we also know there are some sectors that are facing very significant additional impacts as a result of the Covid-19 recession.
Australians know why the numbers on our economy are what they are today. Australians know that the Covid-19 recession has been produced by the global pandemic and the global recession that has followed from that. Australians know that.
And, Mr Speaker, anyone who would seek to suggest that it is other than that clearly isn’t living in the same country that the rest of us are, Mr Speaker or in the same place.
Mr Speaker, Australians know why.
But Australians also know that we were quick to put in place jobkeeper.
We were quick to also put in place a very significant package for homebuilder, which has been designed and is effective in making sure Australians who want to go and build homes, Mr Speaker, and do major renovations of their homes, Mr Speaker, are going to go about and do that.
We’ve seen that in Victoria, in New South Wales and particularly in Western Australia, Mr Speaker, the program has been picked up and endorsed and supported by the Western Australia government who have added to that project and have commended it for its timeliness and for its targeting, Mr Speaker.
So, whether it’s the construction industry, whether it’s the entertainment sector, Mr Speaker, the hospitality sector, whether it’s the aviation sector in particular, these areas so significantly impacted, the government has stepped up and we’ve stepped in and we will stand with them each and every step of the way.
But the path to recovery, Mr Speaker, will not just be paved with endless support of the government.
It will be paved with the endless effort of Australians and their enterprising spirit and restoring and building their businesses, whether they are a home-building business, a construction business, whether they are are a transport business, aviation, or retail, or whatever it is.
Those businesses will drive those jobs and the incomes Australians will rely on and that will drive our economy back, Mr Speaker, and we need to ensure the constraints are taken off them so they can get back to what they were doing, which is employ the millions of Australians you are referring to.
So jobkeeper will remain and as the businesses, including the construction sector, which will be a priority area for opening up in Victoria, Mr Speaker, because that is an area where you can open up your residential construction in Victoria, which is both Covid-safe and high economic impact. And I have been quite adamant about that being a key part of the Victorian opening strategy, and I welcome discussions with the premier about that very issue.
That is where the jobs and income will come from by the businesses getting back on their feet and provide ongoing support for employees.
Updated
Josh Frydenberg repeats his “the road to recovery will be long, the road to recovery will be hard. The road to recovery will be bumpy but we will be with Australians every step of the way” line.
Updated
In very apt news, bitumenising was apparently a common turn of phrase in 1927.
Which fits, given the time period the deputy prime minister appears to live in.
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Michael McCormack just dropped “bitumenising” into his answer, which the transcription service picked up as “bitch certain sections of the road”, which I actually prefer.
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The key line there?
Morrison does not entirely rule out cutting income support. "We will continue to calibrate these measures, as we have always done, in response to the economic circumstances that we face" #qt
— Katharine Murphy (@murpharoo) September 2, 2020
Asked by Tanya Plibersek, why the government is cutting jobkeeper, Scott Morrison says:
Jobkeeper is a life line for Australians.
It has been seeing Australians through, Mr Speaker, for the past almost six months and it will be extended for a further six months.
This is a program that taxpayers have willingly supported to the tune of around $11bn every single month.
And, Mr Speaker, as we move into the next phase of jobkeeper, what we are hoping to see is that fewer businesses will be dependent on that jobkeeper support.
And in the period after that as we get into next year that fewer businesses again will be needing that support.
And what we hope to see, Mr Speaker, as our plan for the recovery and as the budget has its impact from October this year and the many measures introduced prior to that time, Mr Speaker, there will be more and more Australians who will be in a position where the companies that they work for will be able to support them with actual work and not be reliant on the economic income supports that are provided by the government. See, that is the goal.
And that is why the transition plan is important, Mr Speaker, to ensure that our economy can move from a position of absolute supports to one where it can stand on itself.
Because, Mr Speaker, if you don’t make that transition the Australian economy won’t be in the position to make supports that it needs to survive.
But the combination of jobkeeper together with jobseeker will work together to ensure that the necessary income supports are in place for all Australians as they have been from the start, Mr Speaker.
And we will continue to calibrate these measures, as we have always done, in response to the economic circumstances that we face. And that has been one of the hallmarks of the government’s response: To be balanced, to be carefully considered, to understand what can be sustained over the short, medium and longer term, to put in place the supports that Australians need but to also ensure that when businesses are in a position to employ again that they can do so.
And that they can bring people on and they can bring hours back, and that’s why we are pleased to see in the most recent payroll data, Mr Speaker, there has been a recovery of half – half – the jobs on payroll data, Mr Speaker, that were lost by women and we’ve seen particularly a bounce, a return, Mr Speaker, of those who are under-20 finding those jobs again.
Now, there are many more jobs still to be created and returned to Australians. And that’s what our plan will focus on.
To do that we cannot remain behind, Mr Speaker, the constraints that have been limiting our economy to support the very people that the member refers to. Those constraints need to be lifted. We need to look forward. We need to look ahead and surge forward.
We cannot hide behind this virus with our economic plan, Mr Speaker, we must defeat it by ensuring we allow our economy to grow again and lift the constraints on the economy.
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Andrew Wilkie gets the independents’ question today:
Prime minister, by one estimate Australian retirees will be $135bn worse off post-pandemic from reduced superannuation, personal savings, property income and share dividends. Fixing this will take bold reform implemented urgently including to the age pension, compulsory superannuation and savings. The pension and super need to be increased and the asset tests adjusted to stop penalising people for saving for retirement. The deeming rate lowered and eligibility for the commonwealth senior’s health card. To this end, prime minister, when will the retirement incomes be reduced ...
He runs out of time, but Scott Morrison knows what the question was:
Morrison:
The retirement income review was handed to the government in July 2020. It was recommended by the Productivity Commission in its report on superannuation assessing efficiency and competitiveness.
It was chaired by Mr Mike Callahan. The review establishes a fact base to help improve understanding of how the Australian retirement system is operating and how it will respond to an ageing society as you indicated.
It considers three pillars of the pension, compulsory super and voluntary savings and the panel has identified four principles to use in assessing the performance of Australia’s retirement system: equity, sustainability and cohesion.
It is very true this devastating Covid-19 pandemic is going to have an impact on Australians today and will also impact them in the longer term. That is also true in terms of the commonwealth’s finances and those of the states and territories. What we are investing today is to ensure that Australia can make its way through these most difficult of times.
And in this most difficult of times, Mr Speaker, it is true that the government has enabled people who are in hardship and distress to access their own money, their own savings, their own superannuation, to assist them to get through this very difficult time.
Now, Mr Speaker, the review that was initiated by the treasurer will continue to be considered by the government and will be released, Mr Speaker, at a time when the government will be also making a response. And that is the normal process, Mr Speaker.
I remember when the Henry tax review was handed to the government, the shadow treasurer will remember that because he was working for the treasurer at the time.
They held on to it, Mr Speaker, I think, for about a year and then they ignored it, Mr Speaker. But I’m sorry ...
... The shadow treasurer is correct, they didn’t ignore it, Mr Speaker, they introduced a mining tax that didn’t raise any money*, Mr Speaker.
It was another of the genius recommendations from the shadow treasurer whose training wheels were bigger then than they are now.
But the matters raised by the member are very important and we take them incredibly seriously.
In this House yesterday I indicated that the unintended possible consequences of the indexation that applies to the pension the government will be addressing and I want to assure pensioners to that end, Mr Speaker.
And I want to assure those that as we were able to do at the last election when those opposite sought to strip away from self-funded retirees their own super, and that is what those opposite think of their savings and they argue it doesn’t belong to them and belongs to industry fund managers.
* commodity prices dropped, which meant taxes weren’t recouped, as per the negotiations, and then it was axed before it went any further
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I’ll let my boss take this one:
Perhaps there's something I'm missing here, but I reckon on a day where GDP contracts by 7% voters aren't really interested in whether Albanese and Chalmers have said contradictory things (they have of course), they are focussed on whether they have enough $ to pay the bills #qt
— Katharine Murphy (@murpharoo) September 2, 2020
Almost 100% confident these people don't give a crap whether an opposition is walking all sides of the street, reckon they care about whether they can pay the rent after September https://t.co/YsvH9sKr1f #qt
— Katharine Murphy (@murpharoo) September 2, 2020
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Jim Chalmers to Scott Morrison:
Won’t the decision this week to cut jobkeeper, cup jobseeker and cut wages make the worst recession in almost a century even deeper and even longer?
Josh Frydenberg gets this one:
Well, thank you, Mr Speaker. As you know, jobkeeper is, at $101bn, the single largest economic support program that this government or indeed any Australian government has ever undertaken.
And right now, it’s supporting 3.5 million Australian workers and around 1 million businesses, Mr Speaker.
And around the country, in every corner of this great country, there is a great story about jobkeeper and how it’s keeping people in work. We’ve always said, though, the program was temporary, it was targeted, and that there would be a transition.
Now, Mr Speaker, not – not just those on this side of the House have said it should be tapered and it should come down, Mr Speaker.
One person said this, “That they should be looking at a kind of a tapering”, Mr Speaker.
Somebody else said this about jobkeeper, “There needs to be in some transition over time away from these extraordinary levels of support in the economy”, Mr Speaker.
And the same person went on to say, “Which recognises that jobkeeper won’t be there forever”, Mr Speaker.
The same person said, Mr Speaker, “That governments should be considering better ways to transition the jobkeeper program”. Mr Speaker, that wasn’t the member for Flinders.
That wasn’t the member for Rankin, that wasn’t the member for ...
Tony Smith tells him to get to the point:
Frydenberg: But, Mr Speaker...
Smith: Hang on, I haven’t ruled. OK. Unless you can read my mind? The question was quite specific. So, whilst he can compare and contrast to an extent, he can’t use the rest of the answer to speak about what the opposition’s policies are.
Frydenberg: I hadn’t revealed who it was yet, Mr Speaker.
Smith: I am just going to say to the treasurer, it doesn’t matter. The rules are quite clear and I’m trying to maintain order in the House and that can’t just be when it suits those on my right. The treasurer has the call.
Frydenberg:
Thank you, Mr Speaker. Those comments were made by those opposite. But the point is that we are seeing this payment ... transition over time but right now it’s supporting 3.5 million workers. It’s transitioning, it’s tapering just as the member for Rankin asked it to do.
