Sukkar:
We are living in unprecedented economic times and for that reason, the government over the last ten days, has injected in one form or another, economic stimulus or economic support for our economy of $189 billion.
Most recently yesterday, we announced a $66 billion package. As the Prime Minister and Treasurer said, to support individuals and to support businesses during this very difficult time of the coronavirus pandemic, and to build a bridge and to create a bridge to get to the other side so that as many individuals and as many businesses can get through to the other side as unscathed as possible. That support yesterday involved support for households, whether that being an additional $750 payment for those on income support, a new coronavirus supplement of $550 per fortnight, bringing total support for individuals, for casuals, for sole traders, for people who are on unpaid leave, indeed anyone who has suffered a greater than 20 per cent loss in income up to more than $1,100 per fortnight of support to get them through this difficult time.
We’ve also included cash payments of up to $100,000 for businesses with a turnover of $50 million or less, in order to support them to keep as many of their employees employed and to the greatest extend possible, their business in business.
I also wanted to reiterate the outcome of the National Cabinet last night. That outcome involves restrictions on individuals and in this respect, the list is very clear. I want to outline what will close today. Pubs, registered and licensed clubs, and as the PM said, excluding bottle shops attached to those venues, hotels, but of course excluding accommodation, gyms and indoor sporting venues, cinemas, entertainment venues, casinos and nightclubs, and restaurants and cafes will be restricted to takeaways and or home delivery. We’re also restricting religious gatherings – not necessarily the worship themselves, although those gatherings will be subject to social distance policies and the four-metre rule, but other activities, weddings and funerals and the like.
Importantly, most workplaces are not restricted but are of course encouraged to apply the social distancing policies that have been outlined previously.
So, the Morrison government is doing all that we can through the National Cabinet and is working in concert with the states to ensure that we’re able to get on top of the health issue which of course is spiralling into an economic issue. We’re dealing with that through an unprecedented intervention - $189 billion over the last ten days to support the Australian economy to keep people in jobs and businesses in business.
Journalist:
The Government has flagged rent assistance for people so that they don’t end up homeless. Obviously that package is still being worked through. Is there any update on when we might see the details of that?
Sukkar:
Well importantly, the announcement yesterday with respect to the coronavirus supplements, also means that a number of people will become eligible for a range of other assistances whether it be assistance with Commonwealth Rental Assistance or low-income health care card and the like. That’s why I say that the entire value of the coronavirus supplement and related package for some people will be more than $1,100 per fortnight. We’re obviously working very closely with the States and the National Cabinet on tenancy arrangements. Tenancies laws are ultimately administered and governed by state governments, so we are keen to do something at a national level, in uniformity and in a way that the national cabinet can agree to.
Journalist:
What about the people that are ineligible for those bonus payments? Would you say that you’re still working on those tenancies arrangements but would you say that they won’t be kicked out of home?
Sukkar:
Our intention is very clear here. Whether you see our actions with the banks in putting a pause on people’s mortgage repayments, whether it’s somebody who is under rental stress – whether that be a commercial tenant or a residential tenant – we – to the greatest extent possible – believe that in this unprecedented time, we should be pressing the pause button for want of a better term, on the type of decision that would cascade through an individual or through a community.
Journalist:
So, some people won’t see these payments for a month. What if they run out of money in the meantime?
Sukkar:
Well importantly, the entire $189 billion package includes support that begins flowing immediately. Obviously, people who are eligible for the first $750 payment will be eligible to receive that from eight days’ time. Also importantly though, through a $105 billion injection into the banking system, we’ve been able, partly, to strengthen the banks to allow them to ensure that individuals and particularly small businesses, are able to access hardship arrangements and are not required for at least six months, to repay principle or interest on their loans and I know that the banks are doing a lot there as far as immediate assistance for individuals. Then, the small business payments, whether it’s payments that are received in the next BAS statement on 28th April and thereafter, will be receiving regular assistance. So, this is not about necessarily dropping it all on day one. It’s regular assistance that has started immediately and will ramp-up from eight days time with a $750 cheque, and that assistance just continually gets delivered.