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And the trade-off for the G missing out on the grand final this year:
The MCG Grand Final deal extended to 2058, more games at the G, & the 21 & 22 drafts in Victoria
— Martin Pakula (@MartinPakulaMP) September 2, 2020
On the decision to play the 2020 GF at The Gabba, it’s a good one. Queensland did step up for footy this year, & has promised to look after our precious asset https://t.co/tZ5SEs7GO1
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Anthony Albanese to Scott Morrison:
One million Australians are unemployed. Another 400,000 will be out of work by Christmas. And Australia is in the worst recession in almost a century.
Isn’t this the worst time for the prime minister to be cutting jobkeeper, cutting jobseeker and cutting wages of some of the poorest workers in this country?
Scott Morrison:
I look forward to the day in Australia, and because of the economic plan the government will continue to implement in partnership with the states and territories, I look forward to the day when our economy will not need jobkeeper. I look forward to the day, Mr Speaker, when we will not need the extraordinary supports that our government have provided.
But we did not hesitate to provide them, Mr Speaker.
(Labor starts very loudly interjecting at this, given the lead up to how the wage subsidy was announced.)
And I note the jeers and the laughter of those opposite on the most devastating day for Australia, Mr Speaker.
And I note the politicking of those opposite, Mr Speaker, on this day.
The only people who seem to be in a pleasant state of mind today, Mr Speaker, is the opposition.
On such a devastating day, our government, Mr Speaker, will continue to focus on the plan and the response that we have provided in a measured and carefully architected way, Mr Speaker. And that plan has been working.
More than 700,000 Australians would have been added to the number that the leader of the opposition refers to.
And our plans, Mr Speaker, will continue to deliver on these urgent tasks. But jobkeeper has been extended. It has been expanded.
And it will continue to be provided, Mr Speaker.
Jobkeeper must be transitioned and I refer to the words of the leader of the opposition himself, Mr Speaker, in what he said, “We obviously do need to shift away, the mechanisms won’t be in place forever, but the fact is it needs a transition”.
The each way bets of the leader of the opposition – he said jobkeeper should be extended but it should be transitioned.
He said it should be higher and it should be lower, Mr Speaker.
What the Australian people know is the each-way bet plan of the leader of the opposition is not one that you can trust in a crisis, Mr Speaker.
He is not someone who can be relied upon, Mr Speaker.
He is not someone, despite his many years in this place where he considers himself the prince of the parliament, Mr Speaker, he has spent more time taking point of orders than sitting in a budget review committee.
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The Centre Alliance senator Stirling Griff has told Guardian Australia it is “highly likely” the government’s bill to add gas power to the investment mandate of the Clean Energy Finance Corporation will be referred to an inquiry, which he will support.
He said:
At first glance I don’t see any significant issues with it, but the inquiry is important to understand the full range of effects. [The] CEFC is one of the most effective government agencies. Centre Alliance absolutely prefers investments are made by an independent agency at arm’s length from government, unlike what happened with the Collinsville feasibility study.
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Security sub-contractors who worked at the quarantine hotels that led to Victoria’s Covid-19 second wave have said guards were encouraged not to do any work outside of hotel quarantine, with one stating they were unaware that a guard who tested positive had worked as a delivery driver.
The inquiry into the program this morning heard from four subcontractors – the Security Hub, Sterling Security, United Risk Management and Black Tie Security.
Sterling Security had six guards test positive while subcontracted to Unified Security at the Rydges on Swanston, while the Security Hub and United Risk Management worked for MSS Security at the Stamford Plaza.
The inquiry has heard 99% of all infections of Covid-19 in Victoria since the second wave originated at those two hotels.
A security guard working for Sterling previously gave evidence to the inquiry that he worked as a delivery driver in addition to his guard shift.
Sam Aggarwal, Sterling security director, told the inquiry while he believed there were no formal restrictions given to the guards, they were “verbally encouraged” not to do work elsewhere.
“They were getting good hours while working with us in the hotels, so we strongly recommended to them that, not to do any [other] work outside of this job,” he said.
The inquiry also heard that an edict to security staff not to carpool only came into force from the security subcontractors once a guard who was carpooling to the Stamford Plaza had tested positive.
Mina Attalah, United Risk Management’s managing director, told the inquiry seven of his guards tested positive, and while it was not possible to state how they were infected, one guard had been carpooling with one Security Hub guard who later tested positive, and the same guard worked on the same floor as two other guards on that day, both of whom later tested positive.
The inquiry heard the subcontractors ensured those who tested positive stayed home, and were paid to stay home. Contractors also expressed frustration at confusing advice on PPE use from authorised officers.
Ishu Gupta, the managing director of the Security Hub, told the inquiry that guards were given information from MSS and from the subcontracting companies themselves on PPE, and PPE was available, but said issues arose with frequent changing of government’s authorised officers who provided different advice on PPE use.
“There were a new set of instructions that were provided ... and their understanding of how to use gloves was different from one to another,” he said. “It was a real concern that they’ve been asked to not use gloves all the time.”
Eventually, he said, guards were told they were allowed to use gloves when they wanted.
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We will fight the virus on the beaches.
Scott Morrison:
I know that that impact is still bitter and it is still real. And so, we will continue to work, not just on cushioning that blow, but on the road back and on the road beyond. To open up Australia to ensure that we are not that dislocated nation.
A dislocated nation, Mr Speaker, is not success. That is a continued resignation to the virus.
And Australia will not resign to this virus, Mr Speaker. And our economy will not resign to this virus.
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Question time begins
Anthony Albanese to Scott Morrison:
Can the prime minister confirm that Australia has plunged into the worst recession in almost a century?
Morrison:
Mr Speaker, this is a devastating day for Australia. The Covid-19 global recession and pandemic that has impacted the world has impacted Australia.
Australians know that’s the case, Mr Speaker. Australians know, Mr Speaker, that many, many months ago that this day would come.
And this day has come.
And, Mr Speaker, as the pandemic continues to have its impact, not just here, Mr Speaker, but all around the world, there will be further difficult days ahead.
And that is why the government acted with the most unprecedented, Mr Speaker, act of intervention to support Australians in their time of need.
And as harsh and as severe and heavy as this blow is on Australia today, Mr Speaker, we know that as a government that we have acted to seek to cushion that blow as much as we can and that has been done at a great cost and a price, Mr Speaker, worth paying, for peace of mind, for the assurance and confidence of Australians that despite these heavy times, they know that the government has stood up and been there. But not just for today, Mr Speaker.
Not just for today.
But for the future as well. Because Australia will recover and Australia will grow again and the jobs will come back and they will support the lives and livelihoods of Australians as they have in the past.
And our plan for that to occur, Mr Speaker, that plan is built on the resilience and strength and the enterprise of the Australian people.
The businesses that they run and the jobs that they have ... ensure the many projects that are necessary, whether it’s on water or on energy or on transport that they will continue to be rolled out.
Almost $10bn of infrastructure brought forward just for the purpose of supporting those jobs, Mr Speaker. The energy costs that must come down, and have been coming down, Mr Speaker.
But more importantly, what will support affordable and reliable energy into future to drive those businesses into the future. This is the jobmaker plan the government has been rolling out and will continue to roll out and Australians can rely on because they know when Australia is under economic threat then the wise and experienced hands of economic management matter, Mr Speaker. And that is what the Australian people know of this government.
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Labor’s shadow treasurer, Jim Chalmers, says Australia now has “the deepest recession in almost a century, a million unemployed, a number that is still rising, and still no jobs plan from the Morrison government”.
Chalmers says international comparisons are “absolutely meaningless” to the 1 million people out of work and “cold comfort” to 400,000 more expected to join unemployment queues by Christmas.
He says:
Josh Frydenberg, once again, told Australians that things were bad – but they already knew that. What he didn’t tell Australians is what he’s going to do about it. Cutting pensions, cutting wages, cutting jobkeeper, cutting jobseeker, pointing the finger and shifting the blame is not going to grow the economy and create jobs for more Australians.
Chalmers says it is clear now is the “worst time to be winding back jobkeeper” while unemployment is rising.
Asked if Labor will offer bipartisan support for bringing forward income tax cuts to boost the economy, he says Labor has an “open mind” about bringing forward the second stage because “middle Australia needs help now”. But the government has not made a proposal, only given “smoke signals”.
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It is notable that Scott Morrison was not standing with Josh Frydenberg for that press conference.
That means he will be making his first comments on the accounts in question time.
You will hear a lot about economies in the rest of the world today – here is what Morrison said on that on 18 June:
While Australia is doing better than almost any other developed economy in the world, if you have lost your job, that is no comfort. So we cannot set our expectations and what is happening elsewhere in the world.
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Congratulations to the Labor MP Mike Freelander for becoming (I think) the first MP to get ‘batshit crazy’ into the Hansard.
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And Josh Frydenberg ends on this point:
Confidence ... in this crisis ... is a function of our success on the health front.
And if we are able to contain the virus as they have done in New South Wales, indeed, as they have done in seven out of the eight jurisdictions across Australia, then businesses will continue to invest, businesses will continue to employ and businesses will open the door.
Now, in Victoria, the situation has been different. And obviously, a real challenge exists in Victoria. But I am really pleased that those cases have started to come down and that is why I think the plan that the premier announces on Sunday has to be clear, has to be concise and has to offer confidence and certainty to the businesses of his state.
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How is this recession different to other recessions – such as the one we had to have in 1991?
Josh Frydenberg:
It is a different recession to previous recessions that we have seen in Australia. It is faster and deeper than what we saw in the 80s and 90s.
In those recessions, it took longer for the unemployment rate to rise as it has. After those recessions, it took longer than we are certainly hoping for people to get back to work.
The other difference about what we are seeing now is the cohorts of people who are most impacted.
The 80s and the 90s saw some structural change in the Australian economy, particularly in the manufacturing sector, and you saw older people, mainly men, losing jobs.
Right now we have seen more younger people and more women lose jobs because of the sectors that they have been working in predominantly, hospitality, tourism, retail.
That is why the recent job numbers where we had 340,000 jobs come back in the last two months, 58% of those jobs were women, 44% of young people aged 15 to 24.
And we are very focused on that challenge, on helping young people get back to work.
That is where skills and training programs are absolutely critical, and helping more women get back to work.
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Does Tony Abbott have any sort of point about the public health restrictions cost to the economy?
Josh Frydenberg:
It is about getting the balance right. We all supported health restrictions because primarily this is a health crisis where hundreds of Australians have died.
We are walking around this building now wearing masks, and that is why the economic shock has been so great because it is not just affecting demand but it affected supply – people haven’t been able to go to work, businesses haven’t been able to be open in the normal way.
So I think the health response has been right, or the health focus has been right. But that is different from the pathway out. And that is why I have been so vocal about Victoria.
I feel so passionate about my home state.
I don’t want those restrictions to be in place for one day longer than they have too.
And as the treasurer of the country, I see the economic impact that it is having. There is lots of talk today about the AFL.
Think about grand final day at the MCG ... Would have four MCG full of people, which is the equivalent of the 400,000 Victorians who will either lose their jobs or see their hours reduced to zero as a result of the crisis. 400,000 Victorians. Now, I want them to get back to work as soon as possible, as soon as practical. So that is why the pathway out is so critical, that is why the prime minister has been talking so strongly about the road out.
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Looks like the legislated tax cuts are under review – at least the timing of them.
Josh Frydenberg:
On the issue of tax cuts, obviously, we legislated those, the biggest tax cuts in over 20 years, $158bn worth of tax cuts.
The tax cuts are in three different stages, and we are considering the timing of those tax cuts, and any announcements would be made in the budget, but it is fair to say these are very substantial reforms.
To our tax system, because you are going to have ... one big tax bracket between $45,000 and $200,000 where taxpayers pay a marginal rate of no more than 30 cents in the dollar, so you will have 94% of taxpayers paying a marginal rate of no more than 30 cents in the dollar, whereas today it is 63%.
On the issue of borrowing, and this is a conversation I have been having regularly with the bank CEOs, it is important for them to lean in, and it is fair to say they have lent in through this recovery.
We have worked very closely with banks as well as with the regulator Apra to ensure the proper treatment of capital and loans so that more than $200bn worth of loans could be deferred through this crisis to provide relief for the borrower.
On the banks I think I’ve done a really good job through this crisis. In the last two weeks, 13% of people, borrowers who had their loans deferred, have actually started to pay those loans back.
And we have seen a 5.4% increase in owner-occupier borrowing in recent months, and we have also seen, according to the ABA, more than $1.5bn of new loans in the recent period. I am confident that the banks are seized of this task and the flow of credit through the economy is going to be absolutely critical to the recovery.
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The Gabba is the official home of the AFL grand final this year.
Josh Frydenberg on the debt:
Yes, the task ahead of us is huge. It is huge across the world. And, yes, our debt will be higher than ever before because every dollar we spend today is borrowed money. But we had no option than to spend as needed to get the public through this crisis, we are very focused on the recovery plan.
Treasury is working out how much the border closures are costing.
How does the man who had the back in black announcement feel delivering this result.
Josh Frydenberg:
It is a great responsibility to be treasurer at this time.
The Australian economy needs more help than ever, when Australians are doing it so tough.
I am, like the prime minister, like the finance minister, like all our colleagues, spending every waking minute trying to get Australians through this once in a century pandemic. It is not about us. It is about them.
It is about the businesses that have had to close their doors or let go staff. It is about families who are locked in their homes in Victoria for 23 hours a day, unable to see grandparents, kids unable to get educated because schools are closed.
These are the impacts of this one in a century pandemic.
So rather than looking back and looking forward, my focus is getting the Australian people through this economic shock that is like no other.
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Josh Frydenberg is asked about the border closures:
Well as you know on Sunday I was calling for a recovery plan, way out from the Victorian government and the premier said at the time it was too early for a detailed plan and I repeated that on Monday that businesses repeated the call to [have a plan] and many have repeated that call and I welcome the premier now saying that he will provide a plan over the weekend.
We look forward to seeing that plan.
But Victorians need to hear more about the message of hope and the way out and less about the longer road in. That has been a consistent message.
We will continue to work with the Victorian government and the Victorian people obviously want to see an end to those restrictions as soon as possible.
When it comes to the borders, again, we have said that right now, there is too much confusion, too much cruelty about the border restrictions.
And what we need is more compassion and more commonsense.
It is just not on for a mother, too, for a mother, indeed she is a mother, but she has lost an unborn child because of the confusion at the borders.
It is just not on that a 4-year-old boy who is getting treatment for his cancer is separated from his mother.
It is just not on that a Victorian school teacher 2km from the south Australian border is deemed non-essential to be over, to be able to teach the class.
So what we want to see is an agreed definition of [a hotspot and the prime minister is leading that conversation]
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Josh Frydenberg is asked whether now is the time that Jobkeeper and Jobseeker be tapered, given that he has said that the quarterly results is a household accounts story - so is now the time to be cutting household incomes?
Frydenberg:
We have always said that our measures in response to COVID-19 were temporary. They were targeted, they were scaled.
Now, JobKeeper was initially legislated for six months. And now, we have extended for another six months.
And at $101 billion, it is the single largest economic support measure that any Australian government has ever undertaken.
And it will continue to provide critical support to businesses and their staff with the expectation, taking into account what has happened in Victoria, that there will be more workers on JobKeeper from the state of Victoria than from all the other states and territories combined.
Now, when it comes to the transition, we have always said it will transition and we believe at $1000 for the March quarter and $1200 for the December quarter, it is still providing support.
I have seen that the Labor Party are out calling for an extension to be at $1500 but Anthony Albanese himself has said only recently that we need to be, in his words,” it will need a tapering off” and he says “What we say is the plan is there for six months and there will be a need for some form of tapering off” and he was asked what does it mean? What does it look like? He says “It looks like it is going down over a period of time.”
Jim Chalmers the shadow treasurer said the same. He said “I said what they should be looking at is some kind of tapering.” We have looked at it and we are implementing it and we think that is the way forward for the Australian economy.
I am not sure if people at home care what Labor has to say - given the party has no control over the economy.
Josh Frydenberg says he expects the Melbourne lockdown to have a very big impact on the next quarter – between $10bn and $12bn.
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Someone asks how grateful the government is for the mining sector.
Very, is the answer.
The questions then moves on to what the plan is for the economy.
“Our plan is the Jobmaker plan,” says Josh Frydenberg.
And cutting red tape.
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“So that’s the story” Josh Frydenberg says
There are slides.
A lot of slides
Josh Frydenberg:
The road ahead will be long. The road ahead will be hard. The road ahead will be bumpy.
But it’s important to recognise that this fall in the June quarter is not including economic state for restrictions imposed by the Victorian government in early August.
This is something that will weigh heavily on the September quarter numbers.
Today’s devastating numbers confirm what every Australian knows – Covid-19 has wreaked havoc on our economy and our laws. It is nothing we have ever experienced before.
There is hope. And there is a road [out]
Our plan for the recovery has helped hundreds of thousands of Australians get back to work, and thousands of Australian businesses, have opened their doors.
Our commitment to the Australian people is that we have your back.
We were with you on the way into this crisis.
We are with you through this process.
And we will be with you all the way [out].
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Government loans for stranded travellers
As Josh Frydenberg is talking, Marise Payne has made this announcement:
The Australian government will provide additional support to the most vulnerable Australian citizens whose return to Australia has been impacted by the restrictions arising from Covid-19.
Building on our existing Traveller Emergency Loans program, the Department of Foreign Affairs and Trade (DFAT) is making available a Hardship Program with further emergency assistance for the most vulnerable Australian citizens overseas.
The loans are intended to cover temporary accommodation and daily living expenses until they can return. Loans may also be available to help vulnerable Australians purchase tickets for commercial flights.
Applicants will have to meet strict eligibility criteria to access a loan, and only the most vulnerable Australian citizens still overseas will be provided financial assistance. All loans must be repaid upon return to Australia.
The Government, including through our embassies and high commissions around the world, continues to work with airlines and other governments to help Australians return on commercial flights. Consular officials are also assisting Australians overseas impacted by the COVID-19 pandemic.
In order to manage and maintain quarantine arrangements in Australia, the National Cabinet agreed to international passenger arrival caps.
While critical to the integrity of Australia’s quarantine system and the safety of the whole Australian community, the caps have restricted the availability of flights home for Australians overseas.
Australians overseas in need of consular assistance can register with DFAT via covid19.dfat.gov.au. We encourage those seeking to return to Australia to remain in regular contact with their airlines or travel agents to confirm their arrangements.
Further detail about the assistance, including eligibility criteria and how to apply, are available on Smartraveller.gov.au.
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Josh Frydenberg is going through the results in other countries, as well as the sector results.
Josh Frydenberg press conference
The treasurer looks like he is in pain as he delivers this speech:
Today’s national accounts confirm the devastating impact on the Australian economy from Covid-19. Our record run of 28 consecutive years of economic growth has now officially come to an end.
He says that Australia took actions that many countries did not, and has seen the economy emerge better – he deliberately mentions Sweden.
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We are still waiting on Josh Frydenberg to step up, but in the meantime, Labor has put out its official release. It pulls no punches:
Jim Chalmers:
The National Accounts have confirmed Australia is in the deepest recession of our lifetimes, with the economy experiencing the sharpest contraction on record.
It beggars belief that the worst recession since the Great Depression has not been enough for the Morrison Government to bring forward a proper jobs plan.
Australia’s 29-year run of uninterrupted growth has officially come to an end on Scott Morrison and Josh Frydenberg’s watch, and their lack of a jobs plan threatens the recovery.
A record one million workers are already unemployed and an additional 400,000 are set to join the jobless queues by Christmas.
In the middle of this jobs crisis, Scott Morrison and Josh Frydenberg have a plan to wind back JobKeeper, cut wages, cut super, freeze the pension, point the finger and shift the blame – but no plan for jobs.
Today’s data shows that the virus has turbocharged longstanding weaknesses in the economy under the Liberals and Nationals:
- Largest GDP contraction on record: GDP contracted by a record 7.0 per cent in the June quarter and a record 6.3 per cent over the year. This follows longstanding weakness in economic growth, which has been below trend in every quarter under Morrison.
- Private domestic economy still in reverse: Declined by 10.8 per cent in the quarter and is down 11.4 per cent over the year, and before the virus grew by a mere 0.3 per cent under Morrison.
- Consumption in freefall: Declined by 12.1 per cent in the quarter and is down 12.7 per cent over the year – the worst result on record – following persistently weak growth under Morrison.