Journalist:
Are you doing enough about getting more ICU beds? I mean we’ve got 2,000 out of a population of $26 million and the medical authorities say that it could spread to 60 per cent of the population. Do you think that 2,000 beds is enough to deal with a population of say 18 million people infected by the virus?
Sukkar:
Well the medical efforts to date…interrupted.
Journalist:
Are inadequate? Would you say that?
Sukkar:
Certainly not. The medical efforts to date are about ensuring that as few people need an ICU bed as possible. That is what these measures that I’ve just spoken about, relate to. These are the outcomes of last night’s National Cabinet. That is, to ensure that to the greatest extent possible, we limit social gatherings that are likely to spread the virus, which means you need fewer beds. So the reality is that all of the efforts are being put into it whether it is the medical stockpiling or the capacity of hospitals, that work is being done and I’m very confident that we will be able to offer the sort of health care that Australians expect. But equally, the job now is about ensuring that as few people as possible get ill, therefore as few people as possible require an ICU bed, which therefore means there’s less pressure on the entire health system. That is the objective and the clear objective of the National Cabinet.
Journalist:
But in Italy, they said that two weeks ago but now you’re getting 400 deaths per day there. The medical health officer here said we could expect up to 150,000 people dying before this virus finished in Australia.
Sukkar:
Well I’d caution against that sort of talk which I certainly haven’t heard from the Chief Medical Officer. I think that is not useful at this time. The advice from the Chief Medical Officer and all of the state medical officer in concert, is that the job now is to ensure as few people as possible need an ICU bed, that’s the objective, and at the same time – and this is perhaps where I don’t necessarily disagree with your point – building up the capacity of our hospital system in the event of a worst-case scenario.
Journalist:
With respect, should you try and pull out all stops to super-charge the hospital system right now?
Sukkar:
I can assure you that the National Cabinet of Commonwealth and the States and Territories, to use your language, are pulling out all stops. I don’t think anyone can accuse the Commonwealth Governments and the state governments of not doing that. We’re working very hard on preparing the capability and increasing the capability of our health system but at this time, it’s about taking measures that put as little pressure on our health system as possible.
Journalist:
A second question about the measures. $100,000 for businesses which was announced yesterday by the Prime Minister, that 100-grand won’t go very far. It will pay rent and a few other things but you’ll still have businesses closing, small businesses of only five people will go ‘that’s not enough to keep me open, I’ll just walk away’.
Sukkar:
If you followed the press conference yesterday, it made clear that this is a $31 billion commitment. Of the $66 billion, this is the single largest component of that package. Now, $100,000 for most small businesses is going to go along way. We don’t suggest for any moment that it is going to make every single business hold. Of course not. But $100,000 for many businesses, we are confident and hopeful that it will do enough to ensure that they are able to keep their essential business structure together, to hold onto their employees as they possibly can to ensure that we can get to the other side of this health crisis and that they are able to take advantage of what we hope will be a significant recovery. But of course, the government cannot make…interrupted.
Journalist:
How big does a business have to be to get $100,000? If you’ve got staff of four people, do you get the whole $100,000 or do you only get a proportion?
Sukkar:
There’s a minimum of $20,000 and then it tappers up to $100,000. So, you’ll get a minimum of $20,000. Obviously, the more people that you employ, the more likely you are to max out at $100,000.
Journalist:
What is that?
Sukkar:
The assistance that we’re providing small businesses is significant, it’s in addition to a range of measures announced in the first package, whether that include super dedications for investment into plant and equipment, whether it’s accelerated depreciation, because as I said, the Government is doing everything that we can to keep businesses in business and to help them, to the greatest extent possible, hold onto their employees.
Thank you.