- Business investment down again: Total private business investment fell 4.8 per cent in the quarter and is down 6.2 per cent over the year. Over 80 per cent of the fall in business investment under the Liberals occurred before the virus outbreak.
- Compensation of employees: Fell by a record 2.5 per cent in the June quarter, reflecting steep declines in employment and hours worked. This follows record low wages growth under the Liberals.
- Living standards plummeted: Real net national disposable income contracted by a record 8.0 per cent in the quarter to be down by a record 6.4 per cent over the year, following stagnant living standards before the virus outbreak .
The most important test of the Morrison Government’s management of the recession and its aftermath is what happens to jobs.
Only $85 billion of the claimed $314 billion of economic support has actually been delivered by the Government, and too many businesses and workers have been left out and left behind.
Morrison and Frydenberg’s failures on the economy are costing jobs, and their failures on aged care are costing lives.
Workers, businesses and communities need and deserve a plan from the Morrison Government to promote growth, protect and create jobs, support business and set Australia up for the recovery.
Peter Dutton has just finishing introducing citizenship changes legislation to the parliament - first mooted about five years ago- and Labor is still in support:
Kristina Keneally:
The citizenship loss provisions, introduced in 2015 with Labor’s support, were always intended to be part of a suite of measures that work to protect Australia and Australians from terrorism but, regrettably, key issues in their operation have not been dealt with by the Morrison Government.
Under the current legislation there may be cases where an individual’s Australian citizenship has ceased under the law, but the Commonwealth Government may not be aware that this has occurred.
ASIO has also made clear that, because of the automatic way in which the existing provisions operate, citizenship cancellation may lead to unintended or unforeseen adverse security outcomes, including exacerbating potential security threats.
But there are still some questions over the legislation.
Save the Children Head of Policy, Simon Henderson is calling for the Parliament to amend the Bill to ensure Australia meets its international obligations to protect the rights of children.
In its current form, the Bill will place the welfare of innocent Australian children at greater risk,” said Mr Henderson.
There is the very real possibility that it could lead to children becoming stateless.”
We are especially concerned for the 47 innocent Australian children in Al Hol camp in Syria, the majority of whom are under 6 years of age.
Irrespective of what their parents may have done, these children are innocent and they must be protected from harm.”
Denying children of citizenship puts them at greater risk of exploitation and abuse, a fact made very clear by the United Nations.
The recommendation by PJCIS to consider the effects of citizenship cessation on any dependents of that person in the Explanatory Memorandum, is inadequate. Any such changes should be in the Bill itself.”
Jim Chalmers has moved his press conference to 1.35pm.
That’s because Josh Frydenberg is up at 1pm
Australia needs to “stand firm” in the face of challenges to its national interests at a time when the Indo-Pacific region has become much more “contested and polarised”.
That’s according to Frances Adamson, the head of the Department of Foreign Affairs and Trade, who also declared that “war represents a failure of diplomacy” and that Australia’s diplomats “cannot allow diplomacy to fail”.
Adamson has been speaking at an Institute of Public Administration Australia event on the topic “diplomacy on the frontline” alongside General Angus Campbell, chief of the Australian Defence Force.
Adamson said Covid-19 had accelerated changes in the strategic environment, with the region now characterised by much greater uncertainty and economic fragility. She said Australia had worked with US counterparts to promote a region that was open, inclusive and rules-based:
“At the same time, China – a global power in its own right, with a sense of itself every bit as significant as that of the United States – is not standing still. The relationship between the United States and China was already becoming more competitive prior to the pandemic and, since the crisis began, tensions have increased on almost every front. Yet Australia’s relationship with China, while more complex than ever, has never been more consequential to our national interests.”
Adamson said diplomacy was “our first line of defence against forces that threaten our way of life”.
“To paraphrase my good friend General Campbell, if we can get this right, his expensive military tools can stay in the shed.”
Campbell told Adamson he “couldn’t agree more with what you’ve just said” and added that “this is a team Australia effort.”
Updated
And also happening in the parliament today:
Labor to pass Coalition bill watering down state donation laws despite Queensland opposition https://t.co/61rD0Zp4XG
— Guardian Australia (@GuardianAus) September 2, 2020
Back to Covid and there are still calls for more help:
The Victorian Aboriginal Community Controlled Health Organisation (VACCHO) has written to Prime Minister Scott Morrison on behalf of its 32 Members seeking urgent funding for Victorian Aboriginal communities in their COVID-19 response.
While we have fortunately not seen any major outbreaks or clusters in Victorian Aboriginal communities, VACCHO says the risk factors for COVID-19 are disproportionately higher for Victorian Communities.
To date, we have seen a total of 68 confirmed cases of COVID-19 in our communities with 61 people recovered and 7 cases still active. The low incidence of COVID-19 in Victorian Aboriginal communities is testament to Aboriginal community control, and what can happen when all parties work meaningfully together.
While the Commonwealth’s funding commitment of $123 million to the Aboriginal and or Torres Strait Islander sector to boost the response to COVID-19 is welcomed, VACCHO CEO Jill Gallagher AO remains concerned that the funding provided is not enough and the distribution of funding has not been transparent and equitable.
And that analysis continues:
Deloitte Access Economics senior economist Sheraan Underwood noted:
The underlying equation is simple. The greater the success against the virus, the greater the success in protecting economies against the pandemic.
At the other end of the scale, the hit to most economies is rather larger than that seen in Australia.
The defence of Australian lives and livelihoods has seen us thread the needle. Australia has seen both less economic damage and relatively fewer lives lost than most nations, including the US, the UK and most of Europe, including Sweden, which has taken a different path than many others.
Australia’s fight against the virus hasn’t been perfect, but it has still been much more successful than in most other nations around the world.
Updated
Deloitte Access Eonomics has put out its commentary on the GDP news, including this comment:
But perspective is handy ... Only a handful of nations have seen less damage to their economies amid the coronavirus crisis.
The chart below shows that China, Vietnam, Taiwan and South Korea have all done better than we have on the economy – mainly as they’ve also done better than us at keeping the virus contained.
Updated
An Australian grains exporter has been suspended from sending barley to China over alleged breaches of import regulations - a move that comes amid intense trade tensions between the two countries. The exporter has vowed to fight the ban.
However, the impact of the latest step may be limited, given that China had already introduced steep tariffs on all Australian barley exports to China from May onwards, which had made the trade uneconomic.
Chinese authorities have said the suspension relates to the discovery of “quarantine pests” in shipments of imported barley.
The CBH Group, which is based in Western Australia and says it is the biggest cooperative in Australia, issued a statement confirming Chinese authorities had suspended the right of CBH Marketing and Trading to export barley to China, effective yesterday.
It said issues had been raised “in recent months” by China’s General Administration of Customs, which had notified the Australian government “that several CBH barley cargoes, that had already been discharged in China, did not meet phytosanitary requirements”
But Jason Craig, the chief marketing and trading officer, said the group had “not found any evidence to support these claims” and that the cargoes “were all retested and it was confirmed that all cargoes met Australian government phytosanitary export requirements”.
“CBH is therefore extremely disappointed the suspension has been put in place and will continue to work with the Australian government to challenge the suspension.”
Craig said it was unfortunate that the move followed the introduction of significant anti-dumping and countervailing tariffs on all Australian barley exports, which had “already restricted Australian barley sales into the Chinese market”.
Updated
And for those asking about the lockdown cost
This breaks down the impact of specific COVID measures on Australia's economic growth pic.twitter.com/GzKOOvrIpT
— Gareth Hutchens (@grhutchens) September 2, 2020
My guest tonight is the Treasurer @JoshFrydenberg #abc730
— Leigh Sales (@leighsales) September 2, 2020
Josh Frydenberg will hold his press conference at 1pm.
NSW has released its official health data:
There were 20,083 tests reported in the 24-hour reporting period, compared with 14,815 in the previous 24 hours.
Of the 17 new cases to 8pm last night:
· One is locally acquired with no known source
· One is a returned traveller in hotel quarantine
· 15 are linked to a known case or cluster
· Eight are linked to the August CBD cluster
· Six are linking to St Paul’s Greystanes – the source of the original case at St Paul’s remains under investigation
· One is linked to Liverpool Hospital
There is now a total of 49 cases associated with the CBD cluster.
One previously reported case, who worked at Cubbyhouse Childcare out-of-school-hours centre at Homebush Public School, has been excluded following further investigation. People previously identified as close contacts are no longer required to isolate for 14 days.
Two more students at St Paul’s Greystanes and four contacts have tested positive, bringing the total cases associated with the school to 10. The school has been cleaned and remains closed for onsite learning today. The source of the original infection is under investigation.
As reported in the media yesterday, a student at Girraween Public School has tested positive. The school will be closed for onsite learning today for cleaning, and contact tracing is underway.
NSW Health is treating 75 Covid-19 cases, including five in intensive care and three who are ventilated. Eighty-seven per cent of cases being treated by NSW Health are in non-acute, out-of-hospital care.
Cases attended the following venues.
One case attended the Four in Hand Pub, 105 Sutherland Street Paddington between 6.30-10pm on 26 August. Guests who attended the downstairs at this time, for more than two hours are considered close contacts and must immediately get tested and self-isolate for 14 days since they were there.
- Four in Hand Pub, 105 Sutherland Street Paddington – guests who dined upstairs only or for less than two hours on 26 August from 6:30-10pm.
- Metro Fuel Greystanes on 27 August, 3.15-3.35pm
- Big Bun, 260 Pitt Street Merrylands, 27 August 3.30-4pm
- Carslaw Building, University of Sydney Camperdown toilets, 28 August 8-8.20pm
- Stockland Merrylands on 29 August between 9-11am
- Bus 810 28 August departed St Paul’s Catholic College Greystanes 3.04pm, arrived 3.28pm Macquarie Rd opposite Boothtown Reserve Greystanes
Updated
Given that the “let it rip” brigade keep referring to Sweden, I just had a look at their GDP results for the same June quarter.
The Swedish economy, which had a less strict lockdown, contracted by 8.3%.
Australia, with its harder lockdown, had a better result, with a (still shocking) contraction of 7%.
So surely, SURELY those figures can finally put that particular ridiculous argument to bed.
Updated
Yup, the gloves are officially off.
The deepest recession in Australian history has just been announced.
— Jason Clare MP (@JasonClareMP) September 2, 2020
We have just moved a motion to debate it.
The Liberals are voting to gag it and the PM has literally turned his back on the debate #auspol
Meanwhile - Scott Morrison is in the chamber for this division.
The prime minister usually gets a pair for this stuff, but it looks like he doesn’t at the moment.
Yup – Looks like Tony Pasin got caught with some food in the chamber (a no-no) was spoken to by Sharon Claydon (as a deputy Speaker) and then had to be reminded of the practices again by Tony Smith when he came back into the chair.
It’s honestly not that much longer until first lunch. It could have waited.
Updated
I think someone may have just got caught eating in the House of Reps.
There was a bit of kerfuffle – I’ll get back to you on that.
Updated
Peter Dutton was just introducing the citizenship amendment bill, but Labor has called for a suspension of standing orders to discuss the economy.
So the House is going through those motions.
Jim Chalmers has also announced the first press conference – he will be holding his at 1.20pm – just ahead of question time.
Updated
And how it looks for the states
State final demand (ie size of state economy).
— Conrad Liveris (@ConradLiveris) September 2, 2020
WA in the middle there. pic.twitter.com/zu2Kns4QGZ
Yup. Checks out.
Household spending breakdown:
— Trudy McIntosh (@TrudyMcIntosh) September 2, 2020
⬇️56.1% hotels, cafes and restaurants
⬇️85.9% transport services
⬇️15.3% recreation and culture
⬇️20.2% health
⬆️ 9.5% furnishings and household equipment
⬆️13.0% alcoholic beverages
Jim Chalmers is quick off the mark
New numbers have just confirmed Australia’s in the deepest recession in almost a century. But the Morrison Government is cutting wage subsidies, cutting wages, and cutting super. No wonder there’s already a million unemployed, and rising. #auspol
— Jim Chalmers MP (@JEChalmers) September 2, 2020
And the graph
There goes the scale... pic.twitter.com/J9eid5bcio
— Greg Jericho (@GrogsGamut) September 2, 2020
Also of interest:
Household saving up from 6% to 19.8% of income. There was nowhere to spend $$ and people were shit scared about losing their jobs. pic.twitter.com/3GesyRoh6M
— Paul Karp (@Paul_Karp) September 2, 2020
Updated
And for those wondering – the last time Australia was in recession – 1991 – the economy contracted by 1.3%.
A 7% contraction is something no one has seen in their lifetime.
And that is WITH the government stimulus packages.
Updated
As many people have pointed out, people didn’t need official confirmation of a recession – you can feel it.
And you can feel that shaky confidence in the data – household savings have increased from 6% to almost 20%.
That is a HUGE jump. And yes, physical stores and restaurants were open so there wasn’t a lot of places to spend it at brick and mortar stores.
But people were also terrified of losing their jobs. So they saved harder. With more than one million people out of work, that fear was justified for many.
And that is not counting the people who have seen their hours cut.
Updated
From the ABS:
The combined effect of the pandemic and the community and government responses to it led to movements of unprecedented size, not only in GDP but also in many of the other economic aggregates in the June quarter National Accounts. Head of National Accounts at the ABS, Michael Smedes said:
“The global pandemic and associated containment policies led to a 7.0 per cent fall in GDP for the June quarter. This is, by a wide margin, the largest fall in quarterly GDP since records began in 1959.”
The Government’s response to support Australian households and businesses resulted in record payments from the public to the private sectors. The ABS has published a series of spotlight articles to highlight the range of impacts on the economy.
Private demand detracted 7.9 percentage points from GDP, driven by a 12.1 per cent fall in household final consumption expenditure.
Spending on services fell 17.6 per cent, with falls in transport services, operation of vehicles and hotels, cafes and restaurants.
Mr Smedes added: “The June quarter saw a significant contraction in household spending on services as households altered their behaviour and restrictions were put in place to contain the spread of the coronavirus.”
Net Trade contributed 1.0 percentage points to GDP. Imports of goods fell 2.4 per cent, with falls in consumption and capital goods reflecting weak domestic demand. Imports of services fell 50.5 per cent and exports of services fell 18.4 per cent, due to restrictions on travel and tourism.
Public demand contributed 0.6 percentage points to GDP, driven by health related spending by the state and local government. Defence spending also increased as personnel were deployed to assist with management of the COVID-19 pandemic.
The household saving to income ratio rose to 19.8 per cent from 6.0 per cent, driven by the fall in consumption expenditure. Hours worked fell a record 9.8 per cent, outpacing the record 2.5 per cent decline in wages which were supported by JobKeeper payments. Social assistance benefits in cash rose a record 41.6 per cent, due to increased number of recipients and additional support payments.
General government net saving fell to -$82.6 billion from $1.2 billion in the March quarter 2020. The fall in the June quarter reflected the government economic response to the COVID-19 pandemic, which resulted in a record high subsidy payments of $55.5 billion and reduced tax income received.
That is the biggest contraction Australia has ever experienced - and higher than expected (Treasury had expected a 6% fall).
The previous biggest fall on record had been 2% in June 1974
From the ABS:
Australian Gross Domestic Product (GDP) fell 7.0 per cent in the June quarter, the largest quarterly fall on record, according to figures released by the Australian Bureau of Statistics (ABS) today. This follows a fall of 0.3 per cent in the March quarter 2020.
National Accounts: economy contracts by 7%
The GDP figure is out.
Australia is officially in recession for the first time since 1991.
That brings 29 years of uninterrupted growth to an end.
NSW records 17 new coronavirus cases
NSW has recorded 17 cases today – just one is in hotel quarantine.
The others are linked to known clusters – the Sydney CBD cluster has grown by eight, to 49 cases.
One of the cases has an unknown source (most likely community transmission).
Updated
Most of Victoria’s cases are coming from workplace transmission.
Brett Sutton:
It is still aged care, healthcare, high-risk workplaces, other workplaces, and then close contacts of known cases.
About 15% of Victoria’s cases are considered ‘mystery’ transmission - meaning community transmission, but that is now in the single figures.
Does Brett Sutton think there should be a hotspot definition established by the national cabinet?
Sutton:
I think it would be great to get there. In many ways it is not an issue that is front of mind for me in Victoria.
If you are in a jurisdiction with no active cases, or only cases in Hotel quarantine, and no community transmission, the real issue is about how you define hot spots in other jurisdictions.
It would be great to get to that, could potentially make for an easier movement of people across the country, but it is a pretty vexed issue.
Every jurisdiction will come to its own threshold.
Is that difficult to get to?
It is difficult in some ways, what is the objective of naming a hot spot if it is naming it for some freedom of movement across the country, but if it is defining how you would apply a quarantine requirement for people coming from those hot spots, or indeed an absolute ban on people coming to those areas from your jurisdiction, and as I say every jurisdiction will have their own threshold in that regard, and it is up to them to make a call and come to a common view.
The next couple of quarters are not going to be great.
Once the government stimulus starts to taper and wind down, there are going to be a lot of gaps revealed.
Berejiklian: "I anticipate the national accounts today won't be good news for Australia or New South Wales"
— casey briggs (@CaseyBriggs) September 2, 2020
Raises the prospect that next quarter's figures may be even worse
Prof Brett Sutton still thinks that Victoria is missing some cases (testing rates are down).
I’m never happy with a number higher than zero, but it is to be expected. We have had more people coming forward for testing, we think there may be more than 100 cases today but we want to find all of them. That is why we need to increase testing numbers. It is OK, it is broadly in line with what modelling has suggested we would be out at this stage.
Updated
If you think you have the sniffles, but think it might just be hay fever, Brett Sutton still wants you to get tested for Covid.
Victoria chief medical officer, Prof Brett Sutton, is giving his update:
There is a stabilisation in numbers. Only three or four new cases in the whole original Victoria on a daily basis now, and that is why the active cases are coming down so significantly, because there are really very few new cases arising in those local government areas.
The same in aged care.
There is absolutely a stabilisation of active outbreaks, still a number that haven’t been closed off, it does take a period of time before we declare an individual facility as having closed its outbreak, it does need to go through an entire incubation period of 14 days.
But we’re not seeing so many new cases in aged care, we are not seeing new outbreaks in aged care, and so the number of active cases in aged care has been coming down by 100 or so each day.
Similarly, in acute health settings, there is a stabilisation in the number of active healthcare worker cases and the number of new healthcare worker cases has dropped below 10, so I think five yesterday, six today, with some under investigation.
And equally, in disability services, we are not seeing new cases there, we are seeing active cases who are recovering and therefore a gradual drop in the number of active cases, mostly amongst staff rather than residents in those settings. Overall, only a few new outbreaks each day.
And the burden of our cases are really in 25 or so local government areas, so there is a concentration that remains in the north and west, but also in Casey in the south-east. So, you know, there is diminished activity in a lot of government in our local government areas, especially regional Victoria, which is how we want it to be and how we want to keep it.
Updated
And the state of disaster declaration has been extended in Victoria, in line with the state of emergency.
Daniel Andrews:
Four weeks ago we indicated stage four would need to run for at least six weeks, we only have the power to extend those state of disaster arrangements for four weeks and there was I was going to need to be an extension.
We think having both of those frameworks on the same timetable is important and will serve us well when we get to announcements on the weekend about the road map, announcements on the weekend about what the weeks and months ahead will look like.
I just want to caution that doesn’t necessarily mean that either the state of emergency or the state of disaster will automatically come off on the 13th, so I don’t want people to read into the alignment that those measures will all of a sudden expire on the 13th.
Those decisions and that road map out, indeed, multiple roadmaps for regional Victoria and metropolitan Melbourne will be driven by the data.
Mystery cases versus where we know where the source, the volume of cases as well, all of those issues are the ones that will drive Brett Sutton’s advising the advice of his team and the decisions the government takes.
The state of emergency essentially are the rules that are the formality that sits behind the many state of disaster provides for the appropriate enforcement of those rules.
Under the state of disaster, if a party was going on at a house, the powers for police to enter and deal with those issues, they are derived from the state of disaster. Oh, just to be clear, they are now aligned.
They have been extended and they need to be renewed on September 13. We will have more to say about that on Sunday, when we really is the road map out of this can wave.
On the total case numbers in Victoria, Daniel Andrews says:
There are some 2,415 active cases across the state.
In terms of usual updates, the regional number, there are now 125 active cases in regional, local government areas that are operating under stage three, that number continues to fall and is very pleasing.
We have always made a priority of trying to drive that number down as low as possible so that we can keep the case numbers and the virus experience in regional Victoria very, very different to what it is in metropolitan Melbourne.
Both strategies are working, but it’s very important to see those numbers continue to fall and I’m deeply grateful to our original Victorian is coming forward to getting tested, following the rules, playing their part in driving those numbers down further.
Greater Geelong, as you know, we have been quite concerned about Greater Geelong, there are 40 active cases there, a decrease of 10, and no new cases.
In Greater Bendigo, eight active cases and no change and greater Ballarat has five active cases and similarly, no change.
Those numbers will continue to fall as people work through the relevant period and are then cleared as a recovered case.
Aged care outbreaks, 1177 active cases, 97 active outbreaks of a total, looking back to January one, 163 outbreaks.
Updated
Daniel Andrews press conference
Daniel Andrews:
Sadly, there have been now 576 Victorians who have lost their life because of his global pandemic.
That is an increase of six since yesterday’s report, three of those deaths occurred prior to yesterday.
Of course, our thoughts and best wishes, our prayers and sincere condolences eye with those six families, this has been an incredibly difficult time for them.
And we send our best wishes to them.
Those six fatalities are made of five males in the 80s and one male in their 90s
All related to outbreaks in aged care facilities. There are 416 in hospital, all of them receiving care, 13 on a ventilator. 2,448,952 test results have been received since the beginning of the pandemic, that is 13,912 results since yesterday.
I want to pause and appeal to every Victorian who even the mildest of symptoms was that it is so important into how much of the viruses is there, it’s patterns and is critically important in us having as much certainty as possible when it comes to making very important decisions about that road map to open up.
So please, if you have any symptoms whatsoever, come and visit one of the more than 190 sites across the state was that if you cannot get tested, we can come to you.
The turnaround time is much faster now than it has perhaps ever been, with the majority of those results back within 24 hours. It is a simple message but an important one as well.
If you have any symptoms whatsoever, as soon as the symptoms begin, please come and get tested. It is essential to us defeating this second wave.
Labor’s Jim Chalmers had a sunny message this morning, as he dropped by doors:
Today will be a really dark day in the history of this country. This Morrison-Frydenberg recession is deep and it’s devastating for millions of Australians and their families. We’re in the teeth now of a full blown jobs crisis but the Morrison Government still doesn’t have a jobs plan to respond to it. Already one million Australians are unemployed and the Government expects another 400,000 Australians to join the unemployment queues between now and Christmas.
The Government’s got a plan to wind back JobKeeper, to freeze the pension, to cut super, to cut wages, and to point fingers at the states but none of those things will get the economy going again or create jobs again in this country. It’s a plan for jobs that we desperately need.
It won’t be especially surprising to learn today that the economy’s in a deep recession; the surprising bit is that the Morrison Government doesn’t have any new ideas to deal with it. We know that unemployment has been rising even since the period covered by what will be some devastating National Accounts today.
We call on the Government to stop creating distractions, to stop pointing the finger, creating diversions, shifting the blame, cutting super, wages and pensions, and instead to come up with a genuine comprehensive jobs plan to deal with the deepest, most devastating recession in our lifetimes.
The numbers today will be the worst we’ve ever seen on record. If numbers like these can’t prompt a comprehensive jobs plan from the Government then nothing will.
The time for Morrison and Frydenberg to tell Australians how bad things are is well and truly over. Australians already understand that the economy is a mess and this recession is deep and devastating. What Australians desperately need to hear from the Government today, not just in the October budget, is a plan for jobs.
You may have noticed Labor ran back to back motions to suspend standing orders in the House this morning.
It has been a long time since we have seen that in the House – when parliament has sat during the pandemic, there has been a focus on bipartisanship.
But then the government gagged debate on the higher ed bill in the House last night, and Labor has taken that as acknowledgement that the gloves are off.
So don’t be surprised if you see more of what happened this morning for the duration of this sitting.
UNBELIEVABLE! Govt are gagging debate on university changes. At the heart of this bill is a $1billlion cut to govt funding of universities. No wonder they don’t want people to know
— Tanya Plibersek (@tanya_plibersek) September 1, 2020
Updated
Just going through Tony Abbott’s parliamentary biography and found this title I had forgot he had held.
- Minister for Health and Ageing from 7.10.2003 to 3.12.2007.
I guess “all lives matter” and “every life is sacred” doesn’t include those who are no longer contributing to the economy.
Updated
There are a number of proposed amendments to the political donation bill.
Labor has moved a symbolic second reading amendment calling for the donation disclosure threshold to be lowered from $14,300 to $1,000. The Greens are moving a substantive amendment to do the same thing – challenging Labor to vote in line with its policy and take action to lower the threshold.
The Greens believe they have crossbench support. But senator Larissa Waters tells the Senate it “remains to be seen” if Labor will vote for it and the Greens are “not sure” if they will vote for it.
The other amendments are:
- Labor’s bid to delay the bill’s commencement to 1 December
- Jacqui Lambie’s bid to cut out immunities from state donation laws
- The Greens clarification that polling attendants can’t ask voters for ID
- An extremely ambitious sheet of Greens proposals to ban donations from banks, defence industry, pharmaceutical companies, mining companies and others
Updated
Just for context, the last time Australia was in recession, Nevermind was released.
Everything I Do (I Do It For You) was the No 1 song of the year.
And Terminator 2 was the biggest film.
1991 was a big year.
Updated
That motion to suspend standing orders in the House is getting a bit of attention because of how long it ran for before the government pulled it up.
Chris Bowen also moved to suspend standing orders.
So that was two motions to suspend standing orders in the House, and one from the Greens in the Senate.
Greens pushed today for 14 days paid pandemic leave for all workers.
— Adam Bandt (@AdamBandt) September 2, 2020
Insecure work is spreading coronavirus & all workers need paid leave.
Thanks Labor & Jacqui Lambie for supporting. Support is growing & we fell only a few votes short this time, but we’ll keep fighting for it. https://t.co/flVnV3EQA0
Updated
Here you go (thanks Brett)
How many minutes? @JasonClareMP's motion relating to @MichaelSukkarMP #auspol pic.twitter.com/sgaMfelM4A
— Brett Mason (@BrettMasonNews) September 2, 2020
Over in the House, Labor’s Jason Clare attempted to move a motion against Michael Sukkar.
It failed (as they all do in the House – the government has the numbers) but it looks like the government MPs were a little unprepared for the motion to suspend standing orders, as Clare got in a lot of digs in his preamble, including repeating 60 Minutes a bunch of times and ending with “tick, tick, tick”.
Updated
The greatest nation on earth (Queensland) will be confirmed as hosting the AFL grand final for the first time it is played outside of Melbourne, at 1.30pm.
The Greens have moved a suspension of standing orders in a bid to derail the first order of Senate business today – a political donation bill they fear will weaken state donation disclosure laws.
Labor has indicated it could support the bill – provided amendments are made to delay its start to after the Queensland election, and specifying state political parties must keep separate accounts for state and federal campaigns.
Nick McKim said it was a bill to facilitate the “laundering of political donations” – but Labor supports it because it agrees with the Coalition that federal law should apply to federal donations.
The suspension was defeated by 25 votes to 22, with Labor, the Greens and Jacqui Lambie voting together but PHON paired with the government and Stirling Griff and Rex Patrick not voting.
So now we’re debating the bill.
Don Farrell confirms Labor will support the bill.
Updated
Have you noticed Labor party MPs have really ramped up their social media presence, as well as how they present their messages?
We are in the teeth of the deepest recession on record and a full-blown jobs crisis, but the Morrison Government still doesn’t have a comprehensive jobs plan. My conversation with @frankelly08 on @RNBreakfast #auspol pic.twitter.com/Rklsz50dri
— Jim Chalmers MP (@JEChalmers) September 2, 2020
Political parties have cottoned on to how people receive messages, and what is the easiest way to get that message out during a scroll – what will make you linger for a second, and how to get you to take it in during that second.
Anyone who doesn’t think the election campaign hasn’t started isn’t paying attention.
(Side note, the Queensland government has been running ‘unite and recover’ for the past couple of months, which includes very smiley photos of the premier and different MPs/ministers - that election campaign has been on since June. The election will be held on 31 October.)
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Kristina Keneally has found a way to link Tony Abbott’s comments to Richard Colbeck’s performance as aged care minister.
It’s a bit of a long bow to draw, but here we are:
Yesterday Richard Colbeck told us there were over 460 deaths in aged care in Australia. One kerosene bath under John Howard, the aged care Minister Bronwyn Bishop loses her job. 460 deaths in aged care under Richard Colbeck and what does the Government do? Defend him. He has still got his job.
Richard Colbeck is the Minister for Aged Care but really he’s the Minister for Walking Away. He walked away from the Senate. He walks away from media conferences. He walks away from journalist’s questions. He walks away from accountability. The only place Richard Colbeck should be walking is back to his office to clear his desk; do the honourable thing and resign. There is an aged care crisis in Australia. There is no plan to manage coronavirus – the Royal Commission told us so, the New South Wales Government told us so. But what do we have? We have a Minister for aged care who shrugs his shoulders and says “death is a function of the aged care system”. Not my words; his words – “death is a function of the age care system”.
We heard Tony Abbott, last night, and I’m going to read Tony Abbott’s actual words. Tony Abbott, the former Prime Minister, who presided over cuts to age care, Tony Abbott said last night about coronavirus and aged care: “It has never stopped families from electing to make elderly relatives as comfortable as possible while nature takes its course.”
Tony Abbott is calling for Australian families to take a decision to just make their relatives as comfortable as possible while nature – coronavirus – takes its course. That’s appalling. By Tony Abbott’s standards Richard Colbeck’s doing a fine job, because Richard Colbeck is just letting old people die. He’s just letting old people die in residential aged care.
And by the way, Richard Colbeck has failed not just with the coronavirus but with the aged care system for the entire time he has been in the portfolio. Last year, a Royal Commission report called “Neglect”. Neglect, just focus on that word, let’s understand what neglect means why the Royal Commission said neglect under Richard Colbeck was what was happening in our aged care system.
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The Victorian hotel quarantine inquiry is also on again today.
Security contractors will be appearing today.
And these rumblings are getting louder too
Desperate need for an independent inquiry into inequity and abuse of JobKeeper seeing reports of companies rorting-workers exploited,exec bonuses; universities and many casuals excluded while churches and others eligible. System really only as good as its integrity
— John Hewson (@JohnRHewson) September 1, 2020
This is still playing out in the Senate
BREAKING: I've moved to suspend Senate business to urgently bring on the Greens Paid Pandemic Leave bill so we can protect workers & public health and provide 14 days of paid leave. Parliament doesn't sit again until Oct. Time to get it done. #auspol
— Mehreen Faruqi (@MehreenFaruqi) September 1, 2020
Ahhh - set up in a different time
Economics Committee Chair @TimWilsonMP has announced that the next round of hearings with Australia's four major banks will focus on the way these institutions have dealt with the pandemic. @ANZ_AU and @CommBank will appear this Friday, with @Westpac and @NAB up next week. pic.twitter.com/z4XzrA9V6Z
— Australian House of Representatives (@AboutTheHouse) September 1, 2020
Jacqui Lambie is having a go at the major parties for having the electoral matters bill first up on the agenda, in response to Mathias Cormann saying there was a time and place to discuss pandemic leave, and does not need to suspend standing orders.
Over in the Senate, the Greens have moved to suspend standing orders – they are trying to push a motion for paid pandemic leave across the nation.
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The bells are ringing for the second last sitting day until 5 October.
I’m going to need a stronger coffee.
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You’ll be hearing a lot about this today too.
(Although there is plenty from the 1930s we should not be repeating.)
In a few hours, we’ll officially get the news that Australia is in recession, for the first time in a generation. Just as in the 1930s, the priority should be jobs, jobs, jobs. My op-ed today: https://t.co/JQ6lf6mIOt #auspol #canberra @ABarrMLA pic.twitter.com/DHxa3Ddwhx
— Andrew Leigh (@ALeighMP) September 1, 2020
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People – keep going to your doctor for your regular health check-ups.
Worried about something? Go get it checked. If you don’t want to, or can’t, attend a doctors’ surgery, chances are there are tele-health options.
The Royal Australian College of GPs has put out this announcement this morning.
The RACGP has partnered with Jean Hailes for Women’s Health Week, running from 7 to 11 September, and is asking women and their GPs to use the week to review and schedule any health checks that may have been missed over the past months.
MBS data reveals a decrease of nearly 24% in the number of female face-to-face GP attendances from March to June 2020, compared to the same period last year. For the most common GP item number 23, a consultation lasting less than 20 minutes, the decrease in female attendances was more than 26%.
There was also a near 14% decrease in select women’s health MBS services from March to June 2020, compared to the same period in 2019.
A number of telehealth items have been created for women’s health including, pregnancy support, antenatal and postnatal attendances. When these services and the face-to-face equivalents are combined and compared to face-to-face services provided in March to June 2019, there has been a 4% decrease, even when telehealth is factored in.
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Victoria police have fined 129 people in the last 24 hours for breaking social restriction rules.
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Or there is just this direct approach:
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Anthony Albanese decided to drop by doors for a quick “here is the message for the day” rundown:
The national accounts will confirm today that Australia is in the first recession in three decades.
And still, we don’t have a jobs plan from this government.
The government needs to address the fact that there’ll 400,000 additional unemployed, on top of the one million who are unemployed between now and Christmas.
And the government still fails to come up with a jobs plan.
They push through legislation through parliament, which could see low wage workers paid less than jobkeeper, a $300 cut, potentially, in their wages.
And that is a real concern, as well.
And then lowering jobkeeper and jobseeker prematurely, what they’re doing as well is taking money out of the economy, which will, of course, lead to a deeper and longer recession.
I want to also comment on Tony Abbott’s regrettable appearance in the United Kingdom last night.
The fact is, there are over 450 Australian families who are grieving lost ones, who have lost their lives while being residents of aged care to Covid-19.
Tony Abbott was never known for his compassion.
This is a new low.
This is someone who was a member of the Morrison government and had the privilege of being the prime minister of our country. And to make the comments that he did, I think, will cause a great deal of hurt for Australians who read those comments, particularly the families of those who have been impacted by Covid-19.
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John Barilaro also had some words for Annastacia Palaszczuk:
Reading this morning that the AFL grand final announcement will happen in Queensland, 400 AFL officials from coronavirus central, which is Melbourne, will go across the border into Queensland, yet a young family can’t get emergency healthcare across the border*, I think Annastacia Palaszczuk continues to show politics trumps good policy and I think she is un-I doing all her good work.
*Emergency healthcare is still available. It has not been stopped.
Barilaro continued:
How can you justify officials from Melbourne for an AFL grand final announcement and the AFL grand final, and the finals themselves, out of the one area that we know that coronavirus has community spread like we have never seen anywhere in this nation and yet that young couple we spoke about last week, other examples of that happen each and every day.
So I don’t get it.
I don’t understand why the premier of Queensland can’t see it.
Show some heart.
Show some ability to understand the impact this is having and understand that that Queensland border is a seamless border. Health services are delivered in NSW for Queenslanders and vice versa.
It has become now a bit of a joke that these borders are becoming a real problem for those communities that live on those borders.
This is not about just Queensland verse NSW.
It is not State of Origin, it is about people.
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NSW deputy premier John Barilaro thinks Sydney needs to cancel its New Year’s Eve fireworks – because regional towns are having to cancel their events (the Tamworth Country Music Festival is the event in question here).
He told the Nine Network:
I don’t want to see it happen but the reality is, mate, how can you attract 1 million people to the harbour shores and do it in a safe way?
We know it won’t happen. We have seen what is happening in Victoria, the impact it will have on our resources, on the community.
The risk is far too high. People are making plans for Christmas now and for New Year’s.
It is better flagging this early. I’m in Tamworth. The Country Music Festival has been cancelled until next January. This is the reality of the pandemic.
He says he doesn’t think it is too early to make the call:
No, I don’t think it is because many families will be making decisions about what they do over Christmas and New Year’s. They will be booking restaurants, cafes, hotel, accommodation at significant cost to family budgets. If the drawcard is the fireworks and then you made a final decision to not go ahead with it, that would be the wrong thing to do.
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The Department of Foreign Affairs and Trade says it has been working on the legislation to review and cancel international agreements for about two months
The powers were announced by Scott Morrison and Marise Payne last week but the legislation is yet to be released.
Simon Newnham, Dfat’s chief legal officer, was asked about the matter during an appearance before the joint standing committee on foreign affairs, defence and trade:
“The department has been working on the legislation for approximately two months … from the beginning of the process … It was approximately late June, early July.”
Asked if the bill was ready to go, Newnham said it was “ready to be introduced [into parliament] this week and that’s the schedule for introduction”.
Dfat officials were also asked whether they had ever advised a state or local government not to pursue a third-party agreement or MOU with a foreign country.
Frances Adamson, the secretary, said Dfat had provided advice about MOUs when its advice was sought, but she could not recall an instance where it had given “strict advice” telling a government not to enter into such an arrangements.
Adamson said there was a particular instance where Dfat had advised on “the inadvisability of moving ahead”. She did not explicitly say whether this was the Victorian Belt and Road deal.
Adamson said the reason for the introduction of this new legislation was “to ensure there is a uniform approach” consistent with Australia’s foreign relations interests.
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You may have noticed in some of Mathias Cormann national accounts commentary this morning a bit of forward managing of expectations, for what will happen in later quarters.
That’s because this quarter is thought to show a small bounce (from the first half, before the Victorian lockdown came into force).
But the government supports will start to be wound back in coming months, which is going to have a pretty big impact.
So no matter what the numbers are today (out about 11.30) remember there is still worse to come.
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Here is how the Victorian upper house vote played out for the state of emergency declaration extension legislation
Here were the votes AGAINST.. opposition MPs and crossbenchers including @RodBarton4 @_davidlimbrick
— Simon Love (@SimoLove) September 1, 2020
Note @SamanthaRatnam is seated upstairs, after voting in favour. @10NewsFirstMelb #springst pic.twitter.com/1kGeP9AReS
In all seriousness, while the Suns are an embarrassment, Queensland has been doing a lot to build up AFL in the state, and is currently hosting 13 teams to ensure the competition went ahead, the Gabba is a great ground and it’s worked hard.
Sorry WA. Let Queensland have this one.
(Also, I will never forgive the Eagles for 2018 and that final goal in the last three minutes)
I reject the premise of this answer:
WA MP @mattkeogh isn't happy the AFL Grand Final will be in Queensland - "It's not even a football state!" #auspol @SBSNews pic.twitter.com/TTAqmhSFjF
— Brett Mason (@BrettMasonNews) September 1, 2020
In unrelated news, Matt Keogh should probably avoid the Guardian office for a bit.
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23,000 Australians still stranded overseas
The number of Australians overseas who wish to return home has risen to 23,000, Department of Foreign Affairs and Trade officials have revealed.
On 20 August officials said 18,800 Australians wanted to come home, including 15% classed as vulnerable for medical or financial reasons.
This morning, Fiona Webster, Dfat’s acting first assistant secretary of the consular and crisis management division, updated that figure during an appearance before the joint standing committee on foreign affairs, defence and trade.
Of the 23,000 who have indicated a wish to return home, the same proportion – about 15% – are considered vulnerable.
The latest figures will fuel ongoing debate about the caps on incoming passenger arrivals and the difficulties people are experiencing booking flights.
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Responding to Gladys Berejiklian’s comments from yesterday, where the NSW premier said she was yet to have a conversation about NSW’s “northern border”, in stark contrast to the regular conversations she was having with Victoria, Annastacia Palaszczuk says she has no problem working with any of the leaders.
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Queensland premier Annastacia Palaszczuk just pulled out a “I reject the premise of your question” (a favourite of the prime minister) proving its not just Covid which is contagious
Queensland has recorded two new cases of Covid in the last 24 hours.
Both are linked to known cases and are in isolation.
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Victoria records 90 new cases and six deaths
The official numbers are in.
#COVID19VicData for 2 September, 2020:
— VicGovDHHS (@VicGovDHHS) September 1, 2020
There were 90 cases and sadly 6 deaths reported yesterday in Victoria. Our condolences to all affected. More information will be available later today via our media release. pic.twitter.com/pJONuMg8SW
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Anthony Albanese is also asked whether he would renationalise the Darwin Port.
That stems from this story, from Murph:
This is a test for the government.
What we’re saying is, if you’re serious about a national [interest] ... I can’t think of any infrastructure in the country that is more central to our national interest, and particularly our defence then the port of Darwin.”
Asked if he would renationalise it (repeatedly) he says:
I would never have sold it, I would never have sold it.
We’re going to wait and see the legislation, we’ll see what prospects there are for amendments to the legislation, but we’ll hold the government to account on its own rhetoric and we’ll see whether they are serious or not.”
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Over on ABC radio with Sabra Lane, Anthony Albanese is a lot more forthright on the issue of Tony Abbott’s comments:
I think that Tony Abbott’s comments are most unfortunate.
He was never known for his compassion, but really, this is a new low for Tony Abbott.
Mathias Cormann was also asked about Tony Abbott’s comments:
Cormann
Tony [is a] distinguished former prime minister, but these days he is obviously not taking direct responsibility for the affairs of our nation, he’s providing commentary.
We are focused on doing the right thing by all Australians and we are fighting this virus on two fronts. The health front and the economic front.
We’re fighting to protect people’s health, to save lives, as well as to save livelihoods. We’re doing that to the best of our ability.
There’s no script, or playbook, on how this is best done.
Q: You don’t have a view on [this]? Lots of other people do this morning. Tony Abbott is essentially saying, well, it’s potentially OK to sacrifice older lives, these people in nursing homes were going to die anyway, to protect the livelihoods of younger Australians. What do you think of that sort of overarching approach?
Cormann:
It’s not the approach of the Australian government. The Australian government working with states and territories governments has been totally committed to suppressing the spread of this virus, to protect people’s health as well as to protect people’s livelihoods.
I mean, it is true that we got to find a way into the new normal and into the strongest recovery as soon as possible, but we got to do so in a way that is Covid-safe.
We cannot do it sacrificing the health and the lives of any of our fellow Australians.
I mean, we got to minimise the risk of further outbreaks and further infections to the best – to the largest extent possible – but we also have got to maximise the strength of the recovery in a way that is Covid-safe.
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Mathias Cormann is now on ABC News Breakfast.
He is asked about companies receiving Jobkeeper paying out bonuses to company executives. It is not something he wants to talk about:
Q: It’s been revealed in Federal Parliament that companies often very big company receiving that taxpayer-funded JobKeeper subsidy at the same time paying their executives very large bonuses. Is that right?
Cormann:
Well, you know, the JobKeeper program has been put in place in the way that was very simple, very straightforward and very efficient and the most important test on whether or not a company qualifies for JobKeeper is whether they experience a drop in turnover of about - of 30% or 50%, depending on their level of turnover. If that is the case, then they are able to access a wage subsidy towards the wages of their...
Q: That wasn’t the question. And speaking of tests - do executives getting these bonuses from companies receiving JobKeeper pass the pub test?
Cormann:
In the end that is a question for those companies.
Q: Do you think it’s right? Do you think it’s right for these companies to be doing this?
Cormann:
I’m not going to provide commentary on this. In the end, we provided a program which was deliberately simple and which was rolled out very quickly at large scale, but individual businesses have to justify their actions to their shareholders and to the community.
Outgoing finance minister Mathias Cormann is doing the media rounds this morning, ahead of the National Accounts being released.
He seems to have been given the ‘manage expectations’ brief.
Here he is speaking to the Seven network:
If you look at what is happening towards the end of June and July, we were certainly heading in the right direction.
Jobs were being restored across the economy and across many sectors of the economy, activity was picking up.
Then, of course, the outbreak in Victoria happened, so, what we desperately need is to continue to get on top of the outbreak in Victoria to maintain the situation everywhere else and open up the economy everywhere else as soon as we can.
The national accounts will be released at 11.30am.
The last quarter showed a 0.3% contraction (on seasonable adjusted terms).
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While we are on low-paid workers, it has been amazing to watch people learn aged care workers often work at more than one facility.
When this is all over, we could probably do with some education about how some jobs work in Australia, and what that means for the workforce.
And then a wider conversation about how some industries work, and whether that still works for us as a society.
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It is also early childhood educators’ day, which means we are going to hear a lot of MPs thank some of Australia’s lowest paid workforce. They’d probably prefer conditions which would allow them a payrise though.
The Parenthood’s executive director, Georgie Dent, agrees and says thank you is not enough:
This year, even more than ever, the work of early educators needs more than a public acknowledgement, it needs to be valued appropriately.
This workforce has found itself on the frontline of a health pandemic and have continued to offer invaluable education and care to young children while dealing with unprecedented uncertainty and instability as a result of coronavirus. The least these skilled workers deserve is a safety net.
Early educators remain among the lowest paid workers in Australia despite being qualified and delivering an essential and hugely valuable service. These workers put themselves in danger for months to ensure children could have the education and care they deserve.”
Jobkeeper is the safety net that has enabled millions of Australians to cope with the unexpected loss of income they’ve experienced since March. Taking it off early educators was cruel even before the situation in Victoria escalated.
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On the flipside, is this story from Daniel Hurst, on how the pandemic has fuelled authoritarian regimes across the world:
As [Dfat] officials prepare to face a parliamentary hearing on Wednesday, Dfat has also acknowledged “clear differences” exist in the relationship with China, while insisting Australia seeks a constructive partnership “that is not defined by those differences”.
Dfat representatives are expected to spell out how Covid-19 has reshaped the global order and increased disruption and uncertainty when they address the joint standing committee on foreign affairs, defence and trade.
But in a written submission to the committee ahead of the hearing, Dfat says the pandemic has heightened pre-existing risks to Australian interests.
Global supply chains and international trade have been disrupted, major power strategic competition has sharpened, and protectionist and authoritarian trends have been reinforced,” the submission says.
“The impact in developing countries is likely to be deeper and more prolonged, which will have implications for the security, stability and prosperity of Australia’s region.”
Meanwhile, Tony Abbott is making headlines again.
It should not surprise anybody that he is of the ‘let it rip’ brigade:
It’s a bad time for anyone with the virus, but it is also a bad time for people that would rather not be dictated to by officials, however well meaning,” he said in a speech at the Policy Exchange thinktank in London.
“In this climate of fear it was hard for governments to ask ‘how much is a life worth?’ because every life is precious, and every death is sad, but that has never stopped families sometimes electing to make elderly relatives as comfortable as possible while nature takes its course.”
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AAP has an update on the barley issue in China:
An Australian barley cooperative has found no evidence to support China’s claim it found pests in its exports, which have now been suspended.
An Australian barley cooperative is “extremely disappointed” after China suspended its exports, claiming pests had been found in its shipments multiple times.
CBH Grain Pty Ltd, which is based in Western Australia and is the nation’s top grains exporter, has confirmed it was notified by the Australian government it had been stopped from exporting barley to China, effective September 1.
The decision by China’s General Administration of Customs (GACC) was made - it said on its official WeChat account on Tuesday - after quarantine pests were found in its barley exports multiple times.
“In recent months, CBH was advised by the Australian government that GACC had notified them that several CBH barley cargoes, that had already been discharged in China, did not meet phytosanitary requirements,” the cooperative said in a statement to its 3,900 growers.
“CBH has not found any evidence to support these claims.
“The cargoes were all retested and it was confirmed that all cargoes met Australian government phytosanitary export requirements.
“CBH is therefore extremely disappointed the suspension has been put in place and will continue to work with the Australian government to challenge the suspension.”
CBH said the government was notified of China’s decision on Monday and it was advised on Tuesday.
The move comes after China levied hefty tariffs on Australian barley cargoes and launched probes into Australian wine imports, amid worsening relations between Beijing and Canberra.
China in May imposed anti-dumping and anti-subsidy duties totalling 80.5 per cent on Australian barley imports, effectively halting a billion-dollar trade.
China has also retracted CBH’s registration qualification for barley exports to China, according to the GACC notice.
Although Beijing’s move to suspend barley imports from CBH did not essentially affect trade, it shows that the relation between the two countries is not easing, traders in China told Reuters.
“Impact of removing it [CBH] is limited as we couldn’t bring in Australian barley already [due to the tariff],” a China-based grains trader said.
“But it is a signal, showing that Australian firms will be in an unfavourable situation.
“People will be rather cautious when buying Australian goods now,” said the trader, who declined to be named as he was not authorised to talk to the media.
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Good morning
It was a late night for the Victorian parliament – but Daniel Andrews and his government got their extension for the state of emergency declaration – but in the end, it was only for six months, not 12.
Which is what some, including on his own side, thought should have been asked for in the first place.
And Andrews will have to explain each month why the declaration is being extended.
So a compromise, but a win, given that allowing the state of emergency to lapse would have created entirely new issues in dealing with the pandemic.
Victoria is on track for two sets of restrictions lifting in about two weeks time. Regional Victoria will be on a different timetable and see life resume something closer to normal, while Melbourne residents are going to see freedoms handed back at a more careful rate.
That’s because Covid is manageable in the regions, but there are still mystery cases in Melbourne. Plus, while Melbourne had 70 cases yesterday, it had a much lower testing base – just under 10,000 tests were done, and authorities want that number to be around 20,000 tests a day, so they can work out where the virus still is.
In NSW, it is the Sydney CBD cluster which is keeping authorities on their toes. The number is staying low, but new cases are still popping up, which is worrying NSW Health and government authorities.
In Queensland, things are looking a little calmer – and the AFL is expected to announce the grand final will be held in Brisbane, meaning Perth missed out on the first non-Melbourne grand final.
Nothing is officially confirmed as yet, but Gillon McLachlan is in Queensland today to “make an announcement”. Gee. I wonder what that could be.
Meanwhile, in the federal parliament, all eyes are on the national accounts, which are expected to confirm Australia is in recession.
The government has already accepted it – and have been speaking of Australia’s recession for months. But the numbers are still going to hurt a party which was so excited over its budget that it had a black and white “back in black” photoshoot while the budget was still in the red and sold “back in black” mugs in its gift shop.
We’ll keep you updated across the day with all that happens. You have Amy Remeikis with you today.
Ready?
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